The Strategic Advantage of Being Carrier and 3PL Agnostic
Why Manufacturers and Distributors Should Own Their Supply Chain Data
In today’s fast-paced logistics environment, manufacturers and distributors have long relied on third-party logistics (3PL) providers and carriers for supply chain tracking and reporting. While this approach has worked for years, the growing complexity of supply chains and technological advances are revealing its limitations. Companies are now realizing the benefits of harnessing their own first-party data and adopting a carrier-agnostic approach. This isn’t just about managing data — it’s about gaining a strategic business edge.
The Drawbacks of Relying on 3PL Telematics
Depending on 3PL telematics for logistics tracking comes with several challenges:
Limited Data Control: When relying on 3PLs, companies lose control over the timing, accuracy, and detail of their data. Tracking is often limited to truck or railcar levels rather than detailed, pallet-level insights.
Lack of Customization: Third-party systems force you to adapt to their tools and reports, which may not align with your operational needs or analytics frameworks.
Data Security Risks: Data passing through multiple third parties increases the risk of breaches or misuse. Managing data through a single, first-party partner is safer and easier.
Vendor Lock-In: Integrating with a specific 3PL can create compatibility issues and high costs if you want to switch providers or systems.
Fraud and Shipment Integrity Issues: Third-party reporting may not provide full visibility, increasing the risk of fraud or tampering during shipment.
The Benefits of First-Party Data Access
Moving to a carrier-agnostic approach — where you own and control your data — offers several advantages:
Complete Data Control: You decide how and when data is collected, ensuring it’s accurate, timely, and detailed enough to meet your needs.
Seamless System Integration: First-party data integrates smoothly with your existing ERP, WMS, and CRM systems, eliminating the need for costly system overhauls.
Real-Time Monitoring: Track shipments in real-time and respond quickly to disruptions or opportunities as they arise.
Carrier Flexibility: You aren’t tied to any single logistics provider, making it easier to switch carriers without disrupting your data flow.
Advanced Technology Capabilities: Using first-party data lets you leverage IoT, AI, and blockchain for improved tracking, predictive analytics, and secure operations.
Unified Multi-Modal Tracking: First-party tracking devices stay with the shipment across different transport modes, ensuring continuous data flow and avoiding integration issues with multiple 3PLs.
Greater Resilience: Owning your supply chain data reduces your reliance on third parties, making your operations more resilient to disruptions.
Real-World Example: Simplified Data, Greater Control
Consider a laptop manufacturer shipping goods from Asia. Traditionally, they rely on 3PLs and carriers for updates, receiving information only at waypoints or major milestones. This limited visibility means they may not detect damaged goods until they arrive at the destination. Update frequency also varies depending on each carrier, making tracking inconsistent.
By using a first-party tracking device, such as those offered by Suply, this manufacturer can track shipments at the pallet level throughout the journey. They receive real-time alerts for any issues, such as damage or tampering, and the data integrates directly with their internal systems. This eliminates the need to log into multiple carrier platforms or rely on third-party reporting.
Future-Proof Your Logistics Strategy
3PL providers and carriers will always be a part of logistics, but relying solely on their data can limit your flexibility and control. Manufacturers and distributors who adopt a carrier-agnostic approach and harness their own data will be better positioned to adapt to market changes, enhance efficiency, and improve security.
Taking control of your supply chain data means investing in agility, transparency, and resilience. By prioritizing first-party data, you gain the insights needed to drive growth and stay competitive.
Ready to take control of your logistics data? Suply can help you simplify and optimize your supply chain.
