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3PL companies are striving to accommodate the increasing demand of e-commerce and fight to stay competitive, as staying on top of shifting technology trends and leveraging new ideas will help them compete effectively.
FREMONT, CA: There were several rapid evolutions in the logistics industry in the past few years. The trends started and accelerated in the previous years and have continued apace with increased demand for home delivery and more stringent consumer demands than ever. On the other hand, the industry witnessed several challenges around inflation, economic volatility, and continued supply chain disruptions. Despite significant disruptions, numerous trends will increasingly unabate in the coming years, particularly in third-party logistics (3PL).
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Greater Demand for Analytics from 3PL Providers
Today, shippers want to make more data-driven decisions. Therefore, 3PL companies should brace themselves for clients expecting analytics expertise. A recent study revealed that the majority of shippers believe that analytics is essential in ensuring complete and on-time order fulfilment and package visibility.
3PLs will increasingly be accelerated towards generating more analytical insights across their operations by building data science capabilities and teams to provide useful insights to their clients and internal teams. Robust data and accurate strategies will assist third-party logistics companies in offering shippers better traceability and end-to-end visibility across the supply chain. Besides data, companies should prioritise cybersecurity and have data protection plans in place.
Last Mile Delivery Becomes Brands differentiator
Last-mile deliveries are important in the contemporary world, and they will be a game-changer in the coming years. Last-mile deliveries have disregarded price and product as key differentiators in buying decisions made by shoppers. It is crucial to keep customers loyal and acquire new ones, therefore, last-mile delivery can make or break a business.
Order Fulfilment from Urban Locations
More 3PL organisations work on shortening the distance of last-mile deliveries by placing fulfilment hubs in more accessible locations, such as urban centres. More customers are likely to shift to a competitor providing a faster order fulfilment process.
Greener Supply Chains
More consumers find sustainability efforts among companies to be important when they make a purchase. Many 3PLs will increasingly want to invest in eco-friendly practices to attract environmentally friendly shippers. A method for 3PL to integrate environmentally conscious tactics into their regular operations is through optimisations. For example, route optimisation helps fleets identify the shortest routes, helping to reduce their carbon footprint. Using alternative fuels is another environmentally-friendly approach enabling companies to cut their emissions and help their customers achieve sustainability goals. Other environmentally conscious delivery industry trends include the use of bikes, parcel lockers, and electric vehicles to reduce carbon emissions from last-mile deliveries.
3PL firms are striving to accommodate the growing demands of e-commerce and fight to stay competitive. However, the more effective companies can stay on top of shifting technology trends and leverage new ideas in their operations, the more effectively they will be able to compete.
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