Ongoing supply chain gains in e-commerce are driving demand for third-party logistics (3PL) providers to manage many businesses’ transport and logistics solutions. To illustrate this, recent market data predicts industry growth of 9.2% by 2026, with a total market value of US$1,418.70bn.
This is good news for 3PLs. However, it also presents a challenge and as global opportunities increase, businesses need to find ways to stay competitive and strengthen their market position.
Here are some key market trends that could help inform future growth strategy and find ways to streamline operations to maintain and improve efficiency.
Flexible solutions
Unforeseen economic pressures are always a major concern in business. To help companies navigate business uncertainty, 3PL’s need to provide flexible solutions to help customers improve logistics infrastructure and resources, without increasing capital expenditure.
Flexible solutions, tailored to individual needs, inspires confidence and broadens your appeal across diverse industries that can leverage your established logistics network and valuable resource to efficiently scale their business. 3PL’s have the expertise to help optimise operations flow and plant uptime using up-to-date operator assistance features and telematics.
Local, independent Yale dealers can provide valuable market insight, advice and reliable products to suit your business needs. Find out all you need to know with our Flexibility Guide.
Global expansion
Expansion into global markets can help mitigate risks, generate new revenue, and give businesses an important competitive edge.
While global expansion can be daunting, partnering with the right 3PL can help customers navigate the complex cross-border supply chain process and manage increased operational costs. It may also present the ideal opportunity to increase the emphasis on emission reduction solutions (such as trucks powered by lithium-ion batteries) and on green manufacturing initiatives.
3PLs must tailor solutions for both large businesses and small to medium-sized businesses. SMEs are particularly vulnerable when expanding into new markets, with limited knowledge and operational investment. 3PLs have significant resource to allow SMEs to branch out with the minimum of fuss. Yale has a global network of independent dealer partners ready to help your business expand and grow.
End-to-end visibility
Recent supply volatility, disruption, and delays have compelled a growing number of companies to seek end-to-end solutions to help them cope with unstable supply chain dynamics.
According to a survey on global supply chains, 67% of businesses have taken steps to enhance end-to-end visibility and in doing so, have significantly reduced the impact from supply chain challenges on their business.
This clearly demonstrates the advantages of third-party solutions that offer integrated, end-to-end supply chain platforms. By harnessing smart design and technological know-how, 3PL’s can deliver on complex supply chain requirements and help intralogistics applications excel. Yale Vision telemetry can give 3PLs an end-to-end view of their Yale warehouse equipment in real-time, which has an impact on operations flow and provides data for route optimisation.
Rapid service
Customer expectations for fulfilment times are more demanding than ever. Consumers are now accustomed to one day deliveries and, as such, 41% of global shoppers expect to receive goods within 24 hours.
To meet growing customer expectations, businesses need to invest in shipping and tracking capabilities through improved in-house fulfilment or outsourcing to a 3PL that can effectively deliver on service levels and manage operational capacity.
Rental options from Yale can help 3PLs to keep the supply chain flexible in response to fluctuating demand, such as during peak times or unscheduled maintenance.
Data analytics and intelligence
Increased inflation, margin pressures, and capacity issues have been a major challenge for ecommerce businesses, in particular. One way to overcome these issues is to use data, which can monitor and help manage the day-to-day challenges that arise.
Data analytics and intelligence offers transparency of operations to help forecast inventory levels and order volumes; streamline order fulfilment and reduce operational and overhead costs. This data can also inform users on order status in real-time and encourages consumer loyalty for business.
Yale solutions can help 3PLs grow and develop their business. Our Warehouse Simulator can plan your warehouse configuration to improve efficient flowthrough and provide safeguards for unexpected operational challenges - to overcome peak season demands, for example. For more information, contact your local independent local Yale dealer partner.
