The Impact of 3PL on TLM and the Supply Chain

Introduction 

One of the major impacts of globalization was sophistication and internationalization of supply chains. This change was associated with challenges of shipping raw materials from vendors and delivering to manufacturers, before funneling the finished products to consumers. As a result, globalization distracted the roles of manufacturing, warehousing, and distribution. At the same time, this globalization of business increased competition between enterprises, forcing companies to evolve so that they can serve customer timely. The flow of goods and service across boundaries due to globalization made it difficult to manage the supply chain cost-effectively ( Leuschner et al., 2014) . 

As a result of this effect,  companies have increasingly adopted the use of third-party logistic service (3PLs) providers to reduce costs and deliver products on time. It refers to the outsourcing of logistics activities to a third party carrying them on behalf of the shipper. 3PLs engage in several activities such as transportation, warehousing, inventory management, tracking and tracing as well as value-added activities.  In this sense, they are the external company involved in carrying out the logistic functions that were being executed within an organization. A firm enters in contract with a 3PLs provider, which is distinguishes 3PLs from the traditional arms’ length sourcing of transportation and warehousing. 

Industries began outsourcing the logistic functions to third parties to reduce costs. Third-party logistics service providers fulfilled the demands of advanced logistics services by taking over roles in warehousing, inventory management., logistics information system, order management, and cross-docking. Over time, they became specialized in facilitating logistics in the supply chain at a lower cost than what companies can do internally. Their core competence involves the ability to integrate logistics services and benefit customers. The 3PLs providers connect with customers and suppliers to provide logistics information flow and improve its performance. 

The development of 3PLs has helped the logistics industry with their functions enhancing timely delivery and lower costs. Companies have taken this opportunity to focus on other core competencies such as production and marketing while third parties engage in the logistics. Major reasons for outsourcing to 3PLs is to access the technological advances, bolder service quality as well as increase the volume and speed of order delivery. Companies that traditionally faced these problems can avoid them by delegating the roles to a third party. 

The 3PLs providers are thus an effective way of improving organizational operations in areas such as warehousing, manufacturing, and distribution ( Stevens & Johnson, 2016) . Today, a majority of firms are outsourcing their supply chain function to 3PLs and focus their energy on other core competences. Third-party logistics service providers offer value-added services in a more complex logistic environment as companies expand into rapidly developing global markets. Most of the 3PLs offer integrated logistics services that may be difficult for the firm to handle without experiencing losses. 

The supply chain industry today is largely dominated by third-party logistics service providers. Studies have shown that more than 90 percent of domestic Fortune 500 companies in the United States use 3PL for logistics and supply chain functions ( Bolumole, 2001) . A majority of the 3PLs are hired due to their ability to leverage global partnerships and infrastructure to deliver flexible service options. This third-party logistics system has an impact on service quality, revenue, cost structure and the competitiveness of the industry. The rapidly changing business environment has forced man organizations to change their organizational structures and business processes to remain in the competition. 

The global supply chain is rapidly changing daily, in the event adding complexities to the roles of third-party logistics providers. As a result, there have been changes in consumer demands and behavior, which requires third-party providers to change and adapt accordingly. Consumer behavior has been changing rapidly over the last few years, with it increasing the collective service level within the logistics industry. Today, it is difficult for companies to meet consumer demands without the use of technology. Businesses that have refused to adopt the technology are slowly getting extinct out of the industry. 

In this regard, many 3PLs are required to respond to these changes with increased capabilities and greater technological expectations. Most third-party logistics service providers need to keep pace with the evolving challenges in the global market by implementing technology and remain dominant ( Yeung et al., 2012) . Furthermore, 3PLs need to offer adaptable solution offerings that allow for efficiency. Different technologies can be used to model the customer’s networks that meet their expectations. It is then aligned to the service requirements or the needs of the operation. 

The dynamics of the supply chain have been changing dramatically as technology and analytics change how 3PLs operate. The use of technology has allowed 3PLs providers to predict and recognize any exceptional event. This is because it provides real-time dashboards that show the progress and helps determine where interventions are needed to meet customer expectations. The integration of technology in packaging and shipping for third-party service providers ensures that the right products are delivered to the right customer and on the right delivery platform. It also allows the customer to follow the product through the desired delivery window. This helps to prevent any late deliveries that could affect customer satisfaction. 

