3PLs and shippers face new challenges every day, driven by rising customer expectations, operational complexity, and new (and old) technologies.
One of the most pressing challenges is the need for more reliable labor. Finding, training, and retaining skilled workers is harder than ever, leading to higher turnover rates, increased safety risks, product damage, and inconsistent productivity.
The rising costs of doing business also affect every facet of logistics operations, with labor often being the single most expensive line item. 3PLs and shippers face a delicate balancing act between meeting customer expectations, staying competitive, and protecting their bottom line.
Simultaneously, customer expectations are growing. Clients expect faster deliveries, more transparency, and flawless execution. However, when products are damaged in transit or at your facility, and you don’t know why, it risks your hard-earned reputation.
Without visibility into the root cause of why these incidents happen or why productivity is slipping, it becomes increasingly difficult to prevent future issues, leaving you vulnerable to financial losses and reputation damage.
Lack of Visibility in Warehouse Operations
But the most significant challenge facing logistics and warehousing today is the lack of visibility into day-to-day operations, making it nearly impossible to identify and address inefficiencies, bottlenecks, or profit leaks.
Without a clear view of what’s actually happening on the warehouse floor 24/7, it creates a perfect storm of challenges impacting workplace safety, labor productivity, and shipment quality.
On a recent episode of the Warehouse Visionaries podcast, Doug Draper, Business Development Executive at Inland Star Distribution, shares how companies can overcome these challenges. And what the future holds for logistics.
1. Speed is Non-Negotiable
One of the most notable trends in logistics is the increasing demand for speed. The pace of operations in the logistics industry has drastically increased over the past few years, driven by rising customer expectations for faster and more efficient service.
Doug notes: “Things just move so much faster nowadays... client expectations of what they want when they want it.”
This push for speed (you can call it the “Amazon effect” which reshaped customer expectations for two-day, same-day, and even faster shipping) has become the norm, making it crucial for 3PLs and shippers to innovate to meet these demands.
How to Prepare: For 3PLs and shippers, staying competitive means investing in solutions that prioritize speed and efficiency – without sacrificing safety. Automation technologies like robotics and AI-powered visibility can help streamline warehouse operations, reducing manual tasks and replacing paper-based processes.
2. The Role of AI and Data in Logistics
Artificial Intelligence (AI) has become a major buzzword. But for Doug, the real value lies in using AI to collect and analyze data in Inland Star’s warehouse operations, enhancing safety and productivity.
He explains: “Artificial intelligence is allowing us to do data... which means you can respond more quickly and accurately.”
Critical, real-time visibility and data-driven insights have empowered their team to monitor warehouse safety and performance like never before, leading to faster decision-making, reduced accidents, and improved customer service.
How to Prepare: When it comes to warehouse operations, we like to think of the trifecta of –people, processes, and technology. While people and processes are fundamentally important, the technology piece cannot be overlooked.
3PLs and shippers must invest in data-driven solutions to stay ahead. Adopting AI-based technologies that provide real-time visibility into operations can help companies optimize workflows, reduce errors, and make proactive decisions.
But it’s not about investing in the most (over)hyped solution or one with all the shiny new bells and whistles. Instead, Doug talks about the importance of having the right tools for you and your needs, providing the greatest value.
That's why Inland Star partnered with OneTrack to bring data to the forefront of their warehouse operations all in a single Warehouse Operating System.
3. Listening to Customers and Focusing on Core Problems
While advanced technology and AI have become the focus of many businesses, sometimes the most effective approach is getting back to basics. For Inland Star, this means focusing on customer needs first.
“We’ve kind of slowed down a little bit and listened—like what is the underlying problem you’re trying to solve?” says Doug.
By listening to customers and identifying their true pain points, companies can implement the right solutions, whether that’s through technology or people and processes.
How to Prepare: To effectively prepare for the future, 3PLs and shippers should foster strong relationships with their customers by prioritizing active listening and solution-oriented strategies. Focus on understanding your customers’ pain points and addressing those challenges directly.
The Path Forward for 3PLs and Shippers
As the logistics industry continues to evolve, the future promises to be shaped by speed, technology, and customer-centric strategies. To stay ahead, 3PLs and shippers must:
Embrace automation and AI to increase efficiency and visibility in their operations.
Leverage data to make proactive decisions and address operational issues in real time.
Focus on customer needs by listening to and responding to their core problems rather than simply pushing one-size-fits-all solutions.
By focusing on these key areas, logistics providers can keep pace with changes in the industry and customers’ rising expectations, while ensuring long-term success.
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