The Future Of 3PL

In an increasingly competitive environment, 3PLs are feeling growing pressure to adapt in order to remain competitive. Moving forward, those companies that are able to embrace the future and meet the challenges head-on will come out on top. The following are some of the changes we see already breaking over the horizon:

New Regulations Will Transform the Relationship Between Clients and 3PLs.

The Compliance, Safety, Accountability (CSA), a program formed by the Federal Carrier Safety Administration, has tightened regulations on logistic companies, affecting the relationship between clients and 3PLs. One example of this can be seen in the recruitment and training of professional drivers, which has developed into a level of complexity that has already lead to the shutdown of 26 bus operations, according to 3PLwire.

Workflow Automation Technology Will Grow More Sophisticated.

Information that was once generated by people will progressively be accomplished by workflow automation technology. Containers will detect their own contents and GPS will allow pallets to report if they are delivered to the wrong location, helping to streamline processes.

Environmental Sustainability Will Become a Greater Concern.

As regulations toughen, 3PLs will look for new ways to achieve environmental stability. Companies will implement green-technologies to reduce energy consumption and lower transportation costs - even to the point of sharing transportation with competitors to decrease overheads.

Mobile Applications Will Gain Increased Popularity.

Paper forms will continue to fade into the past as mobile apps take center stage, enabling customers to order and process freight shipments from anywhere.

Globalization Will Force 3PLs to Work on a Larger Scale.

Opportunities that open up in other parts of the world will create ever more complex supply chain systems, opening up the need for expert third party logistics. These shifts will happen rapidly as we see a rise in mergers and acquisitions.

Staying Relevant in an Increasingly Competitive Industry.  

More and more companies are adding 3PLs to their supply chain networks. And as the industry continues to transform, 3PLs will need to adapt to emerging technologies, new regulations, and an integrated global economy to stay relevant in the 21st century.

For 30 years, Cimetra has delivered superior logistics services to our clients and will continue to stay at the forefront of our industry as we head into the future. Contact us to learn more about how we can enhance your supply chain network!