India is one of the fastest growing economies in the world with huge growth seen in the sectors like cargo transportation and logistics due to increase in the number of businesses operating around the country. An efficient and professional logistics services provider help companies get through the transportation, warehousing, loading, unloading and many other processes smoothly for it to perform their core operations. In this article, you will learn about the 7 different types of logistics services in India and how they operate.
Overview of Logistics Industry in India
The logistics industry in India has tremendously grown since the year 2019. It is expected to grow at a compounded rate in the coming years. The sector has employed more that 20 million people in the operations to perform daily activities.
Some companies have their in-house logistics in place while some companies outsource this job to other professional companies that has the resources to perform them. Outsourcing logistics operations help companies to concentrate on their core operation while their logistics and transport is managed by the other expert organization.
Types of Logistics in India
There are different types of logistics services, defined differently but various organizations. We define them in 7 types of logistics services in supply chain management that we have elaborately worked upon. Let’s check them out one-by-one:
1. Inbound logistics
As the name suggests, inbound logistics implies all the supply chain operations done for procuring raw material for further manufacturing finished products. All the services like transportation, warehousing, loading, and unloading are performed for bringing in the raw materials to the manufacturer.
Most reliable logistics companies use the order fulfilment systems to effectively automate and manage inbound logistics for their client. Companies like Virgo Parks ensure to provide hassle-free inbound logistics services for smooth start of the manufacturing process.
2. Outbound Logistics
Also known as the process of order fulfilment, outbound logistics is a process of logistically manage the finished products and transport it to reach the consumers. Majorly, outbound logistics are taken care of by e-commerce companies that provides door-to-door services to its customers. They pick up the products from the manufacturing facility or from the warehousing facility to the door of the consumers.
3. Reverse Logistics
Reverse logistics, as its name suggests, is transportation of goods from the consumers back to the manufacturing or warehousing facility. It happens when there is a return or replacement ordered by the end consumers from the manufacturer. This is the result of consumer’s dissatisfaction with the product after the sale has occurred. In reverse logistics, the products are transported back for refurbishing, exchange, repairing, recycling or disposing.
4. Full Truckload (FTL) Services
When an entire truck is dedicated to a single shipment where the size of the consignment requires the space of the entire truck to fit in, then the companies opt for an FTL service from its logistics services client. Here, the truck is completely dedicated to one business’s products to reach a location. So, the time taken in delivering this kind of shipment is minimal since there are no other pickups or drop offs.
5. Partial Truckload (PTL) services
When a business’s consignment size does not require the space of an entire truck, but just a part of it, then such businesses opt for a PTL service. Here, only a part of the entire truck is dedicated for that business’s items while the other side of the truck is filled with the products of another company. Since there are limited consignments carried by the truck, unlike outbound logistics services, the products reach their destination sooner, safer and at a lower cost compared to FTL service. These services are majorly opted by small businesses.
6. Third Party Logistics (3PL Logistics)
A 3PL logistics company offers complete service range starting from inventory management, warehousing, material handling, transporting, and delivering goods. It is also known as outsourcing operational or e-commerce logistics. Such service providers help businesses in shipping all the products from food products to even hazardous materials, everything is taken care of. This way, the business owners can concentrate on order fulfilment and manufacturing.
7. Fourth Party Logistics (4PL)
4PL logistics providers offer a full range of services to their clients where they handle the entire supply chain process for their client’s business. They manage warehousing, shipping, delivering, storage, everything. A 3PL logistics firm handles any one or 2 process of their client’s logistics management whereas a 4PL logistics company handles the complete supply chain management of their client’s business.
How to Choose a Reliable Logistics Service Provider?
Choosing a reliable professional logistics service provider is tricky. Before choosing one, you must first understand your requirement as to what activities in the supply chain management of yours require an expert’s help or choosing on outsourcing which services will make your work easier and low-cost.
Once you are clear with your requirement, choose the type of logistic service you would like to take and then check out the that provides the best in the market. You can choose a company like Virgo Parks that has operations around India and that offers all the types of logistics services mentioned above.
Conclusion
While you look out to create your business model, it is important to be clear about your logistical operations. With this article, you must be clear as to which logistics services you might require for your business and then how to choose the best for the same. Hope the article helped. Stay tuned for more!
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