As more and more companies were making budget control and cost reduction two of their yearly targets, the golden age of 3PL (3rd Party Logistics) began. They could profile themselves as supply-chain management professionals, which was music to the ears of companies in desperate need of reducing their distribution costs. As a new market was born, competition in the 3PL market arose. As always in business, cost-cutting gets harder the further you evolve in the 3PL market. So then it all comes down to choosing, developing, and selling a competitive advantage.
In this article, the strategic choice of implementing a warehouse management system developed by a supply-chain management professional must become the new best thing for companies in desperate need of cost reduction in distribution. As becomes clear in the article, several 3PLs have already chosen to commit to this strategic advantage.
Will this lead to further cost reduction for 3PLs? Will the vendors of 3PL services benefit from it? Who will set up the interface between the 3PL warehouse management system and the customer’s ERP system? Will this further leverage cross-industry knowledge from 3PLs? And what would become the next competitive advantage of 3PLs?
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