siliconindia | | November 20199logistics works. Digital multi-channel tracking systems are becoming the preferable mode for monitoring goods on the move.Like most other industries, trans-portation and logistics is currently confronting massive change and like all changes, this brings both challenge and opportunity. New technology, new market entries, new customer expecta-tions, and new business models; there are many ways the sector could grow to meet these challenges. Despite cur-rent and past growth rates, we believe that the industry growth has yet to hit a turning point. Demand for extreme efficiency of inventory and working capital manage-ment carry forward to drive reliance upon third parties for assistance with managing operations across multiple geographies and with many suppliers. Once economic weakness recedes and transportation demand again esca-lates, logistics costs will raise quickly. Significant capacity exits during this downfall and a continued driver short-age implicit a future need for sophisti-cated solutions, which will position 3PL providers for even more rapid rates of advancement.Another key driver of growth, in our opinion, will be increased outsourcing of 3PL functions by middle market com-panies. Most of the middle market manufacturers, wholesalers, and retailers lack the knowledge of in-ternal controls which are necessary to address logistics challenges and can no longer take transportation and supply chain costs for granted. Even industrial customers now expect to get shipments faster, more flexibly, and with more transparency with better facilities. It is no surprise across the industry that both operating models and profit-ability are forced and the pace of trans-formation of large manufacturing and retail customers may turn-out to be even faster for private final consumers.There is no other industry where so many industry experts ascribe a high importance to data and analytics in the next five years than transportation and logistics. We start by taking a closer look at some of the key disrupting fac-tors such as changing customer expec-tations, technological breakthroughs, and new entrants to the industry, and new ways to compete or collaborate. These disruptions have very different implications for individual companies, depending on which segments they op-erate in, their type of ownership, and where they are located. Lack of digi-tal culture and training is the biggest challenge facing transportation and logistics companies, but automation could reshape the workforce. Labour is a critical element of any logistics op-erating model, and up till now there's always been dealing between service levels and costs. But automation breaks down this equation, allowing firms to offer better service and save money at the same time. Some of the indus-try's most labour-intensive processes are on the way to being fully or par-tially automated, from warehousing to last-mile delivery.It is not always easy to choose a 3rd party logistics provider because of the many different aspects revolving around them. The first thing you should do considering 3PL services is to de-termine exactly what types of services your company needs, as this can affect the type of provider that's ideal for your business. In the beginning, you search for the perfect 3PL provider, analyze your accounts and determine how well your company is performing. Then you should set a line to your current supply chain costs and examine existing rela-tionships with your carriers, along with any advances or allowances that might be made in the future. You should then ask the 3PL provider for a request for information (RFI), which provides you with a detailed plan that the provider has for your company.The upsides of choosing a 3PL provider to manage certain aspects can make it incredibly worthwhile. You'll be able to see the improve-ments in various areas of your business as follows: Improved customer service, with a better re-lationship with your customers re-sulting from fast and efficient service. Increased flexibility and scalability, with the ability to scale back operations over varied time frames. Through larg-er resource network compared to in-house supply chains, further increasing efficiency and effectiveness. Saved time as well as money without the need to invest in multiple areas of your busi-ness while experiencing higher returns. Professional services that keep your business updated to stay in line with current trends and new technologies in logistics. Digital multi-channel tracking systems are becoming the preferable mode for monitoring goods on the move
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