Innovate or Die: The 4 KPIs of 3PL You Need to Know
In the world of third-party logistics (3PL), innovation is king. Indeed, innovation is one of the top aspects companies look for when considering a move to horizontal collaboration. But in recent years, short contracts and price pressures have prevented inventive changes for many logistics companies. So how do you overcome these challenges to innovate, profitably and creatively?
Let's start with the core reasons companies look outside their organization for the shipping process in the first place. From a shipper's perspective, 3PL offers a level of expertise and a core competence that they don't have. A third party also offers attractive economies of scale, so they can negotiate low rates that a manufacturer might not be able to achieve on their own. Lastly, a 3PL is expected to offer an innovative solution to the status quo.