| | MAY 20228VANTAGE POINTHARNESSING THE POTENTIAL OF THIRD-PARTY LOGISTICSCoen Van Der Maarel, Managing Director - India, Sri Lanka & Maldives, Kuehne+Nagel in an interaction with the Industry Outlook team, shares the roadmap to establish automation of the 3PL Supply Chain in India.THE GLOBAL THIRD-PARTY LOGISTICS (3PL) MARKET IS EXPECTED TO REACH MORE THAN $1.75 TRILLION BY 2026. HOW DO YOU ANTICIPATE THE GROWTH OF THIS SEGMENT IN INDIA? WHAT ARE THE FACTORS DRIV-ING THIS GROWTH?There has been a growing awareness among companies about the benefits that 3PL providers can offer. Supply chain management through a 3PL provider allows the company access to an established resource network and the industry expertise of 3PL partners. Clients will also benefit from optimal cargo turnover, distribution efficiency, superior inventory management, reduced inventory and overall cost economies.Using a 3PL provider also removes the need for in-house logistics management, warehousing, and other related human resources & costs, which can be an effective logistics solution for smaller companies. By working with a 3PL provider, companies will be able to transform their supply chain, increase efficiency and ensure customer satisfaction.Particularly in India, there is a heavy push to invest in infrastructure and renewable energy in the coming years to meet sustainability goals and improve the adoption of green logistics. This presents a large opportunity for growth within the 3PL industry. Companies with overseas operations also benefit from working with international 3PLs to maintain consistency of global operations & systems, and compliance to their global standards. Kuehne+Nagel goes a step further in offering 4PL services, a higher level of supply chain management for the customer, giving clients a control tower view of their transactions, suppliers and collaborators to optimize their supply chain. Coen Van Der Maarel, Managing Director
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