The Quintessential Persona of 3PL Logistics
Kamal Kishore Kumawat
Co-Founder at Edgistify || EE @ IIT Bombay || Supply Chain Tech || Blockchain
Personalization and efficiency have become a crème-de la-crème option, if they are available, for industries. The main problem in the market is that, with the growing competition among supply chains, there’s a stereotype that has started to form. These firms follow their set trend of functioning, in the best manner possible, with whatever resources that are easily available to them for making the whole experience smoother. But, sometimes what is perceived best by a firm, is not exactly the best globally. Being open to a variety of choices and various functioning options can be helpful in giving a flavorsome twist to the banausic practice. With the change in times, customers have started to expect more and more from the facilities provided by supply chains and all this at an affordable rate with a touch of personalization. This is possible and to because of the interaction and role of third party logistics in the supply chains market.
Third party logistics (3PL) is related outsourcing logistics and many more functions to other institutions to provide a level of efficiency and personalization to the services available. Third party logistics help in integrating services, which turn these functions to be more customer centric. 3PLs are broad based with each third party logistics institution following a different blueprint, where either they can concentrate on only one function, such as logistics, or be multi-faceted. Their range of activities range from logistics to transportation and warehousing, contributing to maintaining and handling the customers. The involvement of a 3PL, in a chain, is the crux of the matter here. 3PLs help in unloading the hefty operations of a supply chain so as to make the entire experience unique and efficient. Even the level of coverage increases with 3PLs as their services can extend to deeper regions. With this, their impact as whole on the industry is vast and turns out to be pretty tremendous.
Another aspect which has a positive effect from 3PLs is service fulfillment. It is a known fact that transportation services always suffer from the argument of quality of delivery v/s speed of delivery, with this in mind, balancing these two has become a coveted prospect. Even the number of deliveries possible in a particular time varies, from one supply chain to another. 3PLs play a large role in this. Delivery fulfillments are not only increased by the involvement of 3PLs but there also a better concentration and improvement of quality of delivery, with personalized contact and tracking of the delivery. More and more regions can have the pleasure of this delivery fulfillment as different 3PLs have different potentials of coverage.
Now, supply chains aim for providing an all-rounded service, always working for the most satisfactory results for their customer in the best of their capability. With the entrance of 3PLs in the situation, there is a complete spin in the definition of capability that, now, could be possible for the supply chain. With this, we should look at some important points about 3PLs that are essential to know and understand their magnitude of impact:
- Specialization of 3PLs creates a space for improving facilities, which maybe out of the resource of the firm itself. For example, warehousing provided by 3PLs can give in another dimension for storage done by the supply chain. Warehousing done by 3PLs leads to an increase in space for storage and a better level of security for the storage of commodities. Even for logistics, 3PLs have an upper hand when it comes to handling data and analyzing this data, as a function of logistics since 3PLs tend have a better team of personnel for this work, if its their specialty.
- Time is of the essence and with 3PLs, this stays true. Speedy growth might be desirable but sustainable growth is always more coveted. With this, 3PLs do contribute in providing a level of stability. Since 3PLs are usually experienced with either a certain market function or maybe few more, they start forming niche in the market and tend to know how to produce the best result in the best manner.
- Speaking of growing supply chains, having 3PLs from the very beginning of the journey, for supply chains, can turn to be very fruitful. With some of them having a hefty experience level, they can show the right direction of working to baby firms.
- Expansion of businesses becomes smoother and efficient due to 3PLs. With more business, comes more data and more duties and this leads to sort of chaos, if the growing terms are not handled properly. With the array of services provided by 3PLs, many responsibilities can be balanced and integrated.
- Better inflow of personnel can also be expected since 3PLs are usually set up of specialists in their line of work. The better workforce does help in managing and tackling problems faced by supply chains in the market.
3PLs continue to rise in the market, while creating a large impact. Industries have started to realize that a “jack of all trades and a master of none” outlook will not work well in the industry and so to have an integrated system of functioning with the best team available, becomes possible with the vital role of 3PLs.
We are implementing Blockchain in supply chain and creating a hybrid 4PL model. Our ultimate aim is to bring visibility and transparency in the Logistics & Supply Chain Domain.