How AI Can Deliver a Better 3PL Customer Service Experience

In excess of 90% of Axle’s employees are supply chain or logistics graduates from the University of Tennessee, the two estimated. That academic training brings a greater level of sophistication and willingness to think outside the boundaries of a traditional broker in order to better serve Axle’s customers, Johnson said. Axle Logistics stays involved with the University of Tennessee Haslam College of Business, where the team gives talks, visits classrooms, and sources their interns. The platform predicts deviation in demand and makes data-driven decisions to automate procurement. The platform also provides tools for the optimization of stock by employing auto-replenishment. ASRS assists in the management of product and material storage in automated warehouses that improve floor space utilization and do not require manual labor to operate.

When a company optimizes its logistics, it improves efficiency along all points of the supply chain. Understanding how to get the right resource to the right place at the right time can be a differentiator for a business, adding value to the customer while at the same time cutting costs and boosting the bottom line. It enables the movement of materials or goods, the satisfaction of contracts, and the fulfillment of services. Effective logistics management ensures smooth movement along the supply chain and can provide a competitive advantage. In the modern era, the technology boom and the complexity of logistics processes have spawned logistics management software and specialized logistics-focused firms that expedite the movement of resources along the supply chain.

When considering the cost, remember you’ll have to pay the fee for both exams; the fee only applies to one exam at a time. According to ASCM, those with a CPIM certification reported earning up to 23% more per year than their uncertified peers. The exam covers supply chain fundamentals, plan supply, inventory management, continuous improvement and quality management, strategy, sales and operations planning, and inventory, among other topics. Shopify Fulfillment Network (SFN) offers a powerful solution for businesses looking to streamline their ecommerce logistics and scale operations. By partnering with Flexport, a trusted logistics provider, SFN brings advanced technology and efficiency to your fulfillment process. After you’ve scaled revenue to eight or nine figures, you might want to consider a financial- or information-based 3PL company.

Meanwhile, retailers are trying to keep their shelves pretty lean, said Jason Miller, a professor of supply chain management at Michigan State University. Being aware of the advantages and disadvantages of value chain analysis is important when an organization is looking to optimize efficiency and reduce costs. A value chain is a concept describing the full chain of a business’s activities in creating a product or service — from initial receipt of materials through its delivery to market. While outsourcing fulfillment has helped some companies trim their expenses, those that achieve a large enough operational scale can potentially fulfill their own goods at a lower cost, West Monroe’s Tancredi said. Tea seller DavidsTea also insourced its fulfillment operations last year following online order delays from its previous provider. We also provided the training and continuous feedback necessary to enhance the client’s processes.

Optimized reverse logistics means an efficient flow of goods throughout their lifecycle, with maximum value being extracted at each stage. Reverse logistics management starts where traditional logistics ends — with the end user. Where the standard supply chain moves goods from manufacturer to consumer, the reverse supply chain deals with the journey of products going in the opposite direction. It manages returns, repairs, recycling, or disposal of items that customers send back because they’re defective, unwanted, or no longer needed.

Service you can count on

Emerging, fast-growing companies will likely face challenges insourcing their fulfillment operations due to capacity management issues, he added. Business size, growth trajectory, distribution costs and customer service needs are among the top factors to consider, experts say. Despite initial financial difficulties, FedEx achieved profitability in 1975 and continued to experience ChatGPT steady growth. The company consistently invested in its infrastructure, expanding its fleet and opening distribution centers worldwide. By the 1990s, FedEx had established a global presence, serving customers in over 220 countries and territories. It is evident that the New Customer is not a passing phase but a permanent fixture in the supply chain ecosystem.

The key to even further improvement is identifying areas where automation can lead to optimization and monitoring the results to ensure maximum efficiency. Effectively managing customer support is a critical component of efficient last-mile logistics. Any update to time windows and other key delivery details must be quickly processed and passed on to delivery drivers to prevent costly delivery issues. Managing stakeholder expectations is built around setting clear and realistic expectations for customers, partners, and internal teams.

By automating the entire process of receiving an order, assigning an order and providing the necessary information to drivers, they are able to scale to a virtually unlimited degree without relying on additional dispatch personnel. It also reduces the amount of time needed to scale the delivery team, which reduces the risk of experiencing a slowdown of the supply chain process when volume spikes occur. Consequently, inefficiencies in last-mile logistics have the greatest impact on customer satisfaction and customer loyalty.

