Third-party logistics providers automation

03/16/2023

Unlock Warehouse Efficiency with 3PL Automation

Unlock the potential of your warehouse with proven 3PL automation strategies, effective pricing models, and cutting-edge technologies.

Automating your warehouse operations is a great way to get a competitive advantage. Automated systems help you to fulfill orders faster, delight customers, and keep your costs down. There's just one issue—warehouse automation can be expensive. Significant capital expenditure is often required to get the automation infrastructure, robots, and mechanization in place.

 

Fortunately, there's a solution. Work with a forward-looking 3PL to make the right investments and get a strong ROI on your automation. We'll explore how you can collaborate with a provider to get the benefits of automation while controlling your costs and risks.

Key takeaways

 

  • 3PLs are ideal partners for investing in warehouse automation with their expertise and ability to spread costs and risks across clients
  • Automation is vital for 3PLs to meet omnichannel demands and meet increasing challenges around labor, throughput, and efficiency
  • Working with a 3PL helps you create the right mix of automation technologies and pricing models
  • When evaluating 3PL automation partners, consider their experience, flexibility, geographic footprint, technology partnerships, customization, and ability to scale solutions to your future needs

Why 3PLs are your ideal collaborators for warehouse automation

Rather than take on the initial costs and ongoing risks of setting up your own warehouse automation systems, you could shift some of those risks and costs elsewhere. Some third-party logistics (3PL) providers can invest in automation technologies on your behalf, and give you several options to meet those implementation and operational costs. This significantly reduces your upfront costs and risks, and makes for a much more attractive business case.

 

Many 3PL providers are already heavily invested in automation. The growth of eCommerce and omnichannel is driving the need for fast, accurate, and cost-effective order fulfillment. If 3PLs want to attract high-growth companies entering new marketplaces, they must be able to provide services that live up to client and customer expectations: frictionless omnichannel, one-to-two-day deliveries, and free returns. 

See the latest thinking on warehouse automation with our insights: Is Warehouse Automation Right For You?

Warehouse automation is a necessity for third-party logistics providers

Until recently, 3PLs only invested in warehouse automation on behalf of their customers, offering to integrate automation into the service contract. 3PLs now invest in automation as a competitive advantage—offering more efficient and cost-effective services out of the box.

 

Indeed, automation has become necessary for logistics providers to cope with increased demand, large volume fluctuations, 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. Automation makes omnichannel order fulfillment possible and helps to address many types of logistics challenges.

 

How GEODIS invests in warehouse automation

GEODIS heavily invests in various forms of automation to solve business challenges related to staffing, training, speed, throughput, and efficiency. We have steadily increased our automation investments over the past few years. As of 2023, we have invested more than $300 million since introducing robotics and automation to our facilities.

 

We make use of the following technologies in our warehousing, fulfillment, and distribution logistics operations:

 

  • Pick-to-light and put walls
  • Advanced conveyor systems
  • Sorters, including carton, narrow-belt, Bombay unit, and cross-belt sorters
  • Pack, print, and apply machines
  • Tunnel scan
  • Piece-picking robots
  • Voice picking
  • Goods-to-person robotics and systems
  • Reach trucks and robotic arms
  • Automated zone routing
  • Box-building machines
  • Enhanced RFID and RF guns
  • Autonomous mobile robots and automated guided vehicles
  • Multi-shuttle automated storage and retrieval systems

Say goodbye to inefficiencies and hello to streamlined warehouse operations. Our proven automation strategies will help you reduce costs, boost productivity, and exceed customer expectations. Contact us today to get started.

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Minimize warehouse automation risks by choosing the right 3PL

Investing in warehouse automation via a 3PL can really help you to manage your investment risks:

 

  • Negotiating power: 3PLs can negotiate volume rates with automation suppliers through their size and scale
  • Lessons learned and experience: With years of testing, learning, and innovating, 3PLs have gained a deep knowledge of how automation technologies work
  • Spreading ROI risk: Large-scale investments in automation can take a while to pay off; 3PLs can spread the costs over several clients to reduce each one's capital and operational expenditure
  • Scalable, bespoke automated solutions: 3PLs can tailor automation to your exact needs; you can start with small-scale automation and add to it as your business grows
     
Supply chain automation

The benefit of collaborating with a 3PL on warehouse automation

If you're considering working with a 3PL to solve your automation problems, here are some of the advantages they can provide:

 

  • Getting the right technology mix: A 3PL can advise on the right structure, size, and mix of your automation and how it will work in specific warehouse locations
  • Warehouse performance based on outcomes: A 3PL will demonstrate how good your automation is through service level agreements (SLAs)—your investment will directly translate into better order fulfillment SLAs
  • Balancing reliability and innovation: A 3PL understands the balance between reliable and proven automation and the need for innovation and technological leaps forward—they'll help you understand the right mix for your business needs

Navigating the world of warehouse automation can be challenging. Our experienced teams are ready to guide you every step of the way, from assessment to implementation and beyond. Let's collaborate to find the right mix of technologies for your business.

