Major Challenges and Trends Of 3PL Logistics In 2020
There are some bottlenecks hindering the development of 3PL logistics. Companies face the following challenges when delivering their services worldwide:
One of the most common issues is to find a skillful team for running 3PL logistics processes. This problem is really urgent and needs to be resolved as soon as possible. When a company lacks talents, it suffers low productivity, loss of potential clients, and accordingly loss of profits.
Missing Robust Tracking Systems
Middle-sized organizations offering 3PL logistics services face the problem of the insufficient tracking system. They cannot monitor all packages sent out, and thus lose the trust of customers. Reporting is vital for logistics but the tools needed for its implementation are costly. That’s why 3PL vendors can hardly afford such massive investments.
Inability to Comply with Regulations
3PL providers collaborate with various countries and have to stay compliant with the local rules. Since there are hundreds of regulations in each country, it’s quite difficult to keep up with all of them. The task is to stick to these rules, consider alterations when sending shipments, and update them in the system. Again, mid-size businesses can have trouble due to a lacking budget, time, and workforce.
Satisfying Specific Needs of Shippers
This is a major hurdle in the relationships of 3PL providers and shippers. The latter have a list of strict requirements and demand absolute conformity with them. 3PL logistics organizations cannot always provide the required quality services: accurate parcel packaging, timely delivery, or adequate customer support.
Now, when we common challenges discussed, let’s have a look at trends in 3PL logistics in the nearest future:
Better Cooperation Among 3PL Vendors and Customers
3PL service providers are expected to be more interested in having better relationships with clients. They will use digital tools to enhance their performance, speed up operational capacity, become more flexible and agile. Thus, customers can await better servicing.
Distribution of Mobile Apps Will Be Game-Changing
The spread of smartphones will become one of the means of communication for third-party logistical companies. Papers will no longer be in need. Instead, mobile devices will be used for using radio-frequency identification of the parcels. This enables accurate and real-time tracking, accessible information about the packages. In such a way, the use of physical documentation for handling shipments will be minimized.
Investing In Tech For Faster ROI
Companies delivering third-party logistics services will pay more attention to improving their software base. The better tools they have, the better service they provide and thus get more revenues. Adoption of specific software solutions can accelerate logistical operations, save time and resources needed for manual work.
Making Use of Cloud Data Integration
3-party logistics firms understand how important is the use of cloud technologies and data integration opportunities. Gathering large amounts of data, analyzing it, and getting insights will help to have better efficiency. Plus, customers will have the opportunity to access the parcel information and trace it from the beginning of the journey to the destination.
With all the challenges and trends in mind, we hope companies will have a chance to enhance their services, implement new solutions, set better interactions with clients, and become tech-driven.
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