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October 2021 | Sponsored


3PLS DRIVE LOGISTICS IT SOLUTIONS

5Share AddThis Email Facebook Twitter LinkedIn


October 18, 2021

Tags: 3PL, Technology , Third-Party Logistics

Massive shifts in consumer expectations and e-commerce acceleration signal a new
direction and new challenges. Shippers are turning to 3PLs' technology expertise
to meet service expectations in an ever-changing marketplace.


MORE TO THE STORY:

 * Getting It Right

Until recently, technology enablers and the applications themselves defined the
market for logistics information technology. That's changing, as an "explosion
of expectations" regarding supply chain visibility, agility, and other
capabilities are impacting logistics information solutions, says Steve
Ostendorf, senior manager with Deloitte Consulting.

The result? In addition to more familiar applications, like warehouse and
transportation management systems and visibility tools, the logistics
information universe now includes cloud technology and advanced software
development and integration tools. "Exciting developments in blockchain, machine
learning, and data science in general place these technologies squarely within
the logistics space," Ostendorf says.

Along with the technology shifts occurring, shippers' reasons for implementing
logistics solutions continue to evolve. Behind many changes is the disruptive
nature of companies like Uber and particularly Amazon, with its "game-changing
delivery options" and ability to use data to enhance customer experiences, says
Sean Maharaj, supply chain expert and managing director with AArete, a
management consultancy.



Many shippers today are deploying logistics information technology solutions to
improve operating efficiency and supply chain visibility, says Bob Gormas, vice
president, managed solutions, with MGN Logistics, Inc., a provider of managed
transportation solutions.

Given carrier capacity constraints across all shipping modes, increased fuel
surcharges, and new carrier accessorial fees, shippers are finding it essential
to leverage technology solutions that provide the insight they need to better
manage every facet of their supply chain.

In addition, the growth in e-commerce during the pandemic made it more difficult
for shippers to efficiently manage inventory and meet customer demand. "Cost
increases at every level of the supply chain have only amplified the challenges
shippers face," Gormas adds.


CHALLENGES SHIFT INTO OVERDRIVE

Indeed, the top four challenges identified by shippers responding to the Inbound
Logistics 2021 3PL Market Research Report are: managing transportation costs,
finding and retaining qualified labor, and managing e-commerce transactions and
inventory.

The growth in e-commerce and direct-to-consumer (DTC) delivery is increasing the
volume of shipments at many consumer products companies, says Scott Shaw, senior
consultant and supply chain industry lead with Clarkston Consulting. Instead of
shipping a single truckload of product to a retailer, many companies now ship
the equivalent of a truckload, but divided into individual shipments and headed
to multiple consumers' homes.

"This requires more precise inventory visibility within your warehouse, more
efficient pick/pack/ship processes, more frequent carrier pickups, and
visibility of the shipment up to the time the consumer receives it," Shaw says.

Solutions like warehouse management systems (WMS), transportation management
systems (TMS), robotics, and business intelligence tools, which can improve the
planning and execution of physical logistics and provide end-to-end visibility,
enable companies to succeed in DTC markets.


TURNING TO 3PLS

As shippers strive to succeed in a changing, competitive world, many rely on
their third-party logistics (3PL) providers and the technical solutions they
offer. Nearly three-quarters (73%) of shippers responding to the Inbound
Logistics report state they purchase logistics technology solutions such as TMS
and WMS from their third-party logistics providers.

Along with boosting the technology they deploy with their shipping clients, 3PLs
are increasing the levels of automation within their own facilities, says Cal
Petty, vice president, supply chain consulting services, with Tompkins
Solutions, a subsidiary of Tompkins International.

As labor supply shortages compel 3PLs to get more creative in the way they
operate, while rising labor costs prompt them, either independently or in
conjunction with their clients, to look for ways to reduce costs, many use
robots to efficiently perform a range of tasks.

In addition, autonomous and sorting robot technologies and integrations have
matured, leading to an increasing number of proven business cases. "This has
dramatically increased the interest and adoption of these solutions within the
3PL market," notes Petty.


REVVING UP VISIBILITY AND TRACEABILITY

As logistics technology continues to advance, it's producing solutions that are
able to deliver greater visibility and control. For instance, the Internet of
Things (IoT) allows for the reporting and monitoring of storage conditions.
Artificial intelligence and robotics enable autonomous warehouse storage and
retrieval solutions.

"Pairing IoT, artificial intelligence, and mobile and cloud computing allows
traceability of individual shipments even as trucks carry them across the
country," Shaw says.

While they currently attract a fair amount of attention, blockchain and drones
remain "in their early phases," says Evan Armstrong, president of research firm
Armstrong & Associates.

Logistics providers will continue to monitor and incorporate new technology as
it makes sense for their operations and their clients. As they do, they'll
continue to provide value and meet shippers' needs.


MGN LOGISTICS: EMPOWERING SHIPPERS

MGN Logistics, based in Easton, Pennsylvania, is a pioneer in transportation
management and logistics. Its sophisticated, cloud-based transportation
management system (TMS) offers "robust reporting that empowers shippers,
offering them actionable business intelligence to enhance planning, improve
processes, and reduce costs," says Bob Gormas, vice president, managed
solutions. For several years, Inc. has recognized MGN Logistics as one of the
fastest-growing private companies in the United States.

Along with its traditional transportation management solution, MGN continues to
invest in technology. Its Managed Transportation Solution (MTS), the product of
more than 15 years of insight and experience, provides shippers complete
transparency into their transportation spend.

