You can improve your company’s efficiency as a whole and make progress towards your logistics goals by enlisting the aid of a third-party logistics provider (3PL). If shipping is a top priority for your company, regardless of size, age, or industry, you should look into using a 3PL.
What is a third-party logistics provider?
Third-party logistics providers, or 3PLs, provide basic logistical support for shipping operations. 3PL service provider are typically incorporated into the established workflows of a business.
Third-party logistics providers (or “3PLs”) are adept at adapting their offerings to fit your requirements thanks to their flexibility and scalability. Depending on your requirements and objectives, you can determine how involved you want to be. They have the flexibility to offer a single service or a suite of solutions covering various facets of your supply chain.
These services integrate with your workflows to boost supply chain transparency. In addition, the best 3PLs add value that improves your efficiency and effectiveness in serving your customers.
Advantages of Using 3PL Services
There are a lot of benefits to using a third-party logistics company. Some of the advantages of using a 3PL are listed below.
Acquire skill and understanding
Fulfillment, storage, and transport are three areas of the supply chain that can present significant difficulties. Third-party logistics providers (3PLs) are a valuable resource for businesses because of the years of experience and connections in the industry they bring to the table for their clientele.
Third-party logistics providers also provide valuable insight into challenges inherent to international shipments. Problems can arise with things like paperwork, taxes, and shipping laws that vary from country to country. Hiring a third-party logistics company to handle your international shipping needs is a great stress reliever.
No waste of money or time
By outsourcing logistics to a third party, you can save money that would otherwise go towards renting warehouse space, purchasing equipment, paying for gas to transport goods, and paying employees to handle these tasks.
Supply chain mistakes can be extremely expensive and dangerous, but third-party logistics providers can alert businesses to them in advance. In addition to optimizing inventory levels to reduce inventory holding costs, 3PLs assist with industry forecasting.
By outsourcing to a 3PL, businesses gain access to the knowledge and tools necessary to streamline their supply chain logistics, saving valuable time and resources.
Maximize output while maintaining pliability
Using a third-party logistics provider allows businesses to adjust storage, workforce, and delivery needs in response to fluctuating stock levels. In addition, they can help smooth the way during times of seasonality and industry upheaval.
A third-party logistics provider (3PL) can help a company grow into new markets. Third-party logistics providers (3PLs) are always on the lookout for ways to optimize supply chains and have the resources to implement changes that would be difficult for companies to implement on their own.
Supply chain inefficiencies can be identified and mitigated with the help of management software. Using a third-party logistics provider means your logistics process will always be getting better, which will save you money and make your logistics projects more efficient.
There are a plethora of third-party logistics providers out there, and it’s crucial that you pick the right one for your company. A third-party logistics provider Mehta Excel can benefit you by acting like an extension of your company, and help you make informed decisions to give you all advantages that comes with an expert 3PL service provider.
Mehta Excel strengths lie in its technological prowess, scalability, customer-centric approach, data-driven decision-making, strategic partnerships, safety compliance, skilled workforce, sustainability efforts, continuous improvement culture, and financial stability
About CII IL
We create avenues for the industry to gain more insights into emerging trends, industry-specific problems of national importance, and global best practices in logistics & supply chain management. We enable the industry to cut down transaction costs, increase efficiency, and enhance profitability. We are committed to sensitizing the industry about macro-level issues and helping find solutions to them.
Interview of the Month
“National Logistics Policy will Further Improve Ease of Logistics”
Mr. Paresh Mehta, Director, Mehta Excel Pvt. Ltd shares insights about the growth factors that have helped with a consistent rate of growth over the decades, in the face of fast increasing competition in the logistics sector.
Q: Since your company Mehta Excel’s founding in 1972, it has grown steadily into an organization that has a national footprint and offers a range of supply chain solutions to an impressive clientele. Can you share with us a quick view of your company’s journey from inception to today and the factors that have helped it maintain a strong pace of growth?
