Rise of New Age Third Party Logistics (3PL) Services

The logistics service providers have a lot of connections and people, with whom they have done business in the past. This also serves as a way to attract and keep customers and suppliers. Moving on to the 3PL service provider, or 3PLs, is a frequent practice for logistics managers when they join a new organization. But, due to the rate and scale of change in how shippers interact with and use 3PLs it varies organization to organization. With the development of new enabling technologies, the service requirements have become more complicated, demanding, and data-driven, which is heralding the emergence of the next-generation 3PL. The majority of 3PLs will claim that the industry is still relationship-based. This article is a full guide to understanding the new age of 3PL services. It will explain the different types of services and give you a brief insight into the industry. Furthermore, It will also explain the logistics service providers and how they work.

What are 3PL Services?

The service requirements have grown complex, demanding, and data-driven, but, as a result of the rate and size of change in how shippers interact with and use 3PL services as well as the development of new enabling technologies.

This is signaling the birth of the next-generation 3PL. Most 3PLs will assert that the business still relies on relationships.

Shippers are depending on their third-party logistics providers (3PLs) to take the lead in offering process automation and integrating before unrelated technologies and sources of logistical information. You must be nimble because connectivity through APIs [application programming interfaces] for third-party data is happening at a rapid speed.

The Growth of the Third Party (3PL) Services

The demand for quick delivery services from today's tech-savvy consumers is propelling the logistics industry's hourly growth. By FY 2025, the Future of 3rd Party Logistics in India is expected to increase by US$10.74 billion, with a CAGR of over 8%. A 3PL service provider offers a variety of logistics-related services, such as warehouse and inventory management, transportation management and brokerage, distribution and fulfillment, consolidation, air and ocean freight forwarding, customs brokerage, and many others. To support supply chain management and reduce total logistics costs, logistics service providers are required to innovate and streamline complicated operations.

It is anticipated to expand thanks to technologies like the Global Positioning System (GPS), barcodes, Radio Frequency Identification (RFID), drones, and the Internet of Things (IoT). SaaS technology aids 3PL services providers in overcoming the main obstacles in the logistics sector, such as lowering transportation costs, optimizing operational procedures, enhancing customer satisfaction, and enhancing supply chain visibility.

Now, what next?

Being a next-generation 3PL—or 4PL, a type of uber-logistics service provider whose duties may also include managing a client's other 3PLs—means being able to react more to changing shipper demands for more complicated and advanced logistics planning and execution skills. These needs will increase the breadth and depth of potential services that 3PLs can incorporate into a shipper's supply chain. According to a study, survey respondents are concentrating on advancing technologies that will increase visibility, data quality, and integrity, and reduce data gaps. All which offers an intriguing strategic roadmap for current 3PLs to build and create capabilities of the next generation—or to improve those that now exist.

Even though a new generation of 3PLs is about to emerge, some fundamental principles won't ever change. It's quite easy: Make sure your words and actions are in sync, which is crucial when establishing and sustaining long-term relationships with carriers. Make it simple for them to tender, track, and bill the load while selling it exactly as it is. The demand for quick delivery services from today's tech-savvy consumers is driving the daily growth of the logistics sector. The rise of 3PL service providers as significant actors in the supply chain has helped businesses expand their operations and guarantee affordable delivery services in Delhi and Gurgaon. These services are helpful to both the business and the customer.