Recent years have seen seismic changes in supply chains and logistics. Within three to four years, companies transformed their internal operations and interacted with customers and suppliers digitally. With the advent of the pandemic in the 90s, third-party logistics (3PL) providers began digitizing in the mid-90s, which, along with advancements in technology, has opened the door to the next era: optimization. Marrone Logistics has already been using much of these technologies.
The 3PL industry is rapidly progressing along with its counterpart industries . As companies throughout the world turn to technology to streamline global goods movement, these five technological advancements are revolutionizing the next phase of 3PL progress.
1) Data
Data-driven processes benefit 3PL providers, merchants, and consumers alike. Data is being used to optimize every aspect of the industry.
You may want to consider warehousing. A 3PL’s data-driven optimization can optimize pick tickets, reduce employee footsteps, and guarantee the right product is in the right warehouse, at the right time for faster delivery. Enhanced efficiency, visibility, and transparency are achieved by using internal and third-party data in the 3PL industry.
2) Platforms for technological advancement
Data-backed platforms are the key to delivering streamlined processes and improved communication throughout the life cycle of an order for 3PLs operating in this technology-driven landscape. The following three platforms are driving this evolution in part:
- Order Management System (OMS):
An OMS manages every step of an order’s lifecycle, from order creation to delivery and returns, and is typically integrated with a retailer’s front end (e.g., website). It helps companies organize and automate parts of their purchasing and fulfillment processes by accepting and routing orders.
- Warehouse Management System (WMS):
WMSs simplify warehousing and manage fulfillment processes. Using it, providers can run smarter, more efficient warehouses that can overcome supply chain challenges by automating the lifecycle of inventory, from the time an order is placed to when it is shipped.
- Transportation Management System (TMS):
In addition to providing visibility into day-to-day operations and overall network performance, this tool manages every aspect of a 3PL’s logistics and transportation operations. In addition to planning and forecasting product movement, optimizing routes, managing fleets, tracking shipments, generating billing, and others, providers can manage their operations on one platform.
With their often-overlapping systems, 3PLs are able to optimize their supply chain performance in the face of increasing demand, rising shipping rates, and rising consumer expectations.
3) Robotics
Automation is taking hold as 3PLs use technology to boost productivity across their operations. Large-scale warehouses and fulfillment centers no longer use robotics exclusively. As micro-fulfillment centers and smaller warehousing footprints become more prevalent, small and midsized 3PL companies are automating packaging, following up on communication processes, and eliminating manual tasks like picking and sorting. As a result, worker risks are reduced and warehouse safety is improved, delivery speeds are increased, and customer satisfaction has improved.
The rise of robots as a service (RaaS) has provided 3PLs with the flexibility, scalability, and benefits of robotics and automation, but without the prohibitive entry and maintenance costs.
4) AI and Machine Learning
In addition to human intelligence, artificial intelligence and machine learning are modernizing 3PL solutions for warehousing, inventory, and consumer demand problems.
Artificial intelligence (AI) and machine learning applications in 3PLs are seemingly limitless – everything from data organization and analytics to demand forecasts, routing, inventory, warehouse management, and order tracking are all being improved thanks to AI and machine learning. 3PLs will continue to see improved experiences for workers and customers throughout the supply chain as AI systems become more intuitive and machine learning capabilities advance. In addition to strengthened workforces, greater transparency, better communication, and increased efficiency, 3PLs will also see improved customer experiences.
5) Electric Vehicles
It is common for companies to adopt some sustainability initiatives and goals, but not all of them have considered how to extend their eco-conscious vision throughout the entire organization. When it comes to last-mile deliveries, electric vehicles are the future of automotive and logistics.
Logistics providers are supporting retailers’ green initiatives by utilizing clean energy, electric vehicles (i.e., all-electric semi trucks, box trucks, and delivery vans) that eliminate carbon emissions as consumer shopping trends drive a surge in delivery traffic and emissions.
Smart, efficient delivery of goods drives innovation in supply chain and logistics. Fulfilling this mission requires the use of technology. Technology must be embraced and every step of an order’s lifecycle must be optimized to keep retailers happy in the future.
