Growing Business Pressures

• The importance of being operationally resilient and efficient is an emerging trend. This requires boosting risk management capabilities in the design and management of operations so that risks related to business continuity can be mitigated without needing to rely on costly idleness.
• Sustainability – from both an environmental and social perspective – is an ever growing supply chain pressure, especially given the potential emissions impacts from transportation.
• Cutting-edge technology is vital for providing visibility and automating these new requirements throughout the supply chain. Such technologies include blockchain, IoT and AI, among others. Disruptive technologies such as vehicle “Uberization”, 3D printing and autonomous vehicles are likely to introduce additional pressures as well.

3PL Market Reality

• The market is highly commoditized, leading to tight margins and intense price competition as clients seek to optimize their value chains.
• The market is highly fragmented, which presents growth opportunities through M&As, especially considering the importance of economies of scale.
• The market is rife with inconsistency in service levels, and it is not always clear whether a global or local operator will be optimal in any given context.

Shipper’s Unique Needs

• With a focus on the end-user experience, customers demand ever more specific customizations such as ultra-express deliveries, channel integration, real-time order tracking etc.
• Because each sector needs specific types of customization, logistics providers are faced with a trade-off between being flexible for these needs while striving to remain cost efficient.

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