The Digital Imperative in Freight Forwarding
Digital business models could overturn the dominant position traditional forwarders have long held.Read more
Facing fierce competition from a host of newcomers, logistics organizations trail behind the digital curve compared to other industries.
A number of key disruptors are challenging the livelihood and longevity of logistics enterprises. From strongly funded and scrappy startups, to customers-turned-competitors and shrewd competitors hatching completely new business models while partnering with—or acquiring—other players in the space, rivalries are fierce in the logistics ring.
A common thread among these threats is that most of the competition is deftly sparring with digital gloves. Integrators are taking bigger chunks of market share away from traditional logistics organizations by offering more streamlined end-to-end services, and suppliers themselves are digitalizing their offerings and operations. Today’s traditional logistics concerns are hard-pressed to avoid the flurry of digital jabs coming from the competition, let alone squarely land punches of their own.
Adding to this challenging scenario is the fact that logistics trails behind the digital curve compared to most other industries sectors, like media, telco, banking, and retail. Here, where poor transparency serves to exacerbate an already fragmented industry, traditional logistics companies are plagued by underutilization of assets, old and inefficient manual processes, and outdated customer interfaces that serve to decrease response times.
What’s needed is a prudent plan to weave in digital best practices and change the fabric of beleaguered logistics infrastructures.
The blueprint for transformation draws upon three key digital actions: develop new business models and offerings, digitalize core operations, and build a robust internal digital foundation. The success model for logistics organizations requires a number of inputs. Some of these include:
Digital Transformation and the Company of the Future
A radically different future is starting to take shape. Leaders of the companies of the future need a new agenda.
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