E-commerce is making global trade grow more interconnected with every passing day. As trade spreads to more parts of the world, customers have access to more options than ever before. Customers are more educated and aware – they know what they want and know how to get it. Geopolitical shifts only pile onto these factors, forcing businesses to re-think their approach to supply chains. To survive in a market with fierce competition, a company has to be efficient. That is where a Third Party Logistics Company (3PL) comes into the picture.
Cost savings and operational efficiency are given with a third party logistics company, but there is so much more they can do for your business. Modern third party logistics companies offer services that that can be tailored to unique needs of your business. How? Let’s take a look:
- Managing Risk – Supply chains are often at the mercy of external factors. Whether it be natural disasters or political conflict, supply chains around the world are subject to uncertain circumstances and hence, constantly at risk of disruptions. A third party logistics company takes a proactive approach by putting risk mitigation strategies in place keeping the ‘worst possible scenario’ in mind. They make sure measure like diversifying transportation routes, safety stock procedures, and alternate suppliers are put in place. A third party logistics company ensures everything is business as usual, even in the face of unforeseen circumstances.
- Transparency of Operations – There are many state-of-the-art tools at the disposal of a third party logistics company that give you real-time visibility into inventory levels, order status, and shipment locations. These experts only use the most sophisticated warehouse management systems (WMS) and transportation management systems (TMS), enabling businesses to make informed decisions, manage inventory, and deal with potential issues before they snowball. Real-time order tracking information also helps businesses build trust with their customers.
- Value-Added Services – Apart from warehousing and transportation, a third party logistics company may offer packaging and labelling solutions, kitting and assembly, reverse logistics management, and even last-mile delivery options. Outsourcing these tasks to an expert like a third party logistics company, you can focus more on core competencies of your business.
- Innovation – A third party logistics company is a specialist in logistics and are always investing in technologies like automation, robotics, ML and AI that will shape the future of logistics. This pursuit of innovation means they’re constantly improving and perfecting their processes to offer clients the best solutions in logistics.
How To Pick the Right Third Party Logistics Company Partner
Working with a third party logistics company has a lot of upsides but there might have some concerns about outsourcing such a critical function. Here are some pointers that will help you make the right decision:
- Partner With a Reputable 3PL – Businesses worry about losing control over their logistics operations. Make sure you choose a reputable third party logistics company as your partner that prioritises clear communication and collaboration.
- Secure Cybersecurity Infrastructure – Sharing sensitive data with the wrong third party logistics company can leave your business vulnerable. Partner with a third party logistics company that has a secure cybersecurity infrastructure and a proven track record of data security compliance.
- Test It Out – You need to make sure the technology of the third party logistics company is compatible with your own processes and needs before onboarding them. It’s crucial to do a test run and figure out how things work before you make the call. The third party logistics company must be able to smoothly integrate with existing business operations.
The Future of Third Party Logistics
The future of third party logistics companies is linked to two major trends – sustainability and the ever-evolving demands of the modern consumer. Climate change is very real and the rest of the world is slowly but surely realising the importance of sustainable business practices. Eco-friendly solutions such as sustainable and reusable packaging, alternate sources of fuel, or finding new ways to reduce our carbon footprint are becoming more prevalent and shaping the decisions of every third party logistics company.
Global e-commerce has also given consumers the luxury of choice and convenience. Consumers are naturally more educated and have higher expectation in terms of quality, delivery times, and want nothing but the best bang for their buck. Every third party logistics company has to invest in innovative solutions to meet these growing expectations to keep their customers satisfied and loyal. The ideal third party logistics company to partner with is one that invest in both sustainable and innovative business practices and solutions so that your business can not only survive but thrive in an ever-evolving market.
As a reputed third party logistics company, Allcargo Logistics understands the unique challenges and opportunities that a business experiences. We offer tailor-made solutions to help companies streamline every aspect of their supply chain. A professional third party logistics company like Allcargo can be an invaluable asset for your business to win in this dynamic marketplace.