Every industry, including ours, must evolve to stay competitive. The excitement in transportation and logistics lies in the pace of change, and in our industry’s response to it. The evolution of supply chain services will be driven not solely by what customers need, but also by the technologies developed to meet those needs.
Automation is becoming more pervasive across the supply chain. Innovation is providing the answers to secular trends such as the rise in e-commerce, which touches contract logistics, last-mile logistics, brokerage, expedite, truckload and less-than-truckload. In the long run, technology will solve the driver shortage, as well.
Lean inventory management is another good example. As manufacturers, distributors and retailers transition to just-in-time strategies, they can spend more on transportation, less on carrying costs, and still realize a net savings. In response, 3PLs are finding ways to ensure even higher levels of reliability.
Today, more customers are seeking end-to-end supply chain solutions from fewer, larger providers. Technology is the glue that allows these services to be delivered with the utmost efficiency. And looking at the longer term, the practical applications of artificial intelligence and nanotechnology are likely to transform how goods are stored, handled and delivered.
Customers are evolving in directions that demand new thinking — and technology has the power to disrupt our industry in the best possible ways. The supply chain providers that thrive will be those that embrace constant, sometimes dramatic, innovation.
Bradley S. Jacobs, CEO and Chairman, XPO Logistics