Provia survey unveils top 3PL challenges
In a recent survey by Provia Software, a leading provider of supply chain execution (SCE) software solutions, has unveiled the top challenges that are affecting the third party logistics industry. They comment that the results reiterate the importance of leveraging technology to optimize the supply chain while maintaining a low total cost of ownership.
According to the survey, which was completed by Provia’s 3PL customers, the top three distribution challenges facing the 3PL industry today include; decreased profit margins, reduced lead time to set up new customers, and the upfront effort and cost to implement solutions.
The survey included that over 60% of the respondents believe that decreased profit margins and the reduced lead time to set up new customers was limiting their continued success, while 50% believed the upfront effort and cost to implement solutions are were preventing them from achieving better results. In addition to this, it found concerns that there was “an increasing emphasis on requirements, such as RFID and FDA mandates”.
The survey concludes that in an effort to combat these distribution challenges, “technology will play an increasing role over the next five years”.