Page 19 - Logistics News August 2016
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outsourcing
has in the software industry. to over 20% of total sales in to re-evaluate their business
In this environment, logistics just three years. There will models, as well as their pricing
managers will need to craft be an emergence of creative and go-to-market strategies,
more incentive-based contracts ways to fully utilize available what technologies and
in which each side will need capacity, including co-shipping resources to invest in, as well
to share in the risks as well as and co-habitating even with as how they communicate their
rewards. competitors. value proposition to cargo
owners.
More risk will be transferred Meeting a cargo owner’s
to 3PLs, including headcount, capacity and service level A growth trend across
environmental, and supply requirements at a competitive the 3PL sector reflected an
chain performance. It’s going cost is no longer enough – improving global economic
to be about identifying logistics service providers also landscape, organic growth
the best people, and there need to meet the information of incumbent businesses.
will continue to be a major requirements of cargo owners However, the forecasted
competition for the best and - that is, provide them with economic headwinds in key
brightest talent. timely, accurate, and complete global economies and the need
data and insights. to invest in upgrading assets,
The wide array of equipment and technology,
technology and the rate of its What’s becoming clear is will place pressure on future
adoption will become more and that technology, including revenue and escalating costs of
more important in defining how access to IT resources and the leading 3PLs.
cargo owners do business with advice, are contributing more
3PLs. This will range from omni- to the overall value proposition To mitigate these challenges,
channel support to disruptive these days. Cargo owners 3PLs are investing in
technologies like drones, 3D are becoming focused not on capabilities that are focused on
printing, Internet of Things, transportation or warehousing higher-return business, carefully
driverless vehicles, advanced services, but on the master choosing when and where to
robotics, wearable technology data management and business aggressively compete for new
and ‘Uberization’. intelligence services the 3PL business in established vertical
can provide them. markets as well as seeking new
Future growth projections ones. •
show e-commence doubling This shift is forcing 3PLs
August 2016 | Logistics News 17
