The use of third-party logistics (3PL) providers is a rapidly growing trend in the logistics and supply chain industry as more and more businesses look to outsource their logistics operations to experts in the field. As we move into 2023, several key trends are expected to shape the 3PL industry and significantly impact how businesses approach logistics and supply chain management.
From the increasing use of technology and automation to the growing importance of sustainability and social responsibility, we’ll explore how 3PL providers adapt to meet their customers’ changing needs. In this blog we covered the top seven 3PL trends that will reshape 3PL platforms in 2023.
Top trends in 2023 that will reshape the 3PL platform
Over the past two decades, the third-party logistics sector has undergone a significant transformation. This transition will continue to affect how third-party logistics providers operate their businesses in the future. Here are some 3PL trends that will shape 2023.
Stronger emphasis on sustainability
The logistics sector will emphasize sustainability in the upcoming years as customers become more environmentally conscious.
This might include the usage of hybrid or electric cars and the transition to greener packaging materials.
Additionally, third-party logistics providers can collaborate with their customers to reduce their carbon footprints and make a difference.
The business can achieve this with the help of sustainable packaging, greater fill rate per transport unit to ship more goods per fuel tank, and electric vehicles.
Increased adoption of technology
In 2023, businesses can expect greater technology adoption in the third-party logistics sector. This involves using
big data analytics, and artificial intelligence to increase efficiency and streamline processes and automation.
To boost efficiency and profits, third-party logistics providers are also expanding their investments in smarter IT and software solutions like cloud computing, blockchain, and inventory management systems. These technological developments allow the 3PL platform to save costs, simplify their deliveries, and increase operational productivity.
In 2023, 3PL’s focus will be more than just efficient operations. To save more time to concentrate on other aspects of the businesses, 3PLs will be looking for ways to reduce time across all areas of the operations, mainly through the automation of manual procedures like invoicing, ordering, and rate calculations.
Automating reports, orders, and invoicing will save 3PLs time and allow them to concentrate on other aspects of their business. From barcode scanning for cross-docking — data capture to sign-on glass at warehouse dispatch will be crucial, thorough, and streamlined.
As order tracking with home and food delivering rises, expectations for tracking at all levels of the supply chain will increase. Whether it’s the ability to see stock levels in the warehouse, stock movement reports, or a shipment in transit, trackability offers crucial usable data to all the supply chain staff members.
The expectation of tracking where a shipment or order is at any level in the supply chain will make more and more 3PLs integrate trackability, along with the ability to share this with customers and partners for their reporting and planning requirements.
Last mile delivery
Last-mile delivery has been a significant factor in the logistics industry over the years and is still one of the major trends in the industry. It has become a significant component of eCommerce because it impacts the final result of the customer experience.
Using experienced labour, trained employees, and technological innovations, TMS software can significantly enhance the delivery process and streamline workflow ultimately leading to a faster delivery operation. A great last-mile experience retains and engages customers and encourages them to purchase more if they are satisfied with the delivery services.
Direct software integrations
Connection is crucial. In 2023, the ability to securely share data and connect systems seamlessly as part of daily operations will be a main focus for 3PLs looking to expand and optimize operations.
Enabling seamless data transfer between systems for accuracy and easier communication across processes, between partners, customers software, warehouse, and transport operation will offer 3PLs a new level of consumer service and operational efficiency.
An ideal omnichannel third-party logistics partner can be the best way for businesses to fulfill orders. Omnichannel fulfillment enables businesses to fill orders from any channel by managing the entire inventory and simplifying the packing, selecting, and shipping process
In addition to real-time inventory monitoring and order management systems, 3PLs have the procedures and technology necessary to handle omnichannel shipping. By collaborating with third-party logistics suppliers, organizations can implement Omni Channel without investing much money in infrastructure.
As the logistics industry evolves, it creates new business opportunities for 3PLs that provide warehousing and transportation services. New technologies are giving these companies additional opportunities to grow and optimize. So, whether you’re a business looking for a reliable logistics professional or logistics partner to stay ahead of the curve, stay updated with the latest trends in 3PL, and discover how they can benefit your business.