Transforming Transportation with Cloud-Based Technology

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Experts say the transportation industry can leverage cloud-based technology to optimize their supply chains with efficient and cost-effective solutions.

A growing number of industries are embracing cloud-based technologies for its proven ability to improve efficiency and help build connections. The 2018 Global Cloud Supply Chain Management Market Analysis reported that the value of the global Cloud SCM ‘accounted for USD 3.32 billion’ in 2017. They predict this number will increase ‘at a CAGR of 20.2%’ between 2018 and 2025. Research presented by Global Market Insights , shows that we can expect the ‘smart transportation market’ to reach USD 130 billion by 2024.

These figures show the economic growth of this market and highlights the benefits cloud adoption provide industries who integrate such technologies into their models.

The transportation industry faces many challenges as consumer demands for flexibility continues to increase. Booming ecommerce markets require supply chains to offer personalized customer experiences and faster delivery times. This places incredible pressure on transport supply chains, urging them to implement efficient and effective processes. This article details the various functions of this the Cloud, and identifies the significant role it will play in transforming the industry.

Cloud-Based Technology

In the 1950’s, mainframe computing was becoming too costly and companies identified the need to localize solutions to a singular computer system. Virtual machines became popular in the 1970’s, as their ability to operate multiple systems in a singular environment helped address the issues faced by mainframe computing. Today, research and development of innovative technologies is motivated by the same need: to improve efficiency and reduce operation costs.

As a leader in cloud computing technology, Salesforce also believes there are many benefits associated with integrating this technology into business processes.  Salesforce outlines the following reasons as to why companies should move to the cloud.

Based on the above ten benefits, there is no denying that cloud-based technologies can help companies in many ways. The process of modernizing supply chains relies heavily on the integration of the cloud. The transportation industry has recognized the positive impact cloud adoption has on improving the bottom-line of organizations.

The Transportation Industry

In February, Morai Logistics shared an infographic defining Industry 4.0. Research indicates that two thousand companies have already begun digitizing their supply chains. The investment into emerging platforms also boosts productivity and operations, lowers costs and improves transparency.

Cloud Management and real time communication are noted as two effective methods for achieving end-to-end results. American multinational technology company, IBM has conducted considerable research to understand how the Cloud is accelerating various industries, including transportation supply chains. There is a growing demand from customers who seek ‘alternative transport solutions’. By implementing cloud-based technologies, IBM states organizations can:

…redefine customer relationships, transform operations, improve governance and transparency, and expand business agility and capability.

Known for its ‘unconstrained capacity growth’, the cloud will continue to offer supply chains with advanced solutions. Statistically, 48% of executives believe the cloud will help improve data access, which will help supply chains build ‘customer loyalty’. Cloud adoption will enable organizations to implement personalized experiences for customers through Omni-channel processes.

Technology pioneers, IBM and Salesforce, provide significant research that illustrates how the cloud can effectively optimize the supply chains of many industries. In the face of growing demands for efficiency and immediacy, innovative cloud-based solutions will play a significant role in transforming the transportation industry.

Predictive Analytics Improves End-to-End Visibility in Supply Chains

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Predictive analytics is a technology tool that  is improving the end-to-end customer experience of the retail, healthcare and transportation industry.

The increase in consumer demand is becoming more apparent across global markets and a variety of industries. This month, multinational retail corporation, Wal-Mart, announced their partnership with ‘actionable predictive intelligence’ platform, FourKites. According to Digital Supply Chain:

The Canadian branch of Walmart has agreed a new partnership with FourKites for the development and furthering of the company’s supply chain visibility and predictive analytics capabilities.

FourKites platform will enable Wal-Mart to optimize their consumer experiences by leveraging insight that will clearly identify the lifecycle of their shipments. In addition, the company will be able to improve their ‘staffing levels, assignments and minimize truck waiting times’.

A challenge supply chains face in changing markets is visibility. On February 15th, Morai Logistics identified how predictive analytics can help create efficient processes such as forecasting and real-time visibility. Investment in technologies that offer ‘end-to-end predictive visibility’ is a route many industries are taking to improve the customer experience.

