How 3PL Works: An Overview of Third-party Logistics Services, Processes, and Resources

Whether a small or large company, managing logistics is a challenging task; one requires expertise to handle the process, from receiving the order to delivering it to the doorstep. The procedure might sound simple but consists of various complexities depending on the nature of the product, inventory storage location, customer location, size of the order, and the estimated delivery time. Managing these logistics intricacies within the company itself significantly impacts other core tasks. In such circumstances, outsourcing the logistics operations to a 3PL service provider is the best decision. Leading logistics companies in India, like RK Foodland, take responsibility for fulfilling the end-to-end logistics operations. 3PL (Third-Party Logistics) providers store the inventory and receive, pack, and deliver the products while helping you bridge the gap between manufacturing operations and end users. This allows the supply chain to run smoothly, leading to business growth. If you are in the middle of a supply chain management crisis and looking for a practical solution, 3PL is what you need. However, before you partner with logistics companies like RK Foodland, it is essential to understand in detail how 3PL works. Here, we have shared an overview of third-party logistics services, processes and resources.

Services Offered by Third-Party Logistics Providers

∙ Warehousing and Distribution

3PL companies in India offer warehouses to businesses to store inventory. The warehouses are spread across different regions in India and are equipped with modern facilities. This simplifies the distribution process of products. For perishable goods, warehouses are facilitated with temperature-controlled environments. The extensive distribution network ensures timely delivery, reduces transit time, and optimises costs.

∙ Transportation Management

Logistics companies effectively optimise routes, consolidate freight, and offer freight forwarding services. The delivery schedules improve while transportation costs are reduced using 3PL providers' network and expertise. Businesses can stay relaxed as they get visibility and control over shipments with advanced tracking technologies and real-time monitoring.

∙ Inventory Management

3PL companies have advanced inventory management systems that help track stock quantities and manage order fulfilment. These advanced systems allow for the streamlining of inventory management, ultimately assisting businesses to achieve accuracy and minimising stock-out and overstock situations.

∙ Order Fulfilment

Comprehensive order fulfilment services offered by third-party logistics providers include product picking, packing, and shipping. The order management systems ensure the order reaches the end user on time. This benefits businesses with enhanced customer experience and helps to build strong customer relationships.

∙ Additional Services

Third-Party logistics providers offer additional services such as reverse logistics; value-added services like labelling, kitting, customisation and repacking to enhance brand image; customs clearance and compliance; and technology and analytics. These services improve the supply chain's functioning and help achieve the logistics goals.

Processes Involved In 3PL Operations:

∙ Collaborative Planning

To offer tailor-made logistics solutions, 3PL providers collaborate with businesses to understand the supply chain requirements. It becomes easier to know the challenges and draw an effective solution to ensure the smooth flow of the supply chain.

∙ Integration with business systems

Third-Party logistics providers integrate the ERP of businesses with their advanced systems for information transfer. This helps to track orders seamlessly.

∙ Order Fulfilment

At this stage, the customer orders are processed. It involves picking and packing items from the warehouse and shipping them to the delivery location.

∙ Risk Management 

3PL providers regularly identify potential risks in the supply chain and resolve them. The issues include transportation delays, inventory shortages, and other disruptions.

Resources Utilised by Third-Party Logistic Service Providers

∙ Skilled Workforce

3PL companies in India, like RK Foodland, employ professionals with immense knowledge in logistics, supply chain management and technology. The experts ensure the proper execution of various logistics processes.

∙ Technology Infrastructure

Advanced technology furnishes cloud-based platforms for various processes and data analytics, acting as a backbone of 3PL operations. Incorporating technology improves visibility, optimises routes, and provides insights for continuous improvement.

Indeed, Third-Party logistics services have become the cornerstone for businesses and industries aiming to streamline their supply chain operations. RK Foodland is one of the top 10 logistics companies in India, offering top-notch services to various industries and businesses. Our outsourcing services include integrated planning, sourcing, warehouse management, transportation services, order management and integrated fulfilment. Experts at RK Foodland understand your logistics and supply chain management concerns to offer customised solutions that generate positive results.

Wait no more to consult RK Foodland experts for 3PL solutions and let your business climb the growth ladder!