Today’s world is more globalized than ever before, and proper supply chain management is a major priority. Using tactics like 3PL to streamline shipping in a country like India is necessary with the number of online shoppers expected to rise to 425 million in 2027.

Naturally, this will also fuel the demand for efficient supply chain management. Here, Third-party logistics (3PL) solutions will be very important in effectively meeting this demand. Businesses must use this to save costs, enhance customer satisfaction, and foster long-term sustainable growth.

But how exactly can 3PL services actually help streamline a supply chain? Well, this works in a couple of different ways, so continue reading to learn more about it.

What Exactly is 3PL?

Third-party logistics, commonly known as 3PL, is a unique arrangement for managing a business’ order fulfillment needs. A given business outsources these requirements to a third party, which manages its different logistics needs.

In this area, logistical needs cover everything from warehousing to transportation and distribution. While 3PL manages every logistics need, the manufacturer or business will oversee the entire process.

How Can 3PL Streamline Your Business’s Supply Chain?

As the popularity of eCommerce increases in India, it makes sense for businesses to use 3PL for good. With this approach, businesses can save more on costs without compromising on customer satisfaction. So, here are some of the most useful ways 3PL can streamline a supply chain:

1. Real-Time Tracking of Logistics

If you have used an eCommerce store for shopping, you must have noticed the real-time updates. These updates give you precise information about the consignment and its location at a given time. 

3PL services and solutions make this possible by helping one track statuses in real-time. This enhances customer engagement, ensures proactive follow-ups, and gives dynamic updates about the shipment’s status in real-time.

2. Meet All Customer Expectations

Customer expectations are constantly evolving, and efficient delivery is a major consideration for people. Here, 3PL helps make seamless delivery possible and automatically helps meet customer expectations.

More importantly, businesses can use this to enhance their reach and network and serve customers effectively. The fact that customers can check real-time updates about their orders also helps a lot on this front.

3. Effortless Delivery Management

Proper and efficient delivery takes a lot of effort and resources from the business. Hence, many choose to use 3PL to outsource this hassle and focus on scaling their operations.   

With automation playing a major role here, this third-party approach eliminates unwanted bottlenecks. This ensures that customers get what they need without the manager losing sleep over it.

4. Reduced Delivery Costs

The cost of delivering products is considerable, and there is no better alternative than using 3PL. You can use this approach to reduce delivery times with an extensive network and capitalise on it.

Taking this approach also helps reduce the cost of returns, which has long been a major concern for eCommerce businesses. Using a third party for better delivery also means benefiting from automation and keeping the overall costs at a minimum.

5. End-to-End Visibility

Visibility is one of the most important requirements for efficient and successful delivery. With 3PL, you get end-to-end visibility of every process and operation to make the right decision.

You can also use this tactic to monitor inventory levels and confirm orders based on availability. More importantly, this helps ensure that every stakeholder can monitor the consignment’s status.      

How to Choose the Right 3PL Solution?

Choosing the right 3PL solution or service provider is all about evaluating the right things and making choices accordingly.  Following are some of the ways to help you find the right fit based on your business needs:  

  • Customization Scope: The logistics needs of one business can vary from that of the other. There are many things that you might need to change to accommodate all needs. So, ensure that the solution has the scope to accommodate these changes and drive growth.
  • Integration with Existing Infrastructure: Every business in today’s digital world already has an existing system with all the necessary data. Hence, ensuring that the 3PL solution easily integrates with the existing infrastructure is important.
  • Available Functionalities and Features: A 3PL solution with the right features and functionalities can be a game-changer for your business. You must check if the solution has all the necessary specifications to meet all needs.
  • Scalability Potential: Another important consideration is the solution’s potential to scale and meet the needs of a growing business. As the business and its operations evolve, the solution must have the room to accommodate these changes.

Conclusion

Managing logistics and warehousing with in-house resources is not as easy as it might seem. This is where 3PL stands out as an excellent way to address potential shortcomings and realize business goals. So, make sure you use a unique approach to drive sustainable growth in your business.