4 Peeks into the World of Your 3PL Provider

You have enough on your plate. No need to ponder the world of your 3PL provider.

Who goes to a crowded restaurant wondering how the chef makes so many meals at once?

We just expect our order to be delivered as promised.

Enough with the food analogies. Let’s just say suppliers should consider what’s going on in the world of your 3PL provider.

After all, your 3PL provider is crucial to your supply chain.

And 3PLs are responding to many of the forces affecting you.

Customer expectations, eCommerce, and the omnichannel have been influencing how 3PLs work, and what services they offer.

3PLs continuously evolve. They have mastered warehouse and transportation technology and have, over the years, branched out from basic things like warehousing and freight forwarding to multi-layered supply chain consulting and outsourced IT.

What we’ve read  recently may not be new, or vital to a particular business.
It may help a supplier understand what a 3PL provider can do and will be doing in the future.

3PLs Are Optimized to Local Market Conditions

A 3PL can be key for overseas sales.

Suppliers should remember that every market is different. What 3PLs can do there is shaped by that market.

Geography, physical infrastructure, communications and IT investment influence costs and service levels.

Advanced economies maintain good highway systems, railways, and technology infrastructure. Logistics Management writes that as a rule, logistics costs as a percent of GDP are lower in such countries than in developing countries.

Your 3PL Provider May Handle Your Returns

Your 3PL partner may be part of a rising trend of handling returns as part of their service.

Many 3PL providers are implementing returns handling, in response to the double-digit growth rate of eCommerce.

3PLs are developing well-defined processes for handling reverse logistics. This can be an indispensable tool for omnichannel suppliers to maintain customer service and optimum inventory levels.

3PLs Are Increasing Shipment Visibility

Freight rolls on good communication. Carriers and 3PLs work together to give big shippers real-time “control tower” view of inventory while in transit.

This helps companies with complicated or time-constrained supply chains to manage inventory in response to crises.

GPS systems and mobile networks now give 3PLs and their shipping partners the ability to track inventory in transit down to the truckload.

This level of shipment visibility has moved from a market distinction for 3PLs to “business as usual” over the past few years.

3PLs Are Getting More Sustainable

How green is your supply chain?

If environmental sustainability is important to you and your customers, 3PL providers are stepping in to help.

Supply Chain Management reports that some 3PLs are focused on improving fuel usage and reducing CO2 emissions in distribution and transportation operations.

Big providers such as DHL have undertaken initiatives to increase overall operational efficiency. Smaller 3PLs are doing it too.