locations for sourcing products closer to their operations,” says Gonzalez. “Businesses that once could not get truck capacity at market rates are operating private trucking eets.” In this same vein, shippers are no longer content to have visibility to the technology and performance of 3PL providers. They want direct control and the ability to act quickly and with greater exibility.
WHAT DOES THIS DYNAMIC MEAN FOR 3PLS?
For 3PLs, the bene t of remaining a vital part of a customer’s supply chain is not new. In fact, 3PL providers should follow best practices established years ago—offering technology that a company may have little time or budget to implement, adding scale and scope, and being responsive to their customers’ needs, Gonzalez says. “The true value that a 3PL brings— whether as a partner or a subsidiary of a retailer—is talent,” he adds. “Knowledge and expertise are key differentiators for 3PLs, now and in the future.” n
Wilson Logistics is a Missouri-based trucking and logistics firm with more than 1,000 trucks. Ashley Furniture Industries affiliate Ashley Pacific Northwest has entered into an agreement to acquire certain assets of Wilson Logistics.
Gonzalez. “Every aspect of the supply chain is being re-evaluated.” With capacity constraints in most areas of transportation, including ocean freight, supply chain managers are rethinking many aspects of the supply chain as a means of gaining greater control. “Companies that once outsourced to China or Vietnam are looking at new
of cer. “In that world, you need to have consistency and control over your experience.” Supply chain managers have faced unprecedented challenges in the past two years of the pandemic. This new reality, according to Gonzalez, has created a desire for greater and more direct control over their supply chains. “In a word, it is about control,” says
Shippers acquiring third-party logistics (3PL) providers is part of their broader goal to gain end-to-end supply chain control, according to the Retail Industry Leaders Association (RILA). RETAILERS SHOP FOR CONTROL
Retailers have significant knowledge about customers and their buying behaviors, including seasonality peaks and valleys, but external aspects of the supply chain are the “great unknown,” she says. These functions include transportation and delivery of products to distribution centers, brick-and-mortar stores, or consumer homes. A pandemic, capacity tightness across all transportation modes, driver shortages, and congestion on highways and at ports make transportation and delivery even more challenging than in pre-COVID days. Whether they are buying third- party logistics or transportation providers, operating private
“Retailers are working to counteract the uncertainty of the past two years,” says Jessica Dankert, vice president supply chain, RILA. “In addition to owning 3PLs, retailers are also acquiring last-mile delivery providers and operating private trucking fleets.” Generally, “Companies look at the level of competency within their own organizations and search outside their internal resources to fill any gaps,” Dankert says.
fleets, forming more collaborative relationships with strategic partners, or advocating for infrastructure improvements, retailers are taking control of their supply chains.
238 Inbound Logistics • January 2022
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