It was interesting to read this week that one of the major Logistics companies attributed success with their second quarter results to the fact they have been “grabbing market share from some of it’s smaller rivals as a result of the COVID-19 outbreak”!
The company attributed their ability to maintain operations and connect with customers through technology had helped them to gain business wins at the expense of the mid and smaller sized 3pl companies.
The company cited that the smaller companies struggled during the height of the pandemic to maintain operations and effective customer connectivity.
This is an unfortunate situation but highlights to the Logistics Industry as a whole that regardless of size, you have to invest in technology solutions that provide you with a robust continued operation irrespective of any situations outside of your control.
Solutions that enable you to connect with your customers, maintain the flow of data and information, provide stable visibility and management of shipments and inventory will be a prerequisite and the customer’s expectations going forward regardless of the 3pl’s scale. Being easy to do business with through technology is now fast becoming the norm.
Whilst digitisation investments may initially be a challenge for some, the efficiencies and productivity gains they create will help to offset the initial investment and allow for better use of resources deployed to maintain, develop, and grow the business and in some cases ensure survival!
However, the good news is that the SME 3pl can indeed compete and fight back against the big boys with the right investments in technology!
The time for digitisation for the SME 3pls is here and now!