It’s official! ABCO Systems is proud to announce that we are teaming up with FETCH ROBOTICS to provide Autonomous Mobile Robot (AMR) solutions to our customers nationwide! This partnership combines Fetch Robotics’ world-class, dynamic robotics solutions with ABCO Systems’ unparalleled customer service and proven engineering and implementation capabilities, and we can’t wait to take our customers’ warehouses to the next level! For turnkey and extensible systems, join us at the cutting edge of e-commerce fulfillment – give us a call today!
More about FETCH ROBOTICS: One of the fastest growing robotics companies in the world, FETCH ROBOTICS is the pioneer of On-Demand Automation, providing the only solution that deploys Autonomous Mobile Robots for the warehousing and intralogistics markets in just hours (versus days or weeks). Learn more about the exciting array of product offerings here.
More about ABCO Systems: As your material handling system partner, we are committed to bettering your business. We provide a wide range of solutions from e-commerce to full-fledged automated warehouse design and implementation.
To learn more about ABCO Systems and FETCH Robotics contact us at 201-429-0580 or [email protected]. We look forward to helping you maximize your space and improve your business practices with the material handling solutions that work the best for you.
With third-party logistics providers on the rise, it is evident that the unprecedented growth the world witnessed in the e-commerce sector is here to stay.
Keeping up with the fast-changing landscape of the economy presents major challenges for 3PLs.
Here are some of the most notable challenges in 3PL distribution:
1. Meeting Consumer Expectations
COVID-19 has demonstrated exactly how fast consumer expectations can change. As a result, many companies have had to develop e-commerce fulfillment and online delivery options quickly while also adhering to strict operative guidelines. To make matters more complicated, e-commerce giants like Amazon have set the standard for consumers by offering free two-day shipping, accurate and fast order fulfillment, and full visibility of product-tracking.
To keep up, 3PLs can utilize dynamic storage solutions, warehouse automation hardware, and warehouse design consultation services to optimize their storage strategy and space. Solutions providers like ABCO Systems can help 3PLs design their e-commerce fulfillment centers to optimize throughput, drive down costs, and stay efficient.
2. Acquiring + Retaining Talent
A 2019 Report by Inbound Logistics showed that 64% of 3PL providers listed finding, training, and retaining qualified labor as a challenge they face. To stay competitive, providing high-quality service is of extreme importance in a consumer-focused industry. Without acquiring and retaining the right talent, e-commerce brands stand to lose a positive reputation, face slower business growth, and potentially lose money on higher labor costs.
To offset the risks and costs associated with turnover, providers can turn to 3PL warehouse automation solutions that reduce fulfillment times for orders. The right solution can reduce labor costs tremendously, and simplify operations in a way that simplifies the training process, too.
3. 3PL Warehouse Design + Automation
In the dynamic landscape of today’s economy, it’s no surprise that many distribution and e-commerce fulfillment centers today are struggling to scale their warehouse capacity to match demand. It is easy for warehouse spaces to become stagnant with outdated setups that past operations once required. To work around the conundrum of changing storage and capabilities requirements, 3PLs can consult 3PL solutions providers for insights on how to optimize their warehouse design and solicit specific recommendations on customizable storage solutions and 3PL warehouse automation hardware that maximize warehouse space and improve order fulfillment operations on a daily basis. Though automation requires a large initial investment, it reduces an operation’s overall cost-to-serve and can improve ROI in less than 24 months.
4. Shipment Visibility + Analytics
Managing inventory from a wide range of vendors can make it very difficult for 3PLs and e-commerce brands to ensure fast shipping times. To meet consumer standards, 3PLs must rely on leading-edge warehouse execution systems to be able to track and record all warehouse operations in real-time. To continuously manage those expectations, 3PLs must also depend on data analytics to identify and modify inefficient across their operations. By automating their supply chain processes and integrating them with all suppliers, 3PL companies stand to create much more long-lasting relationships with their consumers.
In 2020, the world of e-commerce saw unprecedented growth due to COVID-19, with even the largest e-commerce retailers like Amazon struggling to keep up with the demand. As we know, Amazon has set the standard for order-fulfillment for fast and/or free shipping. Intuitively, a 2021 report by Shopify, a leading e-commerce store platform, shows that 67% of U.S. consumers expect either same-, next-, or two-day delivery, with a full 65% of consumers checking free-shipping thresholds before even adding something to their carts.
Moving forward into 2021, third-party logistics providers continue to adapt to this fast-changing landscape in order to meet the ever-growing need for e-commerce fulfillment.
Here are some of the key ways 3PLs can prepare for another year of growth in e-commerce:
Warehouse Automation
Looking to 2021, 3PLs will have to rely on integrated supply chain solutions like automation to increase inventory control. 3PLs benefit from cost-to-serve modeling to do so. In other words, the more 3PLs can save on their internal process efficiencies, the more profit they can make. Warehouse automation hardware like conveyor systems, print & apply solutions, inbound & shipping sorters, put-to-light technology, order-fulfillment picking devices, and infrared technology for application weighing are all worthy automation solutions that can make growth in 2021 seamless.
Automated Storage
During peak-growth, 3PLs often need to expand their warehouse capabilities. Thus, 3PLs should look to warehouse storage solutions to increase their operational storage efficiency. According to 3PL news, a 3PL industry newshub, automated warehouses use up about 40% less floor space than traditional warehouses. To decrease your operation’s footprint, automated warehouse storage solutions like push back storage rack systems, pallet flow conveyors, automated pallet storage and beyond can all reduce 3PLs storage costs.
Labor Management
3PLs looking to follow the largest e-commerce retailers lead in labor management can benefit from basic labor management practices moving into 2021. These practices include:
Surveying team members on their concerns or challenges with new technologies
Implementing change management teams to oversee changes
Using robust systems to track laborer performance
Creating systems for worker and supervisor feedback
And putting worker safety at the forefront of all warehouse operations
Risk Management
A 2021 3PL Logistics Study by Infosys Consulting, Penske Logistics and Penn State University showed that readiness and continuity planning is a priority for 3PLs post-pandemic. Thus, internal strategies for unforeseen obstacles and challenges in the supply chain should be laid out for individual 3PLs in the coming year to better prepare.
In 2021, the 3PL businesses can emerge through another year of rapid growth by committing to smart practices and cost-saving hardware. By streamlining order fulfillment processes and investing in high-quality, innovative solutions— 3PLs may come out the other side just in time to grow with the trends.
