• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Driving Innovation, 3PLs Are Here for the Long Haul

Driving Innovation, 3PLs Are Here for the Long Haul

March 24, 2017
SupplyChainBrain

Most third-party logistics (3PL) providers offer transportation management (TM) as a core service to their customers. Recent surveys indicate that it is critical for 3PLs to deliver TM solutions in order to remain competitive. The value proposition of managed transportation is simple: Let 3PLs focus on logistics so that shippers can focus on their own core competencies. Partnering with a 3PL enables shippers to outsource their non-core logistics functions and manage supply-chain challenges, such as capacity shortages, rising freight rates, and stricter government regulations. 

Instead of taking advantage of 3PL services, however, some shippers are electing to bring their TM operations in-house. Although the availability of talent with supply-chain expertise is an industry concern, the intricacies of domestic and international shipping are becoming more commonly understood and shippers are feeling more confident that they can manage these operations internally. Why? Some hypotheses include:

• The shipper's transportation management system (TMS) investments are coinciding with larger enterprise resource planning (ERP) initiatives. With money already being spent on the technology, 3PL solutions may be viewed simply as paying a premium for activities that can now be handled in-house.

• With in-house TM, there is the potential for closer collaboration with internal teams such as customer service and sales.

• As a matter of preference, some shippers elect to outsource niche services or trouble spots in the supply chain rather than hand over full control to a 3PL.

• Carriers and integrators already offering robust visibility solutions at little or no cost to the users, which further enhances the end-user experience and commoditizes 3PLs.

Although TM is becoming more commonplace in the industry, 3PLs continue to offer huge advantages to those shippers that utilize their services. Third-party logistics providers have traditionally been on the front line of developing pioneering technologies and services for their customers and will continue to drive innovation in the industry. Today’s 3PLs are making a strong push to be seen as a strategic connection and not just a service provider. Working with a variety of customers adds a knowledge base of best practices built on multiple industries, and 3PLs willingly apply this expertise across their customer portfolios.

Third-party logistics providers are able to offer shipping discounts through economies of scale — they can negotiate better prices with carriers because of volume discounts. Connected to a large number of networks, 3PLs have access to carriers, equipment, labor and other resources that are not available to shippers. This gives them the ability to leverage resources and capacity to accommodate a shipper's changing needs, such as managing seasonal variations, entry into new markets and new business acquisitions. And with the continued growth of international trade, many 3PLs have added comprehensive worldwide supply-chain services to their menu.

The Outlook

So what’s next for TM? Look for the market leaders to drive innovation in technology and services — including broad steps with disruptive technologies, such as the Internet of Things. By 2020, more than half of major new business processes and systems will incorporate elements of IoT, according to recent research by Gartner Inc. IoT-enabled sensors, controllers and other connected devices will accurately locate, track and measure the movement of inventory through the supply chain, driving major improvements in productivity, efficiency and other key performance indicators. What this all means is that 3PLs will continue their push towards being a strategic link in the supply chain by transitioning from highly reactive operators to highly proactive partners.

RELATED CONTENT

RELATED VIDEOS

Logistics Logistics Outsourcing Transportation & Distribution Technology Transportation Management Global Supply Chain Management
KEYWORDS Global Supply Chain Management Logistics Logistics Outsourcing Supply Chain Analysis & Consulting Technology Transportation & Distribution Transportation Management
  • Related Articles

    Benefits of Lean Could Be Lost if You Don't Stay in for the Long Haul

    The Future Model: Driving Speed to Value for 3PLs and Customers

    Should 3PLs Outsource IT to a Third-Party Software Provider? Here Are Some Factors to Consider

  • Related Directories

    Kuebix

SupplyChainBrain

100 Great Supply Chain Partners Issue 2009

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Pfizer Plant Cited for Quality Issues; Vaccine Maker Warns of Raw Materials Shortage

    Coronavirus
  • Walmart

    Walmart Embraces a Local Fulfillment Model for Grocery

    Logistics
  • Shipping Logjam

    U.S. Retailers See Millions in Sales Delays Amid Shipping Logjam

    Coronavirus
  • How Can E-Commerce Retailers Compete?

    Smaller E-Tailers Weigh Pros and Cons of Fulfillment by Amazon

    Logistics
  • Amazon

    Podcast | Making It As an Amazon Seller: It’s No Picnic

    Logistics

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
GreyOrange Honeywell Intelligrated Infor
Inmar Kibo Commerce Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Paccurate
Ports America Purolator QAD Precision
Red Classic Riskmethods Snapfulfil
TGW Systems Tradepoint Atlantic Transportation Insights
Watson Land Company Westfalia Technologies Workjam
Yang Ming    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing