Consumer direct and multi-channel distribution
Consumers are changing the way they purchase items, causing growth of small package and parcel shipments and a shift in replenishment activities to more frequent, smaller orders. Consumer package goods (CPG) companies, distributors and service providers are being asked to provide store- and shelf-level services. In addition, retailers are working to develop demand-driven fulfillment & replenishment models while CPG companies working to respond to these models.
Obviously, the 3PL industry will have to overcome a significant amount of obstacles in the coming years. Complex supply chain networks across most industry verticals and competition for business from direct competitors—or niche players trying to increase market share—will continue to challenge 3PL organizations. The ability to compete will depend on how well a 3PL can adapt to the ever-changing global environment. An organization that is able to benefit from the service offerings provided will not only improve their service levels and reduce costs throughout the supply chain but will also improve shareholder value if applicable.
Charles T. Trimarco is a Senior Manager in Capgemini’s Supply Chain Technologies Practice. He leads strategy, operations and process improvement service offerings in the Move Practice. Reach him at email@example.com.