Newer technologies in every area are coming up, and it is no surprise that technology continues to increase in importance with time. The same was highlighted at the 2017 Third-Party Logistics Study, where the role of big data and analytics was emphasized upon. 98% of 3PLs indicated that improved data-driven decision-making is essential to the future success of supply chain activities and processes. Also, 93% of shippers agreed to this belief. Additionally, 86% of 3PLs and 81% of shippers also said that effective use of big data will become a core competency of supply chain operations in the future. The biggest areas of focus related to big data include improving on spheres of data quality, process quality and performance, supply chain integration, data transparency levels, logistics optimization, and customer interaction and service.
The study also suggested that the rapid change is adding complexity to the roles of shippers and logistics providers. With many 3PL service providers evolving into collaborative partners to offer increased capabilities by taking up greater accountability and control, they will be playing a very important role in 2017. 91% of shippers and 97% of 3PLs have indicated that they have successful relationships that are bringing about positive results. Compared to the study in 2012, where only 88% of shippers and 94% of 3PLs quoted successful relationships, we can see the vast difference in numbers today. Moreover, 75% of shippers and 93% of 3PLs indicated that the utilization of 3PL services has led to overall logistics cost reductions. And, 86% of shippers and 98% of 3PLs cited that it has led to improved customer service. Thus, this study clearly shows that strategic shipper and 3PL relationships create value throughout the supply chain.
Both shippers and logistics providers are using more of information and analytics to drive their decisions today. Almost 71% of shippers agreed that real-time analytics from 3PLs help to better understand shipping alternatives, and 61% shippers valued 3PL assessments of trade lanes and origin-destination pairs in terms of cost and service levels. 3PLs have been able to respond to demands with increased capabilities, and shippers are increasingly taking advantage of their expertise for strategic and customer-based activities, thus improving logistic effectiveness.
From efficient and affordable TMS to Bluetooth technology for superior tracking of product movements, technological innovations in logistics will be an integral part of 2017 and will change how the world will do business. The 3PL Value Creation Summit of 2016 stated that the value added by 3PLs is to keep going up through 2017 and beyond. In fact, the global 3PL market is expected to be worth $925.31 billion by the year 2020!
Continuous improvement is a priority for shippers, along with innovative ideas to reduce costs, and this is just what 3PL providers are able to offer along with enhanced services and improved management of complex supply chains. For all your logistics solutions, you can get in touch with Jayem Logistics, the biggest supply chain player in India, to help your business stay ahead of the curve in 2017 by maximizing efficiency and streamlining your supply chain processes.