+1 800 967-0030

The State of 3PL in the U.S.

It’s all coming up roses for 3PLs in the US for the foreseeable future, according to the 21st Annual Third-Party Logistics Study by Capgemini Consulting.

Over 90 percent of both 3rd party logistics users and providers reported that their relationships were both successful and yielding high quality results, and users are convinced that 3PLs contribute to overall logistics cost reductions, improved customer service and offered new and innovative ways to increase the effectiveness of those logistics operations.

Leading the Way to Better Fulfillment Through Technology

Tech is the biggest influencer in the sector, as it has been for the last several years.

Lately, much of the talk is about autonomous vehicles and their nearly endless possibilities. Now that Google’s driverless car has logged over two million miles on live roads, investments in autonomous or vision-guided forklifts is almost a given. These machines have been shown to increase warehouse productivity by more than 10 percent in Giant Eagle warehouses, according to a report by Technavio.

Of course, the influence Big Data has had on all areas of the supply chain can’t be ignored. Not only is it required to make those forklifts perform efficiently, the best 3PLs in America are utilizing data in all kinds of ways to improve the speed and accuracy of pick, pack and ship. These companies are also finding more ways to implement Big Data for use in reverse logistics facilities.

Even though these facilities are constantly receiving irregular and inconsistent products, grading systems and better transparency for customers who are waiting for credits, for example, have been improved through the use of Big Data.

Speeding Up the Supply Chain, One Link at a Time

Tech is also playing a huge role in speeding up the supply chain.

What omnichannel has done for customers and their buying strategies, agile supply chains have done for the speed of those order deliveries. Decentralization of distribution is becoming a huge priority, with many bricks-and-clicks retailers distributing from both warehouses and shops that happen to have the right stock plus the fasted location from which to ship to a particular customer.

The equivalent is happening with eRetailers, too, except that their stock is kept in 3rd party fulfillment warehouses that are strategically placed in order to move boxes out rapidly. In-house tools create a level of transparency that allows shipping experts to move their packages along the fastest routes possible, even if that means re-directing shipments to different shippers.

3rd party logistics is a path to growth in so many industries that it’s not really surprising that the sector is expanding. As online sales continue to explode, 3PLs will be needed even more to keep the orders flowing.

May 16, 2018
Share This:

Related Posts

RECENT POSTS

Real-Time Order Tracking Or Bust

Gps tracking map. Track navigation pins on street maps, navigate mapping technology and locate position pin. Futuristic travel gps map or location navigator vector illustration “Where is my order?” “When will my package arrive?” If you are inundated with questions...

First In, First Out Warehousing and Fulfillment

Are you a seasoned inventory manager? If so, the acronym FIFO - which stands for First In, First Out - might be a familiar term to you. Put simply, the items are sold in the order they are received in the store or warehouse. FIFO is the go-to inventory management...

Grow Your Amazon Business With A Standout Listing

Do you sell on Amazon? If so, you are in great company. At the end of 2022, Amazon had over 2 million active sellers worldwide, making it one of the largest e-commerce platforms in the world. Businesses have the opportunity to reach millions of customers in over 180...

Scroll, Click, Buy: How to Sell On Instagram

Do you have an Instagram shop? Instagram Shopping is quickly becoming the preferred way for consumers not only to learn about new brands and products on Instagram, but also to purchase them in just a few simple steps. If you are not already selling directly on...

New Year, New You?

Every year, millions of people make New Year’s resolutions, hoping to spark positive change, adopt new habits, or even reinvent themselves. The recurring themes each year include a more active approach to health and fitness, improved finances, better relationships,...