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January 7 2019

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Page 115 of 147 114 The Journal of Commerce | Januar y 7 2019 Logistics 2019 Annual Review & Outlook & Outlook & Global 3PLs are in a race with start-ups to deliver greater visibility and dynamic pricing to customers By Eric Johnson GLOBAL 3PLS THESE days might feel like they're in a vise grip. On one side, logistics software providers, both established and upstart, are try- ing to arm shippers with systems that render third-party logistics providers (3PLs) less important, while on the other side, some ocean carriers are aiming to recapture the supply chain management ground they ceded to 3PLs over the last decade. If anyone is used to the hus- tle, it's logistics service providers (LSPs) experienced in low-margin markets, but the burden to remain relevant is more pronounced than ever. Although much of the focus in 2018 centered on the impact digital freight forwarders worldwide might have on legacy companies, that simplifi es the challenges 3PLs face, especially those with extensive forwarding operations. Margin-based buying and selling of capacity probably isn't a sus- tainable model in an environment where shippers have detailed insight into freight rates. Relying on shippers to use obsolete or user-unfriendly systems Where technology meets pricing

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