As 2008 falls into our rear-view mirrors, we enter a 2009 full of change: change in the government, change in the global economy, and change in the industry. With the negative impact to the economy, 3PLs face even more pressure dealing with the high cost of logistics.
3PLs increasingly will work with customers to optimize their supply chains and reduce their costs through financial and operational benchmarking, network modeling and continuous process improvement. Customers will look increasingly to their 3PLs to support them in finding ways to reduce costs.
On the back of rising labor and shipping costs in traditional manufacturing markets, 3PLs will be counted on to support their customers and expand operations into new emerging markets.
3PLs are expected to offer innovative and cost-effective services. This applies particularly in the areas of green supply chains and supply-chain security, where IT technology is a key enabler.
Corporate social responsibility and consumer demand for green products, combined with ever-mounting political attention on emissions within the international transportation network, will further push for reduction initiatives to be run in a more collaborative setting. 3PLs will play a crucial role within this evolution because experience demonstrates that supply-chain greening typically comes with cost savings.
In addition, there will be a significant investment in time, money and required process changes that will accompany the new 10+2 regulation, which focuses on enhancing the country’s security.