“The logistics transport evolution: the road ahead” is a reportby DHL Supply Chain, using data from research by Lieberman ResearchWorldwide, LLC (LRW) that was commissioned by DHL to identify thefactors that are impacting ground transportation logistics and howindustry is adapting to the new frontier of solutions available.The report found that across sectors and regions, companies areincreasingly viewing ground transportation as being more than atactical commodity, with 71 percent now considering it to be astrategic component of their businesses. Companies agree there is adirect correlation between ground transportation and businessperformance with three quarters (75 percent) believing investingtime and resources in ground transportation will directly helptheir company sales.
Jim Monkmeyer, President of Transportation, DHL Supply Chainsaid: “Customer expectations for almost instantaneous delivery bornof e-commerce are helping to position ground transportation as animportant service differentiator. This is compounded by theincrease in urbanization, or major population influxes to urbanareas as we’re seeing here in North America, congesting traditionaltransportation models and causing executives to rethink theirapproach to distribution in this modern era. For all these reasons,transportation conversations are happening now at the C-suitetable.”
According to the report, the exponential growth of e-commerceand its implications on service was identified by 65 percent ofcompanies as having a significant impact on their supply chain inthe next one to two years. To manage this evolution, executives areturning to technology to empower their strategic decisionmaking.
Monkmeyer added: “As we learned in our digitalization researchearlier this year, these studies emphasize the need for visibilitytools and technology to not only manage goods, but also ensure apositive experience for the end-customer. Platforms that enableend-to-end supply chain monitoring and risk management, such asDHL’s MySupplyChain and Resilience 360, are now essentialcomponents of successful and strategic business operations.”
Although these changing dynamics are being witnessed acrossregions, variations can also be identified depending on thematurity of the market and the demands placed on shippers fromtheir consumer base. In Latin America, the priority considerationin selecting a ground transportation provider is on time deliverywhile in Europe, where the market is more mature, optimization ofnetworks is the key focus for shippers.
Broader societal factors were also highlighted as presentingassociated challenges, with 61 percent of companies referencing theincrease in urbanization as a factor that will significantly impacttheir future business. Technology and its ability to help managethis complex environment is increasingly seen as a standardrequirement of 3PLs: more than two thirds (67 percent) of companiesbelieve that big data analytics and artificial intelligence (AI)are services that are essential for 3PLs to offer their shippercustomers.
