The ongoing rebound of the U.S. economy has given way to a period of rapid change within the third-party logistics (3PL) sector. Arguably more diversified and sophisticated than ever, the 3PL sector is seeing an emergence in more 4PL partnerships, resulting in deeper, more strategic relationships. This shift comes as a result of challenges 3PL organizations are currently facing in the marketplace—from greater reliance on just-in-time inventory and the increasing role and reliance on technology, to congestion at the ports and the truck driver shortage.
Collaboration has led to the consolidation of the supply chain, resulting in more agility, visibility and flexibility throughout a product’s lifecycle. Today’s 3PLs must be able to work with other partners and vendors in the supply chain to provide real-time data, forecasts and key performance indicators (KPIs) to react promptly to issues. Technology has become as important as cost when it comes to the selection of supply chain partners, and 3PLs that are not continually making investments into their technology infrastructure are finding they are lagging behind. 3PLs must have the ability to leverage technology to accommodate additional transactional volume at greater speed. The rate of change is exponential.