The third party logistics sector is a rapidly advancing sector that further rises up in the graph ratio along with the passing time. With an estimated ginormous valuation of $50 Billion, the logistics scenario of the country is one of the largest in the world. Seeking assistance of third party companies lessens the strain on the resources of the already saturated logistics companies. A formal definition of third party logistics would be that of a company that behaves in a manner like an agent would, to overlook the logistical aspects that pertain to another company or a group of companies.
Upon undertaking a particular project, third party logistics companies assign teams that work in harmony to relieve the client companies of their logistics requirements. They dedicate immense efforts in researching the client company and imbibe the followed work ethics and practices. A comprehensive strategy is constituted for the prospective logistical POA. This includes studying the client business, their distribution model and supply chain and maintaining integrity throughout the planning process.
This meticulous planning procedure is conducted so as to allow the tracking of all supply related activities and making it available via requesting assistance from one windows; who is rest assured, reliable. delivery
Being the vast market it is, India’s expenditure on third party logistics accounts for a total of 3 percent of the total logistics cost. Combined with the ongoing growth, it is estimated that the nation is only to expect a further rise in oncoming years. Analysts indicate that the sector is imminent in witnessing a boom, with growth figures scaling at over 20 percent annually, within the next half decade or less.
Facts and figures in study reports direct to the notion that the nation’s outsourcing activities can be broken down and categorized. Warehousing and transportation of goods, customs clearance of inbound transfers and export practices are frequently outsourced by Indian companies.
This is especially the case when it comes to high value logistics. In the transport of precious cargo to say, jewellery exhibitions, there is a lot more than mere transportation that is required. Security, authenticity checks and guarding are as important as the exhibition itself. Third Party logistics take care of not just those factors but also tend to the issues pertaining to the customs clearance services that are required to pass the goods into the required geography.
Third Party Logistics, or 3PLs as they are popularly referred to, are indispensable assets and have proven time and again to be of immense value. Hiring these services ensure that a company can work on other services that demand their proprietary attention, whilst remaining carefree about secondary aspects that include the secure and timely displacement of goods and products.