Logistics providers need to reinvent their business model in order to meet buyers more demanding requirements. Buyers are seeking consistent global capability to provide greater reliability at lower total cost. This requires managing trade-offs between cost of inventory, transport, and storage. This calls for end-to-end integration, more tightly engineered synchronization, industry specialization, and optimization. This implies deep integration with buyers and partners across people, processes, information, and cash flow.
Market shapers will develop shared user offerings which will be difficult for buyers to substitute. They will develop componentized solutions to increase returns, and will move away from country-centric to global line of business profit & loss management as portfolio managers. Tighter integration delivers greater value and increased lock-in across the network. Success will be measured by how well they increase reliability and reduce total cost
The extent of incorporating technology advances into logistics services may ultimately separate the winners from losers
At SquareOne, we recognize this and offer our customer with plethora of insightful engagements using analytics as the system of engagement.