Third Party Logistics - Distribution Facilities
Category PROPERTY NEWS
Third Party Logistics (3PL) as it is called in the warehousing and distribution sector is a global system that is gaining traction in the South African logistics sector as more corporates look at outsourcing the holding and distribution of the products to other companies to allow them to focus on their core business. South Africa, whilst underdeveloped in the 3PL logistics sector is expecting massive growth in the sector as ecommerce takes hold of the global economy.
There are various advantages to companies outsourcing their logistics capabilities such as cost savings, access to logistics expertise, improving customer satisfaction, whilst enabling business synergy. 3PL also gives firms the ability to focus on their core business functionality and thus increase productivity.
3PL providers have had to upgrade their competencies to also include analytics so as to offer the best possible outcome and positively affect the bottom line of their clients. These include Warehouse Management Softwares that increase business intelligence and allow 3PL providers to predict future demand for their clients customer base, assist their clients to manage their inventory well and also identify end customer trends and satisfaction.
This whole process has a birds eye view of the supply chain in real time and allows corporates to grow their reach and footprint whilst also ensuring customer satisfaction. This has a ripple effect on the property sector as companies need new and modern facilities to enable them to achieve success.
Author: Metcalfe Mtungwazi