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Options for funding warehouse automation investments with a 3PL

A 3PL can provide you with several options to diversify your investment risks and spread costs:

 

  • The 3PL provider invests on your behalf and charges you an "asset usage fee" for upfront CapEx, operating leases, etc.
  • You pay for the automation assets upfront, so you don't incur any financing charges
  • The 3PL provider entirely funds automation investment, and you are charged with operating fees

 

Criteria for choosing the right 3PL to invest with

You can choose from hundreds of 3PLs that can invest in warehouse automation on your behalf. Here are some areas to take into account when you're considering the right 3PL:

 

  • Track record and depth of experience:  How long has the 3PL been investing in automated systems, and how many successful implementations do they have?
  • Pricing model flexibility: What options does the 3PL provide for investing in automation and sharing the costs with you?
  • Warehouse locations: What warehouse capacity and storage locations does the 3PL have for serving customers across the country?
  • Access to transport networks: What happens to your orders after they leave the warehouse and need to be transported across the US?
  • Technology partnerships: What warehouse automation vendors does your provider work with?
  • Customized automation solutions: How much say will you have in defining the automation systems you need?
  • Future-proofing of automation: Does the 3PL provide options for your automation to scale and grow with your business success?
  • Integration with other logistics services: What other logistics services does the 3PL provide to centralize and simplify your supply chain?
  • Strategic partnerships: Is the 3PL based purely around transactional logistics, or do they provide a strategic partnership to help your business succeed?


By choosing GEODIS, you get a proven, reliable, and forward-looking logistics partner that will adapt to your needs, provide transparent costs, and use our expertise to invest in the right automation. Our comprehensive, end-to-end logistics services will give you the efficiency, customer success, and cost control you need to make confident, forward-looking investment decisions.

Frequently asked questions about investing in automation with a 3PL

The best way to assess your readiness for warehouse automation is to consult with an experienced 3PL like GEODIS. Our experts will evaluate your current operations, growth plans, and goals to determine if automation makes sense for you, and if so, create a phased roadmap tailored to your needs and budget.

ROI depends on many factors including your unique operational requirements, order volumes, labor situation, growth trajectory, and more. GEODIS will work closely with you to model potential ROI scenarios and build a business case based on your specific circumstances. Our flexible financial models help you reap the benefits of automation without undue upfront investment.

Our experienced teams will conduct a thorough assessment of your current operations, goals, and challenges to recommend a tailored mix of automation technologies that align with your unique needs and budget.

Partnering with GEODIS for warehouse automation allows you to leverage our expertise, negotiating power, and flexible pricing models to minimize risks, reduce upfront costs, and achieve a strong ROI.

GEODIS follows a proven implementation methodology that includes detailed planning, testing, training, and ongoing support to ensure a seamless transition to your new automated systems.

Absolutely. GEODIS designs automation solutions with scalability in mind, allowing you to start with the right mix of technologies for your current needs and easily expand as your business evolves.

How GEODIS can help

As a strategic thinker seeking a reliable 3PL partner to optimize your warehouse operations, GEODIS is uniquely positioned to help you achieve your goals. Here's what you can expect when you collaborate with us:

 

  • Customized automation solutions tailored to your specific needs, with the flexibility to scale as your business grows
  • Expertise in implementing the right mix of automation technologies while minimizing disruption and downtime
  • Strategically located warehouses and distribution centers throughout the U.S., providing over 50 million square feet of storage space
  • Ability to reach 99.5% of the continental U.S. in two days or fewer, ensuring efficient order fulfillment
  • Comprehensive value-added services and a wide-ranging carrier network to streamline your supply chain
  • Seamless integration with our full range of transportation, warehousing, and freight forwarding services
  • Real-time visibility throughout the supply chain, empowering you to make data-driven decisions
  • A proven track record of successful automation implementations and a commitment to continuous innovation
     

Get in touch with GEODIS today to discover how our expertise, flexibility, and strategic partnership approach can help you optimize your warehouse operations and drive long-term success.

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Paul Maplesden

Paul Maplesden

Lead Content Strategist

Paul is the lead content strategist for GEODIS US. He researches, writes, and publishes in-depth articles on freight forwarding, transportation, warehousing, and many other logistics topics.
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