Robots, however, do not take up the jobs of humans but rather work collaboratively alongside them to increase efficiency. New Zealand-based startup Insite makes AI-based software solutions for price prediction, demand forecasting, and optimization of flows and processes. The startup primarily caters to the consumer packaged goods (CPG) and retail industries. We attract and retain long-term customers by providing high-quality transportation and logistics services and expertise. We are a leader in time-definite, guaranteed small package delivery services in the United States. We offer a full spectrum of U.S. domestic guaranteed air and ground package transportation services.

The benefits of integrated logistics for customer experience

These 20 startups were hand-picked based on criteria such as founding year, location, funding raised, and more. The Global Startup Heat Map below highlights the global distribution of the 901 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals that the United States is home to most of these companies while we also observe increased activity in India as well Europe, particularly in the UK. There’s no avoiding it – if your goods pass a border, they have to go through customs clearance.

These tracks include SCM principles, transportation operations, demand planning, manufacturing and service operations, customer service operations, warehouse operations, inventory management, supply management, and procurement. There are no eligibility requirements and each exam for the eight tracks consists of a 40-question multiple-choice format, and the credentials don’t expire or need renewal. For most tech and IT organizations, SCM is a complex undertaking, with several processes and procedures in place to oversee the production flow of goods and services, while also maintaining budgets, costs, and user expectations. Disruptions in the supply chain can cause massive delays to product releases, impacting customer satisfaction and the overall profitability of the business. The supply chain typically involves several departments, with cross-collaboration required between nearly all areas of the business.

Also, Dynamo requires minimum to no human interference in the execution of picking operations in the warehouse. Irish startup Manna offers drone delivery as a service to restaurant chains with its aviation-grade fleet of delivery drones. Manna’s drones are capable of flying at an altitude of 80 meters with a speed of 80 km per hour. Below, you get to meet 20 out of these 900+ promising startups & scaleups as well as the solutions they develop.

In the case of FedEx, conducting a SWOT analysis helps us gain insights into the key factors that contribute to the company’s success and potential challenges and growth opportunities. Any update on vessel contingencies will continue to be communicated with customers on a case-by-case basis. Please make sure to keep visiting our online tracker, which will be updated with the latest scheduling information as soon as they become available. He is the former Editor in Chief of TechRepublic, where he hosted the Dynamic Developer podcast and Cracking Open, CNET’s popular online show. Bill is an award-winning journalist, who’s covered the tech industry for more than two decades.

Shipping labels can eat into your logistics budget, especially if you’re shipping a low volume of orders. Demand planning involves forecasting customer needs to ensure you have enough inventory when orders surge or when external factors affect product demand. Reverse logistics is the process of managing the return of products for repair, replacement, refund, or disposal. Many companies have a review process for incoming returns to determine whether you can resell items and to issue refunds. Some warehouses also serve as distribution centers that fulfill orders and store inventory.

The company provides real-time tracking, proactive notifications, and customizable delivery options, giving customers complete visibility and control over their shipments. With a high definition view, real-time actionable insights and process modeled solutions, process mining can provide the ability to drive continuous improvement into efficient reverse logistics solutions. You can foun additiona information about ai customer service and artificial intelligence and NLP. With its capacity to model, analyze, and optimize processes across multiple business functions, process mining can enable and accelerate reverse logistics optimization. Additionally, how the returns process is handled by retailers has a material impact on customer satisfaction and their buying behaviors.

The Advantages Of In-House Logistics Management

We take a balanced, financially disciplined approach that generates long-term value for shareowners. Our strong credit rating gives us the flexibility to pursue strategic growth opportunities and continuously invest in our industry-leading delivery network. We believe that the dedication of our employees comes in large part from our distinctive “employee-owner” culture. The can-do attitude of UPSers is demonstrated by commitment to our customers, our communities and each other.

The flexible nature of LCL means that businesses can react and meet demand in short spaces of time — staying agile in their product offerings and jumping on new trends before they go out of fashion. Customer experience encompasses all the interaction customers have with a brand, from initial engagement to post-purchase support — and it’s crucial to repeat business and sustained success. Armed with heightened demands, evolving preferences and the convenience of omnichannel, consumers are more empowered and fickler than ever before.

