Role of 3PL Service Provider in E-commerce Logistics

In India, e-commerce industry is growing rapidly and hence logistics requirements are constantly changing with the evolving business environment. This necessitates logistics supply chain industry players to upscale their operation on a timely basis, meeting the business requirements. Logistics challenges of e-commerce in India are many and some of the key challenges faced by logistics e-commerce companies in India are :

• Slow physical and technology infrastructure development.
• Skilled manpower to run the operation efficiently.
• High return rate leads to higher return logistics cost. Cost pressure always remains high for logistics companies and investment to scale up operations is constant too, operating at decent margin is not an easy task.
• Complicated tax regulations and policies in India.
• E-commerce transactions are at peak during festive season and thus qualify it as a seasonal business. This affects the logistics companies operation as they have to keep aligning themselves with the business operations in terms of manpower, inventory handling, warehousing space, material handling, transportation etc..
• Cash on delivery adds to the challenges of cash handling and possible pilferages. The COD management is one of the critical key business deliverables, which need to be manage efficiently, and guarded in ensuring timely remittances back to Customers by the promise, consistently.

For any e-commerce business or e-commerce brand, properly coordinated logistics are the key to success hence choosing the right logistics partner for e-commerce in India is critical. E-Commerce is a part of the overall supply chain, and it is just another distribution model for storing, handling and distribution of products to the customers. That explains the criticality of overall e-Commerce logistics in India.

Efficient logistics is extremely critical for the success of an e-commerce brand. Automation of E-commerce Shipping & Fulfilment Operations with latest cutting-edge technology that uplift the whole supply chain processes and simplify customer services are the need of an hour, e-commerce brands look for following services from the logistics partner for e-commerce in India : 

• Distribution (end-to-end transportation solution)
• Warehousing solution along with Inventory Handling services
• Skilled manpower to run the operation efficiently
• COD management
• Real-time and 100% visibility across all elements of brands operations
• Demand planning & forecasting
• Omnichannel solutions
• Network planning & optimization
• Customer support

Regional or small logistics players in India will not be able to cope up with dynamic e-commerce logistics in India as they have limited expertise to do value add and invest in technology infrastructure. Reach of logistics partner for e-commerce in India in Tier II & III cities also become critical with increasing consumption base. Last mile reach of the logistics partner for e-commerce in India plays a critical role in outsourcing of e-commerce logistics companies in India. Digitisation of last mile services has become extremely critical, as best logistics companies in India for e-commerce must elevate their delivery experiences to differentiate themselves in a highly competitive space. Returns are high in the e-commerce sector and once again, a strong support system is needed to handle reverse movements and storage and to address logistics challenges of e-commerce in India.

The growth of e-commerce logistics in India has turned warehousing and distribution centres into mega fulfilment centres. The ability of the logistics partner for e-commerce in India to provide the needed infrastructure and handle huge volumes of daily transactions is extremely critical. Scalability of logistics partner for e-commerce in India plays a huge role with expanding e-commerce volumes which is one of the biggest logistics challenges of e-commerce in India.

E-commerce logistics in India requires specialised solutions, which can be only offered by trustworthy logistics partner for e-commerce in India like TVS SCS, which has experience of handling vast and complex supply-chain networks. It is fully equipped with the relevant technologies and tracking tools, which can offer visibility over the entire supply chain. 

TVS SCS’s ability to manage complex supply chains with skilled practitioners, vast warehousing network of 19.5 Mn Sq. Ft. and ability to offer end-to-end transportation provides a competitive edge in the e-commerce logistics in India. The technology backbone and value added service portfolio could help e-commerce to offer differentiated services to their end customers.