Third party logistic also famous as India 3 PL, these firms provide several logistics services for use by customers. Mostly, these services are integrated, or “bundled" together, so that the customer is at ease and there are growth opportunities. Basically the services that 3pl firms provide are a mix of these services- transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding. "
Third party logistics ( India 3PL) firms prove to be a great help in today’s supply chain management firms. Normally these companies offer services that can allow businesses to outsource part of all of their supply chain management function.
The services that are usually offered by the 3pl companies are as follows:
- inbound freight,
- freight consolidation,
- warehousing, distribution,
- order fulfillment
- Outbound freight.
The main reason for outsourcing the logistic firm related to supply chain management growth of 3PL firms, as companies want to outsource their work to experts and focus on core business activities.
A good 3pl firm offers an opportunity of practicing just-in-time techniques, which helped to reduce cost on warehouse and other overall cost the company was spending on Overall costs.
As companies saw the benefits of outsourcing delivery and warehousing functions, the number of third party logistics companies began to increase offering an ever increasing number of services.
Deciding to a use a third party logistics company is a decision that depends on a variety of factors that will certainly be at variance depending on business.
After the decision to outsource is final a good research on choosing an experienced firm is for sure with the right partner. The three common types of third party logistic firms are as follows:
- Asset Based: Asset based India 3PL Company’s use their own trucks, warehouses and personnel to operate their business.
- Management Based: Management based companies provide the technological and managerial functions to operate the logistics functions of their clients, but do so using the assets of other companies and do not necessarily own any assets.
Integrated Providers: The third category, Integrated Providers, can either be asset based or management based companies that supplement their services with whatever services are needed by their clients.
Thus choosing the correct India 3PL service provider will help you to improve the overall performance of the entire firm.