What Does a 3PL Company Need to Succeed?


When investigating fields of business that have altered significantly within the past generation, Third Party Logistics cannot be ignored. Third Party Logistics, or 3PL for short, has changed significantly over the past ten years mostly due to increased levels of experience and the ability of mobile technologies and intellectual working practices to constantly improve. As the expected growth potential for 3PL markets is expected to be as high as twenty percent in several regions globally, the overwhelming need to bring enhanced service to these markets over the next generation will breed intense competition.

To maintain a successful position, only companies who abide by the two great focuses of 3PL – accuracy and efficiency – will survive. The consumer’s demand for services to be provided every hour of every day, combined with the necessity of keeping costs reduced, ensures that only firms with expert level knowledge and experience will survive. The question then becomes “Is the 3PL company you rely on going to remain reliable?” If you’re struggling with this question, consider whether your partner business is applying the following technologies to keep their name in the running.

Improving Visibility

Procedures such as consistent replenishment and intricate management of inventory should be the norm. Reports show that a more holistic approach to the supply chain in general should be taken, and external visibility should be prioritized. Working together closely with manufactures will assist greatly with awareness of production schedules while ensuring the availability of raw material. Awareness and inter-connectivity between each link in the chain of progress is integral.

Improving Technology

Investing in better IT and software systems that are capable of producing rapid ROIs is a clear sign of staying on track with the times. A good 3PL company will know the benefits and faults of the software they use and will constantly seek a program that will drive cost and time savings. Soon enough, a procedure known as voice picking will be used frequently in the supply chain process. Improvements in speech recognition software ensure that workers will be able to communicate directly with those taking care of other portions of the process. This dedication to efficiency in technology will improve stock recording and speed up order turn-rounds. If the company you depend on isn’t keeping up, it might be time to consider switching!


Successful 3PL companies include those who have transformed from simple commodity distribution to increasingly complex entities. For example, by offering product kitting, or the process in which individually separate but related items are grouped and distributed as a unit, 3PL companies can broaden their clientele and improve approval ratings. Collecting customers with a wider range of solutions is one way for 3PL firms to form lasting business relationships and become more profitable.