Shippers, 3PLs Highlight the Need for Supply Chain Agility
The movement of goods is being transformed through the power of data-driven insights
The movement of goods is being transformed through the power of data-driven insights
An efficient and reliable supply chain gives companies a competitive advantage. Yet shippers and third-party logistics (3PL) providers must be agile to meet the supply chain's increasing level of complexity.
The ability to be agile and react quickly is paramount as retailers and manufacturers work to keep inventories low, respond to faster shipping demands and adjust to changes in demand patterns within the global economy.
Shippers Are Willing to Try New Approaches
The desire to reduce costs, improve delivery times and optimize networks is driving a willingness to eschew traditional business rules, particularly with tightening capacity in the trucking industry, said study participant Andy Moses, senior vice president of solutions and sales strategy for Penske Logistics.
"When there is no capacity, those conversations change," Moses added. "Today the focus is on maximizing utilization and resources, as they are becoming more limited, and moving products to the end user in the most economical way."
Investments in Visibility and Predictive Analytics
What's more, according to the 29thAnnual Third-Party Logistics Study, both shippers and 3PLs said they are making investments to increase supply chain nimbleness. Shippers and their logistics providers invest in technology to increase agility, prevent and manage disruptions and optimize networks. Sixty-eight percent of shippers and 3PLs noted control tower visibility as a must have while 54 percent of 3PLs reported they had already invested or were currently investing in advanced predictive analytics.
Moses told researchers he expects to see increased use of technology throughout the supply chain, which may bode well for logistics providers.
"3PLs might be in a better position to make these investments because of the diversification of their customer base," he said. "They can spread the costs out and make more cost-effective decisions when investing in or creating new technologies."
Technology has helped 3PLs and shippers improve their ability to react quickly, and the movement of goods is being transformed through the power of data-driven insights. The use of technology is exploding within every area of the supply chain, which is driving increased agility, the study reported.
