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Key Challenges in 3rd Party Logistics and Distribution
Life Sciences Review | Thursday, December 16, 2021
Despite the huge expansion of the 3PL business, 3PL firms confront a number of obstacles while supplying consumers all over the world.
Fremont, CA: Logistics has always been a critical factor of every economy and company. As a result of the globalization trend, many organizations have outsourced their logistical operations to third-party logistics (3PL) companies. It allows them to focus more on their core expertise and create more income.
Despite the huge expansion of the 3PL business, 3PL firms confront a number of obstacles while supplying consumers all over the world. Some of them are as follows:
• Finding New Talent
It is one of the most critical issues confronting the 3PL business, and it requires immediate action. Most companies say it is difficult to locate qualified candidates for open positions. A shortage of qualified applicants leads to a loss of efficiency and productivity, and the 3PL industry has traditionally been a high-churn operation.
As a result, 3PL firms have difficulty finding the appropriate individual for the right task.
• 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 its 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 taskforce that can stay up to date with the many requirements.
• Lack of Good Reporting Systems
Keeping track of all shipments sent out in a mid-sized 3PL provider organization is a complex undertaking. The process of needing to question suppliers about shipments to compile a monthly statement is dreadful, and these chores will get much eased if a suitable reporting system is in place. Still, mid-sized 3PL enterprises can only invest in a cost-effective reporting system and meet their operating regulations.
