From Drayage to Delivery: The Role of a 3PL Service Provider

Posted by Port City Logistics on Aug 12, 2021 9:10:46 AM

Warehouse management, transportation fulfillment, 3PL service, and drayage outsourcing represent critical areas within the supply chain network that require constant innovation. With the use of innovative technology, the newest examples of on-demand services and tools, the modern supply chain network can be more prepared than ever to handle the functions of the current market. Traditional third-party fulfillment solutions have long been a part of the supply chain and shipping service market. However, their role in warehouse operations, transportation, and drayage services continues to grow in scope and influence.  According to Supply & Demand Chain Executive, 3PL service and drayage providers can help logistics managers with on-demand warehousing and inventory management and a host of other domestic and global shipping services. 

The Impact Poor Transportation and Warehouse Management Has on the Supply Chain Network

Regardless of the type of transportation network, managers and supervisors alike must ensure that capacity is always front and center. At the heart of many supply chain issues is an underlying problem with transportation services or warehouse operations.  Access to scalable and adaptable options remains vital to successful day-to-day operations and keeps the entire supply chain running smoothly and efficiently. Without proper management of shipping services and load management, capacity will remain a problem area that can cost a company missed opportunities. Insufficient inventory visibility and store management combined with inadequate capacity offerings can significantly reduce profit margins. 3PL service and drayage can help address these issues and reduce their impact on the network as a whole.

How 3PL Providers Can Assist With Drayage and Delivery Services

3PLs have proven their worth repeatedly when it comes to multi-leg management and supply chain scalability. This is particularly true of drayage options at ports of origin and last-mile delivery at the end destination. It has taken innovative changes and technological adaptations to meet the changing needs of both consumers and the market as a whole. As a result of this innovation, 3PL service and drayage providers save shipping companies and consumers time and money. According to Global Trade Magazine, the recent trends of automation integration and technological advancement within the supply chain network have brought an entirely new level of visibility and connectivity. This improved connectivity has provided team members, freight brokers, 3PLs, and others with a better framework for communication and collaboration. Warehouse and inventory management and monitoring also benefit from an enhanced connection with innovative vendor tools and management systems. Transportation logistics and tacking can benefit from real-time innovation and application, regardless of the market trends. 3PL service and drayage providers can help with both these critical aspects of the modern supply chain network.

Benefits of Maintaining Clear Supply Chain Visibility and Transparency

When end-to-end visibility and transparency are maintained adequately through innovative and collaborative partnerships, a host of benefits can be enjoyed, including but not limited to:

  • Easier onboarding for team members and 3PL service and drayage vendors.
  • More vital communications throughout the network from start to finish.
  • Faster response times when issues or disruptions occur during intermodal shipping.
  • Fewer errors and mistakes thanks to real-time data and tracking information.
  • Greater capacity allowance and better management of availability in the network.
  • Better inventory management to maximize sales and reduce missed opportunities.
  • Improve rate negotiation to secure the best prices for any market status.

Keeping up with current trends regarding market capacity, customer demands, inventory fluctuations, warehouse operations, transportation management, and final delivery guarantees are more manageable with the help of 3PL service and drayage providers.

Managing Fees, Delivery Services, and Customer Satisfaction with Third-Party Partnerships

Because the local and global supply and demand market is ever-evolving in its very nature, transportation service providers must invest modern shipping and warehouse management system that goes beyond basic tracking and online integration. Any shipper, carrier, freight forwarder, or service provider that wants to survive the high-competitive market cannot afford not to embrace the benefits of a third-party partnership.  Contact Port City Logistics today to get started and see how 3PL service and drayage services can improve shipping services.

Topics: 3PL Service