How OM Logistics is scaling with 3PL Warehousing for MSMEs

Author: Tata Nexarc | Published on: 18 July 2024 | 5 min read

Table of content:

OM Logistics Ltd, a leading name in India's logistics sector, has been revolutionizing supply chain management for businesses of all sizes. With a special focus on Micro, Small, and Medium Enterprises (MSMEs), the company has leveraged its expertise in logistics warehousing 3PL (Third-Party Logistics) to drive growth and efficiency. This article explores how OM Logistics Ltd logistics warehousing 3PL services are transforming the landscape for MSMEs in India.

Founded in 1983, OM Logistics has grown from a small trucking company to a comprehensive logistics solutions provider. Today, it stands as a beacon of innovation and reliability in the Indian logistics industry. The company's journey reflects the evolving needs of businesses, particularly MSMEs, which form the backbone of India's economy.

Understanding 3PL Warehousing

Third-party logistics (3PL) warehousing is a service model where businesses outsource their logistics operations to specialized providers. This includes storage, inventory management, order fulfilment, and distribution. The core features of 3PL include:

1. Scalable storage solutions
2. Advanced inventory management systems
3. Order processing and fulfilment
4. Transportation management
5. Value-added services like packaging and labelling

In the context of supply chain management, 3PL plays a crucial role in optimizing operations, reducing costs, and improving efficiency. For instance, a small electronics manufacturer in Pune partnering with OM Logistics can focus on product development while leaving the complexities of storage and distribution to experts.

OM Logistics Ltd and 3PL Warehousing

OM Logistics Ltd logistics warehousing 3PL services stand out in the market due to their comprehensive approach. The company offers a wide range of 3PL solutions tailored to meet the unique needs of MSMEs. Their services include:

1. Warehousing and distribution
2. Inventory management
3. Order fulfilment
4. Transportation services
5. Customs clearance and documentation

OM Logistics has invested heavily in technological infrastructure to enhance its 3PL offerings. They utilize state-of-the-art Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to ensure seamless operations. For example, their real-time tracking system allows MSME clients to monitor their inventory and shipments 24/7, providing unprecedented visibility into the supply chain.

Strategic partnerships have been key to OM Logistics' success in the 3PL space. They have collaborated with leading technology providers to implement cutting-edge solutions like IoT-enabled warehouses and AI-driven demand forecasting. These partnerships enable even small businesses to access enterprise-level logistics capabilities.

With a network of over 1,200 offices across India, OM Logistics provides extensive national and regional warehousing coverage. This widespread presence allows MSMEs to reach customers in every corner of the country, opening up new markets and growth opportunities.

Scaling with MSMEs

MSMEs contribute significantly to India's GDP and employment. However, they often face supply chain challenges such as:

1. Limited resources for logistics infrastructure
2. Difficulty in managing inventory efficiently
3. High transportation costs
4. Lack of visibility in the supply chain
5. Inability to scale operations quickly

OM Logistics Ltd logistics warehousing 3PL services address these challenges head-on. By providing flexible warehousing solutions, MSMEs can scale their storage needs based on demand. The company's advanced inventory management systems help small businesses optimize stock levels, reducing holding costs and improving cash flow.

For example, a growing fashion startup in Mumbai used OM Logistics' 3PL services to expand its operations nationwide without investing in physical infrastructure. This allowed the startup to focus on product design and marketing while OM Logistics handled the complexities of distribution.

Benefits of 3PL Warehousing for MSMEs

Cost Reduction and Operational Efficiency:

By outsourcing logistics to OM Logistics, MSMEs can convert fixed costs into variable costs, paying only for the services they use. This leads to significant cost savings and improves operational efficiency.

Enhanced Flexibility:

OM Logistics' 3PL services allow MSMEs to quickly adapt to market changes. For instance, during seasonal peaks, businesses can easily scale up their warehousing and distribution capabilities without long-term commitments.

Access to Cutting-Edge Technology:

MSMEs gain access to advanced logistics technology without hefty investments. OM Logistics' WMS and TMS systems provide real-time visibility and control over inventory and shipments.

Scalability and Business Growth:

With OM Logistics handling the logistics, MSMEs can focus on core business activities and expand into new markets more easily. The company's pan-India network supports nationwide growth strategies.

