Built to Scale: How 3PLs are Solving India's Supply Chain Puzzle

Faced with unprecedented disruptions following the COVID-19 pandemic, businesses in India overhauled their supply chain strategies, shifting from conventional models to a blend of "just-in-time" and "just-in-case" approaches to enhance their inventory storage and delivery capabilities, in addition to avoiding long delays. This strategic pivot, coupled with the challenges of scaling infrastructure and sourcing labour, has driven companies to increasingly outsource their warehousing and distribution needs to third-party logistics (3PL) entities.

3PL providers have, in many ways, become the backbone of India's logistics ecosystem, supporting critical sectors such as e-commerce, fast-moving consumer goods (FMCG), automotive, and manufacturing. Their criticality is evidenced by their dominant presence in the country’s Industrial and Logistics (I&L) real estate market—an average 43% share in leasing activity between 2020 and 2024.

This brief report aims to present a focused view of the 3PL sector's role in reshaping India’s logistics landscape. Synthesising insights from our India Logistics Occupier Survey, 2025, we examine a few pertinent themes such as future growth strategies, preferred location and leasing approaches, technology integration, and a forward-looking outlook for the sector.

Some of the key pointers discussed in the report include:

• How 3PLs are “stepping up”, transforming supply chains through cost-efficiencies, technology integration, expertise in reverse logistics and specialised shipments, and demand fluctuation management while facilitating deeper penetration into India’s tier-II and III markets.
• How these entities have become the largest demand driver for India’s industrial and logistics (I&L) real estate sector.
• How 3PLs are projecting their future performance, with a clear preference for multi-tenanted buildings, proximity to transportation networks, and automation in warehouse operations.
• Which critical success factors are 3PLs identifying in a dynamic logistics landscape, and the strategies needed to achieve them.

To get granular insights about India’s 3PL logistics landscape, please click the download button to access our report.