Problem Statement 

Globalization has led organizations to deal with suppliers and consumers located nationwide and globally, which requires effective logistics management to facilitate the movement of materials and products. Inbound and out-bound production flows can be challenging for firms with global clients unless the 3PLs are involved.  As a result, firms are outsourcing their logistics functions to 3PLs to enhance its performance, improve the efficiency and lower the cost of logistics in a form. However, the success of 3PLs today lies in an appropriate integration of modern technology into its functions and all related activities ( Li, 2014) . The technology is needed to help 3PLs in providing more transaction-based capabilities. Some of the technologies used include visibility and warehouse, electronic data interchange, and transportation management. The benefits of integrating technologies in the logistics industry have opened numerous opportunities for 3PLs as shippers to continue relying on their logistics providers ( Stevens & Johnson, 2016) . 

However, a majority of research on the use of third-party logistics service providers in supply chain has been limited to the western world, and therefore lacks a global market perspective. the research on the role of 3PLs in the supply chain is not well examined from a global market perspective. The research is in its infancy stage, which means the role of 3PLs is has not been explored from several countries around the world. For example, China has experienced a dynamic changes in supply chain, yet they have not integrated the use of 3PLs providers ( Zhang & Okoroafo, 2015) . This paper intends to provide a framework addressing different ways in which firms can use third parties in supply chain. It will focus on the relationship between 3PLs providers and other members of the supply chain, and how this interaction can improve customer satisfaction. 

A multifaceted supply chain creates better opportunities for the 3P logistics industry, though it also adds a level of complexity which can pose challenges. The global supply chain changes almost every day, often adding complexity to the roles of the Third-Party Logistics Providers (3PLs) and the shippers. The added complexities mean 3PLs have to keep up with what is going on in the industry. They need to continually look at using technology to enhance service provision and drive improvements for customers. One way of remaining up-to-date on market trends is by investing in research and development as well as product development innovation. The technology is aimed at improving customer experience throughout the order placement and delivering of a product. The technology provides real-time visibility and event management capabilities for 3PLs while delivering information updates and instructions to drivers ( Yeung et al., 2012) . 

This paper considers the effect of technology on 3PLs providers when applied in TLM and Supply Chain. The rapid changes in the industry have the possibility of hindering technology and logistic integration, thus affecting the efficiency of a firm from meeting customer needs. Logistics activities have been evolving rapidly in response to changes in technological advances, new production processes, and globalization ( Stevens & Johnson, 2016) . Companies are developing. The success of 3PLs providers lies in their effectiveness to integrate technology and logistics into its operations, which has not been affected in the global arena. This paper also looks at the state of the 3PL market and how technology has been a key differentiator, discussing the conceptual framework for 3PL providers in the global market. Today, 3PLs have integrated technology in their processes to drive efficiency. 

The research question for this paper is: What is the effect of technology on 3PLs when applied in TLM and Supply Chain? 

Literature Review 

Third-party logistics provider are an important part of supply chain management in promoting its effectiveness in a company. According to Patil & Dolas (2015), 3PLs help firms through cost reduction and efficiency in order delivery, which is crucial for customer satisfaction. They act as an intermediate between manufacturers and customers to reduce any delays that can affect profits. According to the authors, the 3PLs provider has the resources, scale, and scope needed to host fields such as warehousing. They bring in several advantages such as IT skills, technical know-how, searching ability, and scale. Most contracted logistics interact with suppliers, manufacturers, and retailers, and thus more placed to handle the supply chain function of a company.  Therefore, companies stand a chance to process commodities efficiently while focusing on quality. 

Globalization has impacted supply chain management as more companies engage in global activities such as global outsourcing. The literature review on 3PLs has revealed that many firms across the world are adopting the use of third-party logistics service providers. Besides managing everything related to logistics for an organization, 3PLs also help in secondary functions such as logistic expertise, business intelligence, and network analysis. These are important skills that most organizations lack in their internal functions. Singh, Gunasekaran & Kumar (2018) discussed the role of 3PLs in managing supply chains and logistic functions. He stated that technology integration can help reduce transaction costs between supply chain partners and the company while dealing away with any complication that may affect service provision. 3PLs provider can help companies with supply chain by installing technological devices that will help in the timely delivery of products to the 3PLs stores. This system will ensure that the product sender and 3PLs track the product and know when it has been delivered to the customer. 