Value chain analysis occurs when a business identifies its primary and secondary activities and evaluates the efficiency of each point. “Volume solves a lot of problems, so if you have enough volume, you can do it at cheaper cost per unit than most 3PLs, assuming you can get that initial investment recouped,” Tancredi said. “If you need control, you are probably willing to absorb friction to do your own logistics,” he wrote. “If you need control, you are probably willing to absorb friction to do your own logistics. If you can standardize your process, using a 3PL will almost always save you money.” “You’re either buying a giant warehouse to grow into and have a lot of wasted space and paid a lot initially, or you’re going through this exercise of short-term leases and trying to find a bigger space.” Here are the key reasons why some companies use a 3PL, while others handle their fulfillment in-house.

Metrics such as delivery times and cost-to-serve are valuable tools for demonstrating the trade-offs between cost reduction and service quality. By transparently communicating these trade-offs, companies can maintain trust while pursuing cost optimization initiatives. According to recent surveys, service levels are down at 38% of companies, costs are rising at 69%, and 62% of companies are grappling with frustrated customers. To address these issues and enhance last-mile logistics, companies need to adopt transformative strategies. It’s the final stretch of the delivery process, where products reach the customer’s doorstep.

For example, if you’re a US-based merchant and want to test your products in the UK, it makes sense to store a small batch of inventory in the country using a 3PL. This removes the complexity of learning about local real estate and labor laws before you know if the market is even worth it. Consider a 3PL if you want to offer shipping options like next-day or two-day delivery but find it challenging customer service in logistics management to do so with your current in-house operations. Faster shipping can increase customer satisfaction, higher conversion rates, and more repeat purchases. If that’s where you’re at, calculate the costs of partnering with a 3PL to keep your profit margins strong. Outsourcing packing, picking, and shipping can save time on manual labor, especially if you’re partnering with a 3PL that uses automation.

Maersk wins Customer Service Award, 2 years in a row

This data-driven approach leads to better decision-making, improved efficiency, and enhanced customer service. Today, FedEx continues to evolve its business model to stay ahead in an increasingly competitive market. The company embraces technology, investing in automation and data analytics to improve operational efficiency and deliver exceptional customer experiences. FedEx has also diversified its offerings, providing ChatGPT App supply chain solutions, freight transportation, and specialized services for healthcare and perishable goods. To be eligible to take ASCM’s Certified Supply Chain Professional exam, you’ll need three years related experience, or a bachelor’s degree or international equivalent. As with the CPIM certification, you’ll need to submit an extra 15 points for every year your certification is suspended if you let it lapse.

Traditionally, logistics has often been viewed as a necessary expense, a department focused solely on the movement of goods from point A to point B. Companies are recognizing the potential for logistics to be a value creator, rather than a cost center. This shift in perception is driving greater business impact through supply chain logistics.

FedEx’s business model is built on a foundation of flexibility, scalability, and adaptability, positioning the company for continued success in the future. In 1973, FedEx began its operations with a fleet of 14 planes, serving 25 cities across the United States. The company faced immediate challenges, with limited financial resources and intense competition from established players in the industry.

The startup’s blockchain and cloud-powered communication solution, Smart Hub, allows stakeholders to store and share information in a central platform. OBORTECH also integrates IoT sensors into trucks or containers to monitor key physical measurements and ensure product safety. WTL smart contracts enable businesses to minimize currency fluctuation costs, in addition to eliminating the costs of currency conversion. AGVs substitute human labor for addressing challenges regarding processing high-volume goods at scale.

It also allows them to adjust pricing strategies and manage inventory levels more effectively. Further, the integration of big data and analytics enables the generation of comprehensive risk management reports as well as identifying anomalies and trends. This empowers businesses to proactively address potential disruptions and supply chain vulnerabilities. Onro is a Lithuanian startup that makes last-mile delivery software to empower businesses to efficiently manage orders, dispatch drivers, and track deliveries in real-time.

