How Does a 3PL Differentiate Itself From Its Competitors?
Expert Market Research projects that the Third-Party Logistics (3PL) market will reach $1370.96 billion by 2027. And since it is currently at $1008.5 billion, this shows there is room for making more sales by 2027. But to make more sales, you need to provide your clients with an effective solution to their logistics problems, therefore, outshining your competition. So how do you achieve this? Here are three tips that will help you stay ahead of the curve, enroll more clients and thus earn the bag.
1. Embrace Emerging Technologies
There are many emerging technologies that you can leverage to simplify most of your 3PL logistics. These emerging technologies include:
- Artificial intelligence (AI) to streamline warehouse operations
- Machine learning (ML) to predict demand fluctuations
- Blockchain to create smart contracts without the need of intermediaries
- Internet of Things (IoT) to monitor the shipment progress in real-time
For example, here’s a table showcasing how some AI platforms can help 3PL providers be more effective:
|AI Platform||Key Benefits for 3PL Providers|
|Epicor (Microsoft Azure)||Automated tasksPredictive analyticsEnhanced customer serviceScalable cloud infrastructure|
|Infor||Real-time supply chain visibilityBetter decision-makingInventory optimizationTransportation route optimization|
|C3 AI||AI-powered inventory optimizationCost reduction Improved customer serviceIncreased agilityEnhanced visibility|
Furthermore, blockchain is enabling 3PL services to create smart contracts, reducing errors associated with traditional agreements and ultimately saving you time and money. Additionally, by offering cutting-edge solutions, using logistic services tools powered by these cutting-edge technologies enables you to scale your 3PL services more effectively.
2. Implement Environmentally Friendly Practices
Adopting eco-friendly practices in your 3PL is essential, as we move toward a more environmentally friendly lifestyle that helps protect the ecosystem rather than pollute it. Why? Most shipping companies in Canada are not concerned that using fossil fuel-powered vehicles can lead to carbon emissions. Or how using excessive packaging materials and non-recyclable materials can contribute to waste generation.Yet the aftermath of these practices is environmental pollution and greenhouse gas emissions. However, by making these practices mandatory in your freight company, you contribute to environmental preservation:
- Use reverse logistics to recycle and repurpose packaging materials.
- Adopt eco-driving practices like using fuel-efficient vehicles and optimizing transport routes. Optimizing transport routes is looking for the most effective way to transport goods from the warehouse to the client’s destination. This looks to help minimize costs while maximizing delivery speed.
- Dispose of hazardous waste properly by enlisting the assistance of certified and authorized waste management companies.
- Use biodegradable or recyclable packaging materials. Biodegradable packaging materials should break down naturally after disposal. These include packaging materials made of plant-based materials like cartons, paper and bubble wrap. On the other hand, recyclable packaging materials include glass or metal.
So when you use environmentally friendly practices in your 3PL, you might enjoy these perks:
- Create a positive reputation for your brand as it shows you are a responsible brand. These may attract environmentally conscious clients and stakeholders, allowing you to differentiate yourself from your competitors.
- Saving on overhead costs as fuel-efficient vehicles consume less fuel thus reducing transportation expenses.
- Remain on the right side of the law as Canada attempts to ensure that businesses adopt environmentally friendly practices to prevent pollution and protect the environment and human health.
3. Regular and Timely Communication With Clients
As people’s concentration continues to reduce, now at less than a minute thanks to overconsumption of content on social media, customers have come to expect timely, factual and truthful communication. These days, most businesses make sales within the first minute of listing the item. Mainly because online shoppers are more impulsive, and the constant stream of new content in our feeds makes it difficult for items to stay visible for long. So, as a 3PL, you should always strive to provide regular and timely communication with clients because it quickly builds trust. You should also keep your clients informed on the status of their shipments during every stage. And if you can, incorporate systems like OptimoRoute that lets your client track the shipment progress in real-time. Additionally, promptly inform the clients when you experience any delays or disruptions. Provide details of the cause of this predicament and possible solutions. However, ensure this doesn’t become a routine where you experience delays every week.
Engage Effective 3PL Services
To enjoy stress-free logistic operations for your business, it’s better to outsource from reliable 3PL providers like Macro Logistics, a comprehensive 3PL service provider. This way, you get peace of mind that your clients will receive their orders on time. Contact Macro Logistics today and we will ensure efficient and reliable seamless logistics management of your products.