This company was founded by my father Mr. Shashikant D Mehta. Since the company’s inception in 1972, we have been providing end-to-end solutions in Supply Chain, Logistics and Warehousing services. Our first client was TOMCO (a Tata Group company). This operation was in Jabalpur. The beginning was humble as the resources were scarce. In this period, we managed to build a fleet of five trucks. The initial journey was slow, but the foundation was made.
I joined the operation in the year 1995. After learning the business, I embarked on an expansion journey. I had a vision to provide an end-to-end 3PL solution. From having one anchor customer (Hindustan Unilever) we expanded our operation to 23 clients across India. We now serve FMCG, Consumer Durable, Beauty and Personal Care, Healthcare, Chemical, Food and Beverage, E-Commerce, and Retail verticals. From five of our own fleets, we now have a fleet of 280-plus trucks.
I have always considered a talented solid team as the most principal factor for the strong pace of growth. We have experienced Directors and team leaders with proven track records and experience to take the company to the next phase of exponential growth.
Other factors that have contributed to our sustained growth and success, our customer focus approach by building strong customer loyalty, Identifying, and addressing market needs with innovative solutions, our ability to adapt to changing market trends and customer preferences ensured our continued relevance and agility.
Empowering varied businesses through talent, determination and an ‘excel-to exceed’ attitude. Today, our gamut of tailored logistics services covers supply chain management, warehouse management, logistics &distribution facilitation, one-stop packaging solutions and on-time transportation services.
At Mehta Excel Private Limited, our journey of logistics excellence continues, and we remain committed to providing top-notch services, fostering innovation, and exceeding customer expectations in every way possible.
Q: The competition in the transportation and warehouse sectors, where your company has a sizable presence, heated up in the pandemic and the post pandemic years due to a rise in e-commerce activity and the opening-up of suppressed demand. What are your company’s strengths that have helped you keep pace with the competition?
The competition has increased in the last decade. Multinational logistic companies started their 3PL operation in India. Also, the new edge tech-based logistic companies are competing with us.
One of the most important strengths of Mehta Excel is the trust our existing clients have on us. This we have built over the years through our actions. This has helped us to retain our clients.
One of our key strengths is its scalability. we have demonstrated the ability to quickly adapt and expand our operations to meet the surge in demand during the pandemic and post-pandemic periods.
Customer-centric approach by offering multiple delivery options, such as same day and next-day delivery, Proactive communication and easy return processes further enhance customer satisfaction, fostering strong relationships with our clients.
Safety and compliance are at the forefront of our operations. We place a strong emphasis on safety protocols for our workforce, ensuring the well-being of our employees while also enhancing our reputation with clients.
Mehta Excel is a lean organization. Our managers are empowered to take operational decisions as per the company framework. We have kept the overhead costs under control, which keeps us competitive.
Also, we adopt technology very quickly. For example, the Mehta Excel transport management system (TMS) is the backbone of the transport operation. Fleet monitoring using a control tower to planning is all driven by the platform. This has helped us to increase the capacity utilization of our fleets and increase the on road time of the fleet. Hence with the support of technology, we help our clients to optimize their costs and TAT.
Through our strategic technology partners, we have the latest complete suite of digital technologies from OMS, WMS, and WCS with APIs to integrate with our client ERPs.
In conclusion, our strengths lie in its technological prowess, scalability, customer-centric approach, data-driven decision-making, strategic partnerships, safety compliance, skilled workforce, sustainability efforts, continuous improvement culture, and financial stability. These factors collectively position us as a leading logistics company that consistently exceeds customer expectations and excels in the highly competitive logistics industry.
Mehta Excel is well positioned to take advantage of its technology, team strength and reach to be ahead of the competition.
Q: Due to the increased activity of multinational consumer products and retail companies in the Indian market, the use of technology in supply chain has become a big differentiator, whether it is the use of track and trace technologies, warehouse automation, or energy-efficient modes of transportation. How does and in what ways does Mehta Excel use technology as a differentiator and enabler for its customers’ supply chains?
