What Are The Common 3PL Challenges?

Logistics will always be a significant part of business. The globalization trend has meant that many companies have outsourced their logistics to third-party logistics companies (3PL). 

There is, however, a range of common challenges in third-party logistics. If you’re seeking a 3PL solution, this article will make the decision easier. 

Let’s start with the common 3PL challenges:

1) Lack of a Sound Reporting System

The task of having to ask the vendors about shipments in order to create monthly statements can be a painful task—put a proper reporting system in place to make this a smooth process.

2) Finding New Talent

There is a distinct lack of great candidates coming into the 3PL industry. This leads to a loss of efficiency and productivity. 3PL companies find it very difficult to find the right person for the job.

3) Lack of Collaboration 

Transport providers play a vital role in the supply chain. This distinct lack of collaboration between shippers, carriers, and the customer will have an adverse effect on the smooth functioning of the entire supply chain.

4) Rules and Regulations

Each country has a range of laws and regulations, and each 3PL company needs to adhere to them. This can be challenging without the correct support in place.

5) Shipper’s Specific Requirements

Shippers can be disappointed with some of the things that are provided to them in terms of service. This includes packaging, on-time delivery, and customer services. 

6) Infrastructure

Potentially one of the most significant challenges for 3PL companies in many of the developing countries around the world. Unsuitable road conditions, inadequate air and seaport capabilities, a lack of development of railways and roads, and poor connectivity.

These questions are just the beginning. For a more detailed conversation about your specific needs, contact us today!