A modern logistics provider must have the technologies and processes in place to enable faster, more affordable shipping. They must continuously evolve capabilities to meet rising demand, and as explained by Global Response 3PL, they must avoid all forms of supply chain disruption. To stay competitive, shippers need to understand the value of a new provider of logistics partnership and how it will add value to the supply chain.
What’s Wrong with Your Grandpa’s Provider of logistics Processes?
A traditional provider of logistics focused on connecting shippers with carriers. This principle was relatively simple, involving a handful of carriers and maybe a few hundred shippers. With the rising complexity of global supply chains and the ongoing demands of e-commerce, traditional supply chain management functions within providers of logistics are ineffective. At the same time, the biggest providers of logistics built dedicated platforms and advanced features, and these functions came at a cost. Unfortunately, small and midsize businesses (SMBs) lack the resources to tap the value of traditional service providers. Moreover, supply chain management is no longer a manual, who-you-know process; it has evolved into a how-you-connect industry. That ability to connect is what sets the modern providers apart from those of the old age.
A Modern Day Logistics Provider Rely on Technology and Advanced Analytics to Optimize Operations
A modern-day logistics provider relies heavily upon technology. Modern providers rely on advanced analytics to understand what is happening, what may happen, what will happen if circumstances remained unchanged, and what needs to happen to achieve the desired result. The ongoing evolution of technology means a modern logistics provider must always remain forward-thinking, which enables responsiveness to new tensions, including the US-China trade war, uncertainty with e-commerce growth, preparation for peak season planning, and much more.
This is especially true for modern logistics providers that need to keep costs under control and still reap a profit. For example, the demand for capacity in 2019 was less than demand in 2018 which resulted in a capacity crunch. Even so, more third-parties are working on expanding fleets and securing more capacity for their clients. This ensures available capacity and as a result, scalability. It’s an ever-changing aspect of the modern supply chain, understanding what is happening and maximize performance through all scenarios.
Use Cases of A Modern Day Logistics Provider in Action
A modern-day logistics provider has common characteristics, including:
- The use of the cloud to test, launch, and manage operations. Cloud-based processes enable ongoing process improvement and reduce the risk of disruptions.
- Avoidance of disruptions within the supply chain. The modern supply chain is always “on,” and advanced providers must enable around-the-clock management. This is most easily achieved through readily available TMS and associated platforms, ranging from warehouse management through procurement as well.
- Utilization of third-party services. While logistics providers are still third-party entities, they often outsource core functions to enable better competition and offer more value to customers. For example, third-parties may outsource auditing and accounting services or even white glove services to expand service offerings and meet client demand.
Of course, modern providers will also play to the needs of clients, offering access to more shipping options, such as drop shipping, managing the dock, handling requests for white-glove services, and more. As technology and consumer demands grow, the functions and services available through a logistics provider will continue to grow in tandem.
The State of Freight Management
Move Your Supply Chain into the 21st Century With a Modern-Day Partnerships Now
Everything about today’s world has changed. Personal assistants are everywhere, and the smart home is the new standard for luxury. Today’s consumers have access to more information than ever before, and the business world relies on advanced analytics to function. Why should your operation as a retailer be any different? Bring your supply chain into the next century with a modern day logistics provider partnership now. Contact Cerasis to partner with us for modern day transportation management solutions.