Technology has grown into a significant part of supply chain management, driving innovation, success and a competitive edge. Due to their effectiveness, firms are investing in Transportation Management Software (TMS) systems. Mothilal et al (2012) discussed the importance of technology for third party and its role in the supply chain. Technology helps in fulfilling roles such as tracking information systems, fleet planning, and asset management. It provides capabilities for real-time data management, which is needed to achieve complete visibility into the supply chain. The real-time data validation improves transaction accuracy, allowing the customer to track delivery in real-time.  Therefore, investing in technology is one way of leveraging 3PLs activities and achieve efficiency. 

Zhang & Okoroafo (2015) discussed how supply chains are becoming a global industry due to globalization, increasing competition for efficiency. The authors focused on the effect of this internationalization of supply chains and how third parties are the solution to the problem. They help firms to deliver products to customers from all over the globe quickly and timely using an integrated logistics system. According to the authors, the emergence of 3PLs in the logistics industry has been perpetuated by the need to shorten the lead time as well as reduce the costs through outsourcing of the processes. 

Frederick (2018) stated that logistics management entailed having the right product in the correct quantity at the right time and cost. This describes the work of 3PLs I  working on behalf of the firm to manage logistics and deliver timely. However, the role of 3PLs has shifted in recent years technology in logistics changes the function of 3PLs providers to include helping firms with a host of services from a transactional role to a strategic one. According to Frederick, the integration of technology adds visibility into the supply chain and adds control over drop shipments, which is crucial in improving traceability and reducing shipping errors. For example, supply chain visibility is an important advantage of integrating technology into the logistics industry. It is a crucial part of 3PLs because of providing real-time information to customers, showing them where the shipment is and the items being delivered while reducing errors. 

Furthermore, Selviaridis & Spring (2007) on 3PL service providers stated that 3PLs offers multiple services rather than only transport or warehousing functions. The authors mentioned several benefits of using third party logistics in the supply chain, including the strategic, financial and operational benefits. The authors showed how outsourcing logistics services can be crucial for a firm, leading to efficiency and reducing losses. A reduction in shipping errors can significantly reduce costs and improve customer service. Business leaders are required to analyze their operations to achieve new efficiencies and minimize risks by adopting technological advancements. Business face difficulties meeting the canging demands of a global marketplace, due to the changes in globalization and technology. 

Nadarajah (2015) also discussed the use of third parties in the supply chain, focusing on how they help to establish a relationship between the supplier and the customer. They support the specific needs of customers by creating a long-term relationship and increase their dependency on the service. According to the author, 3PLs provider delivers the technologies needed to function while creating more value for customers and the client. 3PLs use technology to link members of the supply chain and increase the efficiency of operations, such as inventory management, order status inquiry, order processing, and shipment tracking. 

At the same time, Hofmann & Osterwalder (2017) stated that third-party logistics service providers have many benefits to a more profitable organization. These benefits arise from the ability to create space, labor, and transportation based on the requirements of the inventory. This allows a firm to grow into greater heights without being limited by logistics barriers. According to the authors, the use of third parties ensures that the firm meets all customer needs by creating a platform for efficiency using technology tools. This aspect of delegating duties to another firm allows the business to control their resources and spread risks associated with logistics. The company also utilizes the free time to focus on crucial issues that will help in its future growth. 

Marchet (2018) also discussed the impact of 3PLs on supply chain and how it has become a growing phenomenon. The author presents statistics showing how 3PLs has significantly changed the dynamics of supply chain management while generating more value for businesses. They introduce flexibility to logistics management, allowing companies to manage their functions without any barriers. According to the authors using technology can help a firm to anticipate and adapt to changes in the supply chain dynamics. Technology provides forecasts to logistic partners, allowing them to be aware of any event that occurs. There are several advantages that technology offers to in 3PL businesses. 

Research framework and propositions 

The focus of this research was to provide a framework for examining the relationship between 3PL and supply chain management. Most 3PLs providers are investing in technology to deal with potential risks that may lead to losing. They are also investing in building integrated relationships with other supply chain participants such as suppliers, firms and customers. In essence, investing in information technology is one way of facilitating information sharing among members of the supply chain, which is crucial in enhancing integrated logistics relationships. This relationship can lead to flexibility in the logistic and improve performance. 

