The function of logistics services is constantly evolving in India. Over the past two decades, the concept of 3PL, in which logistics businesses serve as a single point of contact for customers’ various logistical needs, has achieved considerable support in GoBOLT.
Now, businesses are switching to 4 PL and 5 PL arrangements, where the logistics solutions company serves as the customer’s extended logistical arm and single point of contact. Some businesses also include logistics stakeholders in the strategy-formulation process. In these situations, the logistics provider’s duty goes beyond simple execution and involves significant planning. GoBOLT offers a one-stop shop for complicated supply chain operations by collaborating with many partners and utilising their experience and skills.Â
Different logistics service providers (LSP) offer various services and capabilities. While some LSPs specialise in a particular function, others offer end-to-end logistical services. The LSP’s duties vary depending on the customer’s needs, but generally, they consist of distribution, inventory management, and transportation. In addition, depending on the customer’s needs and requirements, the LSP provides value-added services like track & trace, cross-docking, or customized packaging.
What are Logistic Service Providers?
A logistics service provider (LSP) is an outsourced business that offers supply chain management services, including shipping, warehousing, and distribution. It contains LLP, 3PL, and 4PL. LSPs have access to crucial data, knowledge of emerging business technologies, and the capacity to produce and deliver value to end-user clients and consumers, among other advantages.
Role and Responsibilities of Logistics Solutions Company
A third-party logistics provider offers a range of services that would otherwise need the customer firm to hire a sizable amount of additional staff. For example, customers can concentrate on their core skills and expand when a 3PL provider manages their supply chain. Several of the responsibilities and functions performed by logistic service providers are listed below:
Expertise/Knowledge
Logistics service providers handle all transit needs, from origin through delivery to ultimate clients. Highly skilled experts with in-depth knowledge of tariff schedules and customs laws know how to guarantee the best and most effective delivery path.
Management of Warehouses
Service providers now help with warehouse planning, design, technology installation, and other tasks that can improve space use and streamline warehouse needs. One of the few things that these service partners progressively offer are inventory management services.
Services for DocumentationÂ
Undoubtedly, successful international trade depends on the free movement of products. These businesses assist in setting up a business by taking care of all the paperwork and legal procedures for doing business internationally.
Networking
Using their strategically positioned distribution networks, logistic service providers aid companies in expanding into new markets. In addition, these service providers can offer advice on feasible economic marketplaces since they have a comprehensive knowledge of the rules and legislation that apply to them.
Value-Added Services
It is more convenient to export when vendors offer support services like labeling and packing. These suppliers also use real-time tracking systems to share control and visibility over shipments and inventories.
Cost-cutting
Logistics service providers can be cost-effective by freeing up resources, offering turnkey solutions at a low price, providing flexible, customized services, and much more. To deliver the firm a comprehensive service package, they remove needless trade restrictions, determine the optimum tariffs, and extend shipping insurance.
A logistics solutions company is crucial to the commercial success of domestic and international trade businesses. In addition, they are essential for business organizations directly engaged in buying and selling in international trade to achieve competitive advantages.
GoBOLT, a tech-enabled logistics player, is an industry expert in new-age end-to-end logistics services with SaaS-based solutions. Founded in 2015, it works to streamline the supply chain model and upscaling the Indian logistics industry.
