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Key Challenges for 3PL service providers

The 3PL business is self-motivated and continually changing owing to various factors. The 3PL sectors are facing the following challenges:-

The IT system has brought a sea change in worldwide market. To cope up with the present scenario the 3PL service providers have to make their information system capacity intuitive with automation and ICT capability. They should be well versed technical proficiency and in this regard they have to embrace Tie-ups & foreign collaborations. Implementation of efficient and reliable 3PL software system, route optimization and navigation software and mobile based technology to increase visibility for tracking and tracing shipment in transit, monitoring the performance of transporters in pickups and deliveries.

3PL players must be well organized to manage crisis and unforeseen event for manufacturing companies. They have to maintain enough backup systems taking into consideration manpower, routes and network resources. They should research in constant process upgrading to minimize costs and guarantee constant effectiveness.


3PL companies will have to sharpen their manpower strength to improve their motivation level and implement professional development program.

3PL service providers have to be very much flexible to admit challenge of presenting pertinent experience with diverse kind of products, technology incorporation, geographic area and their routes, and other specific requirements.

3PL players should go through several product markets in which compliance, safety, and cargo security play an important role. In order to make triumphant partnership with manufacturing companies, 3PL service providers should have the capability to fulfill the miscellaneous requirements of customer’s base through its own challenges and industry requirements. In line with existing globalized situation, 3PL service provider must be able to deal with inbound and outbound multi-modal logistics connecting domestic and foreign merchants. In this regard, the most important factors may range from access and closeness to sea port and airports and material handling abilities, fleet strength etc. They should capable of He must be able to undertake expedited deliveries and maximize transportation and production. In order to perform competently 3PL service providers will have to enhance the frequency of runs to several suppliers to minimize the lot size of each progress, letting the transporter to load trucks.

3PL players should make commitment to time schedules for uninterrupted delivery, protection and consistency. 3PL providers should accelerate the speed to inbound parts and lesser shipments picked up and delivered more repeatedly to maintain inventory low. 3PL Service providers shift material competently and in small lots which will in turn facilitate manufacturers to reap the benefits in their lean production systems requirement.

Author by: Rajib Dey


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