CARGOCONNECT-AUGUST 2025 - Flipbook - Page 65
PANEL 4
THE ROLE OF 3PLS AND 4PLS IN DRIVING
E-COMMERCE GROWTH
“We’re here to talk about a transformation that’s quietly—but powerfully—reshaping the backbone of
global commerce: the evolving role
of 3PL and 4PL in the e-commerce
industry. Since most of us come
from a supply chain background, it’s
important to look at the numbers. On
a lighter note, the Indian e-commerce
sector is now about 10 times the size
of Bollywood. And within the next
two years, the number of online shoppers in India is expected to match the
entire population of the United States. With that kind of scale, we can’t ignore
the critical role of 3PL and 4PL players. They are the engine behind the rapid
growth of e-com. One of the classic supply chain challenges is balancing
contradictory goals—improving speed while keeping costs under control.
So, the key questions that top up are: what are 3PL and 4PL partners doing
today to meet rising customer expectations, especially as delivery lead times
have gone from days to hours, and now even minutes? And how are they
managing this shift without letting costs spiral out of control?”
SACHIN JAIKISHAN BAJAJ, Head- Supply Chain Design,
AkzoNobel (MODERATOR)
“The evolution of 3PL and 4PL has
happened over time, and we've
experienced this change 昀椀rsthand.
Their experience working across different industries and product types
adds value to our operations. We’ve
moved from one stage to another,
and now technology integration in
supply chains is better than ever.
This shift means our partners need
to be equally competitive in terms
of technology. The tech aspect is crucial, but infrastructure on the ground
is just as important. For us, the relationship with 3PL and 4PL partners
is so integrated that there’s little di昀昀erence between our service levels and
theirs. We work closely with them to store, manage, and deliver products
to consumers. Essentially, as our business grows and market expectations
evolve, the way we work with 3PL and 4PL partners has to adapt, especially
with the advancements in technology and infrastructure. Faster delivery is a
given, but we also need to streamline return processes and ensure inventory
is available near demand centres. The connection between supply centres,
distribution hubs, and demand centers is key to making this work.”
RAUSHAN RISHU, VP– SCM, Page Industries (Jockey India)
“From my experience, D2C brands,
especially those like ours which
started online, are now shifting
toward faster delivery models,
including Q-com. We ran a few
pilot programmes to explore this
model but realised our brand wasn’t
suited for Q-com. Still, it added value
by improving conversion rates and
driving some business growth. As
the network expands, managing
inventory becomes more challenging. Replenishing stock across multiple
nodes, tracking DOH, and maintaining visibility all get more complex. That’s
why technology is so important—it helps keep the supply chain e昀케cient as the
business scales. When D2C brands adopt quicker delivery models, it should
be seen from a business perspective, not just a supply chain one. While it may
sometimes feel chaotic, it can add value to the overall customer experience
and brand performance. Q-com may work better for some channels, but D2C
still plays a key role in building brand presence. With the right support from
3PL and 4PL partners—ensuring fast delivery and smooth operations—the
brand appears more reliable and customer-friendly.”
“We should think ahead and work
closely with our 3PL and 4PL partners
to help build and improve capabilities.
So, from a brand perspective, I see
two roles here. One is where new
brands take advantage of existing
logistics infrastructure, and the other
is where mature brands help develop
and strengthen that infrastructure.
Naturally, the role of the D2C brands
and the logistics partners will di昀昀er
depending on the brand's stage and scale. On a lighter note, I hope that
things like Nike size 8 shoes or Jockey medium briefs are always available
to customers when they need them. That’s the kind of reliability we should
aim for. Today, large trading alliances and retail giants are launching their
own private-label brands. Promoting these brands on e-com platforms is
becoming a key focus, and 3PL and 4PL partners play a big role here. These
businesses are building their own websites, which often look like marketplaces
or mimic existing platforms. Behind the scenes, logistics partners are helping
manage inventory in smarter ways—using inventory as a strategic asset
rather than just a cost factor.”
KAUSHAL KAUSHIK, DGM– Supply Chain and Operations, Honasa
Consumer (Mamaearth)
MIHIR S PARAMANE, National Head– FMCG Planning and Logistics,
Reliance Consumer Products
CARGOCONNECT AUGUST 2025 | 65
