3PL Software Integrations for Futuristic Logistics Companies
Latest blog by Katalyst Technologies, highlights future of 3PL software integrations for logistics companies. It covers advanced tech for logistics management software.
Third-Party Logistics is a massively growing industry worldwide. As per Grand View Research, the global 3PL market size is expected to reach $1.2 trillion by 2025, with a CAGR of 7.5%. Considering the demand for 3PL services, players in the industry are investing in technology-driven logistics management software to bolster their tech portfolio. 3PL providers are leveraging disruptive technologies to enhance their distinctive competencies.
Bleeding edge technologies have triggered Industry 4.0, a data-driven approach that thrives on information management and mining it to automate processes and pace up end-to-end business cycles. In this scenario, AI, machine learning, blockchain, IoT that are shaking up the old way of doing trade, are also bound to spill-over into the logistics industry in general and third-party logistics business in specific.
3PL software integrates Robotic Process Automation at the Port of Rotterdam
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When we asked Lynn Smith, VP for the Supply Chain & Logistics Management Software business unit at Katalyst Technologies about the advanced technologies that can be integrated into 3PL software to help third-party logistics providers be more efficient in 2020, he explained,
When we asked Steve Foley, CEO at Bulk Memory Cards about the advanced technologies that 3PL providers can bank on in 2020, he stated, “IBM recently launched its Quantum service, which is the one to look out for in the logistics management software space. Logistics is basically the traveling salesman problem, an NP-Hard problem which can be solved through Quantum.
“Some less esoteric technologies integrated in logistics management software are blockchain and loT. Blockchain for ledgers as well as transactions and loT in advanced tracking, such as environmental and other data monitoring are already being used by some leading 3PL companies.”
Moreover, cognitive automation, a combination of AI and RPA, is making business processes intelligent and empowering 3PL companies to make well-informed decisions, thereby creating a positive impact on the ROI. RPA automates tasks by copying massive volumes of data without human efforts, whereas AI extracts insights from the data received from RPA. Once AI classifies the data, RPA can generate documents like bills, invoices, and execute payments for end-users.
Penske Logistics plans to implement blockchain across its supply chain to increase the traceability of parts, visibility of freight, and bring efficiencies using smart contracts.
Andy Moses, Senior VP of Global Products at Penske, said about how Penske is navigating emerging technology markets and the blockchain project specifically, “When it comes to emerging technologies, we’re not here picking winners or losers. We simply stand for our customers. Shippers have much to gain from leveraging new technologies, and we are committed to bringing them innovation that drives competitive advantage in their supply chain.
“Blockchain specifically offers a great deal of promise, while recognizing that there are hurdles for this new technology to overcome, before it reaches levels of adoption in day-to-day use by businesses large and small. Our investment in blockchain recognizes our commitment to learning, developing and implementing innovative solutions for Penske customers.”
BiTA, Blockchain in Transport Alliance is a platform where 3PLs, shippers, supply chain management software companies, freight forwarders, and technology infrastructure companies are collaborating and influencing the development of blockchain applications within the transportation industry. Leading 3PL providers like C H Robinson, FedEx Logistics, Uber Freight, J B Hunt, Coyote Logistics, Schneider, GlobalTranz, and many more are members of BiTA, who are working with other industry leaders to introduce blockchain interventions in the coming years successfully.
It’s high time that 3PL providers must raise their game and get ready to embrace the above-mentioned disruptive technologies to become customer centric. It is essential to adopt a planned approach to harness the benefits of digital transformation to the fullest. Being capable of giving a boost to the company’s competitiveness and earning, disruptive technologies offer value-changing opportunities that 3PL companies should seize to stay ahead of the curve.
Lynn Smith, VP for the Supply Chain & Logistics Management Software business unit at Katalyst Technologies offers tips for incorporating these technologies in their 3PL software for smoother operations,
Steve’s tips to incorporate these technologies in 3PL software thus, “This should be done in your current innovation process with the innovation team, if applicable. If not, spend about ten percent of your energy on this with proving out small use cases with your teams and vendor resources in proof of concept sprints.”
Third-party logistics will continue to evolve in a global marketplace with emerging smart technologies for future success. If you seek to develop a smart and tech-enabled ecosystem to achieve internal and external efficiencies, collaborate with logistics tech experts at Katalyst Technologies. We catalyze digital transformation, thus enabling enterprises to lead the field in 2020.
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