The Coronavirus disease (COVID-19) pandemic has given a wake-up call to the logistics industry, and arisen the need to innovate to seamlessly continue operations. Flexible and responsive logistics operations amid the crisis would ensure that processes at each phase are not interrupted. Tech-enabled logistics ecosystem is the need of the hour, and until it becomes the New Normal, third-party logistics (3PL) providers need to take a lot of efforts to gain the vigor lost during the pandemic.
Realizing the need to implement technological solutions, 3PL providers have begun deploying solutions that make their processes efficient and seamless. Adoption of digital transformation enables them consolidate their position in the sector with efficient processes and customer satisfaction.
Various activities have been taking place in the industry such as acquisition, partnerships and collaborations to implement technologically advanced solutions. From integrating tech solutions to optimizing transportation activities to deploying drones in the facilities for barcode scanning and inventory count, market players are taking a lot of efforts to automate processes. The market for 3PL is gaining traction with technological solutions implemented in warehouses, supply chains and storage facilities. According to the report published by Allied Market Research, the global 3PL market is estimated to reach $1,789.94 billion by 2027. Following are some of the activities taking place in the industry.
3PL providers have realized the need to include technological solutions to ensure efficient operations and customer satisfaction. And, with that, trend of acquisition has been taking place in the industry.
Riding on the wave of integrating technology to optimize capabilities, some 3PL providers have adopted digital transformation, whether it be implementing drones to scan front-facing barcodes autonomously across very narrow aisle (VNA) racking throughout the facility or implementing inventory scanning solutions, autonomous navigation and charging and localization.
As the COVID-19 pandemic jumpstarts the need for automation in managing logistics, deploying technological solutions becomes essential in times like these. So, taking the future needs and efficiency into consideration, deployment of drones is one of the effective solutions.
As the need to deploy technological solutions has been realized, 3PLs are also managing cargo facilities.
With the setbacks such as demand reduction, shut down of e-commerce deliveries and interstate transport restrictions presented by the pandemic, the 3PL industry needs to figure out how the technology can be implemented to ensure efficient operations amid such crisis. Market players have taken into consideration every aspect of the process and devising new methods to ensure optimization and continuation of processes even if the crisis hit the operations. With new technological solutions, it would become possible for market players to manage inventory and supply chain in a better way.