The Expenses You Need to Consider When Hiring Third Party Logistics Providers

Whether you are new to the industry or a veteran, the importance of third-party logistics providers is pretty well established. In the age of e-commerce, order fulfillment centers play a leading role in your company’s success. The costs incurred when you hire a 3PL management service actually depend on several factors.

Here’s a list of the different expenditures you should be prepared with while hiring the top fulfillment centers in India.

Setting Up Costs: Even before the actual facilities start, your hired 3PL center needs to set up its management software systems and warehouse preparation. Many do not factor in these costs, but most order fulfillment centers charge their clients for the initial processes as well. Setting up the manufacturing brand’s website, order tracking tools, and delivery management systems get assessed are definitely not free services. 

Warehousing Costs: One of the most significant advantages of hiring a third-party logistics provider is probably their warehousing and storage facilities. Though this takes a massive load off your hands, the financial aspect remains equally crucial. Warehouses and storage units can be pretty costly. This is particularly applicable when you need unique storage spaces for the more vulnerable products. Apart from the initial booking cost, you need to take into account the long-term storage charges, which is a substantial amount. 

Order Management Services: The top fulfillment centers in India manage your company’s entire order handling process. Starting from order picking and packing to their dispatch and shipping. Naturally, they are going to charge a little extra in this sector. Since they implement the best technology and all their resource to ensure that the orders are correctly delivered, the rates can be a little on the higher end. 

So, before you hire the services offered by a third party logistics providers, do not forget to account for the financial responsibility and do your research to get the best deals.