The third party warehousing & logistics sectors are booming in India. The Indian Brand Equity Foundation (IBEF) reported that the warehousing market in India will grow to $34.99 billion by 2027. Which leads to compound annual growth of up to 15%.
India, being a diverse market, has multiple sectors to praise for the upsurge. Euphoria Integrated Solutions has analysed the market and concluded that the primary sector has been the e-commerce business. The covid-19 being the temporary obstacle has accelerated the market’s essential internet growth. In 2022, the demand was in full swing. The e-commerce sector has seen a huge consumer base in India. The positive demand aided in economic growth. The upsurge of e-commerce businesses has created a domino effect. The tier-2 and tier-3 cities have also contributed a fair share to the e-commerce business. The data from EIS research seems to address the forthcoming rise in demand.
However, to tackle the demand, businesses need to level up their supply chain management. The sector is consumer driven and in order to full-fill customer needs, fast paced operations are a crucial parameter.
Effective management of operations has been the core principle among the best players in the industry. Harnessing the latest technological developments has also boosted operations. Although the immense pressure on businesses to maintain a steady supply chain has led to micro-mismanagement. Many businesses have neglected micro-management, which turned out to be a detrimental snowball effect for the business.
Euphoria integrated solutions a pioneer in logistics and 3PL storage solutions has devised, utilized, and tested the third-party logistics & storage services (3PL) method to have a beneficial impact on businesses. The business may have different needs, and accordingly, they can opt for dedicated warehousing or managed warehousing services to enhance their supply chain management.
Read Also: Logistics Manager Responsibility in Supply Chain Management
Benefits of 3PL Warehousing Services.
At Euphoria Integrated Solutions, we have provided outsourced warehousing spaces to our customers, who have benefited from using our external warehouse services. The micro-management gets more sorted, and due to compliance, the movement of operations is in a streamlined position.
India’s diverse demographic can give a daunting experience in logistics and warehousing. For a scalable business, a 3PL service provider can have a huge impact. This gives businesses an advantage in focusing their energy on core activities.
Cost Efficient
Having a dedicated warehouse can be expensive and requires resources to be operational. The strategic approach will be to eliminate the upfront costs of infrastructure, technology, and the work force. If optimized properly, the 3PL service provider can be helpful in reducing the overall logistics expense. The operations can be set within 45 days using contract basis vendors. Partnering with prospecting vendors can ensure the company’s cost efficacy.
Focusing on Core Operations
If you have warehousing infrastructure, outsourcing can be a good option to focus on your core business goals. The core goals can be development of your products, providing valuable customer service or marketing your business. On the other hand, 3PL providers such as Euphoria Integrated Solutions, Mahindra Logistics, Prozo, etc. can manage warehouses, which gives you room to expand your business.
A Pan-India Presence
A widely spread misconception is that companies with huge budgets have their own dedicated warehouses in Tier 2 and Tier 3 cities. Whereas they outsource their warehouses and demands to 3PL warehouses and vendors. Companies such as Euphoria Integrated Solution have a wider network of distribution, comprising Bhiwandi, Nhava-Sheva, Mundra, Pune, Nashik, Indore, Lucknow, and Kolkata.
This makes multi-client warehousing a practical approach to micro-management.
Safety Concerns Regarding Inventory
While outsourcing warehouses, business and 3PL providers are bound by compliance. The safety standards & facilities can be compared, which gives an advantage when connecting with 3PL warehouse partners. Euphoria Integrated Solutions has been providing spaces that have grade ‘A’ facilities and platinum IGBC certifications, including advanced tech such as drone surveillance, EV tow trucks, and AR/VR technology for assured safety.
Dedicated Warehousing vs 3PL Warehousing
The business needs to define what warehousing solution is best for them. Both solutions have there own advantages and cons. The comparison can give you an idea of an agile method for your business needs. The primary reasons why businesses avoid dedicated warehouses are its high cost, distant management, huge risk, and lack of flexibility.
3PL partners, on the other hand, fully fill the primary requirement.
Availability of Advance Technologies
In order to achieve a competitive edge, 3PL warehouses invest in the latest technology and standards practices. By partnering with best suited providers, businesses can get access to the latest technology. The business can improve its inventory and trackability. By integrating an established warehouse management system (WMS), you can provide flexibility to the supply chain instead of managing a system from scratch.
Customer Satisfaction
The 3PL service provider can be an asset. The partners can be closer to your consumers, which can lead to effective supply chain management. The business can enhance their delivery times. The business can strategically place multiple warehouses across India, which enables quick fulfilment of orders. The pan India connection gives reliability to customers and enhances the standards of services.
Conclusion
The impact of 3PL warehouses is significant, and with growing demand for consumer goods, supply chain management has to be effective. The logistics and warehouse spaces need to be optimal. Euphoria Integrated Solutions provides 3PL custom services, adopting a unique approach towards business goals and market demand. The 3PL services come with enhanced operational efficiency, are cost effective, ensure compliance, and provide reliable and steady supply chain movement.
We can conclude that choosing the right 3PL partner is needed for the scalability of the business. The experienced 3PL partners can navigate & manage the logistical challenges of the local demographic and provide a streamlined operation, which compounds customer satisfaction.
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