Third-party logistics, or 3PLs, are outside organizations that specialize in managing logistical operations for eCommerce companies. Third-party logistics providers take responsibility for the complete order fulfillment process, allowing eCommerce retailers to focus on product development, process improvement, and their core business. These providers can be all-inclusive providers who manage the entire process from order confirmation to delivery. They can also provide support for some, but not all the stages of fulfillment for companies who prefer to manage their own warehouse or use another trusted carrier service for delivery.

It is customary for 3PLs to offer these services:

• Warehousing
• Inventory management
• Picking and packing
• Kitting and customization
• Reverse logistics (returns)
• Shipping and receiving
• FTL and LTL freight shipping

Benefits of hiring a 3PL provider

Using a 3PL provider can reduce your cost and complexity in the following ways:

Cost reduction – Leading 3PLs will have cutting edge tools, training, and processes, enabling them to reduce cost and increase efficiency. They have extensive established relationships with freight and delivery companies across the country and will be well positioned to negotiate the best possible rates for your specific needs.

Scalability – Being able to quickly adjust with the peaks and valleys of customer demand can be risky, costly, and challenging. As experts in logistics, 3PLs are able to efficiently adjust to the dynamic business environment and reduce your risk of unnecessary capital investment.

Speedy delivery your customers deserve –As the world increasingly shifts towards online commerce, the demand for next-day and same-day delivery has grown exponentially. Leveraging a well designed and vast logistics network, a top 3PL has the ability to make prompt deliveries any time orders are placed, no matter where your customers may be.

Risk mitigation – Things do not always go as planned, and your 3PL partner can help ensure swift resolution for you and your customer. An ideal provider will be able to offer multiple solutions when there are risks of delivery delays. These partners also assume full financial responsibility and liability for any lost or damaged goods that are in their custody.

Knowledge and expertise – Creating efficient, reliable, and robust fulfillment infrastructure requires substantial capital investment, time, and years of experience. Developing the tools, training, and skills to provide modern fulfillment is no easy task. A world class 3PL like XPDEL has the experts and expertise that your business needs to be leaders in eCommerce. Take advantage of the infrastructure, tools, systems, and processes that they have already created.

Make the world your market – As an eCommerce retailer, every person around the world is a potential customer. An expert 3PL partner will help you as you navigate the turbulent waters of growth and global expansion by taking responsibility for many of the daunting requirements for international commerce. Documentation, customs, duties, and all entry requirements are managed by your logistics partner.

The 3PL industry in India currently employs more than 40 million people and current forecasts indicate that the 3PL industry will become the leading job creator in two to three years. The India Brand Equity Foundation (IBEF) projected that the Indian logistics industry would likely cross a whopping $215 billion by the end of 2021. Third party logistics providers create a seamless experience, even during times of growth and high demand. A market analysis claims that the Indian 3PL industry will grow at a CAGR of 8.36% by the end of 2022.

More eCommerce companies are hiring 3PL providers and realizing the benefits of a strategic partnership that catalyzes aggressive growth. A great 3PL will provide customized service to fit the needs of your business and provide the service experience your customers deserve.

Third-party logistics providers are experts in the supply chain management process with the required industry expertise to deliver efficient, seamless, and accurate order fulfillment. For the eCommerce industry to thrive at the rate it is expanding currently, partnering with an experienced 3PL provider is the logical and smart way to increase your capacity and footprint.

XPDEL is a leading hi-tech provider of fulfillment and logistics services, on a mission to enable growth for eCommerce companies. Our existing customers know that our core competencies are focused on helping them grow. We are futuristics in our vision and constantly work to create technology that allows us to meet customer expectations for today and tomorrow. Our vast network of fulfillment centers across India places us closer to your customers and enables us to deliver more quickly and efficiently than the competition.