LOGISTICS
To optimise their supply chains , many companies have turned to third-party logistics providers — 3PLs — to outsource how they manage inventory , stock warehouses , fulfil customer orders , pack pallets , and handle returns . Especially in the midst of the pandemic , corporations have struggled to satisfy their customers , mitigate shipping delays , and react to rapid spikes in demand . In short : if logistics isn ’ t your core competency , rely on the experts .
To examine the current state of 3PL , we decided to have a quick roundtable with Philippe Gilbert , President of UPS Supply Chain Solutions , and Phil Roe , Chief Customer Officer and Strategy Director at DHL Supply Chain . Here ’ s what they have to say on the subject :
What are the fundamental benefits of partnering with a third-party logistics provider ? ‘ Proper supply chain visibility and planning is one of the key challenges facing modern supply chains ’, says Phil . ‘ Supply chains now cover multiple jurisdictions across significant distances . They ’ re also omnichannel , meaning that it ’ s now standard practice for there to be multiple routes to the customer ’. Philippe adds that , ‘ 3PLs can deliver efficiencies and resources across the supply chain that are difficult for most businesses to replicate ’.
According to a study from UPS Global Logistics , five major challenges drive companies to outsource :
Top Phil Roe , CCO and Strategy Director at DHL
Bottom Philippe Gilbert , President of UPS Supply Chain Solutions
1 . Limited Space 2 . Increased Customer Expectations 3 . Faster Order Fulfilment 4 . Reduced Labour Costs 5 . Multiple Fulfilment Channels
Now , the pandemic has accelerated 3PL adoption . In that same UPS survey , 29 % of respondents indicated that they ’ d switch to outsourcing their logistics as a direct result of the past year . ‘ One of the biggest issues impacting our current customers is the timing on inventory levels ’, says Philippe . ‘ Production delays out of APAC have pushed receipts and built back orders of products ’. supplychaindigital . com 69