What 3pl Companies do?
3pl Companies are Third party logistics companies that manage the entire logistics operations of a business. This is a beneficial arrangement for the company and the business that it partners with. The business can save time and money and ensure its logistics operations function effectively. For the 3pl company, it is advantageous as they are assured of regular business. They work with more than one client allowing them to utilize their resources effectively. They can use their experience in this field to help many other companies improve their logistics operations.
3PL Companies in India handle all the logistics operations for their clients. This includes warehousing, managing inventory, packaging, and transportation. These companies help a business to manage its entire supply chain. The business can also choose to outsource part of its logistics operations too.
Types of 3pl companies
There are three types of 3pl companies. They are:
- Asset-based 3pl companies: These companies have their own assets in terms of warehouses, transport fleets, and manpower to handle the outsourced logistics work.
- Management-based 3pl companies: These companies only take care of managing the logistics operations. They don’t own any assets, instead,they use assets owned by others. They only take care of technology, management and have the manpower.
- Integrated 3pl companies; They may be either managed-based or asset-based.
How to decide which 3pl company to partner with?
There are a large number of 3pl Logistics Companies in Mumbai who can offer their services to business. As a business that wants to outsource logistics operations, if you are looking for a partner, how do you decide on whom to work with? This is a very important question as your product would be handled by this company and the delivery and customer satisfaction would be in their hands. You must therefore look for a reliable partner who can provide you the best services.
Here are some criteria to consider while selecting a 3pl company:
1) Capacity & Infrastructure
The physical capacity of the 3pl company needs to be ascertained. This includes the following:
- Warehouse(s) they have, whether owned by them or not. The space in the warehouse, the available space, utilized space, room for expansion are all things which need to be seen not on paper but physically. You need to physically visit the facilities of the 3pl company before coming to a decision.
- Number of employees of the company and how long they have worked with them.
- Use of technology, including software and automation in the warehouse.
- Whether they have their own transport or use transport of other companies.
The experience of the 3pl company needs to be verified. This can be done by looking at their client list and also talking to their existing clients. The experience of the management and key personnel should also be considered.
What is important is to find out if they would be able to handle your work. Can they handle the work load you give, especially peak orders and urgent orders? This needs to be verified. The financial strength of the company also needs to be ascertained.
This is also important as the company should be located such that they can easily travel to your unit and take care of pick up and delivery on time.