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Key Challenges in 3PL & Distribution
Life Sciences Review | Monday, January 03, 2022
Despite the massive expansion of the 3PL business, 3PL firms confront many obstacles while supplying consumers worldwide.
Fremont, CA: Every economy and corporation has relied heavily on logistics. Many enterprises have outsourced their logistical activities to third-party logistics (3PL) companies due to the globalization trend. It enables them to concentrate even more on their core competencies and generate more revenue.
Third-party logistics income is growing at the double the rate of the US economy as a whole! 3PL revenue was estimated to reach 727 billion dollars in 2014, and it has only increased since then. At the same time, the 3PL and distribution business is experiencing many issues due to all of this expansion. Despite the huge growth of the 3PL industry, 3PL firms confront many obstacles while supplying consumers worldwide. Let's see Some of them:
- Finding New Talent
It's the most pressing concern facing the 3PL industry, and it has to get addressed right away. The majority of businesses claim that finding competent candidates for unfilled positions is challenging. Because the 3PL sector has typically been a high-churn operation, a scarcity of suitable candidates leads to a loss of efficiency and production.
As a result, 3PL businesses have difficulty locating the proper person for the job.
- Lack of Good Reporting Systems
In a mid-sized 3PL provider firm, keeping track of all shipments sent out. The procedure of questioning suppliers about shipments and generating a monthly statement is tedious, and these tasks will get much simplified if an appropriate reporting system is in place. Mid-sized 3PL firms can only afford to invest in a cost-effective reporting system and adhere to their operating standards.
- Increased Emphasis on Rules and Regulations
Because most 3PL businesses carry goods to many nations, they must adhere to the shipping regulations of each country and area. Each country has it's own set of laws and regulations, and these businesses must stay up to speed on all of them to continue dealing without incident. Once again, it is difficult, especially for 3PL firms who do not have access to a proper task force that can stay up to date with the many requirements.
