Undoubtedly, business owners today find themselves assisting other businesses as part of their day-to-day operations, a rewarding process. Many industries are dedicated to their operations by helping out other businesses through the services they offer. Logistics companies are the best fit for this description.
Numerous industry sectors use them to plan, implement, and execute the movement of goods to the point of consumption or the point of sale.
In order to scale their operations, most companies turn to their logistics partners for their logistical services. However, rather than outsourcing all of their requirements to a 3PL provider, some businesses prefer to outsource only some of their new warehousing and fulfilment needs.
With the e-commerce business and the demand for eCommerce order fulfilment steadily growing worldwide, you might be considering entering booming industries where you can generate stable profits. To gain traction for your business & hold a substantiate income by the end of the financial year, knowing the true value of having a 3PL company on your side is imperative.
3PL Market Trends That Are Dominating Global Industries
Supply Chain Integration
An increasingly complex global supply chain requires integrating supply chain processes to achieve the best results.
The industry will become even more integrated through data-driven strategies, data sharing, and other forms of 3PL technology integration in 2022. By integrating supply chain management, all players on the value chain will be able to benefit from enhanced transparency, visibility, and accountability.
The continued impact of the Coronavirus pandemic posed a multitude of challenges for shippers and the third-party logistics companies that support them in 2021.
Increasing demands of e-commerce are already preparing 2022 to be another exciting year as 3PLs fight to remain competitive and meet the growing demands of eCommerce fulfilment. The more adaptable you are to technology trends, the more you can utilise new ideas in what you do, and the more competitive you will be.
The demand for analytics from 3PLs
In 2020, shippers increasingly started relying on data for decision-making, and standard 3PLs scuttered to garner expertise in analytics. In a recent study, 94% of shipping companies indicate that analytics can be critical to ensuring that orders are fulfiled on time and are visible throughout the shipping process.
The only logical assumption that one can make is that once logistics operations begin to gain a foothold in the analytics world, there will be an evolution from basic descriptive analytics to prescriptive and cognitive analytics. Additionally, 3PL companies may need to hire data scientists in order to analyse business data and come up with actionable insights.
Shippers will gain end-to-end visibility and traceability in the supply chain with access to more robust data sets and a clearer data strategy from third-party logistics providers. A potential downside to this trend is vulnerabilities associated with third-party logistics providers. It would be wise for third-party logistics companies to focus their efforts on data protection plans, cybersecurity, and adding more data.
Last-Mile Delivery
Last-mile delivery is an obvious but often overlooked concept, which has great potential to become a game-changer for a number of providers in the new year. Focusing on the customer through added value, extra efforts and going the extra mile will be crucial for customers & at a later stage to become a customer developer 3PL for loyalty, satisfaction and retention. Companies could make or break their businesses by the quality of their last-mile service.
Last-mile delivery has already supplanted price and product as an important factor for consumers to differentiate themselves from other options. Keeping customers loyal and expanding your 3PL customer base through last-mile delivery is essential. Over the past several years, this trend has been one of the most important developments in logistics, and its significance shows no signs of waning.
Cross-border business
More and more consumers are buying products from retailers overseas. By 2022, according to research from Forrester, e-commerce sales across borders will comprise 20% of all e-commerce businesses, reaching £500 billion. Although the cross-border logistics sector will continue to face difficulties due to past trade wars in 2019 and the recent geopolitical uncertainty, the future is bright for shippers.
Having a more flexible supply chain to match changing geopolitical conditions and cross-border outsourcing freight to reduce costs, increase efficiencies, and ensure timely delivery are two trends that will help businesses expand their international presence.
Blockchains are an example of a technology not restricted by geographical boundaries. The order fulfilment sector will likely be more closely involved with blockchain initiatives intended to record digital transactions and enhance security and transparency.
Fulfilment from urban locations
As 3PL companies compete to shorten the last mile, fulfilment hubs are becoming more accessible in urban areas. Approximately 55% of consumers are willing to switch to a competitor who can offer faster service, as per a report from Capgemini.
Real estate continues to be scarce and expensive, which poses a challenge for 3PL companies seeking to set up urban fulfilment centres. CBRE reports that rents for smaller urban warehouses between 70,000 and 120,000 square feet have increased by a third over the past half-decade, while supply has declined by 7 and 11%. Fulfilment centres may be repurposed from underutilised and inexpensive spaces by 3PLs.
Industries That Depend on 3PL Services
Below is a list of a few industries that benefit from 3PL fulfilment services.
Hospitality
3PLs coordinate the deliveries of hotel operating supplies and equipment, furniture and fixtures to ensure a successful renovation.
3PLs are utilised by hotels or their procurement agents to receive, store, transport and install new furnishings as requested. Logistics partners can also be of assistance by coordinating the delivery and installation of furniture and materials by room. This service makes the entire renovation process more efficient and painless.
Further, hotels often require logistics partners to perform quality control checks on their goods as they are received in their warehouses. In this way, the hotel can keep focused on on-site operations while the 3PL verifies the conditions of all shipments. Hoteliers do not have to worry about returning damaged items to the site once it is ready to receive furnishings and equipment.
E-commerce industry
As was mentioned at the beginning of the blog, the world of online retail is growing rapidly; customers expect their orders to be delivered quickly, which can help businesses compete in a more competitive market.
The company can even generate a competitive advantage over other e-commerce companies that offer local shipping options to their customers. Online stores with expedited shipping can increase orders and repeat customers, allowing them to gain a competitive edge by using eCommerce fulfilment services.
Pharmaceutics and Healthcare
It is rare to find such strict regulations for so many industries! Third-party logistics teams need to understand your business’s industry’s needs because these standards require constant attention.
The market recognises the importance of the medicines and equipment you use in your industry. You can depend on a 3PL fulfilment Service UK to provide temperature-controlled logistics to maintain a constant supply chain throughout production and distribution. Maintaining inventory control and controlling costs is possible thanks to pick-and-pack warehousing.
Construction Industry
When it comes to a booming industry, construction is one of those industries. The continued development of developing countries is causing a need to invest in real estate properties in urban areas in order to enhance the quality of life there, which leads them to become more dependent on quality building material providers who can assist them in the construction process.
Logistics services ensure that heavy-duty construction materials are securely loaded into transport service vehicles before being transported to the construction site.
Home Improvement
In the home improvement industry, a lot of money is exchanged, and third-party logistics companies can assist you in maintaining an efficient and cost-effective project while overseeing the distribution, installation, debris removal, and other aspects of the project. All parties involved in the home improvement process, including suppliers, homeowners, retailers, general contractors, and installers, can benefit from third-party logistics services.
Conclusion
A business owner must be careful when choosing the E-commerce fulfilment services that will carry out the movement of the goods they will sell to their customers. As a professional, you should remember that you will get value for your money only when you hire a 3PL Fulfilment service provider with years of experience in providing services of the highest quality!
With 3PL Fulfilment UK, you can be confident in our service that guarantees rapid delivery with stellar efficiency. Through our highly skilled workforce and specialised equipment, we have eliminated errors and delays so that your products are stored, delivered, and managed with unparalleled skill & efficacy.
If you would like to discuss how we can become your logistics partner in more detail, don’t hesitate to get in touch with us via our website so that we can start the process!
