3PL service provideWarehousing
Third-party logistics services provider are state-of-the art facilities providing a range of services including storage, transportation, distribution, and fulfilment services to customers. Importers, exporters, and re-exporters outsource logistical operations to 3PL businesses and avail from them end-to-end management of specific products. Such logistic and warehousing facilities are a vital part of our country’s supply chain management as they are used by a vast majority of large businesses around the world. This ultimately has huge potential to enhance India’s trading opportunities and boost the economy.
Third-party logistics services provider specialises in different parts of the supply chain, including procuring goods from elsewhere in the supply chain, providing temporary storage for goods in warehouses and arranging for the consolidation, deconsolidation, management, and transportation of goods.
Here are the prime ways of how 3PL benefits supply chain management.
Cost Reductions
Third-party logistics and warehousing firms specialise in logistics and hence have a more extensive network than your company’s supply chain operations. They are most likely to have exclusive relationships within the logistics industry, thus having greater influence during negotiations. Partnership with logistics firms also saves on making huge infrastructure investments as they provide in one package warehouse space, transportation, staff and tracking technology, among many other services. This way 3PL supply chain management firms are also able to minimise overhead costs by offering greater volume discounts to clients.
Team of Experienced Experts
Today’s world is a complex global market; it’s no cakewalk to integrate internal expertise in all regions and capacities required. As such, a businesses’ logistical operations can be looked after efficiently by a 3PL service provider. It has the knowledge, experience and expertise in matters like import and export, transport documentation, economic regulations, international compliance and many more. Companies looking to expand across international markets can avail great benefits, such as reducing costly delays, cutting down the cycle time, and making the entry into a new region smoother from logistics support.
Focus on External Competition
Outsourcing logistics gives businesses the leeway to focus on its core competencies rather getting involved in the management of non-core but critical functions. By partnering with a logistic services provider, organizations can avail the benefits of logistical expertise without deploying internal resources.
Flexibility To Focus On Current Business Needs
One of the core advantages of hiring a 3PL service provider is that it gives organizations the flexibility and scalability to utilize supply and distribution resources based on current business demands in the market. If sales are down, enterprises are not under the weight of redundant investments and unutilized resources, and likewise, businesses can scale up when there’s a surge in demand.
Boost Business Growth
3PL in supply chain management enable business growth and market expansion by giving organizations access to regions where they don’t have an established presence. Efficient management of inventory in a new market without investing tons on warehousing and labour not just saves money, but also enables business owners to stay out of learning the logistical nuances of a new market.
Enhanced Customer Satisfaction
All the aforesaid benefits of 3PL service providers contribute towards improved services and response time alongside on-time deliveries and greater brand reliability. The entire package translates to enhanced customer satisfaction which is the primary goal of all businesses.
OSV FTWZ creates a robust network of logistic and warehousing that connects a global eco system across markets and industries. Our supply chain infrastructure is at par with global standards and our warehouses are equipped with best-in-class material handling equipment. Reach out to us for any 3PL services.