Shippers rely on 3PLs for supply-chain digitalization

Logistics providers are better positioned to test and integrate emerging technologies

Many shippers recognize the value of deploying technology to digitalize their supply chains. Robotics, artificial intelligence, data analytics, and sensors are some of the technologies disrupting traditional supply chains, and having the potential to create a new automated and efficient supply-chain paradigm. At the same time, new technology is developing so quickly that businesses are challenged to keep up with innovations and best practices.

A rcent report from DHL showed that over 75% of businesses recognize the potential cost reduction benefits of information technologies, 71% of companies consider transportation to be a strategic component of their business, and 63% believe that big data, artificial intelligence, and other technologies could enable smarter transportation operations. At the same time, fully 95% are not fully exploiting that potential.

Shippers are increasingly relying on third-party logistics providers to provide the benefits of technology implementation in their supply chains. The reason is simple—they don’t have the resources to investigate and experiment with emerging technologies.

“It would be hard for shippers to do that,” said Jason Gillespie, director of Continuous Improvement at DHL Supply Chain, North America. “We’ve worked with customers that adopted some of these technologies before partnering with us. Lots of times they don’t know what success looks like. They didn’t know how to integrate these technologies with their own systems. We can do better on their behalf.”