Never before have third-party logistics (3PL) providers and payers in the supply chain sector been in such close proximity. Logistics has become a major growth driver, a trend demonstrated by a reduced number of partners, who in turn offer improved sales relations and IT system integration. What challenges are associated with searching for partners locally? We’ve analyzed the situation and its consequences for 3PL.
Logistics: a powerful driver for distributors
In the vast jungle of distribution, Amazon succeeded in becoming a household name, undoubtedly due to its logistics. Customers truly appreciated fast delivery at a low cost, and the company’s swiftness, which would go on to become industry standard, has set the stage for higher expectations in logistics over the past few years.
Today, the supply chain has become a customer loyalty vector and a growth factor for merchants. In this sense, those working in mass distribution need to be involved with specialized logistics providers, such as those in 3PL, to effectively meet quickly changing customer expectations.
Further reading: 5 strategic priorities for retailers in 2018
3PL: Pre-project collaboration
To improve efficiency, logistics providers must be able to assist their clients before projects begin, the goal being to come up with a service offering that partners them with payers, not to mention mass distributors.
Within 3PL, profiles are increasingly oriented towards defining strategy and optimizing organizational processes. The goal for 3PL providers is to work with distributors, come up with a strategy and stand one’s own in an increasingly competitive market.
Read also: Supply Chain: what perspectives for 3PL?
A return to the core of the profession
Mass distributors threatened by Amazon and other Web tycoons are trying to make up for lost time and compete at the same level as their rivals. To succeed, they’ll need to refocus on the core of their profession and the areas where they can shine. How? By delegating everything logistics-related to 3PL providers.
Challenges in 3PL are great—after all, logistics innovation is riding on 3PL providers! Moreover, they are constantly becoming more involved in strategic questions that haunt distributors and are required to pull together effective solutions to such issues. Amidst this backdrop, distributors are seeking to find trustworthy logistics partners who can meet their efficiency objectives with the best possible solutions. It isn’t surprising that high-level profile hiring tendencies have become the norm with 3PL providers. They are rightfully on the lookout for highly qualified engineers specialized in industrial logistics, who are able to manage complex Supply Chains.
Payers in the burgeoning logistics market are facing ever greater difficulties. To offer them the most efficient way to meet these challenges, Generix Group offers collaborative supply chain software solutions that can effectively solve their issues. Want to learn more? Take a look at Generix Group’s offers by clicking on the button below!
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Image credit: Pixabay – Jan_Paulussen