The Future of 3PL Logistics Trends to Watch in 2024

1. The Future of 3PL Logistics: Trends to Watch in 2024 The future of global 3PL logistics is quite unpredictable considering the growing complexity and unpredictability of supply chain snags and consumer demand. While the 1/3rd of the 2020 decade was quite unprecedented for logistics companies globally, the post-pandemic year has been projected to reach 1.3 trillion USD IN 2024. According to Statista, there is and will be an expected annual growth rate of 2.39% for CAGR 2024-2028. While several industries suffered severe losses during and post-pandemic, the 3PL logistics sector dealt with unpredictable consumer demand and supply chain by adopting advanced technology and integrating them into their existing processes. Let’s dive deeper into the rising trends for 3PL logistics for 2024. 3PL Logistics Future Trends 1. Warehouse Automation Solutions To modernize warehousing operations, major 3PL logistic companieshave adapted to Warehouse automation solutions due to the exponential rise in e-commerce and demand for faster or one-day deliveries. Warehouse automation solution encompasses several technologies including mobile robotics, automated conveyor systems, and automatic forklifts to streamline operation. By leveraging warehouse automation solutions, 3PL logistic companies are streamlining their day-to-day operations like Picking, packing, and inventory management, ensuring enhanced accuracy and speed. Warehouse automation solutions are not only reducing the dependency on labor but also decreasing the chances of human error and delayed services. Challenges with the technology: According to McKinsey, companies can face a lot of challenges while integrating the automation system with the existing software. 3PL companies need to be discerning and get the correct systems in place to ensure that the integrated systems are agile, scalable, and sustainable. 2. Unleashing the Capabilities of Supply Chain with the Internet of Things According to the MHI Innovative Supply Chain Report, 57% of 3PL logistic companies intend to adopt IoT technology within the next 5 years, whereas, 23% have already switched to IoT technology for an competitive edge. With Internet of Things technology including RFID tags and sensors, 3PL companies can create a transparent and reliable environment for the customer to track and trace the product and its condition throughout the supply chain. Real-time insights including tracking of the product, the condition of the temperature-sensitive goods, and resource management offer an interconnectedness enhancing the responsiveness, efficiency, transparency, and agility within the supply chain,

2. Challenges to Adopt IoT: 3PL logistic companies are facing challenges in integrating IoT technologies with their current software as they do not support additional advancement, resulting in companies investing double the amount to replace the existing software. 3. Big Data Analytics for Informed Decisions Big Data enables logistics companies to analyze humungous data and make informed decisions to mitigate potential risks. Cutting-edge analytics and increasing data have created a situation of unprecedented capabilities. In uncertain times, supply chain and logistics companies are now leveraging big data analytics to anticipate disruptions and optimize supply chains, resulting in operational resilience. 3PL Logistic companies are finding Big data analytics convenient to anticipate risks and streamline operations for future requirements. Challenges to Adapt Bog Data: Integrating vast amounts of data from various sources can be complex, requiring advanced IT infrastructure and expertise that many companies may lack. The shift demands significant investment in technology and skilled personnel to manage and analyze data effectively. Besides, ensuring data accuracy and security is crucial, as any discrepancies can lead to operational inefficiencies and breaches. Finally, adapting to a data-driven culture requires a mindset shift within the organization, which can be difficult, especially in traditionally run companies. In conclusion In 2023, 3PL logistic companies experienced a crucial technological transformation. Moving into 2024, these companies are set to implement these changes to enhance efficiency, reliability, and accuracy. Jeena & Company has successfully integrated technological solutions into its 3PL vertical, bridging the communication gap between us and our customers through AI-based real-time visibility. Leveraging big data, we can offer our customers improved operations by analyzing the market well in advance. To learn more about our 3PL services and solutions, please visit our website. To Know More https://jeena.com/blog-read.php?slug=the-future-of-3pl-logistics-- trends-to-watch-in-2024