Technology reduces the potential risks 

The integration of technology in the supply chain can help reduce any potential risk that can lead to losses. There are several risks involved in the supply chain that require firms to outsource 3PLs providers and delegate the tasks. They include operational risks, demand, security, informational and logistics risks ( Marchet et al., 2018) . The 3PLs also face potential logistics risks that can lead to losses, which include information transmission, cooperation and weather risks. For example, 3PLs can suffer losses due to weather risks such as hurricanes, floods, and other natural disasters. These risks can prevent supplies from reaching stores on time, or delay the delivery time to the customer. The weather can disrupt the supply chain while affecting the timeliness and reliability of the delivery. Other risks involve information transmission risk caused by a distortion of information and poor service delivery. Cooperation risk is also a factor in logistics and supply chain, which is caused by poor cooperation between 3PLs and other participants in the supply chain. There is a need for positive cooperation to achieve efficiency in logistics, such as timely delivery of goods. 

Technology allows 3PLs to get accurate weather forecasts to report in advance, and use the report to plan for appropriate delivery schedule. This can help reduce the losses associated with bad weather. Other risks such as information transmission and cooperation can be mitigated through appropriate technological integration, such as tracking and tracing of the product. This integration of technology helps in facilitating information exchange through the supply chain while reducing any conflicts ( Stevens & Johnson, 2016) . 

Technology also helps reduce these risks through an integrated logistic relationship where all members of the supply chain share information regarding any potential risks. Communication and collaboration are needed to fulfill the mitigation strategies. For example, constant communication and interaction between 3PLs providers and other participants of the supply chain reduces any chance of information distortion and the risk of information transmission. 3PLs providers can also modify distribution activities to meet manufacturer needs. Communication and trust among partners in the supply chain promote a healthy integrated logistic relationship, which makes supply chain flexible and responsive to dynamic market condition ( Huo et al., 2017) . 

Several studies have shown the relationship between investing in technology and integrated logistics, including the relationship between channel partners ( Bolumole, 2001) .. This integration reduces conflicts among several functional areas of the firm. The information sharing between 3PLs providers and other members can significantly influence customers by increasing their loyalty to the firm. Many customers report higher satisfaction with a firm that maintains constant information sharing. Suppliers are equally satisfied with 3PLs who maintain a relationship with openness, transparency and excellent communication 

Technology improves logistics flexibility 

3PLs providers are using technology to facilitate logistics flexibility through real-time information sharing among customers and suppliers. This flexibility requires suppliers to collaborate with EPL providers when faced with environmental uncertainties. Technology facilitates information sharing on areas such as the delivery status, inventory level as well as production planning, which is needed in managing supply chain activities. For example, providing real-time updates of an order status through GPS can help suppliers to plan their delivery schedules and ensure they met the demands on time. 

The sharing of information enhances collaboration between participants of the supply chain, enabling 3PLs providers to be flexible in the operations while responding to market and customer demand. Technology plays a role in making 3PLs responsive through information sharing between the organizations. Studies have shown how technology improves logistics efficiency and flexibility for 3PLs when applied in the logistics field ( Bolumole, 2001) . The logistics flexibility in supply chain management is one way that firms use to improve logistics performance. Flexibility features less inventory storage and allows the form to transform raw materials into finished products on a timely basis. 

3PL provider can help in building stronger integrated relationships in the supply chain, which is necessary to meet the market dynamics. The relationships can play a part in creating logistics flexibility, needed to reduce redundant costs and improve quality, as well as the speed of delivering products. At the same time, integrated logistics can improve logistics performance in terms of accuracy, reliability, and timeliness. Firms are using technology to coordinate all supply chain activities and use the data in making relevant decisions involving flexibility. Therefore, companies need to invest in expansive technology and an IT-enabled integrated logistic relationship. 

Information technology enhances competitiveness 

The successful implementation of technology is vital for enhancing the competitiveness of logistics. 3PLs have invested in technology which improves the customer-client interaction and facilitate communication between the supplier, the firm, 3PL and the customer. Investing in technology is one of the key differentiators for a successful logistic organization ( Li, 2014) . The technology helps in demand forecasting, which can be utilized in making decisions regarding suppliers and product demand. Due to the technological advancement, businesses are required to be flexible and adapt to the changes. Many firms need to automate their business processes to remain competitive. 3PLs are facilitating this automation by integrating all the major supply chain processes ( Stevens & Johnson, 2016) . 

