Summary
Automation in logistics, particularly within the domain of Third-Party Logistics (3PLs), is experiencing a significant evolution. Traditionally, the relationship between a 3PL and its clients revolved around winning contracts first and considering automation later for efficient execution. However, a radical shift is occurring—some 3PLs are now investing in flexible automation upfront before pitching their solutions to potential clients. This change allows them to tailor their offerings more precisely and cater to evolving market demands. Imagine it as preparing a toolkit of automated solutions before even entering the contract negotiation room.
Evolution of 3PL-Clients Relationship through Automation
In the past, 3PLs faced the risk of investing in automation tailored to a specific client’s needs, only to find the client not renewing the contract, leading to delayed Return on Investment (RoI). However, with the advent of highly flexible automation, the landscape is changing. Advanced right-sized packaging systems, such as Sparck Technologies’ CVP Everest and Impack machines, demonstrate immense potential. These systems efficiently handle tasks that used to occupy multiple manual packing stations, reducing labor requirements and optimizing material usage. It’s akin to a versatile tool that can adapt its shape and size to fit various objects, thereby minimizing waste and maximizing efficiency.
Understanding Advanced Packaging Systems
These automated systems employ 3D scanning to size and shape boxes, ensuring a perfect fit for items being packaged. They operate at speeds of up to 1,100 packages per hour, replacing numerous manual stations and significantly reducing labor. By analyzing millions of packages across sectors, Sparck Technologies reports an average reduction of up to 50% in box volumes, leading to cost-saving efficiencies. Additionally, these systems offer flexibility by handling orders for multiple clients in random sequences, identified by bar codes. This adaptability is crucial, allowing 3PLs to cater to various client needs seamlessly.
Embracing Automation: Impact on Business Strategy
Leading 3PLs across Germany, The Netherlands, and the UK, including CEVA Logistics, Van Eupen, and Global Freight Management, are actively adopting these innovative automation strategies. The trend is to lease these advanced packaging systems instead of outright purchases, minimizing risks during market fluctuations. This approach enables 3PLs to scale their operations according to demand, ensuring efficiency in both downturns and booming business scenarios. Automation isn’t just about winning new contracts; it’s become a crucial element in providing enhanced value to existing clients, thereby protecting margins and extending client contracts.