This article looks at the application of predictive analytics in the retail, healthcare and transportation industry. Specific focus will be placed on how the appropriate translation of big data will better the end-to-end customer experience.

Retail

Large wholesale companies have been utilizing predictive analytics to improve daily operations of their large product volumes for quite some time. However, in the past cost of technical personnel and lack of appropriate process has presented challenges with providing customers with personalized service.

According to Digitalist Magazine, the following improvements are achieved when wholesalers implement predictive tools to assess Big Data.

In addition to the above efficiencies, research states that predictive analytics supports the development of loyalty programs as Big Data is translated in real-time. Therefore, addressing the need for immediacy.

Healthcare

Another industry looking to predictive analytics to improve processes and leverage Big Data is the healthcare industry. Instead of focusing on the customer experience, applying this technology will hopefully enhance patient care by taking a preventative approach.

Health Facilities Management magazine states that tools are needed to help asses ‘which patients will require more intense interventions than others’. Integrating predictive analytics into the supply chain will also reduce costs by providing efficient assessments on necessary materials and products. The article quotes vice president of inventory management solutions for Cardinal Health, who states:

Rather than analytics being retrospective, we are trying to infer what will happen in the future. There is no denying the health care industry is looking to streamline their processes and supply chains to better service patients and the community.

Transportation

When it comes to transportation supply chains, transparency is key to creating an optimal end-to-end user experience. Even 73% of online shoppers feel more confident making purchases when they have the ability to track their delivery. Given the demands of online markets, companies are seeing the need for leveraging Big Data.

Referred to as ‘real-time freight visibility’, both shippers and suppliers should be aware of all particulars relating to the shipment lifecycle. Research addressing the importance of freight visibility identify four reasons and how predictive analytics can help.

  1. Helps 3PLs retain business and avoid late shipments by monitoring deliveries.
  2. Improves the visibility of ‘shipment status and location’.
  3. Avoid costs associated with ‘late and off-schedule shipments’.
  4. Create business opportunities by meeting visibility requirements.

Investment in technologies has been a reoccurring theme in changing markets, as the issue of visibility continues to be address. Many industries, such as retail and healthcare, are recognizing the positive outcomes that occur from integrating such technologies into their supply chains. 3PLs will also be able to translate Big Data into meaningful information, and use predictive analytics to meet the demands of immediacy and improve visibility.

Arming Warehouses with Robotics and Automation

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The Canadian supply chain and logistics industry foresees a promising future integrating robotics and automation into their processes.

In 2015, the value of Canadian robotics reached $201 million in orders, with an annual growth rate of 32% between 2010 and 2015. With consumer demands for speed and efficiency increasing, the supply chain and logistics industry is seeking accelerated processes from robotics.

In the eBook, Supply Chain & Logistics: A Transforming Workforce, robotics was identified as a top technology companies should adopt to remain competitive. Companies must focus on providing consumers with individualized experiences and personalizing their product journey to provide hyper-flexibility. Statistics showed that by 2025, USD$67 Billion will be invested into robotics and automation. A value that represents the industries confidence in the benefits of this technology.

This article looks at how the robotics industry is transforming Canadian markets and how the supply chain industry can leverage this technology.

Canadian Robotics Industry

Published by Canada’s Robotics Industry, Invest in Canada discusses the global robotics market and how the country is integrating this technology into leading industries. Their research indicates that the top three industries adopting robotics include:

The processes involved within each of the above listed industries require efficient supply chains to remain productive and effective. For instance, the manufacturing industry currently integrates robotics and automation into their warehouses. Automated handling systems contribute to reductions in operation costs and also help alleviate workers from engaging in dangerous tasks.

Canada ranks 13th globally based on “robot density”, which describes “the number of multipurpose industrial robots per 10,000 persons employed”. The value of this industry is increasing by the year, with market predictions soaring to $41 billion by 2020. However, direct investment into the industry isn’t the only way Canada is investing into the future of robotics.

Research shows that over 20 post-secondary institutions offer “advanced robotics courses and technical certifications”. The Globe and Mail has also identified the need for students to learn active listening, critical thinking and social perceptiveness. These human skills will help students excel in a future workforce of technological advancements that will surely include robotics.

