F or more than two decades, Uncommon Goods has partnered with artisans and craftspeople to offer unique gifts and home decor—like vases shaped in Xs and Os, personalized kids’ books, and travel cubes crafted from recycled saris. This business model creates supply chain challenges. Many of the company’s 7,000 stockkeeping units (SKUs) are fragile and produced in small batches. Inventory can vary greatly from one season to the next. Many artisans, like other small business owners, have less-than-standardized shipping functions. “It is challenging to support working with these artists,” says Robert Carucci, head of operations. In addition, Uncommon Goods’ order volume can swing dramatically during the year. To tackle these challenges, Uncommon Goods turned to ITS Logistics, a third-party logistics (3PL) provider that offers national omnichannel distribution and ful llment services. ITS helped to revamp Uncommon Goods’ ful llment and distribution operations. FACING CHALLENGES Many retailers, manufacturers, and other shippers have confronted several years of supply chain challenges. Among them: between May 2020 and May 2022, long distance truckload rates jumped about 64%, according to the St. Louis Federal Reserve. Shipment transit times between China and the United States jumped from about 40 days pre- pandemic, to about 70 days in July, August, and September 2021, the World Economic Forum reports. Now, many shippers are attempting to make sharp turns and shift from re ghting for capacity to developing the foresight that can inform their strategy over the next few years, says Rupal Deshmukh, principal in Kearney’s strategic operations practice.
Logistics providers’ ability to help shippers address these challenges is one factor driving growth in the global logistics market, which is expected to increase by nearly 7% annually between 2022 and 2030, FTI Consulting predicts. Also boosting the logistics market is growth in e-commerce logistics, shortages of containers and drivers, port closures and congestion, and restricted airfreight capacity, FTI says. But even as it grows, the logistics provider market faces challenges. “The market is soft, with a lot of competition vying for the same freight and customers,” says Ben Ben eld, director of customer operations with EASE Logistics, a supply chain and transportation solutions provider. Many logistics providers operate on low margins and can nd it dif cult to add talent and technology to create extra value. That’s particularly true for smaller rms, who must spread any investments across fewer clients. Many struggle with low levels of digitalization, fragmented and disconnected systems, and a lack of data sharing across the shipping chain. However, “the success of the largest players shows a great return on investment in technology,” says Inna Kuznetsova, chief executive of cer with ToolsGroup, a global supply chain
planning and optimization rm. To differentiate themselves, logistics providers need to leverage technology to assist with supply chain planning, inventory optimization, and providing exibility in tracking and rerouting. “It requires the logistics providers to have a good grip on their own data, integrate with customer systems, and be more than just the travel agents for the goods by becoming true partners in shipping,” Kuznetsova says. TECHNOLOGY THAT FITS The technology implemented by logistics providers should t and enhance shipper operations, says Steve Simonson, vice president, Tompkins Solutions, a subsidiary of global supply chain services rm Tompkins International. This can include integration with the shipper’s order management system (OMS), real-time information dashboards, and warehouse management system (WMS) functionality that directs activity on the warehouse oor. Even as technology becomes more important, service remains key. “The logistics companies who provide great service and communication will remain leaders in the industry,” Ben eld says. The following logistics providers are demonstrating that they’re among this group.
At the same time, shippers are monitoring potential challenges, such as in ation and possible recessionary conditions.
For Uncommon Goods—an e-commerce retailer that sells products created by artisans and artists—a partnership with ITS Logistics ensures the right product ships immediately and arrives in perfect condition.
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