Rather than take on the initial costs and ongoing risks of setting up your warehouse automation systems, you may want to consider moving them elsewhere. As part of their end-to-end services, third-party logistics (3PL) providers can invest in automation technologies on your behalf. This significantly reduces costs and risks, making for a more attractive business case.
The 3PL provider, on the other hand, has a vested interest in making this investment. The growth of e-commerce and omnichannel, combined with the need to offer accurate end-to-end fulfillment services, leaves them no choice. If they want to attract high-growth companies entering new marketplaces, they must be able to provide services that live up to customers' expectations: omnichannel, 1-day deliveries, free returns, etc.
« 3PLs must transition to automation or risk the possibility of obsolescence in the coming decade. »
Honeywell, Automation Drives the Next Generation of 3PL Fulfillment
Until recently, 3PLs only invested in warehouse automation on behalf of their customers, offering to integrate automation into the service contract. They are now also looking at automation on their behalf to gain a competitive advantage, offering an enhanced customer experience with automated solutions already installed.
Indeed, automation has become a necessity for logistics providers to cope with increased demand, large volume fluctuations due to seasonality and supply issues, staffing challenges, and rising labor costs. Adapting to new buying patterns is also a challenge that automation can address. Whether it's order fulfillment mobile robots or automated warehouse management systems, these solutions help make employees' jobs easier and improve productivity and efficiency. They make omnichannel order fulfillment possible and address all kinds of logistics challenges, such as returns management, for example.
Why is it easier for a 3PL provider to invest in automation?
Besides the fact that their survival more or less depends on automation, logistic providers are in a much better posture to manage the warehouse automation investment risk:
What are the main benefits of partnering with a 3PL provider for warehouse automation?
The right logistics partner will invest in warehouse automation technology on your behalf, that is, automation that can benefit you and your customers. According to your needs and investment risk aversion, there are several options for benefiting from automated systems and spreading the cost:
By choosing GEODIS, you get a proven, reliable, and forward-looking logistics partner that will adapt to your needs, provide transparent costs and use its expertise to invest in the automation that makes things happen. Our comprehensive, end-to-end logistics services will give the customer focus and cost control you need to make confident forward-looking investment decisions.
Benefit from proven and efficient technologies such as:
To learn more:
Tell us about your project by speaking to one of our experts!