Traditional business model is built on in-house management of all operations which included sourcing, manufacturing, warehousing with assorted activities, and distribution. This was traditional because they operated in a limited expanse, had limited reach and clientele, and lacked diversity in their range of products and operation. With the expansion in market economy and global inter-connectedness, the traditional model of in-house operation gave way to delegation. In the field of logistics, this led to the birth and growth of third party logistics. Third party logistics or 3PL as it is interchangeably known is in vogue since 1970s. It, however, has gained currency in 1990s when national economies across the world liberalized and “contracting out” for products and services evolved as the buzz word. In the context of logistics, third party logistics simply refers to the involvement of a third party in Company’s logistics operations other than the producer/consumer and the transporter. The Third Party doesn’t have the ownership of the product it stores and/or transports but it acts as a vital link between manufacturing operations and the consumers.
Any company that offers some form of logistics service for hire is known as a 3PL company. A 3PL company may or may not have its own assets, such as trucks and warehouses. Companies which have these assets are in a position to provide an integrated 3PL solution. In cases they have not, they again contract out and hire such services depending upon the nature of agreement with the supplier. Most 3PL companies own or lease warehousing spaces for their client. Generally, they don’t have their own fleet of trucks or fleets for which they contract with other carriers for distribution.
In varying degrees, 3PL companies offer the following services:
- Primary distribution or Inbound Transportation (movement of raw materials or part goods to Manufacturing Units): Sourcing
- Inventory Management
- Picking, Packing, Kitting & Customization
- FTL & PTL
- Stock Management
- Reverse Logistics
The rise and rise of online retail businesses in India, the need for third party logistics is reinforced even further. The marketplace operators especially do not have sufficient space or capital either to invest in their own warehouses or the wherewithal to meet the shocks of rising and declining demands. A 3PL partners or a Fulfillment Centre for them becomes all the more important.
3PL partners have many advantages over the traditional model of in-house operation management. First, it allows companies to scale up production, enlarge its product reach and focus on marketing by leaving the task of sourcing, inventory management and distribution in the hands of the specialists, i.e., 3PL partners. Second, it doesn’t have to scout for warehouses across the country and employ distribution partners. Third & most importantly, it doesn’t have to employee and spend a big deal on the manpower to manage its sourcing, warehousing and distribution needs. 3PL partners offer a lot in terms of cost, time and energy required to maintain warehousing, distribution and manpower management and a range of associated activities they entail.
Safexpress Pvt. Ltd. is the premium Third Party Logistics & Express Distribution Company in India. With its inception in 1997, Safexpress has grown into a pan-India 3PL & Express Distribution Company with 60 state-of-the-art warehouses catering to all 31083 pin codes through 1830 express distribution routes. This has come with strategic investment in infrastructure over the years & embrace of modern technology with its unwavering commitment to its structural expansion of its hub-and-spoke model. In its commitment to connect sourcing units to manufacturing plants/centres, it has built an interconnected model of district, area and regional hubs and warehouses that supplement the needs of the industry in a time & cost-effective manner, all supported by an in-house WMS. Its modern warehouses and express distribution channels take care of storage and distribution needs of the customers.
Safexpress offers a much required stability and uniformity in a highly diffused logistics market in India. Among the logistics services that Safexpress offers include primary logistics, warehousing, secondary distribution, door-to-door logistics, and VMI services.