The software also delivers, in a single portal, real-time tracking of every
shipment throughout the supply chain, as well as key performance indicators
(KPIs) and forecast trends. "Savvy shippers understand that data intelligence,
like that provided by MGN, allows for critical decision-making," Gormas says.

And by leveraging MGN's expertise in international logistics, shippers can
seamlessly integrate their domestic and global shipping transactions, he adds.

As important, the investment MGN Logistics has made in its transportation
technology has simplified implementations. "Our highly secure, cloud-based
system eliminates high-cost, on-site software installations," Gormas says.

Instead, MGN partners with clients to understand their transportation challenges
and ensure the solution is operational upon completion of the carriers'
electronic integration.

Moreover, while shippers sometimes assume deploying sophisticated technology
must be costly and time-consuming, the cloud-based systems offered by MGN
Logistics "allow for simplified, cost-effective, secure engagements," Gormas
says.

Because MGN's solutions are scalable and customizable, they can benefit all
sizes and types of shippers. MGN's transportation services include
less-than-truckload (LTL), truckload, parcel, intermodal to rail, and
international air and ocean freight.


FUELING PARCEL SPEND INSIGHT

A key component of MGN's recent growth has been parcel invoice auditing and
management. Through its acquisition of a leading parcel software company, MGN
seamlessly provides small package shippers with robust reporting visibility and
insight into their parcel spend.

Additionally, their parcel auditing prevents overspend and helps ensure carrier
accountability on service guarantees.

Along with state-of-the-art technology, "shippers are looking for an expert
partner that is engaged directly in helping them optimize their day-to-day
transportation decision-making," Gormas says.

MGN's tactical operations team understands each client's needs and actively
works to ensure their ongoing success. In addition, MGN continuously
collaborates with its clients to help them proactively manage potential
operational challenges stemming from acquisitions, distribution and commodity
changes, seasonal adjustments, and other changes.

MGN recently partnered with a private equity group that needed to improve its
transportation management function, as frequent acquisitions of new companies
had increased transportation spending across its portfolio. "The challenge was
to gain laser-focused visibility and leverage the combined spend to reduce
costs," Gormas says.

A comprehensive analysis of each company's shipping operation helped the group
restructure its carrier utilization and leverage volumetric spend, Gormas says.

The result? Contract optimization for LTL and truckload shipments netted savings
of more than $900,000 across the firm. Parcel spending was cut by more than 15%,
saving another $1.6 million. A 10% drop in international shipping costs saved
another additional $990,000.

In addition, administrative time spent on transportation activities declined,
even as visibility increased. And because these improvements are scalable, new
acquisitions can be seamlessly integrated into the processes, Gormas says.

MGN Logistics offers the expertise, partnership, and solutions that enable its
customers to optimize logistics costs and service and excel in an ever-changing
marketplace.

5Share AddThis Email Facebook Twitter LinkedIn



GETTING IT RIGHT

Whether logistics providers implement technology for their customers, or
shippers do it themselves, several steps can ensure the solutions they've chosen
will help them meet their goals.

A first step—even before considering various solutions—is to identify your
needs, "Where are the gaps? And how can technology help you meet the gaps?" says
Anna Reinke, president and CEO of the Transportation Intermediaries Association.
Because many solutions are customized, testing and training are also key.

Any technology should be thoughtfully chosen. Many shippers are looking for
easily deployable, managed transportation solutions that provide simplified data
reporting, while also empowering them to quickly understand each of their
business elements.

Communication remains "the cornerstone to successful implementations," says Bob
Gormas of MGN Logistics, Inc. All involved need to understand their roles,
needs, and expectations.



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ARTICLES

 * News
 * This Month
 * Articles by Subject
 * Features
 * Case Studies
 * How-To
 * Commentary
 * Online Exclusives
 * Trends
 * Global
 * Sponsored Articles
 * Digital Editions

LOGISTICS PLANNER

 * View Profiles by Category
 * View Profiles by Company
 * Logistics Planner RFP

SEND RFP/RFI

 * See all RFPs
 * 3PL RFP
 * Alaska RFP/RFI
 * Air Cargo/Air Forwarder RFP
 * Chemical Logistics RFP
 * ECommerce RFP
 * Economic Development RFP
 * Education RFI
 * Food Logistics/Temp Controlled RFP
 * Forklift/Pallets/Materials Handling RFP
 * Freight Payment/Audit Services RFP
 * Global Logistics RFP
 * Latin America RFP
 * Logistics IT RFP
 * Logistics Planner RFP
 * Materials Handling RFP
 * Ocean/Intermodal/Rail RFP
 * Retail RFP
 * Site Selection RFP
 * Sustainable Supply Chain Partner RFP
 * TMS RFP
 * Trucking RFP
 * WMS RFP
 * Warehousing RFP

FIND SOLUTIONS

 * Find a 3PL/Warehouse
 * Find an Air Forwarder
 * Find a Logistics Education Program
 * Find a Technology Company
 * Find a Trucking Company

WEB_CITE CITY®

 * Search Our Web Directory
 * Add Your Company

MODES & SERVICES

 * 3PL
 * Air Cargo
 * Chemical Logistics
 * Forklifts, Pallets, & Materials Handling
 * Logistics & Supply Chain Education
 * Green Supply Chain Partners Survey
 * Logistics IT
 * Ocean/Intermodal/Rail
 * Site Selection & Economic Development
 * Trucking
 * Warehousing

CONNECT

 * Subscribe
 * Connect

ADVERTISE

 * Sponsor Content
 * Request a Content Guide
 * Request a BPA Audit Statement

PODCASTS

 * All Podcasts
 * PANYNJ Podcast
 * DHL Podcast

DIGITAL EDITIONS

APPS

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