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Third Party Logistics (3PL)

3PL providers operate logistics facilities on behalf of their customers. This can include outsourced warehouse operations for a single customer, including fully automated “lights out” facilities, or managed warehouses services for several customers, often from more than one vertical, in one facility.

They deliver the complete range of services required by their customers, such as basic warehousing like “pallet in, pallet out” or “cross-dock” solutions, as well as value-added services including components kitting, pick and pack, or light assembly.

Their customers’ needs can be complex and specific, and change quickly. 3PLs may need to store and transport hazardous or perishable goods, or adhere to industry-specific regulations. If their customers require new processes to accommodate new products, pack sizes or order types, these needs have to be addressed immediately.

Driven by customer-specific service standards and evolving requirements, 3PLs need to constantly monitor and improve their own service offering and efficiency levels. Also, ongoing cost reduction is a basic requirement, to remain competitive in this challenging vertical.

Case study - Polar 3PL

Polar 3PL case in increasing efficiency

How TMS helped a temperature-controlled warehouse improve order productivity by 50%

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Industry challenges

The breadth and diversity of customer requirements is a unique challenge within the logistics industry, and 3PL providers operate in a far more complex environment then traditional distributors and single-source handlers. Ecommerce penetration has led to an increased dependency on 3PL providers. Consumer expectations regarding delivery times and stock availability continue to rise, as do the service expectations of their clients themselves. 3PLs also typically have a constantly changing customer base that may operate multiple sites in different countries.

Hence, highly configurable systems that can quickly onboard new clients are essential for increasing efficiency throughout their warehouse and transportation processes.

There is no tolerance for inventory inaccuracies or mis-shipments. Transparency and real-time business intelligence across the entire supply chain are crucial to enabling visibility for customers, tracking shipments and adapting quickly to changing customer requirements. Such transparency also allows for prompt, accurate invoicing of services to avoid revenue losses.

Case study - ASL Distribution Services

ASL Distribution Services optimization case

How Körber enabled a 3PL to add same-day fulfillment capabilities

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Delivering flexibility in a changing market

Learn how WMS can enhance adaptability and multichannel integration

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Making the most out of labor shortages

Using innovative technology to overcome 3PLs challenges

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The Körber difference

Our systems are highly configurable, allowing you to quickly and easily onboard new clients and accommodate their specific supply chain processes. They also support clients with operations across multiple sites and countries, in a variety of languages.

From value-added services like kitting and pre-assembly, through to integrated returns logistics, a highly flexible billing system, and integrated carrier management, you can easily create client-specific inbound and outbound workflows. Our solutions provide accurate inventory control. You can also see where every order is in your warehouse at any given time, along with associated invoices and transactions. The result is full visibility across the entire supply chain.

At the same time, you gain valuable insights into the process efficiency of your operations. The setting and monitoring of key performance indicators specific to your business is also completely user configurable.

By integrating our best-in-class automation systems into your supply chain solutions, you can maximize efficiencies for your clients and within your own operations. Voice-directed technologies, automated materials handling and robotic applications help you achieve pinpoint accuracy, optimal productivity and a unique competitive advantage.

With the aid of 3D simulations and videos, our decision support software enables you to visualize the design and layout of new concepts and processes before they are implemented. This helps you reduce operational costs and maximize returns on investment for you and your clients. You can also use the software when pitching to potential customers, to demonstrate with complete detail and accuracy, how you will deliver on your prospects’ requirements.

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