Technology is becoming a differentiating factor for 3PLs, who are using it to their advantage. The information technology has helped 3PLs deal with the increased customer demands, fluctuating capacity as well as the disruptions in the industry creating a volatile environment for business ( Yeung et al., 2012) . Another benefit of technology for 3PLs has involved providing real-time traffic updates using GPS tracking. Firms use technology to monitor vehicles and other deliveries, which ensures that the product arrives on time and in the right quality. At the same time, providing real-time updates to consumers and optimizing delivery routes helps organizations to reduce costs and improve the safety of drivers. 

Technology integration improves customer satisfaction 

Customer satisfaction is a major target for all logistic firms as it translates to more customers and increased profits. Satisfaction refers to a sense of joyfulness or disappointment concerning his perspective effect of the product compared to the expectation. Customer satisfaction is crucial for businesses looking to establish a competitive edge as it is the basis of providing outstanding value and experience. Companies look towards improving customer satisfaction and experience as a survival mechanism within the industry. According to Philip Kotler, customer satisfaction is associated with increased loyalty from customers,  attracting new customers, the enhanced the reputation ( Ozoglu & Buyukkeklik, 2017) . 

The market saturation, globalization, and advancement in technology has changed the market dynamism by increasing customer awareness of the product. As a result, the emphasis of most businesses is to achieve high customer satisfaction and experience as a way of improving profits. Today, qualities and optimized price only are not enough to guarantee long-term success. Instead, firms should focus on building long-term customer relationship to build an achievement. In the logistics industry, satisfaction is achieved through on-time delivery, offering opportunities to track and trace the product as well as making after-sale inquiries. Technology helps achieve this customer experience by supporting an interaction between the customer and organization. 

Adopting and integrating technology into the 3PLs providers with a customer-focused can lead to increased customer satisfaction ( Stevens & Johnson, 2016) . Organizations with a customer-focused strategy can respond to customer expectations, including timely delivery of products. The technology ensures that the 3PLs have the necessary information to understand customer requirements and respond to their demands. Several technological tools such as electronic data interchange (EDI) help to improve business processes while allowing for automated information exchange between customers and suppliers. 

Third-party logistics can also use technology to enhance customer satisfaction by offering efficient customer services on behalf of the company. This can involve the use of reverse logistics services, that entails provision of after-sales services at the doorstep of the customer through email or phone responding to their inquests. 3PLs can also set aside an online feedback portal with a complaint system to facilitate reverse logistics services, where customers can interact and express themselves ( Govindan, Soleimani & Kannan, 2015). A good service level by 3PLs includes the ability to provide quality services to the client and the customer, which means the company that employs them and the customer receiving the product. A good service is when 3PLs deliver the product on time within the right quantity, provide after-sales service, have a feedback system, good tracking system as well as efficient logistics with all aspects. A third-party logistics service provider with these attributes including the integration of technology will be able to easily satisfy the customer. 

Discussion and analysis 

This study focused on the importance of integrating technology into Third-party logistics service providers and its effect in enhancing customer satisfaction. Technology is one of the important tools for logistics service providers, helping to enhance competence and reduce costs for the company. When used properly in the supply chain, firms can benefit from integrating technology into the supply chain to achieve customer satisfaction. The technology also helps in the operational competitiveness of a business, flexibility, and productivity. 

Role of Third-Party Logistics in supply chain 

Research on the tole of third-party logistics has focused on their benefits to enhance supply chain performance compared to a company’s internal function. Third-Party Logistics are outsourced logical services connected to the company involved in the managing of warehousing, monitoring, and distribution. They allow businesses to outsource operations from warehousing to delivery, allowing it to focus on other parts of the business. The Third-party logistics companies provide all services associated with logistics and supply chain including transportation, inventory forecasting, order fulfillment, and packaging ( Marchet et al., 2018) . 

Third-Party logistics service providers offer several services ranging from transportation to warehousing. Firstly, they 3PLs have a transportation and distribution sector where they provide transportation and trucking services to clients. They also help in shipment tracking and tracing of the supplies and finished product. Secondly, 3PLs engage in warehousing activities, value-added services such as cross-docking and freight consolidation, as well as order processing and equipment. This entails helping firms with custom services among other in-product services such as reverse logistics ( Govindan, Soleimani & Kannan, 2015) . 

