Obstacles Facing 3PLs

The third party logistics industry continues to find success on the global market.  In part, the growth of 3PL corporations and organizations stems from a growing market of online retailers who often require third party assistance in storing, packaging, and shipping the merchandise they sell.

But even in the midst of industry wide growth, there are some distinct challenges that are facing the 3PL companies in operation today.  These obstacles stand in the way of continued success and may even lead to the downfall of a 3PL company if that organization does not face and resolve the issues at hand.

The obstacles facing 3PLs can be diverse in their specifics, but they can likewise typically all be categorized into a few different areas of problematic issues.  These include:

·         Shipping partnerships

·         Security of products

·         Client management

The first category, securing shipping partnerships, is a constant threat to 3PLs that do not have solid professional relationships with shipping corporations.  When a 3PL is unable to secure partnerships with large-scale shipping companies, their ability to provide an iatrical part of their third person logistics is compromised.

The issues that fall under the category of shipping troubles for a 3PL can largely be corrected by establishing and maintaining quality working relationships with additional 3PL and shipping companies.  When this occurs, a 3PL can be assured that they will be able to provide adequate and client-friendly shipping services for their customers.

Next, an obstacle that most 3PLs will encounter has to do with the security they provide for their client’s merchandise.  Not all merchandise is incredibly valuable, but all merchandise is susceptible to multiple security threats including damage in storage or shipping, fraudulent orders, and theft.

A 3PL company can do more to ensure the safety of their client’s merchandise (and thereby be able to secure more contracts with clients) by revising their security protocols and software.  By going further to protect merchandise both from electronic and physical threats a 3PL will be able to offer their customers a greater sense of protection from their services.

Lastly, a major category that 3PLs can lump their obstacles into is client management.  A 3PL will often face multiple challenges regarding clients including changing inventory policies, increasing demand as the client achieves success, and fulfilling the needs of multiple clients throughout every work day.

Increasing management software programs, giving regular client management trainings to employees, and having the foresight to expand when needed are all ways in which a 3PL can successfully manage their client demands. Just as with any other company, the 3PL that can maintain a happy client base will be able to find success no matter what the hurdles or obstacles they face.

The Apparel Group successfully manages all these obstacles and offers customized logistics solutions to our customers needs.

Posted: 4/11/2014 1:41:07 PM by Global Administrator | with 0 comments
Filed under: apparel, chain, logistics, management, supply, 3pl

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