Logistics involves the process of planning, implementing, storing, and moving goods from the place of origin to the point of consumption. Choosing the right logistics partner helps you navigate these challenges with ease.
The journey of moving goods from the manufacturer to the customer’s doorstep may seem simple, but in reality, it involves multiple elements, such as proper warehouse storage, transportation, ecommerce fulfillment, and more. So, most companies outsource logistics and warehouse solutions activities to third-party providers.
Selecting a reliable logistics partner is essential for a business’s growth. It reduces logistics costs, increases transparency through real-time tracking, and enhances customer satisfaction.
What Is A Logistics Partner?
A logistic partner is a Company or a service provider that can manage various things like transportation, warehousing, ecommerce order management, and timely delivery of products. Businesses can choose a logistics partner for a particular warehousing and logistics service or opt to optimize their complete supply chain process. It depends on business requirements. A perfect logistics partner can take full responsibility for handling all logistics operations without any excuses.
Let’s discuss this with an example. You are running a confectionery business and have partnered with a logistics company that does not have much expertise in maintaining proper temperature during transit.
The chocolates delivered to the customers are in melting condition, or some will get spoiled, which can lead to negative customer reviews. Some customers will cancel the order after reading such reviews. Improper shipping and logistics operations can cause adverse effects on the business.
How Do Logistics Partners Empower Business Growth?
Supply Chain Management
A logistics service partner handles the entire process of moving goods in a business. It includes shipping raw materials from the manufacturing companies to deliver finished goods to the customer’s doorstep.
So a business does not have to worry about transportation, warehousing, storage, and fulfillment of orders. Logistics experts ensure that the company’s goods and products are delivered smoothly from one place to another and on time to increase customer belief.
Cost Saving
When a business grows, they need enough space to store its products. They can choose to increase their storage and employees’ capacity or outsource to a reliable logistics partner.
Building a warehouse involves a large amount of capital, which most businesses cannot afford. So, they outsource it to a logistics partner. It handles all the warehousing activities at an affordable cost.
Again, logistics partners have an extensive warehousing and logistics network and top transport companies that provide cost-effective transportation. So, businesses do not have to spend money on maintaining warehouses, trucks, or any vehicles or managing staff in warehouses, or they do not have to buy heavy equipments. This reduces the overall expenses of a business and allows it to invest in some other important areas.
Advanced Technology
We are all aware that technology is the most important factor in today’s supply chain and logistics management. Most logistics and warehousing Companies in India use advanced technologies, such as warehouse and inventory management systems, real-time tracking, and data analytics. These systems monitor the products properly and avoid problems like overstocking and out-of-stock issues.
Logistics and Shipping Companies even use GPS tracking methods, which help business owners know exactly where the goods are and whether they will be available to customers in time.
Reduces Risk
Logistics is always associated with risks like product delivery delays, accidents, and lost shipments. However, working with a good logistics provider can reduce the risk to a greater extent as they have experience and expertise. Logistics partners ensure a business owner that goods will reach their destination on time.
Return Management
Return management is another challenging task that needs to be handled properly. According to a report, e-commerce orders experience a 17.6% return rate, while returns for apparel and footwear rise to 30-35% due to sizing concerns. Logistics partners excel in handling returns efficiently, picking up products, inspecting their quality, and adding them back to inventory for resale.
Help businesses To Explore New Markets
Logistics providers are also beneficial when a business wants to expand Internationally. They know the rules and regulations, documentation, and customs processes that are required to move goods out of the country.
Increases Customer Satisfaction
A good logistics partner will consistently deliver products efficiently and at the correct time, thus increasing customer satisfaction. Therefore, the customers can trust the business and repeatedly order products or give positive reviews about the product.
10 Key Consideration Before Choosing The Logistics Partners In India
Logistics services are the lifeline of a business model. Choosing a good logistic partner can smooth out supply chain and warehousing operations. You need to consider various criteria before choosing a logistics partner in India. Top 10 key considerations are listed below:
1. Choose Logistics Partner According To Your Requirements
Today, you will find various logistics partners in India. They provide multiple services like warehousing and transportation, inventory management, order fulfillment and many more.
You need first to evaluate the requirements of your business and then select a 3PL logistics partner that aligns with your business needs. Companies must consider whether you require only B2B Logistics, transportation, B2B warehousing, or the entire logistics operations. You also need to consider whether you need to transport products only within the country or Internationally.
2. Experience And Expertise
You should always hire a logistics service partner who has numerous years of experience in handling e-commerce logistics. Remember, various logistics Companies are experts in handling particular types of industries like pharmaceuticals, electronics, and many more. Always look for a logistics provider who has expertise in handling your products effectively. It should understand your business requirements and challenges, which will help to run the logistics operations of the business smoothly.
3. Scalability And Capacity
Whenever your business grows, your logistics requirements also increase. Always look for a logistics partner who can scale up their operations when your business evolves.
There should be enough space in the ecommerce warehouse to keep your products when your business grows in the near future. A trusted and reliable logistics and warehouse partner should have the resources, proper infrastructure and a good network to grow a business.
4. Technology
You should always look for a logistics partner who have access to advanced technologies like real-time tracking and modern warehousing. Accessing these advanced technologies will increase transparency and improve the management of inventories.
5. Geographical Reach
The geographical reach of the logistics Company is quite important. The logistic provider should have a strong presence, particularly in areas where you want to expand your business. A logistics partner with a good network can only deliver products to customers at the right time.
6. Pricing structure
Consider the pricing structure of various logistics partners and decide the final one. You should consider factors like shipping fees, handling charges or any extra warehousing charges for the value-added services. Balance the cost with the service quality while deciding on the logistics provider for the business.
7. Customer Support
You should always look for a logistics provider that can provide good customer support. They should communicate properly with your customers, resolve problems, and provide updates at the proper time.
8. Check Reputation And References
Try to check the reputation of the company. You can ask for reviews from the logistics partner. Contact its clients to know about their experiences with the logistics service.
9. Flexibility And Customization
You should contact a logistics partner that can accommodate products according to your needs and provide customization warehousing services. For example, if you want specific custom packaging or handling, then the logistics provider should provide it.
10. Sustainability
Look for a logistics provider that uses fuel-efficient vehicles or optimizes the transportation routes for delivering products to customers.
When And Why Should You Partner With A Logistics Provider?
Whenever your business starts to expand, managing the logistics operations becomes difficult. Partnering with a good logistics expert can smooth out the logistics operations.
Again, if you are planning to explore new markets, either within India or Internationally, you must partner with a logistics company. They have expertise and experience and will deliver products to the customer’s doorstep at the proper time.
Sometimes, product demand increases during a particular season, making logistics operations difficult. Logistics service partners can help manage the increased volume during the peak season.
Again, if managing to pick and pack warehousing, transportation, physical distribution, and inventory seems costly, then it’s better to partner with a good logistics service partner.
You should partner with a third party logistics partner for various reasons, such as their expertise and many years of experience. Again, when you outsource the logistics operations, you will have enough time to focus on core areas of business like product development and market strategies.
Conclusion
Partnering with logistics partners can help a business stay ahead in this competitive market. A reliable logistics partner has enough experience and access to technology like warehouse and inventory management. It will reduce errors and manage supply chain operations efficiently. But you should look for reviews and references before choosing a logistics expert in India.
AAJ Supply Chain Management
