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Role of Technology in 3PL Services

Third party logistic companies provide an array of services to businesses ranging from transportation of goods, warehousing and distribution management. The global market value of 3PL services has surpassed 4 trillion dollars which make it as a 10% contributor to the Global GDP. The logistic service sector is rapidly progressing, and emerging technologies play a catalytic role in its increasing transformation. Integration of cutting edge technological equipment has a significant role to play in this sector, let us take a look:

1. Enhanced Customer Experience
Improved customer experience is undeniably the key to the growth of a company. 3PLs are prone to increasing uncertainty with increasing customer expectations. With technology customer service has moved from reactive to proactive and the service provider with the best available technology has an irrefutable competitive edge. VSATs play a crucial role in real time data collection vital to trace and track shipments and hence value-added customer service.

2. Data Storage and Processing
Programmable logic controllers are widely being used to improve the effectiveness and efficiency of various processes. These mainly include Automatic Identification Technologies like Bar Coders, RFTs, and EDIs which not only helps keep track of the supply chain management processes but also promise accuracy, speed, cost saving and reliability.

3. Distribution Management
There are multiple stages of delivery that needs planning and anticipation. Various technological applications available today can help a 3PL identify customer demand, plan and replenish inventory, track inventory on a real time basis and thus reduce costs involved in warehousing and storage.

4. Speedy Communication
Electronic Data Interchange allows faster communication, paperless operations and enhances relationships between the 3PL and the customer. Real time information availability helps to have an interaction that is up to date leading to a reduction in order cycle time and adoption of JIT techniques.

5. Empowers Decision Making
Various tools can be applied to identify, measure and evaluate information to make better business decisions. Business Intelligence software enables real time reporting and detailed analysis of data guiding the 3PL to the right course of action. Relevant information like key metrics can be used to define workflows needed to arrive at a solution.

Want to know how 3pl companies help in cost cutting ? Please do read here.

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