Maximising supply chain visibility: how technology is changing the game for 3PL providers
The supply chain is the backbone of any business, and it's vital to ensure it operates smoothly and efficiently. However, one of the biggest challenges faced by 3PL providers is the need to ensure visibility throughout the supply chain. Thankfully, recent years have seen technology transform the way 3PL providers operate, making it possible to tackles these challenges head on. In our latest blog post, we'll explore some of the innovative technologies 3PL providers can use to improve visibility.
Real-time tracking
One of the most significant developments in supply chain visibility has been the advent of real-time tracking technology. With real-time tracking, 3PL providers can monitor shipments in real-time, providing accurate, up-to-the-minute information on their location and status. This allows for greater visibility throughout the supply chain, enabling providers to quickly identify and resolve any issues that arise.
Real-time tracking is particularly beneficial for businesses that require time-sensitive deliveries, such as those in the food and beverage or healthcare industries. For example, a hospital may require urgent medical supplies that need to be tracked closely to ensure they arrive on time. With real-time tracking technology, 3PL providers can ensure that these deliveries are closely monitored, and any issues are immediately addressed.
Data analytics
Another technology that has revolutionised supply chain visibility is data analytics. By analysing data from across the supply chain, 3PL providers can identify trends and patterns, providing valuable insights that can be used to optimise operations. For example, data analytics can be used to identify areas of the supply chain that are causing bottlenecks or delays, enabling providers to address these issues and improve efficiency.
Data analytics is also beneficial for inventory management, enabling providers to accurately forecast demand and ensure that inventory levels are optimised. This is particularly important in industries with seasonal demand fluctuations, such as the retail sector. By using data analytics, 3PL providers can ensure that they have the right amount of inventory on hand, reducing waste and maximising profitability.
Improved customer service
Ultimately, the benefits of enhanced supply chain visibility are felt by the end customer. By providing real-time tracking information and using data analytics to optimise operations, 3PL providers can improve their customer service offerings. For example, customers can be provided with accurate delivery times and updates, reducing the need for follow-up calls, and improving the overall customer experience.
In addition to providing better customer service, enhanced supply chain visibility can also help businesses to build stronger relationships with their customers. By providing timely and accurate information on deliveries, 3PL providers can build trust and credibility with their customers, leading to increased loyalty and repeat business.
In conclusion, as the demand for faster and more efficient supply chains continues to grow, technology will continue to play a critical role in enabling 3PL providers to meet the needs of businesses across Australia and beyond.
INTERESTING FACT: In 2020, the global 3PL market was valued at US$1.4 trillion and is expected to grow at a compound annual growth rate of 7.5% from 2021 to 2028.