Logistics, a term once used to define procurement, maintenance, and transportation of military equipment and personnel, has become the buzzword for business organisations across the globe owing to the vast advantage that it offers to every business entity. Logistics plays an important role in creating visibility in its supply chain and is directly related to the business organisation’s service delivery, efficiency, and overall consumer satisfaction.
However, effective logistics operations are bound by complex and exhaustive processes that require a significant amount of expertise and an expansive network of subsystems. This has been the key reason for the eventual advent of third-party logistics in the logistics industry. Addressing the rapidly evolving market of e-commerce in the country, third-party logistics is emerging as the primary driver for Indian e-commerce.
Image Credit: Shutterstock
As online retailers already have to deal with an array of high-involvement technological and operational aspects, it is financially more feasible for them to outsource the complicated and capital-intensive logistics requirements to third-party logistics companies in order to increase their efficiency by tapping into the superior service delivery of 3PL service providers.
Many new logistics companies with their focus on e-commerce shipments have created a new business segment known as ‘e-Commerce logistics service provider’ to specifically cater to the industry. This segment enables the following advantages for India’s e-commerce sector:
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)