As supply chains become leaner and inventories continue to decline, outsourcing becomes an increasingly attractive proposition, especially for small to medium distributors/shippers – but, the pressure on 3PLs to deliver increases. For 3PLs looking to win this emerging business, flexibility is a ‘must-have’. 3PLs need to improve their responses to changes in volumes, customer order profiles and shorter deadlines. However, with this flexibility also comes increasing demands for greater speed of response.
This is where the adoption of MHA technology will be important. To enable growth objectives to be achieved, investment by 3PLs in MHA will take on an ever important role and well thought-out choices will have to be made about when and how to invest.
However, the challenges faced by 3PLs in North America are more than just technical. Among those analyzed by Analytiqa, there are fears that at a basic level, the logistics sector will experience a severe skills storage as the industry struggles to attract the level and quantity of talent to meet its growth objectives. For a more in-depth look at this issue see – “How will the Changing Workforce Affect Distribution Operations?”
By combining the elements of experienced people, process efficiency, and technology, 3PLs help shippers brew a potent potion of improvements including reduced costs, faster speed to market, improved customer service, increased global capabilities, competitive advantages, increased inventory turns, and the ability to adapt quickly to market changes.