The third party logistics companies have changed from simple service providers to the very important partners among all global supply chains. 3PL’s evolution is due to increasing supply chain complexity and higher customers’ expectations and includes modern 3PL’s who provide a wide array of solutions such as transportation, warehousing, distribution, international logistics and advanced technology. This saves on cost by being more efficient, reduces overheads, has flexibility and gives the customer enhanced experience..
Integration challenges and control concerns are legitimate, but organizations that put in place appropriate governance frameworks and carry out selection processes make consistent use of significant value from these relationships. Advanced Analytics, automation, artificial intelligence and visibility platforms, including reverse logistics, are moving capabilities and service models in industry, technology continues to drive industry transformation. Retail, healthcare, manufacturing, and food sector industries have started up with industry specific 3PL specialization and provide specialization based on the unique requirements for each sector.
Looking into the future, sustainability initiatives, network reconfiguration trend, hyperautomation technology, and platform based business models would continue to transform 3PL industry. For forward thinking organizations, strategic relationships with 3PLs are more than simply outsourcing some functions, they provide transformational capabilities that enables supply chain excellence in a rapidly evolving business environment.