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LATEST THINKING


Rethinking the Logistics Operating Model

Logistics service providers can use digital technology to rethink their operating models and gain on the competition.​

Overview

Logistics service providers (LSPs) can harness the power of digital and innovative technologies to forge new operating models and gain on the competition.

The changes affecting the future of LSPs have never been so fast moving. As many are still trying to pull away from the 2008/2009 recession, new innovations and technologies are pushing LSPs into a digital future—whether or not they are ready.

It's an exciting crossroads where LSPs must decide if they are going to stick with business as usual, or take a new path that may be ripe with opportunities—but also a few obstacles.

 

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Background

Accenture explores a variety of operating model options and ways that LSPs can take advantage of new technology to best the competition. Using real examples and illustrating how various companies can leverage cloud, digital, shared services models, analytic and telematics, this point of view shows LSPs the opportunities to reinvent the way they do business.

Key Findings
LSPs are on the cusp of sweeping change. The high performers would be the ones who adopt enabling technologies such as digital, big data, telematics and cloud to help increase operational visibility and flexibility—rather than being swept away by old and new future competition.

Analysis

As the world dives into digital technology, the speed of business is quickening—sometimes to the point that businesses may feel they are losing control. Yet the reality is that digital and other innovative technologies are opening up new ways of working that can put control back into the hands of LSPs.

Recommendations
The well-traveled path is familiar and comfortable, but technology has put a fork in the road where LSPs must decide on a new path forward.

The choices: relinquish control and allow e-commerce competitors and other players enter your lane. Or, be a pioneer that captures market share as technology opens the door to new opportunities