Furthermore, 3PLs provide services in logistics management and consultation, including inventory management and fleet operation needed to enhance efficiency in the supply chain. They use technological tools in the area of asset tracking and inventory management, as well as tracking and management of the supply chain by providing real-time inventory updates. 3PLs can help the firm to drive out any inefficiency and outdated programs causing delays and focus on areas that can improve performance. For example, 3PLs can use technology to provide accurate information to customers about their demands. 

As a result of these roles, there are many benefits associated with 3PLs, allowing the business to focus on other aspects such as market development, sales, and marketing. Business gets more time and resources as logistics are handled by other service providers. Most 3PLs are experts in this area and will handle the services better than when a company handles it internally. As a result, they offer value to customers. The 3PLs also come in handy when dealing with international logistics that can delay shipments, such as documentation, customs, and duties. A business saves time with these issues that re sometimes complicated. The 3PLs have more expertise in playing this role compared to the internal transport system of a company, reducing any delays or huddles. This is because the 3PLs have nothing to do with company issues and are focused on supplying raw materials or finished products. Several studies have been done on the effectiveness of 3PLs in the supply chain, concluding that it helps the business to concentrate on other important issues by outsourcing the logistics activity. 

At the same time, 3PLs save companies the expertise needed to maintain a global supply chain. When supply chain management is an internal function for a firm, it will need to hire and train employees to ensure they have the experience to stay up to speed with the competitive market. This can be an expensive and tedious thing to do. Outsourcing the logistics functions to 3PLs reduces this problem, since the firms have experts in dealing with the rapidly changing environment, and have competency dealing with customers ( Patil & Dolas, 2015).

The prime objective of third-party logistics service providers is to deliver products on time and in the right quality. Consumer’s today prefer a company that delivers their orders on time and offer after service sales because they cannot bear a delay in the delivery. The 3PLs allows the business to concentrate on producing quality products, while they deliver the finished products on time to achieve customer satisfaction. Poor customer experience can result in losses while affecting other factors such as the company reputation. 

Importance of Technology in Third-Party logistics 

Several researchers have stated the importance of integrating technology in logistics management. Technology in business has grown into an important tool for handling the transaction as well as influencing a firm’s competitive position. Its application has spread to a third-party logistics service provider who needs to integrate it for efficiency. Technology is driving the modern 3PL service providers by creating opportunities for 3PLs who rely on them for IT needs ( Stevens & Johnson, 2016) . Today, more logistic firms are relying on 3PLs to utilize their advanced technology in synchronizing the complex activities within the supply chain. They work as a bridge in connecting logistic users and consumers in the supply chain. Hiring a 3PL company to take of logistics can improve the supply chain and increase sales. They take on a major part of a company’s operations and can determine the success of a company. 

Most 3PLs providers use technological tools such as the enterprise resource planning (ERP) to enhance customer satisfaction and their clients. The tool allows for efficient coordination between the client and customer once it is integrated into the operations. For example, any customer or client request is entered into a database, which automatically notifies the logistics company that the client needs raw materials from suppliers or needs to deliver a product to the customer. The client is supposed to enter information into the database or the customer to enter an order entry into the database, which is automatically reflected on the network of 3PL provider and delivered timely. Technology tools such as the EDI should be improved for the firm to improve the supply chain performance and reduce costs ( Li, 2014) . The app facilitates communication and sharing of information between the customer, firm and supplier and respond to their needs appropriately. 

At the same time, technology can be integrated into all supply chain activities ranging from procurement to delivery. There are numerous 3PLs providers offering warehousing services for companies, which saves on time and space. For example, 3PLs providers come with their staff for warehousing operations, bringing all the expertise needed to deliver value for the client. There also an aspect of warehouse management associated with technology integration, used to facilitate the processes of product stocking and IT audit of the available products ( Liu & Lee, 2018) . Furthermore, technology is needed to track products from the supplier and to the consumer, but this can be a problem for small and mid-sized businesses engaging in international supply chains. In this regard, 3PLs come in handy to reduce the loses due to their investment in advanced technology, that allows for real-time visibility into the supply chain. 

Furthermore, the 3PLs can integrate technology by introducing demand forecasting management system, which is a technology tool that helps in helps determine the customer and client demands. Introducing technology in the management can help in supervising different supply chain activities since the executives will get first-time data regarding the type of product needed, what is accessible in the warehouse, customer orders as well as what is in the production stage. Technology allows managers to access this information from the palm of their hands, making it easy to supervise and coordinate. As such, they can forecast the demand rate of products and prepare to fulfill them. It also helps the company to replenish the stock immediately, thus enhancing customer satisfaction. 

