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Third Party Logistics (3PL)

Industry Dynamics

In today’s competitive third-party logistics market, companies need more than basic distribution services to stay ahead. With stiff competition and ever-present cost pressures, 3PL providers are seeking to cut expenses while maintaining excellent service. Rising labor costs, workforce challenges, high turnover, and tough working conditions can make cost-cutting even harder.

But as industry dynamics have evolved rapidly, so have solutions. There’s more opportunity than ever for automation and robotic solutions to drive long-term ROI. To succeed, 3PL companies need effective automation solutions to boost efficiency and build lasting customer loyalty.

Common Industry Challenges

Cost Reduction

3PL providers must continuously find ways to lower costs for both new and existing clients to stay competitive. Additionally, the cost of maintaining and upgrading infrastructure adds another layer of financial burden. The need to optimize operations and reduce overhead is more critical than ever.

Labor Challenges

The increasing cost of labor, coupled with workforce shortages and high turnover rates, makes it difficult to maintain efficient operations. These financial challenges are compounded by the need for ongoing investments in infrastructure and technology to meet growing e-Commerce demands.

Flexibility in Operations

Serving clients with varying but specific needs requires distribution systems that are flexible and easily reconfigurable to facilitate setup changes that occur during the normal course of a customer lifecycle. The ability to adapt quickly to changing order profiles and inventory demands is vital to maintaining efficiency and reducing waste.

Solutions

Palletized Loading
  • Layer Picking: For operations handling large quantities of fast-moving items, layer picking allows bulk selection for base pallet layers, with lighter items added to complete the order. This simplifies processes for multi-SKU loading of varied items.
  • Batch Picking: Pick products for multiple orders with similar SKUs across different zones for an optimal pick path, then sort them into individual pallets. This method is ideal for operations with varied product velocities, ensuring efficient palletizing and loading.
Fluid Loading

Batch Picking for Fluid Loading: Instead of palletizing, products are sorted and merged on conveyors for direct loading. This process is highly efficient for operations requiring rapid loading and unloading.

Software and Automation
  • Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs): Enhance productivity by automating repetitive tasks and supporting multi-client operations.
  • Goods-to-Person Systems: Optimize picking accuracy and speed, reducing the reliance on labor and increasing throughput.
  • ProDirect: Our flexible, configurable software solution adapts to changing client demands and operational requirements, making it ideal for the dynamic nature of 3PL operations.

At DLN, we get the specific challenges that 3PL companies face. We specialize in creating custom automation solutions that boost pick rates, expand capacity, improve order accuracy, and give you real-time inventory updates. By reducing your dependency on labor with advanced automation, we help keep your operations flexible and scalable. With DLN, you can confidently meet client demands and stay ahead of the competition.

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