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L OGISTICS

Frank McGuigan, is President and Chief Operating Officer, Transplace,
888-445-9425 • info@transplace.com

Consumer Demand Helping Drive 3PL Industry Growth

n recent years, shippers have encountered new standards as I have the tool, but not the expertise to create the music.
of velocity, market choice, and cost for their products. Today’s 3PLs provide a deeper understanding of the key pro-
Consumers are demanding better variety and greater cesses that are necessary for supply chain excellence within
Iavailability at the lowest possible cost. the specific verticals in which a shipper resides. This spe-
These demands put increasing pressure on retailers, who in cialized knowledge and capability is as critical as advanced
turn, pass that burden on to their suppliers–further increasing technology. Furthermore, their ability to truly leverage the
complexity and intensifying pressure on supply chains. strength and depth of their 3PL’s network of shippers is how
In order to meet continually changing consumer demands maximum value is ultimately delivered.
and expectations in an increasingly competitive market, Understanding and executing upon on-time delivery is a
shippers need a fast, efficient supply chain. As a result, many given nowadays. 3PLs are being asked to create better met-
organizations are turning to third-party logistics (3PL) provid- rics to provide both added understanding and a deeper
ers and enhanced transportation management technology perspective as to what’s occurring inside their business yes-
to deliver the velocity, visibility, predictability, and control terday, in real time, and tomorrow. Status updates that are
they need. more timely and proactive are becoming essential in the
supply chain.
Today’s Next-Gen TMS Meets Today’s Supply Chain Needs
Today’s supply chain requirements demand more True Partnership to Drive Operational Excellence
advanced tools. Fortunately, as the supply chain has evolved, While a TMS can have a significant impact on your sup-
so too have transportation management systems (TMS)– ply chain operations, it’s not automatically going to “fix” your
now providing organizations with greater visibility and entire network. You need the right strategy and processes
control over their supply chain than ever before. behind it. Shippers looking for technology to incorporate into
This next-generation TMS technology provides a com- their transportation operations should first take the oppor-
prehensive, graphical view of all shipments and dynamic tunity to benchmark their network around service, customer
dashboards of key performance indicators, while also incor- experience, and cost. This exercise will provide specific intel-
porating relevant information from the web, including ligence about opportunities in their network and whether a
weather and traffic alerts, to give organizations a 360-degree technology solution, or outsourcing to a 3PL, is best for their
view of their entire transportation network at all times. Some business.
systems can even help “predict the future” and alert shippers For shippers, a 3PL should not just be prescribing a
of potential disruptions, allowing them to proactively take technology for your transportation network, but must truly
steps to address those issues in order to maintain smooth have the ability to offer the operational expertise and ideas
operations and high levels of customer service. for continual improvement necessary to drive supply chain
excellence. Transportation optimization is more than moving
Combining Technology and Industry Expertise freight at the lowest cost/best mode or finding a short-term
The need for this next-gen technology has contributed to performance boost; it’s about continuous improvement
the continued growth of the 3PL market. While 10 to 15 years delivered through smart, data-driven planning and efficient
ago shippers would engage with 3PLs as a means to access execution at both the lane and network level. Shippers
technology, that technology is more ubiquitous and readily should find a partner that has a demonstrable ability to
accessible today. deliver and execute throughout the entire supply chain,
Technology, however, is only part of the solution. I could creating both enhanced velocity and a high level of service
put a piano in my home, and have noise instead of music, to customers.

April 2017 • Inbound Logistics 37

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