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.