Part Truckload (PTL) Services Empowering India’s MSME Sector

Introduction

The Indian commercial market comprises a whopping 6.3 crore Micro, Small, and Medium Enterprises (MSMEs) that contribute almost 30% to India’s GDP. They help generate employment, lead to innovation, and help the economy rise.

Despite their world-class contribution, they face a lot of difficulties while trading, like fewer funds, huge competition, time-consuming policies, limited access to credit, and others. But they can steer clear of these challenges with some effort. However, big issues like economic shocks, government regulatory changes, and costly supply chain services prove to be highly harmful to the success of the MSMEs.

Supply chain services like transportation become a huge expense for them. This is because, to keep any business running, the goods need to reach their destination on time. To fulfil this requirement, they often have to deliver their goods through trucks even when they are half empty. This increases their cost per unit, leading to a shrinkage in income, resulting in a loss of profit.

However, there is a solution. Part Truckload (PTL) service by supply chain operators can help save the MSMEs from collapsing. In this blog, we will discuss more about the part truckload services in India and how they help the MSMEs succeed.

What is Part Truckload (PTL)?

Part Truckload (PTL), which is also known as Less Than Truckload (LTL), is a transportation solution that helps small traders transport smaller quantities of goods by sharing space with other traders in a single truck.

How does PTL benefit Traders?

1. Cost-effective Transport for MSMEs

Transportation cost depends on weight, volume, and distance. PTL logistics services are an innovative solution that helps traders save money, as they only have to pay for the weight of the goods, the truck space they utilise, and the distance from origin to destination. The need for booking an entire truck disappears, and its hefty costs are easily avoided.

2. Time-saving:

Sometimes the trader needs to wait for there to be enough goods to transport them together via a truck, i.e., he needs to wait until the quantity of goods to be transported justifies the cost of booking an entire truck. However, with the PTL logistics services, the trader doesn’t need to wait and can transport even a lower quantity immediately, as the combined goods of multiple traders fill up the entire truck.

3. Flexibility & Frequency:

Smaller companies often need to transport smaller quantities of goods frequently. This MSME logistics solution gives them the flexibility of transporting them anytime, anywhere, based on the need.

4. Wider Reach:

PTL service providers typically operate hub-and-spoke models that connect almost all major cities, towns, and villages. This gives MSMEs access to pan-India distribution networks. This helps them enter newer markets, make their brand visible, and reach more consumers.

5. Reduced Inventory Holding:

Businesses can adopt a just-in-time inventory approach as goods are delivered flexibly, frequently, and cheaply. Thus, there is no need to hold excess inventory. This saves money and avoids wastage. This is especially valuable for businesses handling perishable goods, seasonal items, or fast-moving consumer products.

PTL as a Tool for National Growth

India’s growth is highly based on MSMEs. This is why they should be given a chance to integrate with national and global value chains. Part truckload services in India can play a transformational role in this by

1. Encouraging rural entrepreneurship by making national markets accessible from remote locations.

2. Giving a push to small, women-led businesses by providing easy transportation options.

3. Supporting e-commerce sellers who rely on frequent and small shipments to customers from various parts of the country.

PTL thus ensures that all get an equal chance and makes the rural-urban divide thinner.

Challenges & Considerations in PTL Logistics

Despite the benefits, PTL does come with its own set of operational challenges, like

1. Handling Risks:

More touchpoints (loading/unloading) can increase the risk of damage if proper packaging is not used.

2. Complex Pricing Models:

As discussed above, PTL charges are based on weight, volume, and distance. It is a difficult task to understand the pricing models of service providers, and the trader often is left with no option but to trust the PTL service provider. Rural entrepreneurship, for example, takes a hit as small businesses in remote areas struggle to assess fair freight rates.

3. Lack of Standardisation:

Different PTL logistics services providers work on different terms and conditions, like delivery speed and frequency, technology usage (real-time tracking, proof of delivery, etc.), customer service standards, Service Level Agreement (SLA) enforcement, etc.

To overcome these challenges, traders should work with reputed PTL providers offering valuable services, strong SLA commitments, and transparent pricing.

Conclusion

Part Truckload (PTL) logistics is more than just a transportation model; it’s a chance for India’s MSMEs to grow and succeed. As MSMEs seek cost-effective, flexible, and efficient logistics options, PTL logistics services offer an excellent solution to meet these needs.