2014 was a bit of a wild ride for distribution companies. While business was better than in recent memory, no one could relax because waves of change rolled across the industry.
From emerging technologies to the rise of multi-channel retailing, supply chain and distribution companies scrambled to offer the right services, adjust their processes, and stay on top of customer demands, for fear of not being able to keep pace with the rapid changes that seemed to pick up speed as the year wore on.
So What Does it All Mean for 3PLs in 2015?
Predictions are never easy to make, especially in a rapidly evolving sector. We surfed the internet and picked a few of the more interesting prognostications to give you an idea of how your distribution company can prepare for the new year.
- Google Will Get Into 3PL – While you know Google for its search results and maps, they know more than most the potential of online sales and they don’t want to miss the action. According to Talking Logistics, Google and Amazon are in a race for leadership in online retailing. And Amazon has a huge advantage in the form of 89 distribution centers. To compete, Google must develop its third-party logistics services and improve its logistics technology capabilities.
- Global Markets & Global Supply Chain – Distribution companies will enter emerging markets, particularly in Asia-Pacific and Latin America, in search of both supply chain partners and new 3PL customers. As godependable.com puts it, lucrative Asian markets are well within reach of any company. If you’re not active outside of North America, start planning to be.
- Inventory Management is Crucial – With heightened focus on customer service, inventory management needs to be sharp and flexible to compensate for shorter product life cycles, new technologies and more multi-channel retailing. Supply Chain Digital says CPO’s will need more accurate forecasts, serve multiple channels from one inventory pool and develop ways to maximize order fulfillment from that pool.
Who knows what the year will bring. But judging from these predictions and others, if you want to be ready for 2015, you best be ready for more change.