Third-Party Logistics (3PL) : Scope of Multi-Client Fulfilment for E-commerce

January 5, 2024
11:45 am

They say that time is money. Any business owner would understand the value of time. Maintaining logistics, shipping, and fulfillment is a difficult undertaking for e-commerce enterprises. But wait, there’s more: marketing, finance, and trust-building are all on the table. It might get difficult to focus on all aspects of the business when you are spending your entire day putting out fires in the warehouse.

As a result, companies seek assistance from third-party logistics (3PL) suppliers.

According to a survey by the UK-based market research firm Technavio, the 3PL industry in India is expected to increase by US$10.74 billion between 2021 and 2025, at a compound annual growth rate (CAGR) of about 8%, with an incremental growth of US$81.73 million by 2024.

First, let us understand what 3PL means.

What is a 3PL?

A 3PL allows a corporation to scale space, manpower, and transportation based on current inventory. Furthermore, they can frequently smooth the transition between seasonal periods and industrial fluctuations. Businesses that are expanding into new markets might rely on a 3PL to help them develop in new areas.

Some of India’s leading third-party logistics companies are Stockarea, access Warehousing, and Allcargo Logistics.

Why choose a multi-client model?

This operational approach has various advantages.

Lower costs

When you buy things in bulk, you pay the wholesale price. The more you acquire, the cheaper your costs will be and the greater your profit margins will be. Moreover, since you are sharing warehouse space with other business owners, it may direct to lower costs.

Greater product sourcing flexibility

When you adopt an eCommerce fulfillment business model, you may get items from several manufacturers more simply. Since all of your things will be held in the same warehouse, orders including items from several vendors can ship in the same box. This reduces delivery expenses.

Greater command over your logistical operations

You have the option of selecting an order fulfillment partner who offers the services your consumers demand.

Returns processing is simplified

Customer assistance and return processing might be handled by the third-party logistics facility that supplied your merchandise. This increases consumer happiness and allows you to easily replenish inventory.

Drawbacks of a Multi-client Fulfilment

Availability of Space

One major downside of multi-client storage is a lack of space and competitiveness. You may have your sights set on a certain distribution center, but you may not be able to gain access since other firms have also wanted it.

Communication

Another issue to consider is system incompatibility. This may cause communication issues between you and the third-party logistics provider, as well as the other clients that use the distribution center.

Future of 3PL

The 3PL sector in India is expected to employ around 0.8 million extra employees by the end of 2022. The upcoming in-demand professions are expected to be:

● consignment booking assistant

● e-documentation assistant

● courier delivery executive

● Warehouse packer

● inventory clerk

● logistics and distribution manager

● supply chain analyst

● supply chain coordinator

● supply chain manager

Demand for AI specialists has also raised the need to optimize capacity planning, improve efficiency, save costs, and enhance output, all while guaranteeing a safe working environment for employees.

How will MERAQUI’s third-party logistics benefit your Business?

Many eCommerce firms benefit from outsourced fulfillment services. In-house fulfillment can be difficult to manage and costly. If your internet store is only a hobby, you might not require third-party fulfillment services. However, if your business is expanding, you may want to consider hiring a third-party logistics provider.

Manpower Services for Flexible & Business Growth:

• We provide On-Demand Industry specific trained manpower with no minimum period

Our Sourcing Capability:

-We have a skilled and semiskilled workforce for all your warehousing needs, including Pickers/Packers, loaders, MHE Operators, Data Entry Operators, Supervisors, etc

Our Specialized Services for Licensing / Regulatory

compliance:

• FSSAI certificate, Shop & establishment, Trade License, Fire and Safety License, all the applicable required license

• Inventory and Goods, Leasing agreement, and related obtaining Required documents from Local bodies and Government Authorities.

Our 3PL Strength:

● Inventory Management

● Kitting

● FIFO & FEFO Management

● Real-Time visibility over the web

● Location Management

● Real-Time Reports/Dashboard

● Transportation Management