How Technology Benefits 3PLs?

By Logistics Tech Outlook | Wednesday, November 18, 2020

A few 3PL companies have been boosting their flexibility by employing low capital-intensive robots. These can be effortlessly scaled as the businesses enlarge or contract.

FREMONT, CA: Over the past decades, the proliferation of the internet has paved the way to the fourth industrial revolution, Industry 4.0. Flexibility and readiness are crucial in today's business setting. The occurrence is chiefly true for retailers looking to get ahead of the competition. Essentially, eCommerce retailers and other industries are progressively relying on Third-Party Logistics (3PL) providers to accomplish their short-term contracts. However, with innovative technologies, 3PL providers can resolve most of their supply chain management problems and increase their overall core competencies.

Benefits of Technology in 3PLs

Enhanced Flexibility

A few 3PL companies have been boosting their flexibility by employing low capital-intensive robots. These can be effortlessly scaled as the businesses enlarge or contract. Robotic and mobility-driven automation software has enabled many third-party logistics providers to back different weights and sizes, permitting them to move their device from one warehouse to another based on real-time inventory and demand.

Real-Time Visibility

Contemporary Warehouse Management Systems (WMS), desired for inventory management, will help boost the supply chain's real-time visibility. Legacy WMS systems were not intended to handle today's large order capacity of a logistics business required for its eCommerce fulfillment. Third-party logistics firms, predominantly those taking last-mile deliveries, will stand to profit from a supple WMS.

These systems' improved functionality will permit these 3PL corporations to heighten their supply chain operational procedures, freight management, and inventory management and save workforce, time, and resources. Costs can be better controlled, while resources can be positioned based on need. Several problems can be resolved swiftly and in real-time. As such, prices can be significantly reduced, strengthening their customer relationships by growing their level of satisfaction.

Troubleshooting and Compliance

A modern management system will surge visibility around all channels. The instance will offer better monitoring, enabling more comfortable and quicker ways to forestall and resolve several issues that may arise. One can include things like missing status data, delayed loads, among other things. More precise insights will permit industry and government compliance for several activities, comprising inventory management, cross-docking, warehousing, fulfillment, and packaging.

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