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  • Writer's pictureJeremy Conradie.

Supply Chain Discussion: It's a Great Time to Be a Logistics Service Provider

Updated: Dec 4, 2023

In this discussion with Helen Atkinson from Supplychainbrain, Mike Riegler (senior vice president, global LSP market, at One Network Enterprises) talks about how logistics service providers (LSPs) are in a great position coming out of the last few years of turmoil. This is because they're armed with expertise, data, technology and C-level executives who will listen to them.

When you look at who is at the epicenter of all of the logistics and supply chain activities, you're going to find the LSPs at every single node. They're in the front row for all the fun. But they're also there for the ability to actually impact it.

That means doing more for customers who need help.

The LSPs have been focused on transaction functions and services, moving something from A to B, or maybe running somebody's warehouse. Now, the requirement is, ‘Wow, I've got a supply chain that expands into end-tier networks and suppliers. I've got customers all over the world. I've got different business units.’”

Riegler says logistics providers are now looking to serve the customer’s supply chain from end to end, including inventory management, risk management, sustainability and overall resilience.

This is far more. It's a great time for transforming into Not-Your-Uncle's LSP anymore.

That requires what’s often referred to as orchestration.

When you look at the customers, these global shippers and their networks, there are many, many people involved. Many systems. Many functions. When these companies are raising their hand for help, it has to be an orchestration play that goes across these various entities. And guess what? It might not even be something that you're doing, but you have to orchestrate other parties.”

Nucleus would interject at this point that orchestration is a large part of why we are a 4PL Supply Chain as a Service provider. Also as discussed here.

The challenge is to be able to look at the big picture and make sure everyone’s doing the right things at the right time, Siegler says.

Nucleus couldn't agree more.

Source: Supplychainbrain

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