How AI Can Overcome 3PL Challenges

Home / Blogs / How AI Can Overcome 3PL Challenges


How AI Can Overcome 3PL Challenges


If you are a business looking to understand how AI and technology can overcome the challenges of third party logistics and distribution, then this article is for you AI and Machine learning are becoming the center of attention for people looking to enhance their business operations, get ahead of their competition, and become top players in their space.

Challenges of Third-Party Logistics

Most of the challenges in the third-party logistics space are in the areas of last-mile delivery and supply chain visibility


The first area is last-mile delivery, this is where most of the third-party logistics cost and issues are because it is the final stage of the delivery process to the customer.


This stage is essentially problematic because of issues with traffic in high-density locations or having many orders in lower density locations that are usually far and costly to get to. Not to mention delivering to residents who are not available and having to repeat the delivery process or delivering to the wrong location due to inaccurate geo-tags.


There is also the issue of having supply chain visibility. As, it is challenging to quantify stock, and accurately calculate the supplier orders needed to fulfill the customer demands in real-time while the supply chain and logistics operations are on-going.


How AI Overcomes 3PL Challenges

AI-powered software and ERP systems can now solve most of these issues. The AI-powered system runs algorithms to automatically choose which orders to be delivered.


Also, it aids last-mile delivery by suggesting the best routes for the accurate, geo-tagged delivery locations, and help track shipments throughout the whole delivery operation and records WHO received the order using signature proof.


On top of that, the system allows for real-time supply chain visibility to accurately predict supply chain needs and reduce the risk of inefficiency.


How LABS & Locus Overcome 3PL Challenges

Integrating Locus AI-powered system with SAP ERP implemented by LABS ensures that all the orders and transactions between all parties are being operated and recorded seamlessly in the back-office while ensuring real-time reports and support for the system.