Improved Customer Satisfaction:

Faster order processing, accurate deliveries, and efficient returns management lead to higher customer satisfaction. This is crucial for MSMEs looking to build brand loyalty and compete with larger players.

Technological Innovations

OM Logistics Ltd logistics warehousing 3PL services leverage advanced technologies to drive efficiency and accuracy. Some key innovations include:

1. IoT-enabled warehouses for real-time inventory tracking
2. AI-driven demand forecasting and inventory optimization
3. Robotic Process Automation (RPA) for order processing
4. Blockchain for enhanced supply chain transparency
5. Big data analytics for performance insights and optimization

These technologies enable MSMEs to operate with the efficiency of much larger enterprises. For instance, a small electronics distributor in Chennai used OM Logistics' AI-driven demand forecasting to reduce inventory holding costs by 30% while improving product availability.

Customized Solutions for MSMEs

Understanding that one size doesn't fit all, OM Logistics offers customized warehousing solutions for diverse industries. Their industry-specific 3PL services cater to sectors like:

1. Automotive
2. Electronics and Consumer Durables
3. Pharmaceuticals
4. E-commerce
5. FMCG

Value-added services tailored for MSMEs include:

1. Kitting and assembly
2. Packaging and labelling
3. Reverse logistics and returns management
4. Cross-docking services
5. Quality control and inspection

These services enable MSMEs to offer premium customer experiences without significant investments in infrastructure or personnel.

Future Trends and Developments

The 3PL warehousing sector is evolving rapidly, with several emerging trends:

1. Increased automation in warehouses
2. Greater emphasis on sustainability in logistics
3. Rise of omnichannel fulfilment
4. Integration of artificial intelligence and machine learning
5. Focus on last-mile delivery optimization

OM Logistics is at the forefront of these trends, continuously innovating to support MSMEs. Their future plans include expanding their network of smart warehouses and investing in green logistics solutions to help MSMEs reduce their carbon footprint.

The 3PL market in India is projected to grow at a CAGR of 11.5% between 2021 and 2026, driven by the rise of e-commerce and the government's focus on improving logistics infrastructure. This growth presents significant opportunities for MSMEs to leverage 3PL services for expansion.

Industry 4.0 is set to revolutionize 3PL warehousing. OM Logistics is preparing for this by investing in technologies like 5G-enabled warehouses and autonomous vehicles. These advancements will further enhance the efficiency and cost-effectiveness of their services for MSMEs.

How Tata Nexarc can help

1. Comprehensive Logistics Solutions: Tata Nexarc offers a wide range of logistics solutions tailored to meet the specific needs of MSMEs. By providing access to a network of reliable 3PL providers, Tata Nexarc ensures that MSMEs can efficiently manage their warehousing and logistics operations, leading to cost savings and improved operational efficiency.
2. Advanced Technology Integration: Tata Nexarc leverages advanced technology to streamline logistics processes. From real-time tracking to automated inventory management, the platform integrates cutting-edge technologies that enhance the visibility and control of supply chain operations, helping MSMEs stay competitive in a fast-paced market.
3. Customized Warehousing Services: Tata Nexarc understands that each MSME has unique requirements. The platform offers customized warehousing solutions that cater to different industries and business sizes. Whether it's flexible storage options or specialized handling of goods, Tata Nexarc provides tailored services that align with the specific needs of MSMEs.
4. Expert Consultation and Support: Tata Nexarc provides expert consultation and support to MSMEs, helping them navigate the complexities of logistics and warehousing. With access to a team of logistics professionals, MSMEs can receive guidance on optimizing their supply chain, implementing best practices, and overcoming logistical challenges.
5. Scalability and Growth Opportunities: Tata Nexarc offers scalable logistics solutions that grow with the business. As MSMEs expand, Tata Nexarc's flexible warehousing and logistics services can easily adapt to increased demands, providing a seamless transition and supporting long-term business growth.

Conclusion

OM Logistics Ltd logistics warehousing 3PL services are playing a crucial role in empowering MSMEs to compete effectively in an increasingly complex business environment. By providing access to advanced logistics capabilities, OM Logistics is helping small businesses overcome supply chain challenges and focus on their core competencies.

The company's commitment to innovation, customization, and nationwide coverage makes it an ideal partner for MSMEs looking to scale their operations. As the logistics landscape continues to evolve, OM Logistics remains at the forefront, ready to support the growth and success of India's MSME sector.