The last few decades have witnessed a significant shift in the third-party Logistics infrastructure globally. Even in 2020, the range of services offered by Companies specializing in 3pl logistics services continues to evolve.

Regardless of the industry, supply chain and Logistics Management have been crucial elements driving productivity. With globalization, an increasing number of companies are outsourcing operations and supply management to third parties.

Before exploring the latest trends in 3PL distributions, let’s talk about the challenges that companies are facing while seeking professional services from the service providers.

Major challenges you would encounter in 3PL distribution

• Dearth of proper reporting mechanisms
• Finding fresh talent
• Lack of collaboration
• Adhering to shippers’ requirements
• Poor infrastructure

Emerging trends in 3PL distribution to look at

Have a look at the fastest emerging trends in 3PL distribution across the world.

1. Greater collaboration between 3PL companies and shippers

Presently, 3PL companies depend on technology substantially to connect, coordinate and engage with their consumers. They bank on electronic data to streamline the integrity and performance, along with speed of charge and operational flexibility.It is common to use inventories managed by vendors in the smallest web-based portals. This ensures that both the third-party companies and the shippers can work independently. In the process, they can do away with faulty exchange of information.

2. Customized technology for better support

Third-party companies providing logistics support try to optimize their investments in software and IT systems. In the process, they can come up with more affordable offerings to their clients. While they can keep their own costs low, they share the same with their clients. This also enhances efficiency and saves a significant amount of time.  For instance, sophisticated tools for speech recognition enable the staff to communicate with the warehouse management system directly.

3. Integration of mobile apps

With the integration of mobile apps, records of shipments are being extensively digitized. Rather than maintaining paper records, mobile devices are serving as the right mechanism for third-party firms providing warehouse services. Most of these companies use RFID enabled devices, that allows them to carry the necessary information all the time. This enhances accessibility of information, and thereby, shoots up the cost-effectiveness for their clients.

4. Benefitting from Big Data

The leading 3PL companies have already embraced Big Data. These cloud-based technologies can strengthen data evaluation, through which they can draw intelligent inferences. In the process, 3PLs are able to identify the needs to enable their clients get access to their individual systems to enhance efficiency. Besides, shared data also eases up collaboration and makes it easier to trace an item in the respective supply chain.

5. Economic globalization

In the digitized environment of business, the global economy is becoming more integrated. It is expected that third-party logistics providers would be working on a larger scale with a broader outlook with their clients. Presently, the distribution has been showing signs of expansion across the globe. Fresh opportunities are showing across the world, making the supply chain much more complex.

Considering these trends, it is crucial for business firms to choose the right partner company. This would ensure a dedicated support in supply chain and logistics management. Collaborating with one of these companies, you would be able to focus on the core tasks, while outsourcing transportation, logistics management, procurement and other secondary tasks.