The biggest challenge facing third-party logistics providers is updating their clients about shipments. The details could include things like location and shipment statuses. It’s a complex problem for all sorts of reasons. It can range from hardware issues to client expectations. But finding solutions will help 3PLs stay ahead of their competitors. If you’re dealing with logistics visibility challenges at your 3PL, here are five tips that can help you get over the visibility hump:
How 3PLS Can Get Visibility Back?
It’s no secret that visibility is a huge problem for 3PLs in transportation and logistics. Clients want to know the exact location of their shipments at all times. Furthermore, customers want to track their shipments with an easy-to-use interface.
If your company struggles with visibility issues, it’s time to take action. Here are three steps you can take today:
1. Get customer feedback on your current visibility processes. Inquire with your customers about any changes they would like to see. This could be about your current methods of communicating shipment updates. Besides, you can ask them what they want to see changed about tracking interfaces.
2. Make sure every team member has access to the same information.
3. Make sure you have a transparent process for customer complaints. The protests could be about shipments or other issues related to the service.
It would help if you got to the root of the problem. Don’t make things more complicated by using manual processes. Also, avoid adding more software solutions without first removing them. Try something different: embrace cloud computing as your friend, not your enemy! Lastly, choose a provider who understands the issues at stake in your supply chain.
Setting up a Logistics Visibility Dashboard Can Help Get Over Visibility Hump
Getting over the logistics visibility hump is easier than you think. The first step to improving your visibility is setting up a logistics visibility dashboard. Check that you have the necessary software and hardware.
Once you’re set-up, use your logistics visibility dashboard to make logistics decisions. Setting up a Logistics Visibility Dashboard is critical. It can help you get over the visibility hump. And help solve other problems in your supply chain.
You want to track and trace your products when it comes to visibility. This will help you keep track of them. So, they do not go missing or get lost, which could cost you money if they are never delivered on time.
A Logistic Visibility Dashboard can help with order processing and customer service. You will be able to track and trace shipments. Besides, you can see how long it takes for order fulfillment. So customers can know when their products will arrive at their doorstep.
Quick read: 5 Top Questions Every 3PL Should Ask Their WMS Provider.
Frequent Status Updates Can Help Get Over Visibility Hump
The second step is to provide more frequent status updates on the status of shipments. While you must give customers and vendors an idea of when their goods will arrive, this can be done in several ways. For example, if a shipment is delayed, tell your customer as soon as possible so they can plan accordingly. If you know that a shipment will likely arrive late, notify them. Explain the steps you are taking to fix the problem. So, you will not waste time figuring out what happened on either transaction.
Explain the Value of Logistics Visibility to Your Clients
The benefits of logistics visibility are clear and well-documented. But it’s not always obvious how they can be used to help clients. For example, you explain how logistics visibility helps companies reduce costs. So, it’s easy to see how they could benefit from this information.
They also see its usefulness in improving their service levels. Plus, they may be interested in using data analytics tools. Such tools include artificial intelligence (AI) and machine learning (ML). They can then be used to analyze shipment data once they have access!
Commit to Third-Party Logistics Software to Get Over Visibility Hump
You need a system that is reliable and easy to use. If you can’t get your staff or customers on board with an automated system, then it won’t be worth it in the long run. You want a company that has been in business for extended periods. Besides, the company must have shown excellent customer service throughout its tenure.
In addition, your new 3PL should have an open line of communication. This is to ensure that you deal with issues promptly whenever they arise.
Visibility is a massive problem for third-party logistics (3PL) companies. The 3PL industry is growing, but it’s also highly fragmented. It’s difficult for 3PLs to get a big-picture view of their operations. This can lead to errors and missed opportunities.
There are two main ways to improve your business visibility. : Outsourcing and third-party logistics software. The latter is better because it gives you complete control over operations. This makes it easier to keep an eye on everything going on.
There are numerous benefits of using third-party logistics software, including:
- A single source of truth for all information related to your supply chain.
- Faster decision-making. There’s no need to wait for someone else’s approval.
- Improved efficiency by automating manual tasks like invoicing and inventory management
Leverage Your Data to Get Over Visibility Hump
As you’re probably aware, there is an abundance of data available to 3PLs that can be used to improve performance. While some companies may not have the resources or know-how to put it all together, others do and are reaping the benefits.
One of the reasons a business fails isn’t poor service or ineffective processes. It’s simply not being able to analyze its operations effectively enough. If your company doesn’t know where its weaknesses lie, you’ll never be able to fix them. That makes it crucial to leverage technology. This will allow you to get more out of every dollar spent on logistics services.
These Tips Will Help 3PLS Get Over the Logistics Visibility Hump.
There are a few things 3PLs can do to get over this inertia. Provide frequent updates. Besides, explain the value of logistics visibility for your client’s businesses. You can do that by showing how it:
- improves customer service and satisfaction;
- helps improve operational efficiency; and,
- enhances financial performance through improved cash flow management
Also, read about how 3PL warehouses can calculate customer profitability.
Conclusion
If you’re a 3PL and you’re not sharing information with your clients, they might wonder why. And if they don’t know why they could easily assume the worst—that you’re hiding something. So take the first step: overcommunicate with them. Explain to your clients that logistics visibility is a win-win scenario. It saves shippers money. It makes them happier customers and helps 3PLs become more efficient. Finally, commit to using software for the long haul. Contact sales support for more details about getting over the logistics visibility hump.