Third Party (3PL) Logistics in India

2003 Words9 Pages
What is logistics? It is management process of the movement of resources it can be either raw material or finish goods between source of consumption and the end user i.e. customer, organization to meet requirements. There are various definitions in the literature or in the business world; the most suitable definition is the overall relationship between supply, material management and the distribution (Rushton A. ). This logistics concerned with physical as well as information flows, not only that it use in the storage form the raw material to final distribution of the finish good. In the logistics process physical items frequently involves the combination of material handling and the material flow, production, information
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Most of the global companies are outsourcing the logistics services because of the numerous factors (Mitra, S. 2006). The most important factor is globalization, firms all over the world are rapidly increases their sourcing, distributing as well manufacturing the goods or service with a global scale by creating very difficult supply chains network. Yet, all these activities can outsource with the help of the capable 3PL service providers who having ability to serve in the global operations and they also offer detailed supply chain analysis with their expertise IT abilities and with the modern mode of transportation, material handling tools and warehousing facilities (Hwang, H. 2005). 3PL services are used to balance the various logistics processes with the businesses that do not have any capability and also to increase the geographical reach (Mothilal, S et al). When the organization or firm expands their business to overseas market, they are not aware of the various customs duties, tax system of the host country, rules and regulations, import and export policies of the government, political nature for the growth of business and culture of the overseas country. A 3PL provider, who had thorough knowledge about the countries operation system, will able to carry the operation at the domestic level than the logistic service provider. 3PL may not be the core activity of an organization. 3PL providers offering a number of services to their

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