There is no doubt that supply chain management is going through a revolution. The shift in retail has led to a massive shift in distribution, warehousing and fulfillment services. The trend to integrating third party logistics (3PL) providers into company operations is happening faster than you can say flatbed trucking.
Value-Added Services Will Separate the Good 3PL Companies
There will always be a need for flatbed shipping companies. That’s as certain as American tariffs, trade wars and high fuels costs. However, there’s not a flatbed freight shipping company operating today that can possibly handle all their requests from customers. From expedited demands on fulfillment to the sheer massive volume of freight moving around the continent, a company would be hard-pressed to deliver all services at an accepted level of quality. The simple fact is, 3PL providers can specialize in integrated solutions of warehousing and transportation services that can be scaled up or down to meet the needs of a wide variety of customers. And more companies are recognizing that fact. In 2014, for example, the 3PL market in the U.S. alone grow to $175 billion dollars. Clearly, there are people who understand the value in collaborating with 3PL providers.
To stay ahead of the curve, good 3PL providers offer value-added services that often extend beyond logistics to include services related to production or procurement of goods. Such companies are often referred to as a third-party supply chain management provider (3PSCM) or a supply chain management service provider (SCMSP). No matter what label they’re given, progressive 3PL companies are learning to adapt to the new realities of logistics. On-demand transportation, for example, has become a mandatory capability for 3PL providers looking to rise above the competition and offer custom solutions to their client’s supply chain needs.
Nats Canada – 3PL for a Modern Age
Studies show that 96 percent of Fortune 100 companies used some form of 3PL services in a recent fiscal year. That is a strong indicator of the trend toward their use. As e-commerce continues to grow and carve away greater chunks of traditional retail sales, the strategies and execution of delivery networks will be a significant key to success.
It doesn’t matter which industry is being considered; logistics will become a key factor in the success or failure of more businesses. NATS Canada is already well positioned to compete in the 3PL market and help clients achieve their desired goals. Sure, they can still hook you up with a flatbed, but it’s all the other things NATS Canada can do that makes them a 3PL leader.