Solutions and recommendations 

Integrated logistics relationship is a crucial element in logistics, ensuring all parties in the supply chain management work in collaboration. This means there should be a collaboration between 3PLs and their clients to enhance the success of supply chain and logistics industry. Studies have shown how outsourcing operations to 3PLs can lead to improved customer satisfaction when integrating technology, which is achieved by knowing the expectations of customers ( Ecer, 2018) . Information technology makes it possible for customers to access real-time information about the product using technological tools. Such tools improve the business process, as well as infrastructure for automated information exchange to achieve high customer satisfaction. 

Third-party logistics service providers need to integrate technology since in inventory management since I help to achieve an organized warehouse. They can use automated inventory processes, which involves matching inventory storage with computer data to achieve quicker pulling of stock. Organized inventory control helps to minimize costs as a company can use the information to determine whether the order size on computers resemble the inventory received from customers. Firms with seasonal fluctuation in volume benefit from using the third-party, because businesses can register losses in costs used to maintain warehouse capacity that is not in use. The 3PLs benefit a firm with flexibility in operations, such that the company will not lose any cash when sales are down ( Yeung et al., 2012) . 

Secondly, the 3PLs should apply technology in the warehousing to achieve an efficiency of operations by understanding cash flow needs. Businesses can apply the warehouse inventory technologies to understand how to handle storage costs of handling products. Integrating appropriate technologies can help executives to save time and resources. In essence, businesses need the 3PLs to operate and manage a complete warehouse and distribution network if they lack time, space and resources to operate. The benefits of outsourcing logistic services to 3PLs include reducing costs, saving on time as well as re-engineering distribution networks ( Stevens & Johnson, 2016) . The global market value of 3PLs has been rapidly growing, surpassing four trillion dollars in 2018. 

In essence, technological advancements have disrupted the business environments of third-party logistics, requiring its integration for effectiveness. The emergence of technology has played a catalytic role in the increasing transformation of the logistic service sector. It is a significant factor in the functioning of 3PLs, with the integration of technology changing how the logistic service providers operate ( Liu & Lee, 2018) . Today, technology has enhanced customer experience, by moving the customer service from reactive to proactive. Third-party logistics service providers are prone to increasing uncertainty due to the changing customer expectations, which affect the growth of a company. In this regard, technology helps in real-time data collection that allows the customer to trace and track shipments, thus improving the interaction. 

Conclusion 

This paper has described the role of third-party logistics providers are in supply chain management. It supports multiple aspects of integrated relations with 3PLs, describing their efficiency in warehousing and transport, allowing firms to increase profits by concentrating on other functions. Companies are better positioned to register growth by outsourcing the logistics function to focus on other essential services. They stand to make profits due to cost reduction in the production and management process, as well as improve customer experience and satisfaction. 3PL providers also help in improving the efficiency of a company’s logistic, which is crucial in enhancing customer satisfaction. 

The study has addressed a conceptual framework that firms can use when looking to improve the performance of supply chains in the global market. A majority of 3PL take place in the western market, but this paper has shown that it can be applied in all parts of the world. The paper has also described how to leverage 3PLs in an organization to improve supply chain performance, based on its success in the western context. According to the study, adopting technology within the organization can be crucial in improving the logistics performance and supply chain at large, resulting in improved bottom-line goals of an organization. In this regard, organizations and third-party logistics should embrace technology. In essence, the concept of logistics has evolved in responding to the changes in technology. Third-Part Logistics providers are a type of service providers who allow for the outsourcing of services to improve performances. This is because the performance of a logistic system has impacts on service quality, cost structures, and revenue ( Leuschner et al., 2014) . 

The findings of this study can be applied in literature and benefits researchers and other scholars seeking to understand the work of 3PLs in supply chain. Researchers can use this study to determine how 3PLs can be used in organizations to reduce costs and improve the efficiency of supply chain. There is also a discussion on potential risks facing 3PLs and how to deal with them by integrating technology. However, future research on this topic should entail conducting empirical work to validate the conceptual framework and provide statistical evidence of its importance. Future research on the study should also look towards establishing how information sharing between 3PLs and other supply chain participants is beneficial using empirical data. 

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