How 3PL is Changing eCommerce Supply Chain Dynamics

Outsourcing supply chain and logistics to the 3PL providers have proved to be helpful for businesses. They offer various services for improving processes, risks mitigation, and saving resources. 

As said above, nearly 88 percent of the 3PL providers worldwide offer inbound logistics, integrated logistics, inventory management, and other services to e-commerce businesses. Outsourcing the supply chain to a third-party logistics company can reduce the burden of work, leaving plenty of time for companies to focus on other relevant tasks and activities. 

The trend toward outsourcing supply chain processes to 3PL providers is rapidly growing. The global 3PL logistics market will be expected to cross the mark of $1.3 trillion by 2026, which was at $838.9 billion in 2020. Clearly, a good number of companies understand the benefits a 3PL provides. In this article, we’ll discuss how 3PL helps transform supply chain networks. 

COVID pandemic, making supply chain the main concern for shippers. Among the challenges of COVID-19 quarantine are supply chain visibility, transportation costs, managing inventory, finding qualified labor, business process improvement, selling in new markets, improving customer service, and many more that haven’t eased in the past 24 months.

Now in 2021, the supply chain across industries is facing disruptions on a global scale. This is due to accelerated consumer demand for faster delivery options. To adapt to continuously changing consumer needs and economic conditions, shippers need to prioritize changes in supply chain operations. Adopting new ways of managing the supply chain is essential to build sustainability and agility in operations.

New innovative technologies such as artificial intelligence, RPA, IoT, AR/VR, and blockchain will be increasingly crucial for last-mile delivery, warehousing, inventory management, and reverse logistics. However, investing in new technological innovation is demanding, raising the need to find the right third-party logistics (3PL) providers to meet business needs more essential than ever.

This year, the main priority for e-commerce companies will be to determine the reasons for outsourcing to a 3PL. For example, Indian logistics companies have relied on 3PLs to manage transportation, inventory, and warehousing activities.

The relationship between Indian logistics companies and 3PLs has expanded over the years, as 3PLs offer real-time supply chain visibility, cost-reduction, improved customer service, flexibility in operations, access to emerging technologies, and reporting. They also help shippers to make significant changes in their supply chain strategy and drive technological innovation that enables growth. 

The third-party logistics companies help with everything from addressing cost challenges to operational needs and achieving customer satisfaction. Alongside cheaper shipping, 3PLs offer transparency and automation in last-mile logistics through real-time tracking and tracing to control the fulfillment process.

Furthermore, the competitive landscape means shippers have many responsibilities that can be difficult to manage. For example, cross-border selling is essential for your business, but shippers need to spend more time expanding beyond their logistics services. 

Outsourcing these responsibilities to a 3PL provider help to meet the challenges of market expansion and accelerate the digital transformation of supply chains. In addition, collaboration with a third-party logistics provider benefits automated warehousing and inventory management without investing on your own, saving time and money on labor.

The above list of points shows how a 3PL company helps businesses to stay ahead of the curve. The companies that collaborate with a third-party logistics provider will better serve their customers and open new avenues for business growth. Overall when your supply chain strategy is centralized, you mitigate risks and build scalable capacity for the long term.