Today’s globalization multiplied product complexity, and increased customer demands, companies are taking up advanced technologies to transform their supply chain from a pure operations hub into the epicenter of business innovation. As I mentioned above, Mehta Excel has always been an early adopter of technology.
Extending further, our TMS software provides customers with real-time tracking of their consignment. We provide ePODs for paperless operations as well as for faster reconciliation.
To make logistics management even more convenient for our clients, we provide mobile apps and customer portals, enabling easy shipment tracking, access to logistics documentation, and on-the-go customer service support.
Our fleet consists of CNG vehicles which are much less polluting as compared to diesel vehicles contributing to the eco-friendly world.
In terms of warehouse management systems, our technology is sector/vertical agnostic. Mehta Excel provides a single system for end-to-end management: Integrated OMS/WMS, Inventory management with limitless integration possibilities. Our 3PL services are suitable for multinationals or startups requiring a PAN India distribution network and having the capabilities to handle the complete cycle of order to cash.
Furthermore, our investment in state-of-the-art warehouse management systems, enables faster order processing, reduced errors, and improved inventory management efficiency.
Our inventory management solutions leverage advanced software to optimize stock levels, minimize stockouts, and reduce carrying costs. The technology also aids in demand forecasting, ensuring our customers’ goods are always available as needed (JIT).
Artificial intelligence, blockchain, robotics, 3D printing, and the internet of things are set to supercharge supply chains and Mehta Excel wants to get involved in all these technologies.
Q: The government’s pro-industry policies, such as Gati Shakti or the recently drafted National Logistics Policy, and reforms such as GST, have been having a noticeable impact on the logistics industry. What is your experience of the effect of these policies, and what are your expectations from these and similar policy initiatives and reforms?
At Mehta Excel, we are closely monitoring the developments surrounding the Gati Shakti initiative and the National Logistics Policy in India. These government-led initiatives have the potential to significantly impact the logistics industry and create opportunities for growth and improvement.
In the last few years, the road infrastructure in India has taken a leap forward. The turnaround time has improved by 20 percent – 30 percent. Better road infrastructure has many benefits. The most important is for drivers as they get less fatigue, less waiting (FastTags) and gets better off-road facilities.
GST has truly made India as ONE. No octroi, no check post has improved the efficiency of transport industry.
The National Logistics Policy, if well-formulated and executed, could be a game changer for the logistics sector. By streamlining regulations, enhancing logisticsinfrastructure, and promoting technology adoption, this policy can elevate the overall competitiveness of the industry. We eagerly await the specifics of the policy and are hopeful that it addresses various challenges faced by 3PL logistic companies.
The National logistic Policy will further improve “ease of logistics” after the various integrations from different ministries happens. This digitization through ULIP will bring all modes of transportation on one single platform in terms of visibility to customers.
As we look forward to pro-industry policies and reforms, we have certain expectations from their potential impact. Enhanced efficiency through reduced transportation bottlenecks and improved infrastructure connectivity can lead to faster and more cost-effective movement of goods. Simplified tax structures and regulations are expected to lower logistics costs, making businesses more competitive both within the country.
We are also enthusiastic about policy initiatives that encourage technology adoption in logistics operations. Better supply chain visibility, increased automation, and data-driven decision-making can revolutionize our industry and further improve customer service.
An essential aspect of our expectations from these policies is the potential for job creation. A thriving logistics industry can generate numerous job opportunities across various sectors, making a valuable contribution to economic growth and employment generation.
Furthermore, we recognize the significance of sustainable practices in logistics. We eagerly anticipate policy initiatives that incentivize environmentally friendly practices, such as promoting the use of CNG & Electric vehicles and reducing carbon emissions. Embracing sustainability aligns with our commitment to responsible business practices and environmental stewardship.
As a company, we remain committed to staying informed about these developments and adapting our strategies to leverage the opportunities presented by Gati Shakti Policy.
Will connect again next month, with a comprehensive dossier of news, trends and events from the industry.