Complex handling needs?
Here’s what to look for in an
ideal 3PL partner
Complicated handling and
transportation needs are
prompting producers, shippers,
and retailers to look for service
partners that can help them
optimize their supply chains.
Here’s what organizations
should look for when
evaluating potential third-party
logistics service providers.
IT’S AN ONLINE WORLD—AND PRODUCERS, SHIPPERS, AND
retailers across every industry are feeling the effects. Specifically, the
so-called “Amazon Effect.” That is, the expectation that with a simple click,
a purchased item will arrive on the doorstep (or at the dock door) the same
or next day. Indeed, consumers’ expectations are for lightning-fast execution, a trend that’s unlikely to abate anytime soon. According to research
from third-party logistics (3PL) research and consulting firm Armstrong &
Associates, e-commerce retail represents 9.8% of the total retail market in
the U.S. and has grown at a compound annual growth rate of 14.9% over
the last five years. 1
What does that mean for logistics? Greater complexity in handling and
fulfillment needs, with an increased demand for speed to market, an explosion of product choices, and significantly reduced order sizes.
Furthermore, producers, shippers, and retailers’ warehousing and transportation needs have grown increasingly complex and, in many cases, multifaceted. Traditional big-box retailers now sell perishables in addition to
apparel and household goods. Grocery stores offer shoes alongside edibles.