Robotics and automation yield proven results that benefit many industries. However, experts believe that this technology could provide significant benefits to supply chains.

Robotics and Supply Chains in Action

The Canadian supply chain and logistics industry has been a late bloomer with the adoption of robotics and automation into their processes. The expansion of global markets is providing consumers with an instantaneous method to click and purchase. Therefore, the need for efficiency and speed is a top priority, urging the supply chain and logistics industry to get on board.

Supply Chain Digital identifies two primary benefits that robotics and automation will have on supply chains: zero-defect logistics and new levels of productivity. As stated in their article “Automation and robotics: The supply chain of the future”, it seems a target area of improvement is efficient handling. Mark Parsons states:

The new generation of collaborative robots and automated solutions with significantly improved performance and enhanced sensing capabilities, offers a genuine alternative to manual handling.

According to Supply Chain Management Review, robotics contributes significantly to order fulfillment, providing the following rewards:

The implementation of robotics, in conjunction with a cohesive working relationship with workers, moves productivity along faster and more efficiently. Although there has been speculation that robots may replace workers, the implementation of artificial intelligence and technology is working to remove that myth. The implementation of a new generation of robots, known as collaborative robots (co-bots), enable them to work side-by-side with workers. The level of intelligence and flexibility in co-bots, complement workers rather than compete with them.

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Top 4 Reasons Blockchain is Driving Supply Chains

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Blockchain has taken the supply chain and logistics industry by storm, earning a reputation as one of the top trends to look for in 2018.

A large following of companies within the supply chain and logistics industry have been making significant investments into technology to improve efficiencies. Research has reported that tech leader, IBM, has already invested $200 Billion in block-chain IOT.

This emerging buzzword is frequently linked to crypto currency, bitcoin, which earned a new record high of “237.62 billion U.S. dollars in Q4 2017”. Although there is debate regarding the longevity of this booming market, research suggests that blockchain will improve the future of supply chains.

How is Blockchain Driving Supply Chain and Logistics?

morai-infographic-4-reasons-blockchain-driving-supply-chain

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Diverse Supply Chains Propel Business Growth

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In a globalized world of changing markets, Morai Logistics represents a business model that views supplier diversity in the workplace as a top priority.

There is a growing urgency for Canadian businesses to incorporate supplier diversity programs into their own models. Not only do these initiatives build a social, economic and sustainable brand, they also help companies thrive in changing markets. The Conference Board of Canada describes these programs as the added value small and medium-sized businesses owned by women and minorities give to organizations and the economy.

Over the last month, media has placed the spotlight on the advancements women are making in various industries, including technology and supply chain.

London web developer named rising star of women in tech

CBC

Walmart’s sourcing from women-owned suppliers drives business

Supply Chain Dive

The above headlines identify the importance women play in accelerating the industry, and their positive impact on business growth. This article outlines the benefits of supplier diversity programs and why Canadian businesses should work diligently toward adopting them into their models.

Supplier Diversity in Canadian Business

According to the Conference Board of Canada, supplier diversity programs are currently implemented into 39% of organizations throughout the country. In comparison to small enterprises, large organizations and companies within the private sector are more likely to implement these initiatives.

In a featured article for EBN online, Kelli Saunders spoke about supplier diversity, and the liberal government’s proposed investment into diverse suppliers. There is a push for the Canadian and U.S governments to increase procurement support for diverse suppliers including businesses owned by women and minority groups.

Procurement Leads to Change

Although procurement programs are currently available, there are reasons why women-owned businesses have yet to leverage procurement opportunities. These include:

However, the Governments proactive support in procurement of supplier diversity is a huge step forward. According to Conference Board of Canada, it’s important that large municipalities recognize and address the benefits of supplier diversity

Benefits of Supplier Diversity Programs

The benefits of implementing supplier diversity programs include building strong supply chains, increasing competitiveness and establishing corporate social responsibility.

1. Corporate Social Responsibility

One of the most beneficial outcomes of implementing a supplier diversity program is establishing corporate social responsibility (CSR). Global Affairs Canada defines CSR as “the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.”

