more diverse and interdependent set of
systems, technology platforms, and data
sources across the supply chain than
ever before.
Most 3PLs will say that it’s still arelationship-based business. Yet whilean important factor, for next-generation 3PLs, “our value has to go deeperthan someone you knew,” says TomCuree, senior vice president of strategyand innovation for West Chester, Ohio-based 3PL Kingsgate Logistics. “Thewhole evolution of technology has beentransformative for us. It’s challenged usin a healthy way … we are taking a muchmore customized approach to solutions[yet] we don’t want [the customer] tolose that personal touch and experience,” he says.
Shippers are looking more and moreto their 3PLs to lead the charge in providing process automation and integration between what have been disparatesystems and sources of logistics information, observes Erin Van Zeeland, groupsenior vice president for Green Bay,Wisconsin-based Schneider Logistics,one of the industry’s largest providers of transportation management andlogistics services. “It’s critical for a TMSAmong the third-party software platforms that Schneiderhas integrated with are Trucker Tools, for freight matching,automated load booking through its Book It Now app, andshipment visibility with small fleets and independent truckload operators; and Truckload.com, for automated bookingof truckload shipments with third-party carriers.
Shipper expectations for, among other things, real-
time visibility, innovation, and responsive, flexible service
options reflect the undeniable influence of the Amazon-
driven online buying experience enjoyed by today’s con-
sumers. That’s a key driver behind the next-gen 3PL evo-
lution, she notes.
“We as consumers have a completely different expectation than what existed years ago with visibility,” VanZeeland explains. “In our personal experiences, we like theAmazon model and so do our customers,” she says, notingthat Schneider Logistics and its customers are focused ondriving more connected, automated, and intelligence-basedprocesses. At the end of the day, it’s about breaking downsilos and bringing timely, accurate data and quality decisionmetrics to the shipper’s table. “What was once tribal knowledge within an organization is now very much accessible,”she says.
A BRIGHT FUTURE FOR OUTSOURCING
Will outsourcing remain a key strategy for shippers as needsrapidly evolve, technology continues its inexorable march,and the next generation of 3PLs negotiate a winding pathof change?
Without a doubt, says Geoff Turner, president and chief
executive officer of Choptank Transport, a $300 million
national 3PL and freight brokerage firm based in Preston,
Maryland. “The significant investments 3PLs are making
will keep outsourcing attractive because most shippers
can’t keep up with the pace of technology development on
their own,” Turner says. “They want to focus on their core
competencies and let their 3PLs continue to invest on the
logistics tech side.”
For Turner, keeping up with the pace of technological
change—and customer demand for the newest and great-
est—is the biggest challenge. “Our backlog of technology
integration work is huge,” as shippers increasingly want
more sophisticated tools and faster access to more data,
more frequently, he says. One challenge he sees is continu-
ally educating shippers on just which technologies are most
important and relevant to their needs, are effective and
deployable, and properly align with and support joint goals
and objectives.
“Five years ago, there were a handful of solutions” ship-
pers and 3PLs would consider, says Turner. “Now there
are dozens.” Consequently, shippers “are inundated with a
barrage of ‘bells and whistles,’ which makes it a challenge to
know what’s real and what’s marketing hype.”
Strip away all the hype, and “what [shippers] are really
