As a new omni-channel retailing landscape opens up, shipper-3PL relationships continue to grow. With consumers looking for new and improved shopping (and shipping) opportunities, more and more retailers are investing in technology, supply chain resources and fulfillment strategies that will provide a seamless customer experience across all channels.
According to the 2015 19th Annual Third-Party Logistics Study, shippers report an average of 36% of their current total logistics budget is related to outsourcing. However, 67% of shippers are increasing their use of outsourced logistics services this year, with customer service being the driving force to invest.
The majority of those surveyed understand the importance of the omni-channel network, but also realize that omni-channel supply chains are still maturing, leaving a wide gap between consumer and retail expectations and companies adopting a ‘wait and see’ approach.
As 3PLs continue to transform their business models, more are looking to cloud-based CRM solutions to help support their customer relationships and improve service. Here are a few other key findings from the study that reveal how omni-channel retailing is driving third party logistics opportunity.
-Both shippers (75%) and 3PL providers (77%) agree that the 3PL sector could benefit significantly from the availability of industry-tailored Customer Relationship Management (CRM) capabilities.
-For 3PLs, CRM technologies will aid in streamlining global workflows and processes, providing executive-level visibility to commercial leaders and identifying inefficiencies and bottlenecks in commercial operations.
-For shippers, they will benefit from real-time information regarding topics such as shipment visibility.
-With retailers increasingly dependent on technology for real-time visibility into operations, shippers and 3PL providers are investing in warehouse management systems (58%), enterprise resource planning software (54%), transportation management systems (54%), supply chain visibility (43%), warehouse management system add-ons (33%) and Radio Frequency Identification (RFID) (21%).
CRM and mobile technologies have the ability to create value for 3PLs and their customers. The challenge will be getting experienced sales executives to embrace these new technologies. Strategic workforce management will be particularly important for the 3PL industry moving forward as it is expected to face a shortage of talent.
Evolving omni-channel supply chains are taking this new business model seriously and starting to look at ways to optimize their 3PL supplier and leverage the relationship. Optimizing workforce management through the use of analytical planning tools can help prepare businesses for potential talent shortages. A 3PL partner is crucial to your success, so evaluate current or potential partners to determine how and where they can provide opportunities for improvement and growth in today’s omni-channel world.
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