How 3PLs Deal with Transportation Challenges

Logistics Tech Outlook | Saturday, December 12, 2020

The transportation companies use 3PLs because it offers the shippers with predictability, capacity, and versatility.

FREMONT, CA: As businesses grow or develop, many discover they can no longer go it alone to solve today's transport challenges. It can also be hard to look beyond today's shipping and analyze potential market demand and digitalization challenges. That's where third-party logistics (3PL) providers can assist.

3PLs provide a range of fully integrated transport technologies and services that offers shippers the predictability, capacity, and versatility required to foresee and respond to market changes.

But as there are so many options, it can become challenging to select accurate 3PL for businesses. To make an informed decision, here are some of the essential transportation services that 3PLs can offer to meet the transportation requirement.

Dedicated fleet

Choosing a 3PL that provides dedicated to fleet solutions could be necessary for businesses with a certain level of consistency and uniformity in their shipping needs and complexity in their pick-up or delivery requirements. 3PLs can also offer a higher degree of control, predictability, and continuity that the shipments with relatively defined quantities and destinations need, while also providing the capacity required to respond rapidly to changing demands.

Several variables can provide insight into the robustness of the dedicated fleet offering of a 3PL with this offering. These factors involve the capability to plan the fleet's size and scope to meet the criteria for service and availability that fit with the overall strategy of the transport network. It can also conduct dynamic route optimization to ensure high customer service standards and usage of the fleet and integrate backhauls and complimentary freight at lower costs.

Transportation management 

Transportation management is intended for businesses looking to improve and regulate their shipping process to minimize costs. The shipping needs can be more effectively and conveniently matched to the correct carriers and routes by outsourcing and centralizing an operation's transportation functions to a 3PL. It can be a time-consuming endeavor for many businesses because shipping requirements are continuously changing.

With network carriers that can handle the shipment, 3PLs can manage the entire operation, balancing shipping needs and volume. Most 3PLs have invested in systems used for transport management and other resources that otherwise automate and optimize manual processes. It has removed the usage of paper while spreading technological investment across various shippers.

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