Competition in the global marketplace has resulted in greater demand for goods and services, but many companies still struggle with the logistics of providing customers with their product. Faced with the complexity of organizing and executing a supply chain, companies can become overwhelmed with the small details, which is why so many businesses are outsourcing transportation and logistics to third parties, or 3PL’s.
According to the 2014 Third Party Logistics Study by Capgemini Consulting, the number of businesses outsourcing their logistic services has grown by 72% this year alone, and 90% of shippers report that their relationships with 3PL providers have been successful. However, successful relations between 3PL’s and their clients are becoming increasingly complex, as the scope of services demanded from 3PL’s is expanding. Traditionally, third party logistics providers (3PL’s) have aided companies by providing logistics services like transportation, inventory management, and warehouse storage, but today, 3PL’s are expanding into a greater role of strategic orchestration. These days, 3PL’s are orchestrating multiple supply chains rather than simply supplying logistics services. Think of 3PL’s as linking individual supply chain actors together by managing, coordinating, and focusing all aspects of the supply chain network.