The topic of what will be the one or two most important changes in the non-vessel-operating common carrier/third-party logistics industry in 2016 comes with a long list of disclaimers as our part of the industry changes every day if not multiple times per day.
The most significant change in 2016 will be how individual NVOCC organizations are able to define and highlight where they and their teams create and deliver value and avoid becoming a commodity in a market that is increasingly becoming commoditized. Throughout 2015, the entire logistics industry moved away from expanding the definition of value, having succumbed to the continuous forces of too much supply, not enough demand and the weekly auction sale of vessel space.
Looking at other industries, we see continued attempts by organizations to find places where customers will pay small but meaningful premiums for better or advantaged service offerings. However, the logistics industry appears to be nearly 100 percent focused on cost optimization, combining ever increasing automation with global outsourcing moving ever farther away from the customer to the point that relationship selling will soon only be a chapter in the 1995 guide on how to become a great salesperson.
In the new year, NVOCCs have the opportunity to convincingly demonstrate value creation. Supply chain management is not simply a logistics term, but why NVOCCs exist. The handling of first-mile pickup, last-mile delivery, coupled with a dynamic visibility product, will provide NVOCCs the necessary data to help their customers reach optimal solutions and not simply ship a container from point A to point B. We must as a vital part of the logistics industry demonstrate our ability to change now, before it is too late.
Alan Baer, President, TTS Worldwide