With Pressure Rising, 3PLs Can Improve Internal Efficiency
by Max Manikian, on February 12, 2018
There is a distinct need for speed and efficiency in today's transportation and logistics industry. For many organizations, getting the hoped-for boost means signing a contract with a third-party logistics provider. But what can those 3PLs do when they need of improvements to their internal efficiency? The answer may reside with a number of process improvements to keep items visible and moving through the supply chain more effectively than they have in the past. Up-to-date technology is the key element of such an upgrade.
Feeling the Pressure
The recent Allied Market Research report on the 3PL market found that these organizations are increasing their size and scope as the e-commerce market heats up. With online markets becoming a definitive channel for sales of all sorts of items, both in the business-to-community and business-to-business worlds, every manufacturer and retailer is in need of a solid logistics partner. This demand is set to turn 3PLs into indispensable allies and boost their size.
National Real Estate Investor quantified the massive scale that will serve as a defining factor for 3PL companies in 2018. The source stated that, according to CBRE's David Egan, these operations occupy 7,000 million square feet of warehouses and distribution centers.
Quality and Accuracy
Of course, the growing businesses will have to make sure the expansion doesn't come at the cost of effective, accurate operations. Allied Market Research explained that companies' concerns about their own reputations being damaged by 3PL operations, which are out of their control, are a possible roadblock for third-party growth. Firms will need sterling quality of service, coupled with speed. Visibility-enhancing technologies will help them reach this goal.
Keeping items visible as they traverse huge warehouse ecosystems is a job for enterprise barcode labeling systems. When a 3PL scales up, it may find its operations stretched dangerously thin without a solid data tracking solution, powered by labels.
For more on the benefits of using an Enterprise Labeling Solution to help manage supply chain logistics and to collaborate with suppliers and 3PLs check out our Supplier Labeling report.