Supply Chain Management

Get in touch with Celonis today to discuss how process mining and more advanced OCPM can help you optimize your logistics management processes. Reverse logistics processes are triggered when businesses are called on to handle returned products. Crucially, the end goal of reverse logistics is to recoup value from the product or minimize the cost of its disposal. It’s all about ensuring that products and resources are in the right place at the right time. From managing inventory to planning transportation, efficient logistics plays an invisible but crucial role in keeping a business running smoothly. Companies use it to predict demand, forecast supply chain shortages, and optimize delivery routes.

• In economically challenging times, incorporating elements of cost reduction can be necessary, but it should never come at the expense of service quality.
• The data is then analyzed along with the historical data in order to predict and plan the maintenance of fleets.
• When deciding on a 3PL parcel transportation provider, explain your origin and destination locations and the time frames you expect for stock to move between.
• “We are also committed to enhancing our cargo capacity and warehouse efficiency to align with customer demand, supporting their import-export operations,” Mr. Sonchaeng revealed.

We got an update on the state of the shipping industry this week, courtesy of the latest Logistics Managers’ Index. It found that the logistics sector was pretty weak in November — in fact, the index fell the most since April 2022. As these trends gain traction, they create new opportunities and challenges for businesses. Staying ahead in this dynamic landscape requires continuous innovation, adaptability, and a commitment to embracing new technologies and sustainable practices.

Distributed Fulfilment centres are warehouses that hold inventory close to the end customer, so each order is picked, packed, and shipped as soon as it’s placed to ensure the fastest delivery possible. Many E-commerce companies &  direct-to-consumer (DTC) brands depend on a third-party logistics (3PL) company that performs ecommerce fulfillment services. That way, they don’t have to worry about fulfilling and shipping orders themselves and another key benefit of partnering with a 3PL is the ability to distribute inventory across logistics centers. While 3PL providers are capable of handling the entirety of a company’s supply chain operations, the different components of the logistics process can be carried out by individual players. For instance, freight companies solely handle the physical transportation of goods, while freight forwarders are dedicated to optimizing transport solutions and handling necessary documentation. In this sense, logistics could be seen as a complex web of moving parts, which operate in tandem with one another in order to boost efficiency and reduce costs within the supply chain.

This payment is then requested, and when it is received, your shipment is cleared and released from the customs department. This full process is mandatory, and it takes place every time your cargo crosses a border. Getting the right documents ready is the most important part of preparing for customs clearance, as an officer will have to go through them all to verify your cargo is safe to travel. Though these vary according to country, they usually consist of your import and export licence, customs declaration document, invoices, shipping label, and your packing list. Even though customs clearance can be a quick process that’s carried out in less than 24 hours, several steps come into play, and failure to provide the right documents, for example, can prolong the process by hours or even days. To understand customs clearance and make sure your goods are shipped safely, securely and quickly, here are the main things you need to know about this process.

This allows logistics businesses to make operations management more data-driven while reducing overall operational costs. IoT’s impact on the logistics industry extends further by enabling predictive analytics for logistics companies to anticipate demand fluctuations. Such solutions also optimize routing and scheduling as well as minimize environmental impacts through fuel consumption tracking.

Over the last two years, the emphasis on diversity, equity, and inclusion has really given a spotlight to the work the ERGs have been doing for years. Given the additional focus, resources, and funding surrounding the DEI pillars, Mondelēz is making substantial progress in a short amount of time. Currently Mondelēz has nine ERGs that employees can join, participate in events, and be allies of. Each ERG has their own unique mission and programming, so that all employee can find something that resonates with them. They also are a great educational tool to learn more about different cultures, life experiences, and how we can better support our colleagues both inside and outside of work.

Likewise, fleet management company Motive has made it easier to track cargo and drivers while improving efficiency and safety along the supply chain. The importance of logistics also stretches to simplifying communication and reducing costs. Effective logistics help foster relationships between suppliers, shipping services and warehousers through automated systems. The connectivity of logistics improves delivery and fulfillment of orders, which in turn reduces overhead costs.

Philippino startup Actimai, designs, deploys, manages, and optimizes RPA solutions by leveraging AI and big data. The startup’s platform optimizes software robotic processes in order to deliver insights and analytics for process improvement. The data is then analyzed along with the historical data in order to predict and plan the maintenance of fleets. Fleetroot also offers route optimization and delivery solutions for the transportation of goods.