Large scale companies, such as TD Bank Group, have implemented supplier diversity programs as a CSR effort. Diversifying business portfolios help companies leverage ‘shared value and social licence’ in global markets.

2. Competitive Advantage

A key competitive advantage for any business is having a socially diverse and inclusive business model. Working in conjunction with CSR, Forbes also proposes that promoting diversity differentiates a company’s brand while increasing consumer engagement. In comparison to brand names, Customers are increasingly attracted to companies that give back to their communities and the environment. As a business diversifies, their relationship with stakeholders and markets diversify, developing price and service level competition as well.

3. Economic Growth

Investment into social diversity programs also has a tremendous impact on the growth of the economy. In fact, the Conference Board of Canada states that ‘nearly 1 million Canadian women business owners’ contribute to ‘more than $117 billion annually to the Canadian economy’. In addition, engaging in business with diverse suppliers means opening up to new markets which translates into economic development.

Moving forward, the investment into social diversity programs is an integral component to the business model of any company. The procurement of funding into women and minority-owned businesses would create positive change and contribute to social and economic success.

Omni-Channel Strategy and Intermodal Transport in Globalized Supply Chains

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Omni-channel strategies prove to be an effective method for meeting on-demand delivery for consumers and providing efficient solutions for shippers.

On February 22nd, 2018, Morai discussed the exponential growth of the Canadian ecommerce market. Research presented supports an industry shift from traditional to Omni-channel strategy, finding that it enables third party logistic (3PL) providers to offer all distribution initiatives. By facilitating a customer-focused supply chain, companies can effectively meet the growing demands of their consumers.

Current issues facing the supply chain and logistics industry include the capacity crunch, an increase in freight rates and the impact of government regulations. Globalization and the expansion of markets, pushes 3PLs to implement intermodal transportation solutions that ensure efficient processes are available.

This article identifies the benefits of implementing Omni-channel strategies and intermodal transportation, and how this enables 3PLs to deliver optimized solutions.

Omni-Channel Strategy

The accessibility of global ecommerce markets has transitioned Omni-channel strategies from an ideal concept to a necessary solution. According to Statista, the number of digital shoppers is expected to rise from 19.5 million in 2013 to 22.5 million this year. Reports show that 54% of Canadian shoppers participate in ‘cross-border ecommerce’. The top two reasons for an increase in Canadian international purchases include cheaper online pricing and a wider selection of goods.

How does this impact the supply chain? While an increase in revenue is the end goal of any company, the supply chain and logistics industry recognizes that an increase in consumer demand for immediacy should be a primary focus. Leading ecommerce platform, Spotify, outlines the top benefits of implementing an Omni-channel strategy as :

They comment on the importance of offering a tailored experience to consumers, stating:

By optimizing the locations, sourcing, and fulfillment of your products…Omni-channel logistics ensure reduced costs, faster delivery, and a better customer experience.

Companies should establish an effective approach that focuses on the customer journey by choosing third party logistics providers offering intermodal transport options.

Intermodal Transportation

Capacity crunches increase the need for companies to have appropriate partners in supply chain management. Harsh weather seasons and a reduction in drivers can cause inefficient deliveries and poor customer service. 3PLs understand the unpredictability of the supply chain and logistics industry and steer companies from making costly decisions.

To offset these inconveniences that ultimately affect the end-to-end user, 3PLs utilize intermodal transportation. Intermodal transport is defined as the integration of different modes of transportation, including rail, truck, air and sea. Inbound logistics identifies the top benefits of using intermodal transportation for shippers:

Research identifies that in comparison to road transport, “rail transportation is more energy efficient”. The implementation of an intermodal fleet has been found to be an eco-friendly and environmentally sustainable solution. This approach also ensures that shippers pay less, while optimizing the safe-handling of goods.

Companies looking to provide seamless, efficient and affordable options for their customers should understand the demand of ecommerce markets. By implementing Omni-channel strategies into business models, consumers will have alternative options that reduce wait times at affordable costs. 3PLs who offer optimized, intermodal transport options, can help shippers meet consumer demands while reducing expenses.

