Evolving Logistics for 3PL's and LSP's
Worldwide demand for 3PL (third-party logistics) services is being driven by the explosive rise of e-commerce. The worldwide 3PL market, which was estimated to be worth about $1 trillion in 2020, is anticipated to surpass $1.75 trillion by 2026.
However, the expansion of 3PL has also raised customer expectations for precise and on-time delivery, creating new challenges.
As a result, the logistics strategies of 3PL and distribution companies will need to evolve in order to adapt to best practices and use the appropriate technologies, to solve new problems.
Here are 5 3PL challenges you can overcome with the right solutions.
3PL Challenges & Solutions
Last mile delivery
3PL companies must boost productivity and save money to meet delivery costs in order to stay competitive. By offering costed delivery options, customers can chose what's convenient for them and retailers can charge accordingly for deliveries. Some individuals will pay for the convenience of having something delivered where and when they want. Reducing costs while improving service will depend upon a company's approach to last-mile deliveries.
Warehouse & yard management
The requirements for speedy fulfilment will be met in large part by a robust yard and warehouse management system. A well-organised warehouse facilitates swift inventory management and product retrieval and will enable you to pick, pack, and dispatch your products to customers as soon as feasible.
Creating end-to-end visibility
Creating visibility within your blockchain is a challenge. Selecting the right end-to-end visibility solutions will give retailers and distributors a thorough understanding of the product delivery process from purchase orders to warehouse receipts.
Cost-cutting in the supply chain
It might be difficult to reduce costs throughout your supply chains. However, when you adopt the correct solutions, cost reduction is feasible at every step of the supply chain, including last-mile delivery, warehouse management, transportation management, and more.
Increasing need for delivery efficiency
Today the consumers are in charge. As internet rivalry rises, many firms provide similar items. Retailers must offer competitive prices and cost-effective delivery options at the moment of sale. Using the correct logistics software, merchants can provide costed delivery options based on existing commitments, delivery capacity, and new orders.
Uniting the People and Technology that Move the World
Descartes cloud-based technology solutions supports thousands of organisations with end-to-end supply chain and logistics solutions. From local deliveries to international trade and from warehouse operating systems to denied party screening.
Logistics Software Solutions for 3PL's and LSP's
Leading distributors and third-party logistics companies around the world rely on Descartes’ market leading supply chain solutions and innovations to enable them to compete at the highest levels to succeed and grow.
Our routing and scheduling solutions can assist you with increased productivity, decreased costs, and improved customer experience whether you are a distribution or 3PL company operating a network of fixed routes or routes that are optimised daily.
We are aware that distribution firms and third-party logistics (3PLs) are struggling financially, therefore it is crucial to make sure the appropriate products are delivered at the right time to the right location. It is not an easy undertaking to combine it with the need to maintain high levels of customer service while also balancing the demands on labour and transportation costs in order to draw in and keep clients.
Our solutions give you the tools you need to go past manual procedures and other disparate systems. assisting in the better management of your inventories, assets, staff, and necessary business papers.
Solutions for Distribution and Third Party Logistics:
Contact a 3PL and distribution expert today.
Customer Successes
“Descartes route optimisation software was designed to be deployed in an operational capacity to manage collection & distribution rounds. We have now adopted it to respond to calls for tenders and support our regional business units by undertaking centralised optimisation studies”
Charles Fouche, Engineering & Optimisation
New tenders won
Centrailised optimisation
Easy to accomodate unique customer requirements
“Descartes Reservations™ and Route Planner™ solutions were integral to our strategy of offering a more extensive, but unified delivery service. The advanced optimisation capabilities and architecture of the Descartes solutions were critical, bringing new delivery service options to our customers in an economically feasible way. ”
Andrew Gay - Systems Manager
Fulfilment costs reduced £1.8m
Increased delivery productivity 35%
Delivery windows provided at POS
“The advantages of automation are mainly the reduction of error rates along with a reduction of delivery miles & transportation costs.”
Tom de Rocker - Dispatcher
Reduction of error rates and transport costs
Reduced paperwork around returned empty crates
Improved Customer Service
“The Descartes solution provides the advanced capabilities we need to transform our logistics processes and, in doing so, improve the responsiveness of our delivery operations and reach higher standards of customer service. ”
Einar Geir Jónsson, Head of Business Development
Optimised delivery routes
Electronic proof-of-delivery
On the fly adjustments to deliveries