The Indian consumer behavior patterns have mostly modified over the past few years, with quick changes brought on by the pandemic. While technology remained the key disruptor, the increase of modern retail, and higher penetration of key FMCG brands into the rural and semi-urban parts of India, marked a shift in the Indian FMCG sector's rising story. The Indian FMCG market is looking forward to growing at a CAGR of 14.9 percent to reach US$ 220 billion by 2025, from US$ 110 billion in 2020.

There is still a long way to go before FMCG brands can still fully work out and leverage the huge potential that an effective 3PL service provider can bring to the brand. From smooth procurement, distribution, reverse logistics, and smoother supply chain networks across the rural and urban markets, 3PL service providers are also appearing as well-known partners and stakeholders in the complete growth and success of FMCG brands, across the globe.

 Here are some key benefits that FMCG players can adore with the right 3PL service provider:

 1. Optimizing costs 

FMCG is a highly cost-sensitive industry and the basic variations in operations can go a long way in affecting the bottom line. With a 3PL service partner, logistics, storage, and transportation costs are improved as these are outsourced to experts, thus allowing brands to target resources on core competencies.

2. Leverage technology

 As industry experts with basic competency in supply chains, 3PL service providers offer an exclusive advantage of tech-enabled solutions for FMCG brands, which may range from functional temperature-controlled supply chains to data-driven solutions – key intuition that could go a long way in rising sales and market share for FMCG brands

3. Build agility and scalability 

One of the key features rendered by 3PL service providers is the agility and scalability of their network, which can be examined and leveraged by FMCG brands, based on the growth curve. From area-specific focused campaigns to examining new markets and customer bases, 3PL service providers give FMCG brands the bandwidth to analyze and build themselves among new consumers, at a feasible cost, and without long-term investment.

 4. Value-added services 

In addition to the above benefits, several 3PL service providers give an array of value-added services, customized to meet the definite demands of each sector/ product. From accumulating, packaging, re-distribution, kitting, sampling, and even documentation and smooth movement of cargo, in case of long haul, they also offer multi-national transport. Apart from these, with the growth of e-commerce, reverse logistics, inventory mapping, and just-in-time deliveries have also become a crucial aspect of consumer loyalty and 3PL service providers ensure they become the face of the brand when they finish the D2H deliveries.

The way forward: 

According to a UK-based market research firm Technavio, the 3PL market in India is expected to grow at a CAGR of 8 percent and is set to be valued at US $10.74 billion, from 2021- 2025. 13SQFT offers end-to-end logistics solutions, including inventory management, warehousing, shipping, and last-mile delivery, With a clear focus on streamlining operations and driving efficiency, 13SQFT.COM is now actively working towards creating custom-made solutions that grasp AI, emerging tech, and a deep domain customer understanding, to furnish value to their FMCG clients.