The more things change, the more they stay the same. This old proverb tells us that turbulent changes often cement the status quo. That seems like a perfect description of the logistics world heading into 2011.
Amid all of the economic upheaval we experienced over the past two years, so much of the fundamental reality in what we do as logistics service providers for retailers and manufacturers has stayed the same. Yes, the market has shifted in many ways. Retailers are managing inventory levels tightly and asking manufacturers to take more responsibility in reducing costs in the supply chain. That has placed more pressure on logistics service providers to deliver for their customers.
However, the basic elements of delivering quality, cost-effective logistics services remain much the same. Can you deliver the goods when you say you can at the cost that you say you can? Can you do that for me today and can you do that for me in the fourth quarter when capacity is tight — when I really need it?
This fall, like every fall before it, we received numerous calls from retailers that couldn’t get capacity when and where they needed it. The trucking provider that quoted a rate in April was now charging double that or did not have capacity. It appears capacity will be tight in the U.S. market in 2011. Will customers work more closely with logistics providers to avoid sharp fluctuations in cost and allow for long-term optimization? Or will it be more of the same?