The biggest challenge with any 3PL provider is the ability to report up-to-date feedback on the status of a clients’ cargo. This challenge requires a strong element of control when dealing with time sensitive processes. It is crucial that a successful logistics plan is in place for any manufacturing or distribution establishment. According to a survey by Ernst and Young, more than 5% of all sales go to transportation. It is obvious that most organizations and businesses desire to have their customers served in the most efficient manner. This is where the latest technology practices come in to establish flexibility and reliability in logistics.
3PL Technology Removes Complexity
In order to instill the right confidence in a transportation transaction, 3PL providers integrate new technology for capturing and analyzing data points along the supply chain. These data points include updates on preparation and planning, cargo dimensions, customer-specific instructions, packaging/handling, restrictions and destinations. All this information needs to be coordinated in order to track, trace and control the movement of cargo within a specified time frame. Without using new technology, this can be challenging to manage, especially since each cargo requirement is unique.
3PL Technology Integrates with Customer Processes
The value of the new technology that 3PL’s provide is very useful to the customer when they can relate it to their priorities. Many customers desire having the option to check up on cargo status as well as being able to specify times and dates for collection, storage and delivery. Most cargo deliveries are quite sensitive to the degree of where specific ambient conditions are specified and bound within a specific delivery time. Advanced 3PL companies present an integrated way of interacting with a system. Many allow their customers to interact with their orders in a real-time fashion which offers control over the period, the condition and the handling requirements for their cargo. This integrated approach presents the 3PL company as a reliable service that is respondent to a customer’s specific needs on demand. In turn this allows the 3PL to understand the dynamic needs of each client to ensure quality, service satisfaction and efficiency.
Value Added Features
It is reassuring when customers know the status of the cargo. In terms of location, expected time of arrival, status and condition, it is crucial for business to run smoothly. This information gives clients a confidence of service reliability since the 3PL company is committing to the customer service process. From the 3PL perspective, things might look a little hectic in meeting this requirement, but the best companies have adopted the following accurate practices:
- Monitoring the cargo through time-stamped status updates which reflect the condition and location of the cargo. Tracking information is relayed directly to the customer portal where it is reflected as real-time information.
- Tracing the whereabouts of cargo in the event that the delivery instructions change or there are unavoidable circumstances that would prevent timely delivery of the cargo. This is typically monitored internally and serves as a tool to pin-point cargo.
- Implementing a logistics plan allows for management and structure of the cargo. This ensures that odd-sized or delicate goods get specialized attention, that handling precaution has been made and that the cargo is moving by means of adequate transportation services.
Determining and Managing Transportation Methods
Premier 3PL companies use many methods of transportation; whether by sea, rail, road or air, their clients’ products, priorities and constraints are central to accomplishing a common goal. These methods allow 3PL’s the flexibility to respond quickly to time or budget critical orders. In order to serve all customers with integrated equal maintenance, accessibility to new technology practices is essential in allowing customers to plan effectively. The use of advanced technology allows all transportation schedules and parameters to be joined into one common operating system.