Most of the industry players will adopt the strategy of consolidation followed by expansion. Consolidation would result in decline in warehouse operating cost. Most warehousing occupiers are expected to take decisions purely on the basis of reach to market, quality and size requirements. While restructuring the warehouse, companies can opt for various warehousing models….
The goods and service tax is ready to give a boost to the warehousing and logistics industry in India. The implementation of GST has played a key role in building the secondary factors that will in-turn build upon primary factors of good infrastructure and faster adoption of technology. Post GST more goods will move directly from manufacturing hubs to distributors which will lead to lower warehousing cost with increased efficiency in the supply chain.
Companies now will be facing a major challenge in terms of timely delivery of goods across a wider geography. Thus their expectations for their 3PL service provider will expand as well. The logistics industries are required to start evaluating the suitability of their current storage, distribution model, route planning and management of transportation networks. So here are some key factors you need to know for considering a 3pl after the new policy:
Attitude of 3pl service provider:
A 3pl service provider is critically responsible for achieving effective logistics integration. The implementation of processes post GST policy is deemed to be challenging. Thus, look for a player who has a learner attitude. Look for –
Adaptability -to changing demands of the industry and the customer’s needs
• Receptiveness – to the feedback and consequences, to overcome complexities and challenges and to offer innovative solutions
• Corporative: and focussing on building long-term sustainable partnership
What makes a 3PL service provider most efficient is his ability of implement and execute the solutions planned. The process of execution comes after the development of a logistic plan and requires strong control on Manpower, Inventory, and Processes. Apart from the stringent controls, also consider the following factors:
• Ability to handle local area capabilities knowledge
• Adaptability to technology and automation
• Innovative warehousing solutions including warehouse restructuring, warehouse management system, warehouse space utilization, space availability etc.
Experience in handling stocks with various clients:
Look for a third-party logistics service provider having valuable experience in all aspects of handling and storage of stocks. They can provide you service advantages that can majorly improve profitability. Have a look at their client portfolio, the nuances of logistics complexities that have managed. Also, do a research on their client’s feedback and the service quality they offer, especially in terms of manpower, inventory and process controls.
Some of the major benefits an experienced 3 PL service provider can provide include:
• Accuracy: On time order fulfillment and order delivery
• Space optimization and efficiency
• Specialist knowledge in stock control and delivery
• A competitively clear fee structure
Now that you are aware of critical factors to consider for finalizing a 3PL service provider, you can refer our company brochure here to know about our warehousing and transportation services.