Knowing about 3PL management, common challenges, and how to overcome them is crucial for all 3PL providers. Business development includes many different stages, from marketing strategy to product logistics. In the development of both small and large companies, logistics becomes one of the basic factors.
Logistics companies solve modern business problems by providing innovative and digital solutions, like Onro’s 3PL Software. The experts of the logistics company share their thoughts on what logistics challenges entrepreneurs face most often and what solutions are used to solve the problems.
How to Overcome Common Challenges in 3PL Management
According to the US Ravens, the growing number of orders and the management of the flow of goods during the pandemic, the e-commerce sector became much more active, providing entrepreneurs with both greater opportunities and new challenges. As conditions changed, the normal demand for goods shifted to an online environment, which caused significant changes and encouraged companies to look for new ways to adapt to the existing situation. However, the increasing flow of goods has become a serious challenge that must be dealt with without losing customers. Some companies tried to expand the field of logistics to adapt to the changes, while others tried to find new partners who could provide innovative 3PL management solutions.
Experts agree – when moving to an electronic environment or considering business development in other countries, special attention should be paid to logistics solutions. Today, trade logistics is becoming more and more digital, and 3PL service, which forms a complete set of services, is considered one of the most effective logistics directions.
3PL is a logistics management service that allows you to streamline not only warehouse processes, but also transportation. In order to optimize the management of growing orders and the rapid flow of goods, the service package includes services such as product delivery, receiving, sorting, assembly, preparation for transport to the customer, preparation of accounting documents, as well as the administration of product balances.
Special programs developed for warehouse management allow more efficient 3PL management of not only incoming and outgoing product flows, but also the warehouse workforce. The goods are sorted according to the appropriate system, which facilitates the search for goods after receiving the order. The most effective ways to solve logistics problems encourage placing the flow of goods and order management in the hands of professional logistics partners.
Products that require different storage and transportation conditions
In order to maintain the best quality of stored and transported products, special attention is paid to maintaining specific cargo conditions. Temperature control at all stages of logistics is especially important. For companies with such needs, specialists recommend choosing a logistics partner that can offer both goods transportation services and goods storage in warehouses in different temperature regimes.
Ensuring cargo safety for better 3PL management
When digitizing logistics processes, special attention is paid to the modernization of cargo transportation. It is an essential part of logistics and at the same time, one of the most complex stages affecting the entire trade cycle.
Today, this breathtaking process is managed with the help of IT specialists, as well as with the development of special logistics transport management programs that allow real-time monitoring of goods transportation, predicting possible obstacles, following the current situation, and optimizing routes.
It is always fundamental to respond immediately to the adoption of new freight regulations, which require the corresponding adjustment of resources. Digitized logistics helps here as well – it facilitates the transportation of goods, helps to avoid incorrect placement, mixing or other inaccuracies of goods, reduces the risk of cargo damage, helps track lost goods, and reduces the risk of recurrence of such events.
Logistics cost growth without process modernization
Perhaps the biggest challenge for those companies that are unable to keep up with the logistics modernization wave is the optimization of logistics costs. The biggest headache is usually the cost of transportation. Calculations made by transport companies show that fuel consumption usually accounts for the largest part of annual costs.
Logistics specialists recommend reducing it by paying more attention to the optimization of truck routes and digitized freight tracking. Digitized logistics is much more than just choosing the right freight route. The digitization of these processes helps to better control the hours worked by drivers, thus reducing fuel consumption and helping to avoid potential fines for excessive driver workload.
Overcome 3PL Challenges with the Help of Technology
With the rise of the cloud, the era of ‘owning’ 3PL Management Software is changing to the era of ‘subscribing’. Small 3PL companies and organizations no longer purchase software, but subscribe to and use Onro in the form of software as a service (SaaS). Courier companies and 3PL providers that use Onro are also pursuing digital innovation.
Onro has emerged as a new trend in 3PL, courier, and delivery that allows companies to secure software competitiveness. Currently, most delivery companies are doing business based on Onro. This means that our software is directly related to a company’s business competitiveness.
Your company can establish a stable cost plan because you do not have to spend a large amount of money on purchasing software all at once, and only pay for the period and functions you need. Additionally, our team performs maintenance and automatic updates. You can get a free demo of our digital solution today, and walkthrough the whole product features.
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Conclusion
So, we understood the common challenges in 3PL management and how to overcome them. The digitization of logistics processes covers all areas of logistics: from warehouse and stock management to the transportation and distribution of goods. A professional and reliable logistics partner will help the company solve all challenges in this area as efficiently as possible – both by applying individually tailored solutions and reducing costs, and by promoting the efficiency of business development.
