We have found that most companies are still looking for a 3PL partner where they can shift internal fixed costs to the variable cost structure by outsourcing logistical operations.
This role is becoming more critical as tough economic situations continue and competition within the industries where customers are doing business becomes more severe. For example, we see retailers narrowing their windows for delivery, making on-time delivery more crucial today than ever before. Customers are demanding detailed shipment information of cargoes moving in the supply chain with the option to reroute cargoes when necessary to match last-minute changes in supply-demand requirements. These situations will lead customers to be more conscious about “lean-and-mean inventory” as well as just-in-time delivery of their products to their customers and just-in-time delivery of raw materials to their factories.
The customer runs a perpetual race between production and inventory. The pursuit of demand-driven supply chains requires customers to understand the intricate relationship between forecast demand and production. Ultimately, the objective is to balance inventory positions to achieve a reduction in total landed costs while maintaining accurate need-in-plant and service levels.
Diversification is a prudent strategy in today’s business climate. A true logistics integrator must have the capability to leverage its products and services. Through the integration of activities, whether by sea, land or air, 3PLs need to be able to provide supply-chain solutions that are customized based on customers demand or supply-based multilevel supply-chain requirements.
And in today’s turbulent financial times, customers must be sure they are working with reliable 3PL transportation companies that not only can handle and deliver their merchandise but that also can provide a dependable and trustworthy service and remain financially sound and faithful.