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3PLs Persevere Amidst Canada Shipping Capacity Crunch

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The Canadian transportation industry is currently facing a capacity crunch, causing small businesses to question what their mitigation strategy should be.

In late January, the Wall Street Journal spoke about the ‘nationwide truck shortage’ causing turbulence for shippers. They identified that the only two options available to offset current inconveniences were shipper’s willingness to postpone deliveries or pay higher rates. Causes trail back to the aftermath of severe weather seasons and the new regulations on electronic logging in 2017, and lingering increases in gas prices.

Third Party Logistics (3PL) providers have maintained a reputation of providing optimized solutions for those small business owners vulnerable to shipping capacity crunches. Their network connections, competitive volume rates and ongoing integration of information technology, are few of the many reasons to outsource logistics.

As a capacity crunch challenges Canadian markets, 3PL providers continue to leverage technology to fulfill the needs of their customers. Research proposes that concrete data provided by predictive analytics could help offset the stressors faced by shippers and 3PLs.

Overview of Shipping Capacity Crunch

As the demand for immediacy increases and ecommerce markets continue to emerge, a capacity crunch can put pressure on both SME’s and large corporations.

On February 8th, 2018, Forbes discussed four trends facing the transportation industry this year. A capacity crunch and an increase in freight rates were at the top, with a lack of drivers and the 2017 electronic logging devices mandate (ELD) as primary causes.

The ELD mandate and the implementation of electronic stability control technology are two initiatives that aim to improve road safety. These processes achieve the following:

In addition, ELDs are also being installed into trucks to monitor driving time across the shipment lifecycle. This is a positive move to ensure the health and safety measures for drivers and the roads, while also limiting the paper administration associated with logging. Forbes reports that,

By law, drivers are only allowed to drive for 11 hours with a mandatory, continuous rest period of 10 hours, daily.

However, compared to larger corporations with the infrastructure to implement large scale devices, smaller companies are finding this to be costly. Thus, in conjunction with capacity crunches, an increase in freight rates has also said to impact the industry.

Freight Rates

With ecommerce enabling consumers to make immediate buying decisions, the trucking industry is seeing a different pattern in demand. Although this time of the year is low-tide for truck deliveries, research describes an alarmingly high ‘desperation of brokers to move freight’. In fact, freight rates in 2017 remained the highest they had ever been.

Research has also attributed the increase in rates to the ELD mandate, which could cause more problems for smaller companies. While it may cause an inconvenience for divers, it has also meant higher rates for companies looking to ship. A decrease in drivers means an increase in prices, and these projected rates will only get higher.

Forbes also adds that spot rates – or the spot quotes – are the highest, following contract rates. With immediacy following in line with more on-the-spot deliveries, 3PLs may be a wise strategy.

Mitigation Strategy for Small Businesses

As technology platforms continue to advance the processes of the supply chain industry, 3PLs utility in combating the above issues show promise. With the recent implementation of the ELD, a 3PL will have the resources to provide a reliable fleet. In addition, 3PLs also have a large network that go beyond local borders, which can help cut costs. Linkage to competitive volume rates would also help mitigate risks associated with capacity crunches and increased freight rates.

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Happy International Women’s Day – 2018

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The Morai Logistics team would like to wish everyone a Happy International Women’s Day. We’re so proud of all the accomplishments that has been achieved leading up to this point, especially in our industry, and are excited to see the progress that the future holds for women everywhere.

To all women out there, whatever you are doing, this day is for you!

EBook: Supply Chain & Logistics: A Transforming Workforce

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According to the report Digital Supply Chain: Creating Skills for the Future, the Canadian supply chain and logistics industry currently employs 878,000 people. Digital technologies is stated to be a contributing factor to the increase in job creation expected to happen over the course of the next five years.

However, research also identifies Canada’s ranking as the 14th nation in the World Bank’s Logistics Performance Index.

While the country’s investment in research and technology remains high, less than 41% of Canadian industries actually utilize advanced communication technologies. The report further identifies that as the integration of emerging platforms continues to rise, the need for an advanced workforce is critical.

