The term third party refers to someone who is not directly involved but is providing a service. In case of logistics, when there is a need of transfer of goods from point A to point B, where both the sender and receiver are not involved in the transportation of the goods and have outsourced the service to a company that provides similar logistics. third party logistics companies in india have made it easier, fast as well as reliable for heavy movement of goods and services. A reliable third-party logistics service provider can be helpful in increasing efficiency of overall logistics of a company and hence help in positive performance of any company. It doesn’t matter if the business is small scale, medium scale to large scale, 3PL logistics is essential for any business that is into product manufacturing of any kind.
3PL caters to shipping aspects of goods. The role of 3PL begins at company warehouses which is the point of inventory management, packaging, and loading, essentially the first mile in the logistical chain. 3PL is customisable based on one’s needs. India is home to several industries like handicrafts, home run businesses, small scale business, MSMEs and large-scale corporations as well, irrespective of the scale of the goods and distances to be covered, 3PL is a need for every single business. 3PL acts as the silent player for companies in providing higher degree of customer satisfaction through managing end to end supply chain functions for a company. The post pandemic era has seen a higher dependency on 3PL logistics companies in India specifically for ecommerce logistics, inventory management and quality last mile services.
Difference between 3PL and 4PL
4PL is a step further than that of 3PL where a company uses a third party logistics that brings together various resources for capacity that can include more than just logistics, which could include technological interventions and other expertise to understand and provide efficiency to the supply chain operating procedures of a company.
While 3PL is suitable for companies that already have warehousing and processes in place, 4PL is suitable for companies that don’t have a fair experience with supply chain management and along with logistics would need consulting support and other solutions to refine processes as well.
Key functions of 3pl companies:
Transportation of goods:
This is the primary function of 3PL and most companies would depend on a 3PL company primarily for the transportation of inventory from either warehouse to warehouse or warehouse to customer. Safety through the process of moving goods from point A to point B, is what defines the quality and reliability of any 3PL company as there is a huge risk involved in case of damage or any unforeseen circumstances. Today, most companies irrespective of their scale outsource logistical services to 3PL companies as this helps them focus on the core business and at the same time leaves them hassle free from managing supply chain related complexities, which are duly taken care by 3PL companies
Global shipping:
Global shipping is a complex process that involves not just high costs but legalities as well. Here a 3PL company doesn’t only act as a carrier of goods but also helps in handling customs, border related legalities at the same time ensuring timely and proper supply chain management.
Use of Technology:
In today's date all 3PL companies work with a support of efficient and suitable technology that helps them support and organize their functioning. This helps them manage ecommerce, tracking of freights and overall warehousing operations. Technology has helped leaps and bounds over time to increase efficient management of logistical companies that has supported 3PL companies in further fulfilling needs to their customers.
It is important to choose the right 3PL service provider for one’s company as this would define the quality of service which is directly linked to the brand reputation of the company. Emiza is one of the most reliable and reputed 3PL providers in India. Emiza provides ecommerce fulfillment related services, 3PL services, logistical services for b2b ecommerce marketplaces and other warehousing services. Emiza has had a proven track record of quality and trust in the Indian market and doesn’t just believe in quality last mile delivery but also last mile customer satisfaction.
