How Can Visibility Be the Changing Factor for 3PLs To Gain a Competitive Advantage in 2023?

The third-party logistics (3PL) business has long been the go-to solution for the never-ending supply chain crisis. Constant unpredictability in labour shortages, high shipping prices, and global tensions affecting transportation capabilities have prompted analysts to think that the challenges will continue throughout Christmas. 

Shippers continue to have high expectations of their 3PLs, yet performance falls short of expectations. According to the 2023 Third-Party Logistics Study, shippers' satisfaction with their 3PL agreements has decreased by 7%. Shippers want to know that their partners can quickly monitor shipments, interact with brokers and carriers, and assure compliance. According to Inbound Logistics, 90% of 3PLs grew their client base in the previous year, making this more challenging for them to manage. 

Editor’s Note 

Technology may provide 3PLs with insight by connecting data, tracking shipments (and decreasing lost or stolen goods), increasing communication with shippers, and adhering to all shipping rules. Visibility can assist 3PLs in meeting and exceeding shipper expectations. 

Let's look at how visibility can help third-party logistics exceed shipper expectations with a competitive edge and make you a more appealing alternative for shippers. 

1. Drive Savings on expenses.

Third-party logistics companies specialise in logistics and, as a result, have a more extensive network than your company's supply chain visibility solutions. They have unique ties in the logistics business and may wield more clout during negotiations. They can also assist in offering more significant volume discounts to customers. All of these may help to reduce overhead expenditures. 

You may also save money on infrastructure by working with a 3PL supply chain visibility solutions, which can offer transportation, warehouse space, people, and monitoring technology, among other things. 

2. Boost business efficiency.

Investing in a software platform to boost shipping visibility can help your workers perform more efficiently. This increased efficiency might help your company grow. 

A visibility platform, for example, may consolidate all of your relevant data from several sources, such as fleet data or other device information, into a single system. According to the 2023 Third-Party Logistics Study, 75% of shippers believe technological solutions are becoming more critical in their 3PL decision process. Using a comprehensive technical platform frees up time spent monitoring many data sources and provides shippers with transparency that may lead to new business. 

3. Obtain expertise and experience.

It is difficult to predict and accommodate internal knowledge in all capacities and geographies necessary in today's complicated global market landscape. A 3PL service provider, for example, is knowledgeable and experienced in transportation paperwork, import and export, international compliance, and economic rules. Businesses wishing to grow into foreign markets may benefit from their partner's logistical expertise and know-how, avoiding expensive delays, shortening the cycle time, and making an entrance into a new area more accessible. 

4. Make sure that compliance is maintained.

Increasing visibility protects not just your company but also the shippers. 

Whether you're shipping medication, cosmetics, or perishable goods, there are standards to guarantee the product reaches safely and in useable shape. It is particularly critical when dealing with sensitive goods since these shipments have additional obligations. The Food and Drug Administration, for example, has a variety of compliance regulations that must follow while carrying specific drugs. But how can you control something you can't even see? 

Real-time supply chain visibility enables your firm to carefully supervise carriers and assist them in reaching requirements by enhancing top-down communication. Because you have insight into a shipment's status, location, temperature, and other essential data, it protects you and your clients from liability concerns.  

5. Concentrate on core competencies.

Outsourcing logistics will allow your firm to concentrate on its core strengths rather than managing non-core, vital tasks. Without employing internal resources, your company may reap the advantages of logistical experience. 

6. Increase your flexibility and scalability.

Another benefit of third-party logistics in supply chain visibility solutions is that it allows businesses to use supply and distribution resources depending on actual business demands. When sales are weak, there are no duplicate investments or unutilised resources, and when demand increases, firms may grow up. 

7. Allow for business expansion and market expansion.

Third-party logistics' purpose in supply chain visibility solutions is to support company expansion by providing organisations with access to areas where they do not have a strong presence. Being able to handle inventory in a new market without spending money on warehouses, equipment, and people may save money, as well as the time spent learning the logistical peculiarities of a new market. 

8. Improve company efficiency and also provide an advantage over malicious actors.

This Christmas season, cargo criminals are planning a theft of sensitive shipments. According to CargoNet's study on last year's holiday patterns, 185 thefts cost more than $9 million between December 23, 2021, and January 2, 2022. 

Improving your real-time supply chain visibility might help you avoid losses over the holidays and keep your shippers informed. Technology can provide precise data, develop standard operating procedures, and tell you when a technique fails. 

These up-to-the-minute notifications enable you to take prompt action to locate possibly lost or stolen goods. When dealing with harmful actors, visibility will set you apart from rivals since you'll have a thorough look into every shipment made by your organisation and every action taken by the carrier. 

Bottom Line

In business, the customer is always correct. This age-old proverb is particularly relevant in logistics, where shippers have more alternatives than ever when selecting a Third-Party Logistics Provider (3PL). With so many third-party logistics providers, shippers are increasingly searching for suppliers to give insight into their supply chain visibility solutions. 

For starters, real-time supply chain visibility enables shippers always to know where their cargo is. It is critical for satisfying consumer expectations and controlling inventory levels. Second, visibility may assist shippers in identifying possible supply chain issues before they create delays or other disruptions. Finally, visibility may assist shippers in tracking and managing their transportation costs.