Retailers are struggling to keep pace in the highly competitive omnichannel environment. Consumer desires for immediate delivery and personalized service are an ongoing challenge. Many shippers aren’t able to support a productive, efficient supply chain.
Many turn to a third-party logistics (3PL) partner, who will find solutions to transportation challenges, logistics questions and supply chain disruptions. 3PL companies have the necessary resources for building a sustainable omni-channel supply chain: time, expert knowledge, experience and capital expenditures.
Here are 4 areas of the supply chain where outsourcing to a 3PL will bring noticeable advancement:
1) Inventory Consolidation Across All Channels
3PL companies provide a responsive transportation management system. TMS software enhances inventory visibility across all channels and locations, plus helps build a consistent return policy that includes proper reverse logistics processes. Retailers are able to see widespread fulfillment needs and lower inventory carrying costs.
2) Value-Added Services
3PL partners are able to find improvements in the supply chain. Things like delivery method, equipment optimization, packaging, labeling, freight bundling and more are all analyzed to find the most efficient practice. These solutions are aimed to improve customer service, cut transportation costs and simplify operations.
3) Effective Transportation
In omni-channel supply chain management, there are multiple ways to deliver products from the DC to the retail store and to the final customer. 3PL companies find the fastest and most cost-efficient transportation mode and route for each load, using its relationship with numerous transport companies to the shipper’s advantage.
4) Advanced Data Analysis
Data, provided by 3PL technology, can add significant strategic value. Logistics providers are able to determine who is ordering which product and by what channel, how demand varies with time, and what method of delivery is the most appreciated by consumers. Using this data, retailers can forecast demand and create new delivery options or value-added services.
The latest Capgemini Annual Third-Party Logistics Study shows that shipper-3PL relationships continue to grow as the omni-channel retailing landscape opens up. Outsourcing to a 3PL provider doesn’t mean loss of control– it means growing profits and customer loyalty by providing consistent, positive shopper experiences.
If you want to know how a 3PL partner can help your company enhance its omni-channel supply chain, contact a freight agent at PLS Logistics experts.
Want to learn more about achieving omni channel success? Check out our on The Keys to Omni Channel Success.