Logistics Aggregators In India: The Complete Guide for Businesses

Is shipping cost eating your profits? This is true for most small and medium-sized businesses because they can't negotiate well at decent rates with big logistics companies.

To address this situation, logistics aggregators come in handy. But how?

Logistics Aggregators is a platform that consolidates various logistics carriers. This not only provides a dashboard for comparing prices from different transport companies but also opens up wider delivery options.

They serve as a bridge between businesses and various logistics services. This simply means that companies of all sizes can now have a B2B transport service that meets their needs.

It is just the tip of the iceberg. There is more to know about logistics aggregators and how they differ from traditional logistics companies. We're also going to tell you what to look for while choosing a logistics aggregator for your business.

What is a Logistics Aggregator?

A logistics aggregator is a one-stop solution provider for all of your transportation needs. It connects businesses with various transporters and gives you the freedom to choose a transporter based on rates and delivery times.

With a logistic aggregator, there is no necessity to sign contracts with every shipping company. One can use the aggregator to access all the carriers' requirements.

In addition, the aggregator handles all technical and paperwork requirements for each courier.

Key solutions offered by a logistics aggregator:

• One dashboard for all you want to ship
• Several transporters to choose from
• Tools to compare rates and delivery timing
• Integrated tracking of all of your shipments
• Integrated customer service (no need to directly contact each shipping and transport company).

They are most effective for medium- and small-sized businesses, as they don't have a dedicated team or budget to handle their B2B shipments.

Logistics Aggregator Vs. Logistics Company

Logistics aggregators are middlemen that connect companies with various transport providers via a platform.

While logistics companies handle delivery and transportation in-house. They have their own trucks, warehouses, and an extensive last-mile delivery network.

How A Logistics Aggregator Works?

Here is the step-by-step process on how a logistics aggregator works with multiple transportation solutions to serve better:

1. Carrier Onboarding

An aggregator platform first signs up with established B2B transport service providers such as Blue Dart, Delhivery, DTDC, etc.

All the transport companies link their systems with the aggregator's platform via APIs. The aggregator then receives real-time rates, service regions, and delivery dates from all transport and logistics partners.

They handle all the contracts and paperwork for these transporters. You do not have to sign separate agreements with logistics or worry about minimum shipping volumes.

2. API Integration With Seller's or eCommerce Stores

The platform integrates directly with your business or eCommerce platform via APIs. So, there is no need to update each order's shipping status manually. Orders are auto-processed with API calls and webhooks.

Integration pulls in all the important details, such as customer address, product weight, and package size.

Based on all the given data, the automated system calculates the accurate shipping costs from different logistics companies.

Integration features you'll commonly come across:

• Orders are received automatically
• Real-time updates of inventory
• Bulk order processing
• Accurate delivery rates and timing.

3. Rate Comparison

When you create a shipment, the platform fetches the latest rates and probable delivery time from all available transportation partners.

You will receive a comparison list from each carrier, including their prices, delivery date, and service features. So, you only have to choose one from them.

Things you can compare:

• Basic shipping cost
• Fuel surcharges
• Service taxes
• Charges for cash on delivery
• Estimated delivery times.

4. Shipment Booking and Labeling

Once you choose a carrier, confirm and accept your booking with a click. The time slot is then reserved instantly with the courier partner.

You can also select a pickup time that suits your needs and convenience before final confirmation.

The platform automatically generates shipping labels, including tracking numbers, addresses, barcodes, and special handling notes.

5. Tracking & Notifications

The system monitors all shipments from pickup to delivery with the carrier's APIs. You get real-time shipping updates of your packages.

Customers automatically receive SMS and email notifications at key stages of shipments. Example: shipped, product is out for delivery, in transit, or delivered.

6. COD Reconciliation & Return

For cash-on-delivery shipments, the platform tracks payment collection and when you'll get payment from each logistics partner.

For returning products, the system prints the return labels and arranges pickups, as it does with regular shipments.

6 Key Features of a Logistics Aggregator Platform

The following are some of the highlighted features of a logistic aggregator platform:

1. Multiple Carrier Integration: You can choose from multiple logistic carriers without the hassle of handling multiple accounts from a single dashboard.
2. Pin Code Coverage: With multiple logistic partners, your business can reach nearly every corner of the world.
3. Real-Time Price Comparison: You can compare shipping charges in real time between all of these carriers that help you find the best logistics based on cost, delivery dates, and weight.
4. Automated Orders Management: The system extracts order details from your sales channels and handles them automatically. Shipping labels, tracking numbers, and order status updates are generated automatically, without manual work required.
5. Online Monitoring and Alerts: Sellers can track live shipments from a single dashboard. Customers can also receive real-time notifications for shipments that are picked up, out for delivery, and delivered.
6. Bulk Shipping During Seasonal Demands: You can ship as many orders in bulk. If one carrier is busy, you can have the option to choose another one. This facilitates big-time savings for delivering during peak shipment.

Advantages of Using a Logistics Aggregator for Companies

Logistics aggregators are transforming the logistics operations for many businesses. They streamline the shipping process and take the headache out of businesses. However, there are some more advantages of using logistics aggregators:

1. Cost Savings and Comparison of Prices: You can compare rates of various carriers and avail the benefits of reduced rates without reaching out to a logistics company individually. You also don't need to enter into a separate contract with each carrier.

2. Time and Efficiency Benefits: It offers you the ability to manage all of your shipments through one dashboard. This includes:

• Automate label printing and ship processing
• Arrange pickups with multiple carriers
• Keep all of your packages in one place for consolidations (if required).

3. Technology and Integration: You don't have to invest in technology; you can use their technology and services for your orders. Because of api integration, all the work is streamlined with real-time tracking links.

4. Operational Improvements and Services: Some of the operational advantages: 

• Process returns from one platform.
• Scale up shipping as demand for the product increases.
• Provide different delivery options for your customers (e.g., one-day or regular delivery).
• Offer specialized services such as temperature-controlled shipping.
• Get support for your shipping issues in one location.

Choosing The Right Logistics Aggregator: Key Factors To Consider

Following are some of the pointers you should be aware of while choosing the best logistics aggregator for your business:

1. Carrier Network and Coverage: Start with the following questions:

• How many partner carriers do they operate? (More than 5 is okay)
• Do they cover the pan-India reach?
• Can they handle international shipping and freight forwarders?
• Available delivery types: overnight, express, and regular?
• Do they provide specialized services such as refrigerated trucks?

2. Transparent Pricing Structure: Are their rates really competitive? Always compare the difference between shipping with and without an aggregator partner. Look for a transparent breakdown of charges.

3. Technology Features: Their platform must be user-friendly and easily integrate with your business or e-commerce site. Check for technology features such as:

• API integration and webhooks
• Automated label printing
• Real-time tracking
• Returns management

4. Customer Support Quality: Don't ignore 24/7 support with fast response and quick resolution timing in case something goes wrong.

5. Performance Metrics: Don't rely on the aggregator's words. Look online for the reviews and ratings along with their Return to Origin (RTO) percentages.

6. Supplementary Services: Some must have supplementary services, such as warehousing, COD, or insurance.

So, choosing the best logistics aggregators can completely revamp your business by handling all headaches related to shipping. However, you should first give each logistics aggregator a trial run before signing a long-term contract.

And if you want to save money and don't want to share with logistics aggregators, you can contact us, and we will offer you the best pricing on your PTL transport with Pan-India reach.