Optimizing Supply Chain Visibility A Competitive Edge for LSPs

Logistics service providers (LSPs) are experiencing their most vibrant and challenging era. Many venture capitalist-backed innovators beckon logistics executives with the promise of digital transformation as consumer-led expectations of speed and cost spread through all businesses. Simultaneously, competitive threats, geopolitical turmoil, and ongoing disruptions from various sources continually drive the need for increased operational agility.

With this backdrop, it is not surprising that demand for the services provided by LSPs is strong and growing, driven by online shopping, globalization, trade complexities, and an increased need to focus on core business competencies.

LSPs aim to fend off new disruptive competitors by building innovative digital platforms and tools to drive efficiencies, speed, and visibility for themselves and their customers. Leveraging this shared value will help customers access the best of new supply chain management tools with less investment of time, resources, and capital expenditure. As a bonus, more tightly integrated collaboration gained from a common platform leads to greater operational performance.

This is a journey for the LSP and the customers, not a fad or one-time project. At the epicenter of supply chain management is data and the insights it provides. LSPs will need to continuously assess and build a range of digital supply chain solutions to add value for customers, differentiate their service offerings, and reduce costs for everyone where possible.