The Reasons Why It's Time for Shippers and 3PLs to Innovate Together. -

The Reasons Why It's Time for Shippers and 3PLs to Innovate Together.

The pandemic, amongst other disruptions, has shaken the supply chain to its core. Although analysts expect these issues to ease throughout the year going into 2023, the supply chain will never be the same again.

No industry understands this better than the shipping and logistics industry. Shippers are under immense pressure due to labor issues, congestion, and ever-increasing growth.

However, many shippers have been slow to innovate and integrate with omnichannel delivery concepts. To succeed, shippers and 3PLs need to plan and innovate together for a stable supply chain in the future. Keep reading to learn how ACI Logistix can prepare you for the future!

Be Proactive, Not Reactive

A “business-as-usual” attitude is one of the compounding factors impacting the supply chain. Many suppliers and shippers were blindsided by tariffs and the pandemic, with no contingency plans in place.

To avoid making the same mistakes again should another series of events impact the business, you need to be proactive. Reacting at the time of an adverse event puts you behind the curve. Having plans and options enables you to have agility and pivot as the market demands.

It isn’t enough to have plans, however. You need to have partnerships with other businesses. When you have people you can trust and work together with, your company becomes stronger than the sum of its parts.

How Can a 3PL Benefit You?

Whether your business is large or small, a 3PL provides you with additional resources when it comes to your logistics chain. Though there are many benefits to relying on 1st party solutions, it’s rarely practical and scalable. 3PLs grant you agility and give you the room to focus on core competencies.

High Volume

Suppose your business uses a high parcel shipping volume. In that case, a 3PL team can soak up that demand and provide end-to-end delivery. One of the biggest hurdles with shipping is last-mile delivery, and an integrated 3PL team can improve your shipping times.

Flexibility and Scalability

A 3PL partner enables you to reduce costs and improve efficiency. If your sales are lower, you don’t have to contract out the shipping and storage space needed to process the volume. On the flip side, you can use more resources if sales demand. Compared to an internal logistics team, this enables you to be agile and maximize profits while reducing costs.

Enter New Markets

A 3PL partner lets you enter new markets with your product without having your resources there. You don’t have to invest in labor, infrastructure, and other business costs. Instead, you can rely on your partner to manage the supply chain for you, growing your overall business reach.

It's Time for Shippers and 3PLs to Innovate Together

Though there are many benefits to using a 3PL partner, that partnership is only as strong as your collaboration. To better address business and customer satisfaction, you need a 3PL partner that will work with you, not just for you.

Logistics and shipping innovation should be at the forefront of your search for an excellent 3PL partner. Your partner should not be static and content with the status quo. They also should be willing to work with you and your team to address business desires.

Good Communication

The first step for partners to innovate together is opening up communication. Both sides need to discuss their desires and goals.

Shippers should expect to explain their mission and expectations, and 3PLs should have the ability to listen and adapt. If they do not, they can expect the shipper to find a new partner. Collaboration is necessary for both parties to grow.

New Technologies

New technologies enable better satisfaction for both business partners and customers. Shippers and 3PLs can innovate together to adopt new metrics and solutions that better serve the business needs. Improving package tracking and transparency, reducing labor costs, and enhancing dock times are key areas for positive impact.

Looking Ahead

Both shippers and 3PLs need to look ahead to avoid future issues in the supply chain. By creating plans that consider potential problems, partners can prevent negative impacts. The ability to pivot as needed is more important than ever before.

Why Innovation Is Needed

Innovation between shippers and 3PLs is needed to insulate businesses from future issues. Direct innovation also lifts customer service to a new level. Without improvement, the system suffers. Customers will be dissatisfied, growth will slow, and partnerships will suffer.

Innovation helps reduce costs for both the shipper and the 3PL. Shippers often focus on cost benefits for products and services but overlook shipping itself.

3PLs need to increase productivity, reduce waste, and lower dock times. These factors can greatly reduce costs and provide value to both parties in a collaborative partnership.

Innovation is also needed to secure the future. Companies need to be able to meet the trends and habits of their shoppers in real-time. They also need to analyze and forecast data to predict the future.

Innovation is essential for 3PLs (regardless of partnerships) to stand out from the crowd. Although providing basic, competent service is critical, providing additional value is also necessary.

ACI Logistix: Powering the Future

Here at ACI, we’re dedicated to providing focus and innovation to our customers. As the fastest growing parcel service in the US, we believe we are pioneering the way.

We provide unmatched value and service with a laser focus on innovating the business to meet both shipper and customer demands. We’re driving down costs and revolutionizing the industry through our growing distribution network, package visibility, and automation. Our better experiences drive brand loyalty, improving your reputation and customer base.

If you have any questions about our innovation or how we can partner with you, contact us today! We’ll be glad to answer any questions you may have. Our goal is to integrate shippers and 3PLs, providing unmatched service

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