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3PL Technology Assessment: 4 Key Areas of Evaluation
Scott Hothem • Apr 30, 2014
In an effort to keep up with industry and consumer demand, 67% of logistics executives intend to increase their IT investment in 2014, according to a joint survey conducted by EFT and HP. The number one reason for the investment in technology is to make operations quicker and more efficient. In the Eyefortransport North American 3PL Market Report, they found that 92% of US third party logistics providers saw better IT solutions as a key to new growth opportunities. There is no denying the role that technology is playing as a catalyst for industries and markets across the board. This is why it is critical that companies find a 3PL partner that embraces the opportunity to drive profits through technology, competency, and initiatives. When considering a 3PL company, make sure they are in the aforementioned 67% of companies that will be investing in IT for 2014. Additionally, we have listed four key areas to consider when evaluating a 3PL’s technological performance:
- Efficiently on-board new customers: When you make the decision to partner with a 3PL, the ability to get on-line and begin operations quickly will be an important factor. A key element in a 3PL warehouse management system is having the technology to rapidly on-board clients, so it is easy to configure the required data elements. Investing in a 3PL who has the technology to rapidly and efficiently on-board your business is crucial.
- Process Change & Improvements: As your business changes and the capabilities of technology evolve, so should your 3PL. If there is a better and faster way of doing things, you should have that option when it comes to your supply chain. In your 3PL search, it is crucial to find a company that is investing in technology solutions equipped with an adaptable architecture. When things change (and they will), the technology of your 3PL partner will have the flexibility to modify, adapt, and execute quickly.
- Visibility: As you surrender a critical aspect of your business operations to a third party entity, visibility can be a priceless element. With remote access and dashboards that provide timely, relevant, and accurate information, decisions and evaluations can be made as needed. The result of this increased collaboration and visibility is improved efficiencies, enhanced customer service, and accelerated revenue flow.
- Merged Information: Having customer ERP applications work directly with a 3PL’s WMS offers significant benefits in terms of on-boarding time, IT investments, and higher accuracy. Without any extensive IT work required, users see information from both systems on a single screen. With access to both systems on a single screen, this technological element can pay dividends for your 3PL relationship, as well as your bottom line.
When evaluating a 3PL as a potential partner, you should perform a rigorous technology assessment. If the 3PL is interested in your business, it will be more than willing to provide you with any information necessary regarding its investment in technology. ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½designs, builds and implements 3PL supply chain solutions that align to customer goals and requirements. Our approach leverages people, process and technology to optimize flexibility, scalability, control, and customer satisfaction.
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By deploying a drone-based inventory monitoring solution at its Hillsborough, N.J., facility, ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½Centers, a growing 3PL, has taken license plate accuracy to the next level, helping with order picking and eliminating time spent on manual cycle counts.
As a third-party logistics provider with over 80 years of experience in the industry, ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½ understands that speed and accuracy are crucial. E-commerce brands need their orders picked, packed and shipped to customers within minutes. ÐÇ¿Õ´«Ã½ meets these demands by offering a wide range of integration options tailored to its client's specific needs. ÐÇ¿Õ´«Ã½'s Expertise in Simplifying IT Integration for Clients ÐÇ¿Õ´«Ã½ supports everything from traditional, straightforward system integrations like flat files transferred to an SFTP site to more sophisticated solutions such as Electronic Data Interchange (EDI) over AS2 or a value-added network (VAN). However, the real innovation lies in ÐÇ¿Õ´«Ã½’s robust stack of REST APIs. These APIs allow clients to programmatically interface with various systems within ÐÇ¿Õ´«Ã½, including the Warehouse Management System (WMS) layer, providing a future-ready technology solution. For tech-savvy clients, this means the possibility of integrating with ÐÇ¿Õ´«Ã½’s systems even before operations go live, ensuring a smooth transition and continuous operation. Additionally, ÐÇ¿Õ´«Ã½ offers quick and effective plug-in solutions for popular platforms like Shopify, WooCommerce, and QuickBooks Online through its partnership with Pipe17. This enables rapid integration, making connecting with ÐÇ¿Õ´«Ã½'s systems easier for clients using these platforms. For brands using NetSuite, ÐÇ¿Õ´«Ã½'s long-standing Oracle SDN partner expertise provides a best-in-class interface. Whether a client uses TrueCommerce, SPS Commerce, or another EDI provider, ÐÇ¿Õ´«Ã½ can integrate seamlessly, making NetSuite the central hub of operations. This flexibility extends to environments with pre-existing customizations, allowing clients to benefit from ÐÇ¿Õ´«Ã½’s solutions without disrupting their current setups. How ÐÇ¿Õ´«Ã½ Prioritizes Security and Integrity in a Digital Landscape As the digital landscape becomes increasingly complex, the security and integrity of client data have never been more critical. ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½takes this responsibility seriously by adhering to the NIST Cybersecurity Framework, which guides its technology choices and security posture. ÐÇ¿Õ´«Ã½ has established long-term partnerships with industry-leading cybersecurity providers including Okta, CrowdStrike, Arctic Wolf, and GuidePoint Security. These relationships ensure that ÐÇ¿Õ´«Ã½ remains at the forefront of IT security, leveraging the best technology to protect client data from a rapidly evolving threat landscape. Investment in IT security is a top priority at ÐÇ¿Õ´«Ã½. Unlike some organizations that operate under the principle of "no budget" for IT security, ÐÇ¿Õ´«Ã½ carefully allocates significant resources to this area. This strategic investment ensures ÐÇ¿Õ´«Ã½ can provide a secure environment for client operations and data, safeguarding against potential data loss and other cyber threats. How ÐÇ¿Õ´«Ã½ Stands Out in IT in the 3PL Industry ÐÇ¿Õ´«Ã½ Distribution's approach to IT infrastructure combines innovation, flexibility, and robust security. For many years, ÐÇ¿Õ´«Ã½ has been a cloud and SaaS-first company, giving it a significant advantage over its peers. ÐÇ¿Õ´«Ã½ can deliver tailored innovations quickly and efficiently by maintaining deep partnerships with commercial software providers while developing in-house capabilities. This unique approach allows ÐÇ¿Õ´«Ã½ to react swiftly to client needs, whether implementing a small yet impactful change or responding to an urgent business opportunity. In contrast to competitors relying solely on off-the-shelf packages, ÐÇ¿Õ´«Ã½’s ability to innovate internally ensures that it can provide the right solution at the right time, keeping client operations running smoothly and securely. Conclusion ÐÇ¿Õ´«Ã½ ÐÇ¿Õ´«Ã½is a third-generation 3PL leader in IT integration and security within the 3PL industry. With a comprehensive approach that includes advanced integration options, strong cybersecurity measures, and a commitment to innovation, ÐÇ¿Õ´«Ã½ ensures its clients can operate seamlessly and securely in today’s digital landscape. Ready to Enhance Your Logistics with Cutting-Edge IT Solutions? We understand that your business demands more than just logistics—it requires seamless integration, robust security, and innovative technology—partner with us to experience a long-term 3PL partner that aligns with your digital needs. Contact us today to learn how our tailored IT solutions can uplevel your operations and keep you ahead of the competition.
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