What Are The Future Trends In Third Party Logistics?
During the last decade, Third party logistics services gained a lot of popularity. They began changing the way enterprises looked at supply chain management. Be it introducing new technologies or developing smart and unique ways to optimize the resources, 3pl services have opened the doors for enterprises to embrace new opportunities.
With an increasing demand for 24*7 logistics services, many new players have entered the market. Each comes with a new concept or an idea to attract enterprises and offer something different. The 3pl industry is currently dynamic, ready to explore, and adopt new technologies.
Considering the scenario, we can say that the future is bright for 3pl companies and enterprises. The success of both parties is interlinked. Enterprises are looking for ways to cut down operational costs, and 3pl companies offering services to streamline logistics and supply chain operations.
Third party logistics top companies in USA are all set to embrace the upcoming trends in the industry and also create some on the way.
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Increased Collaboration
Collaboration is the key to success in today’s world. The relationship between the enterprise and the 3pl company is not going to be limited to minimum communication. Tracking shipments, sending alerts to customers, monitoring the delivery containers, accessing the related information from the database of the company, using the network of the 3pl company to find new audiences, etc. are some ways in which the enterprise and the 3pl company are working together to improve their services and brand names. Enterprises are also collaborating with each other and sharing resources to further minimize costs.
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Latest Software and Mobile Applications
Warehouse Management System and Transportation Management Systems are two examples of using technology to streamline the services. Storing and accessing the data on the cloud, reducing the need for paperwork, digitalizing the requests and orders, and using voice commands to control the system are possible.
Paperwork has always been an integral part of logistics services. The documents related to the shipments have to be shared and submitted at various stages during the delivery. By using RFID-enabled devices, the data related to the shipments can be shared and processed with a single scan and click. This increases transparency throughout the supply chain and reduces the time taken to verify the documents.
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Big Data and Data Analytics
The information collected doesn’t just stay idle in the databases. It is processed and analyzed using various metrics to derive valuable insights that can help the enterprises and 3pl companies in making better decisions. The data can be used to understand seasonal trends, anticipate new trends, identify emerging markets, and increase operational efficiency to bring more transparency into the supply chain.
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From National to International
Geographical borders are no longer stopping people from buying what they want. We already have many logistics companies that provide international shipping services between different countries. Even small businesses are now trying to global y making use of eCommerce platforms. With 3pl companies to provide them the logistics services, they don’t have to worry about building the entire supply chain from scratch. The 3pl companies take responsibility and deliver the products across the borders and seas.
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Eco-friendly Logistics
While successful businesses are a priority, the environment we live in also needs to be cared for. With the threat of global warming looming overhead and governments being forced to reconsider their industrial laws, eco-friendly manufacturing and services are grabbing attention.
Warehousing and transporting are hardly eco-friendly, considering their dependence on natural resources and the amount of pollution they release into the environment. But customers are becoming aware of the global crisis and are leaning towards enterprises that promise eco-friendly products. In the days to come, enterprises and 3pl companies will be using alternate means and collaborative techniques to minimize their use of natural resources.
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Artificial Intelligence
Artificial intelligence is already a part of supply chain management. Driverless vehicles were supposed to have already been in use. The process might have been delayed but it will surely enter the picture in the coming days. AI is also used to study traffic patterns and find alternative routes for faster delivery.
Not just that warehouse automatic, robotics, geocoding, etc. are some ways in which AI is playing a prominent role in shaping the future of 3rd party warehousing and logistics services.
The Third party logistics top companies in the USA are already handling various warehousing, inventory management, production logistics, supply chain, and reverse logistics for many enterprises. Enterprises are now focusing on R&D, manufacturing, quality control, and marketing by handing over the rest of the operational responsibilities to 3pl companies.
We will see more enterprises following the trend in the coming days. As eCommerce takes over the world, the demand for faster delivery will increase, thus further promoting the use of 3pl services to cater to customers’ demands.