A method comprising: receiving, by a computing device, a first layer 3 routing protocol route advertisement that includes service function instance data for a service function instance, the service function instance data indicating a service function type and a service identifier for the service function instance, wherein the first layer 3 routing protocol route advertisement comprises a Border Gateway Protocol UPDATE message that includes a service function chaining Network Layer Reachability Information that indicates the service function type and the service identifier, and wherein the Border Gateway Protocol UPDATE message comprises an encapsulation attribute that includes a network address of a computing device that hosts the service function instance; receiving, by the computing device, a second layer 3 routing protocol route advertisement that includes service function chain data for a service function chain, the service function chain data indicating a service path identifier and one or more service function items; and sending, by the computing device to the service function instance and based at least on determining a service function item of the one or more service function items indicating the service function instance, a packet classified to the service function chain, encapsulating, by the computing device based on the encapsulation attribute, the packet with a tunnel encapsulation header that includes the network address for the computing device to generate a tunnel packet; and sending, by the computing device to the computing device that hosts the service function instance, the tunnel packet, wherein the computing device includes an entropy label in the tunnel encapsulation header. receiving, by a computing device, a first layer 3 routing protocol route advertisement that includes service function instance data for a service function instance, the service function instance data indicating a service function type and a service identifier for the service function instance, wherein the first layer 3 routing protocol route advertisement comprises a Border Gateway Protocol UPDATE message that includes a service function chaining Network Layer Reachability Information that indicates the service function type and the service identifier, and wherein the Border Gateway Protocol UPDATE message comprises an encapsulation attribute that includes a network address of a computing device that hosts the service function instance; receiving, by the computing device, a second layer 3 routing protocol route advertisement that includes service function chain data for a service function chain, the service function chain data indicating a service path identifier and one or more service function items; and sending, by the computing device to the service function instance and based at least on determining a service function item of the one or more service function items indicating the service function instance, a packet classified to the service function chain, encapsulating, by the computing device based on the encapsulation attribute, the packet with a tunnel encapsulation header that includes the network address for the computing device to generate a tunnel packet; and sending, by the computing device to the computing device that hosts the service function instance, the tunnel packet, wherein the computing device includes an entropy label in the tunnel encapsulation header.