Dive Brief:
- Managers face five significant challenges to running an efficient supply chain in an era of consumer-driven retail strategies, and may be able to get help from a third-party logistics provider, according to a Genco-sponsored infographic on Logistics Management.
- Technology advancements, stock keeping unit proliferation, a skilled-labor shortage, omnichannel merchandise returns and growing M&A activity are increasing the need to integrate supply chain networks.
- The top logistics concern for 44% of companies was finding qualified or skilled employees, according to the graphic, and third-party logistics providers (3PLs) are often hired to fill this skill gap.
Dive Insight:
A recent study shows a wide majority of participating 3PL users and providers agreed the increased popularity and supply of 3PLs has led to generally increased customer service, efficacy, and decreased costs over the years. However, as technology continues to advance consumer expectations tighten. E-commerce, in particular, has caused new challenges for many businesses in the form of increased reverse logistics and inventory needs.
The infographic, as well as various other reports released this year, suggest technology advancements are the leading destination for supply chain investments, but capital restraints, labor shortages, and cultural risk aversion often prevent executives from fulfilling the investment.
Yet 3PL providers' business model is to solve these issues for their clients — and it's paying off. In just one example, BlueGrace Logistics recently received a $255 million investment to expand its network nationwide and hire an additional 500 to 700 employees to support its services.