Unceasing technological advancements in the form of artificial intelligence, the Internet of Things (IoT) and Big Data, are necessary to help companies keep up with consumer needs and demands. They’re also key to improving the countries performance in trade logistics.

This eBook takes a look at current technology trends that will have a direct impact on the transportation supply chain and logistics workforce.

What does an Advanced Supply Chain look like?

ebook-supply-chain-logistics-a-transforming-workforce

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

3PL Providers Support the Growth of the Canadian eCommerce Market

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With the retail e-commerce market projected to reach CAD$29 Billion by 2021, businesses are urged to partner with third party logistics (3PL) providers to satisfy end-to-end customer experiences.

Supply chain and logistics companies recognize the increasing demands of customers across a variety of industries. From retail to pharmaceutical markets, to in-store and online ecosystems, the need for optimized solutions is key to driving revenue and customer loyalty. In response to an accelerating Canadian ecommerce market, 3PLs prove to be the most effective and efficient catalyst for achieving these initiatives. This article identifies current trends within the ecommerce market and the top three benefits 3PLs bring to the shipment lifecycle.

Canadian eCommerce Market

Over the next ten years, projections show that online verticals will generate 35% of Canadian retails sales. Consumers are no longer purchasing on a singular platform, pushing companies to shift from traditional to omni-channel strategies. In addition, consumer loyalty has gravitated from brand names to companies that offer immediacy and low cost.

Although online buying in Canada has progressed slower than the US and the UK, there is optimism that our market will now flourish. Contributing factors outlined by BCG include the following:

Today, ecommerce businesses meet the growing demands of consumers by providing platforms that deliver immediacy and convenience. By breaking barriers associated with geographic limitations, consumers are able to purchase globally and at lower costs. In addition, online platforms give access to information with the click of a button, making research and comparison shopping easier.

While the benefits for online shoppers remain high, ecommerce businesses must ensure they have the appropriate processes in place to meet customer expectations and fulfillment. Third party logistics (3PL) provider’s become an integral component to optimizing supply chains for the retail ecommerce industry.

Top Three Benefits Proposed by 3PLs

By 2024, 3PL market share is expected to be well over USD$1,100 billion, according to Global Market Insights. A contributing factor to market growth will be attributed to an increased need for ecommerce businesses to meet the growing demands of their consumers. Immediacy and efficiency must translate into “fast delivery, efficient inventory management, freight forwarding, and individualized shipping time” (Cision, 2017).

3PLs provide solutions that facilitate flexibility and scalability to businesses looking to create efficient and specialized processes for their customers. Aside from the management of supply chain processes, there are three benefits 3PLs offer that contributes significantly to the ecommerce ecosystem.

1. Consolidation

As mentioned above, ecommerce sites break geographical limitations and enable online shoppers with purchase options across the globe. However, on the retail side this may propose an issue as multiple orders create complex supply chains. 3PLs break this barrier by offering freight consolidation solutions that streamline shipments using a single point of contact and stable operation procedures. This also cuts costs for businesses as consolidation enables effective use of shipments.

2. Order Fulfillment

Business Dictionary defines order fulfillment as a “sequence of steps involved in processing an order to the satisfaction of the customer and making the necessary changes in the inventory records”. Online businesses need efficient processes in place to ensure all steps of the shipment lifecycle are carried out efficiently and effectively. 3PLs help satisfy customer experiences by guaranteeing the accuracy and handling of shipments are exceeded. This in turn, nurtures the relationships between business and customers, which translates into growth and positive ROI.

3. Warehousing and Distribution

Businesses that operate online require dependable warehousing and distribution solutions, which can sometimes pose concern. 3PLs help ecommerce sites carry out omni-channel strategies by supporting all distribution initiatives. Whether items are shipped to retailers or directly to customers, a 3PL utilizes technology such as transportation management systems (TMS), to deliver results. This removes the burden of integration from businesses, reduces operation costs and improves visibility for customers.

Based on the figures above, significant projections indicate that Canada is progressing forward as a leader within the global ecommerce market. To meet the growing demands of online customers, ecommerce businesses must partner with 3PLs that offer a resume of optimized solutions.

If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.