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3rd Party Logistic (3PL) refers to the outsourcing of any of the logistic operations like warehousing, transportation and Value Added Services like picking and packing or inventory forecasting individually or together as an integrated supply chain.  Although the concept of Third Party Logistics was introduced in as early as the 1970’s to define intermodal marketing companies in transport contracts, its true significance in growth of any business has only been realized in the last decade. Today, as per reports, more than 80% of the Fortune 500 and more than 90% of the Fortune 100 companies avail of this service.

This tectonic shift in its usage can be primarily attributed to globalization and eventual e-commerce industry which has consolidated the entire world into one single market with complex logistics structures. Unlike the traditional model where the goods used to move in bulk (supporting the wholesalers), today goods are also dispatched in a single piece to different parts of the country which demands a more streamlined process.

Onboarding a 3 PL service provider, helps businesses to deliver quality services to its customers effectively and economically without hassle.  While the service requirement may vary from client to client, the general services provided by 3PL services are as follows:

• Warehousing services
• Transportation Services
• Value-Added Services
• Inventory Forecasting
• Order Fulfillment
• Packaging
• Freight Forwarding services

3PL services providers help businesses to focus on their core competencies and not to worry about the complexities of logistics.  3PL service providers’ expertise in the field also supports its partners in:

• Save the cost of maintaining its own warehouses and staff which is a pretty expensive proposition.
• Opportunity to grow their warehouse storage in tandem with their demand in any part of the country.
•  Meeting customer expectations of quicker deliveries through its distribution network.
• Mitigate the risk by accounting for unforeseen circumstances like loss or delay in deliveries.

While 3PL services allow its partner to channelize its resources on business activities like marketing, sales, and product development but it also makes them dependent on the service provider to deliver operations efficiently. So it is important that certain parameters are considered before onboarding a 3 PL service provider:

• Resources to meet the present as well the future demands of the business.
• Scaling Up and Scaling Down at short notice
• Years of experience and client testimonials
• Technology know-how to be compatible with the business

Chowgule Brothers Private Limited provides an efficient, effective and reliable 3PL supply chain.  Equipped with immense industry knowledge and modern technology, it offers innovative supply chain solutions for greater visibility, cost savings through shared services and consequently better inventory integrity.