Authors: Adjenim Boateng Adjei
School of Finance & Financial Management
Business University of Costa Rica
Global business models are rapidly changing. Shorter life cycles of products and new business need exert pressure on Supply Chain managers to keep pace with the new scenarios. They are often faced with the target to reduce logistical costs and establish new supply networks. It has now become a common practice to outsource all logistical activities to third party vendors both in procurement side of logistics as well as finished goods, spare parts and reverse logistics areas too. Opening a warehouse in another country requires significant investment and could even end up not drawing a profit. That’s why many businesses turn to 3PLs to run their overseas warehouses for them. And with the use of proper third-party logistics (3PL) warehouse management software, the chances of success go way up. Integrating a successful 3PL warehouse management system is a guaranteed way to help save time and money. It’s well-known that including 3PL service providers can boost warehouses’ success rate and simplify your supply chain. While many companies use 3PL providers, some problems can still arise in the process. One such pitfall is the lack of direct control over the warehouse management processes. This lack of control can lead to client companies having to settle for little to no knowledge over the way that a warehouse is run. Luckily, with the software solutions that are available today, it’s much easier for 3PL companies to provide extensive visibility to shippers that use their services. As 3PL management companies implement modern technology, a rise in their adoption is sure to become a trend. When a 3PL company provides services to multiple clients (known as multi-tenant warehousing), the complexity of their warehouse operations rises. Implementing a comprehensive warehouse management system grants a 3PL company organized data on warehouse stock, and an easy way to keep track of goods belonging to multiple clients. Integrating one of these software solutions makes this process manageable and helps 3PL companies increase productivity and client satisfaction.
Keywords: 3PL, Warehouse Management Systems, Supply Chain Management, Inventory Management