Brief: Investment Challenges in the 3PL Industry

3PLs leverage low-cost, low-tech solutions to boost efficiency amidst online shopping growth and investment challenges.

The 3PL industry is at a crossroads, balancing the growth opportunities presented by online shopping with the challenges of investing in high-tech warehousing solutions. The industry operates on tight margins, with customers constantly seeking cost savings.

The short-term nature of contracts, typically 3-5 years, often deters investment in high-tech solutions like automation, robots, AI, and digital warehousing. These solutions, while promising, often have multi-year payback periods that exceed the typical investment criteria for many 3PLs.

Low-Tech Solutions for High Efficiency

3PLs are increasingly seeking low-cost, low-tech options that meet strict ROI criteria and can be implemented without overloading their IT departments. One area of focus is improving the efficiency of labor-intensive processes, such as post-pack sorting.

Alwayse Engineering has identified the unidirectional nature of the conveyor as a key productivity blockage. The company suggests an omnidirectional ball transfer table that allows an individual to quickly push a box down a specific gravity conveyor line, reducing the need for labor and improving efficiency.

While every warehousing, conveyor system, and sorting configuration is different, low-cost, low-tech solutions like these can drive productivity and profitability in sorting operations, proving that innovation does not have to be costly.

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