Why Your 3PLs Tech Stack is Important to Your Business

Handling data that needs real-time monitoring has always been one of the significant challenges that supply chain businesses face. Do you continue to take this on your own, or do you put your trust in a third-party partner?

Muhammad Imran Tahir, Aramco Americas’ Logistics Advisor, firmly believes that mishandled data can negatively affect the quality of their service and even their reputation as a business. Listen to our podcast today and learn how Aramco Americas leveraged 3PL’s tech stack to resolve this issue and more!

 

 

What is 3PL?

Organizations in logistics and supply chain management partner with third-party logistics, or 3PL businesses, to outsource logistics processes, such as distribution, warehousing, inventory management, transportation, and even up to fulfillment.

3PLs are equipped with tools and applications that are continuously improved according to tech development and business trends to serve clients better. This makes 3PL’s tech stack a definite value-add to companies looking to accomplish more efficiently and effectively.

 

“You need to have systems that work, processes that are very well-defined. But if we don’t capitalize on the tech part of a supply chain, you are not getting economies of scale that you would normally have.”

-Muhammad Imran Tahir
Logistics Advisor, Aramco Americas

 

What are the Benefits of 3PL’s Tech Stack

Aside from automation and real-time management, what does 3PL bring to the table? Here are the top three things you should consider:

Better Bargaining Power

For Tahir, Aramco Americas decided to go with a 3PL model and use the services of freight forwarders who they consider as greater subject experts on shipping requirements and trade lanes. Aramco Americas leveraged their partner’s pricing strategies and bargaining power, allowing them to manage their costs better.

Stay Ahead of the Competition

The supply chain industry is a fiercely competitive world. For some, it might be a better idea to do everything on their own, so they can “stay in control” of the business. However, technology continues to change. Business trends develop at a fast pace, and more demands are generated. With so much going on, you might end up being left behind if you don’t take risks and take advantage of your partner 3PL’s tech stack.

Set and Manage ROIs

According to Tahir, achieving a better economy of scale is one of the benefits Aramco Americas enjoyed when they implemented a 3PL model. It’s best to collaborate with your partner 3PL so they can work with you in managing your ROI.

Aramco Americas’ 3PL’s tech stack also provided the tools for more accessible and efficient viewing and tracking, allowing their end-users to have a better customer experience. For Tahir, a better customer experience can positively impact their business growth and their reputation in the industry and among other potential customers.

Tune in to Down to Freight podcast, where we sit down with transportation, logistics, supply chain, and warehousing subject matter experts to discuss the Digital Transformation Project.