JAN - FEB 2019AUTOTECHOUTLOOK.COM7There's one thing that's sticking: the desire for greater transparency and data analytics that drive business insightsidentifying potential new solutions based on deep customer knowledge and industry expertise, and works with our centralized product development team to speed those products to market. One of these is our new, innovative visibility tool that provides real-time access to product location and status. This new cloud-based platform exposes excess capacity, leverages peer networks, and develops/outsources the right enablers, while providing a flexible and enhanced customer experience that extends beyond in-transit visibility to include inventory, assets, and people. These new consumer demands are expected to stretch the capabilities of supply chains and operational constraints that will reshape the landscape. And while it's creating greater complexity, it is also driving innovation. Regulatory ImpactsRegulatory compliance continues to play a disruptive force in the supply chain. For example, the electronic logging device mandate, which will take full effect on December 18, 2017, is pushing owner operators to reconsider the way they do business. While the mandate will ensure Hours of Service (HOS) compliance and safer driving behavior by replacing paper logs with more precise, reliable electronic ones, it is expected to cause a great deal of disruption from a financial and time standpoint. In fact, getting electronic logging devices into more than three million trucks by the December deadline is projected to cost trucking operators more than $1 billion according to the Journal of Commerce. Training truck drivers to use the technology could take months and lead to a decline in productivity. For this reason, it's important for the financial decision makers at any company, big or small, to be aware of new and changing regulations such as this, as they have a real potential to impact business. The electronic logging device mandate also has shippers on high alert. If a driver is placed out of service by law enforcement for violating the rule, then the shipper is at high risk for stranded/late shipments. Or, in the case of an accident lawsuit, if they had chosen to work with a non-compliant trucking company to move freight, they would be held liable.Why Outsourcing Makes SenseMany variables continue to apply pressure on logistics managers and fleet managers alike. The disruptors I've mentioned are just a few among many others, including the driver shortage, globalization, and the rising cost to ship goods to customers. These market forces are pushing more and more companies to outsource their supply chain and logistics functions to a trusted 3PL provider. This way, they can rely on a trusted partner for flexibility, visibility, and cost savings. They can take advantage of a variety of services that meet their needs, such as IT engineering, solution design and engineering, program management, and continuous improvement. An effective 3PL provider can seamlessly handle driver recruiting, training, and retention, as well as drive differentiation and value through investments in technology.There's never been a better time to leverage supply chains as a competitive advantage, but you'll need to climb down from the bleachers and get on the field to enter the game.
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