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3PL Panacea: The Flexible Mobile Supply Chain Platform | LoadProof

 


The third-party logistics (3PL) business is tough, because it covers a wide gamut of service offerings, that include some combination of:

  • Just move my boxes and/or pallets.
  • Move my boxes and/or pallets and store them in your warehouse.
  • Move my boxes and/or pallets and operate my facility.
  • Own all the labor and activities in my facility.
  • Offer all distribution services for my product (All I will do is download my orders into your system/supply chain).

I’ve even run into more complicated models of operation, including both tightly and loosely coupled models.  In a tightly-coupled model, the supply chain systems of the 3PL, including orders, inventory, transportation, advanced shipment notices, purchase orders, and more, are tightly integrated into the shipper’s supply chain systems. All this information seamlessly flows between both supply chain systems of the 3PL and the shipper. They stay in synch with each other and the parties perform the functions in their respective systems.

In a loosely-coupled model, no such tight system integration exists. The 3PL personnel have access to the shipper’s supply chain systems because they are operating a shipper’s facility. There is no system integration whatsoever.  However, 3PL personnel are trained to log into the shipper’s systems and are can do just about any function. The 3PL owns everything in execution including labor and accountable for the labor costs.

No matter what model is chosen, flexibility is key to winning and keeping business.  An inability to integrate with shipper’s systems or support the shipper’s systems could mean losing multiyear 3PL contracts.  Particularly with the sunset of Windows CE, which begins this year, a flexible mobile supply chain platform is invaluable.   In the past, Windows CE was the default system offered for the mobile computers, scan guns, and wrist mounted devices from Microsoft. I believe that Windows CE is one of the most clunky, least user friendly, and least customizable platform available. It became even more clear to the industry when Steve Jobs demonstrated what was possible in such a small form factor with the iPhone and the super-easy-to-use UI/UX.

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