The rapid changes in the logistics industry have made the roles of 3PLs challenging over the past years. Amidst all these challenges, several 3PLs have managed to successfully navigate their way to success. In 2017, it is safe to say 3PLs have become more efficient and, attracted millions of businesses across the world. However, you can only understand this success if you know where third party logistics have come from and where they are headed.
Technology is one of the key elements of 3PLs’ evolution which has enabled most of them to thrive in the industry over the years. In fact, technology and the role it plays in logistics continues to be of more importance. Today, shipping technologies take center stage in most operations of third party logistics. Reliable data show about 98% of 3PLs are positive that data-driven decisions are critical in ensuring a better future for the industry.
Technology has been integrated into most supply chain procedures, enabling 3PLs to perform tasks faster, more efficiently and at lower costs. In 2017, most logistics companies rely on 3PL supply chain management systems for handling billing, paperwork, and approval of orders. 3PLs have already experienced the benefits of technology in logistics and this trend is expected to continue even in the coming years.
The way in which 3PLs operate is also changing in 2017 and this can be seen by the expansion in their service portfolios. As customer demand keep changing, 3PLs are also changing with them. As a result, 3PLs are focusing more on supply chain management services that can meet the varying customer demands in the global market. Quite a number of 3PLs are opening up new routes in emerging markets across the world.
3PLs are also focusing more on improving customer interaction, which is mainly done through automation of 3PL supply chain platforms. Most third party logistics companies are shifting to conducting business online for better accessibility to their services and promoting real time communication with customers. The goal is to enable customers to place and receive orders at their own convenience.
In 2017, most 3PLs have focused on creating profitable relationships. Compared to the previous years, many third party logistics service providers are considering forming partnerships in an attempt to consolidate their powers and increase customer satisfaction. Through partnerships, third party logistics are able to effectively expand their operations across the borders at reduced costs. 3PLs will continue forming partnerships with like-minded players both local and abroad beyond 2017.