Logistics providers are in a unique position to create the next strata of value by giving shippers a more complete view of their global processes to mitigate cost by eliminating waste and complexity. To get there means greater consolidation of providers.
The modus operandi? A fully managed, integrated supply chain service platform built on Predictive Logistics that flexes with rapidly changing market dynamics and business conditions.
Predictive Logistics is a multidisciplinary proposition involving a host of interrelated activities. These include trade compliance, logistics and asset management, procurement, supply chain services, business process engineering, manufacturing, and technology products and services. Because these are beyond the core capabilities of most 3PLs and even 4PLs, it will require uncharted cooperation heretofore between third parties, such as consulting firms, software companies and other external service providers orchestrated by a strategic consolidator.
Let’s break it down further: Trade compliance services include importer self-assessment, C-TPAT, free trade agreements and duty optimization; logistics management includes 4PLs, containers, ISO tanks and global trade optimization; procurement covers strategy and operating models, strategic sourcing, supplier strategy and performance, and procurement performance; technology services include system integration, service management, data analytics and IT outsourcing; and technology services include digital product development, 4PL platforms, predictive analytics and mobility and advanced tracking; and supply chain services include operating models, CapEx management and cost reduction.
Developing and delivering these services requires deep sector insight to solve strategic issues with business operations; holistic solutions to support shipper issues; and functional excellence across the entire operations spectrum. They also require a global footprint to fully leverage innovation, knowledge and talent across borders; robust analytics and innovative technology enablement tools; and outcome orientation and objectivity linked to measureable, sustainable financial results.
This new business model takes logistics to the next level to unlock additional value for global traders through greater efficiencies and significant cost that shall rightfully demand more.
Richard J. Bolte Jr., Chairman and CEO, BDP International