Third Party Logistics – How It Benefits All Stakeholders

3pl Logistics Companies in Mumbai help manufacturers, retailers and stockists to outsource their logistics operations. This outsourcing is advantageous for all the parties involved.

The Challenge of Logistics

Logistics is nothing but managing the flow of goods and information from one point to another. It includes the dispatch of raw material from the supplier to the warehouse. The production floor collecting raw material from the warehouse and finished products reaching the warehouse and being stored. Most importantly, it is all about how finished goods reach the customer from the warehouse. Manufacturing concerns need to worry a lot about logistics and is it represents time and money.

Time is the speed at which material and goods move from one point to another. Any delay in movement can affect further processes. Money is an issue as lots of money is being spent on manufacturing the product. It needs to stored properly and moved on time so that the money can be realized from the customer. Also, certain products need special storage. In such cases, additional investments are needed, eg: cold storage. Logistics is thus a highly challenging operation for every manufacturer, retailer or stockist.

Third-party Logistics

Outsourcing has become very common nowadays in almost all areas. Organizations outsource their HR activities and accounting activities. Outsourcing in the field of logistics is thus a good solution for businesses to handle the logistics challenge. Here’s where the concept of 3PL or Third Party Logistics comes into the picture. A 3PL provider can handle a part of the firm’s logistics operations or the entire operations.

When you as a businessman outsource your entire operations to a third party, you are relieved of the tensions of how the flow of goods and storage is managed. It is now the responsibility of the 3PL entity. You need to have a contract with him outlining all the requirements and you can relax and concentrate on your core work.


Third Party Logistics has become extremely popular. In earlier days, a business would worry about how to entrust their precious goods to someone else. But today things have changed thanks to the growth of professional 3pl Logistics Companies in Mumbai and all other cities of the country. The 3PL industry is expected to reach a value of 48,000 crores by the end of 2019. One of the main reasons is the huge growth of the retail sector with leaders like Amazon, Flipkart,and Snapdeal leading the retail business.

Apart from the retail giants, there are many MNCs in India from the pharma industry and the FMCG industry that are using the services of Third Party Logistics India companies. This has been a positive development for the sector and has led to a boom.

Also, the Government is investing heavily on infrastructure with good road services, ports, and exclusive freight corridors. All these have turned out to be drivers for the rapid growth of the 3PL sector in India.

Win-Win for everyone

Without a doubt, 3PL is a win-win situation for all the parties involved.

  • For the Manufacturer: Having an agreement with a 3PL firm means they need not worry about logistics. It represents huge savings in time and effort and also provides cost benefits. Large 3PLs deal with multiple clients and offers substantial cost benefits to companies.
  • For the Customer: With a professional agency handling logistics, customers can be assured that their product reaches on time, without any hassles.
  • For the third party: The third party agency benefits as he can make use of his experience and expertise and enter into contracts with top companies. The 3PL firm is assured of regular work and the business is definitely lucrative.

3PL is thus highly beneficial to all stakeholders and will see more growth in the days to come.

We will be happy to hear your thoughts

Leave a reply

Digitize SEO
Shopping cart