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The State of Third Party Logistics: The Future is Already Here

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But the main goal of these technologies will be to enable 3PL companies to connect, collaborate and engage with their clients seamlessly in order to improve the speed and quality of service. Just imagine the day when packages will never become lost or misplaced (because they are fitted with RFID chips that enable them to communicate with each other), when driverless vehicles and drones will deliver shipments at the customers' doorsteps, and when customers will be able to monitor the progress of their shipment in real time.

At the rate new technologies are cropping up, some of them specifically targeting the logistics market, there will soon come a time when almost the entire logistic process will be automated - needing human intervention only for critical tasks. The automation of logistics will remove human errors, cut unnecessary costs, speed up transportation and delivery, ensure the safety of goods, and help managers make quick and accurate decisions.

However, only about 30% of 3PL companies have been found to be using cutting edge technologies. Most of these companies are large, with the financial resources to maintain their own servers and a dedicated IT staff. The advanced technologies they use are limited to Transportation Management System (TMS) and Warehouse Management System (WMS) applications. The majority of smaller companies find the costs of these applications too high to be profitable.

  • Saturday, 19 March 2016 09:41
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