www.joc.com 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
Shutterstock.com
Where
technology
meets
pricing
