Snowman Logistics gains 2% after launching 5PL services in India

17 Oct 2022 , 12:48 PM

Snowman Logistics Limited has announced the launch of Fifth-Party Logistics or 5PL services in India, becomes the first company to introduce this service in the cold chain logistics and supply chain management sector in India.

The need for 5PL services has grown incrementally in the last couple of years due to the development of e-commerce businesses, the rise in international trade activities, and the increased complexities in supply chain. The post-pandemic rise in the ready-to-eat and ready-tocook food categories is also a major reason for the boost in the 5PL service segment in this

Leveraging this growth, Snowman Logistics now provides distribution and consolidation services, including sourcing on behalf of its customers, in addition to the existing bouquet of 3PL services of transportation and warehousing. In this model, we operate as an integral part of the client’s organisation, develop suppliers, negotiate pricing on behalf of customers, audit manufacturing plants, share production/requirement planning, buy stocks from them, consolidate in warehouse, and sell to the clients.

The vendor onboarding process is done by the Snowman Quality Team after an extensive quality audit, commercial benchmarking and due diligence.

Sunil Nair - CEO of Snowman Logistics, says, “The launch of 5PL services has opened up a huge opportunity for us to convert our existing 3PL accounts to 5PL accounts. Being the industry leader in cold chain and integrated solutions for the last three decades, this is a win-win situation for us and our customers.

By using our expertise, network of suppliers and customers and offer distribution and consolidation services in addition to our existing solutions, we are now offering one-stop distribution services, right from the manufacturing plant to the consumption points through which we are able to add further value and enhance earnings from our existing businesses without needing to invest in infrastructure.

We have already started offering this service to IKEA, Tim Hortons and Baskin Robbins and are targeting aggressive growth in this segment."

At around 12:44 PM, Snowman Logistics Ltd is currently trading at Rs34.40 per share up by Rs0.7 or 2.08% from its previous closing of Rs33.70 per share on the BSE.

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