GOODQUESTION Readers Weigh In Has the pandemic accelerated logistics outsourcing? Why or why not? Supporting Supply Chain Pivots
340%
In today’s unpredictable market, businesses need to be able to pivot without notice. The problem? It takes time to hire and train new people. Plus, bringing staff onto payroll is a long-term commitment. Outsourcing gives companies the agility and flexibility they need to address unexpected challenges or seize new opportunities. –Gabriel T. Ruz Jr. Chief Innovation Officer, Co-Founder, and Board Member Magaya Quick strategic pivots are critical to navigating freight market volatility, and the pandemic was no exception. Many shippers leveraged 3PLs and 4PLs to harness efficient procurement functions and meet capacity demands. Those who have established successful partnerships will likely lean on these resources moving forward. –Travis Paeth VP, Client Solutions, Arrive Logistics
The use of third-party logistics has accelerated since the pandemic, with new opportunities in last-mile e-commerce and carrier collaboration. We have seen tracked orders between network shippers and logistics service providers (LSPs) grow 340% year-over-year. As markets continue to rebalance, shippers still seek flexibility, resilience, and sustainability from LSP collaboration and innovation.
THE INCREASE IN LOGISTICS OUTSOURCING is due to the continual shortage of drivers and increased consumer demand for deliveries. Outsourcing to a company with more drivers offers businesses flexibility and additional resources to recover when an internal driver is sick or unavailable.
YES, ABSOLUTELY. The pandemic catchphrase has been “capacity issues,” which refers to multiple facets of the supply chain—including staffing, equipment, and business hours—reaching critical capacity. With shortages at every step, almost every company has been forced to reach beyond their comfort levels to rely on other logistics companies to assist and try to alleviate pressures. Our company has been fortunate enough to fill in those missing pieces for many clients that have been hit hard, but even we are at a certain capacity that hinders our rate of growth.
–Tony Harris SVP and Head of Marketing and Solutions, SAP Business Network
YES. THE ORGANIZATIONS THAT RELY ON 3PLs are reinforcing their commitment to outsourcing and concentrating on their core business competencies. 3PLs are investing in modernization efforts to position their clients for success in the marketplace, which is also helping attract new customers to outsourcing vendors.
–Nancy Korayim Founder & CEO MetroSpeedy
ADVANCEMENTS IN TECHNOLOGY have made outsourcing to a trusted network of professionals, especially to those that know your business and customers, easier and more cost effective than ever. –Patty MacIntyre Lead Operations Coordinator, Mickey
–John Wirthlin Industry Principal, Manufacturing, Transportation and Logistics Zebra Technologies
–Eric Vasquez Owner, Veterans Logistics Group
12 Inbound Logistics • July 2022
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