Competitive advantage in logistics
In today’s highly competitive environment the logistics industry is changing at a fundamental rate. But what is the basis for this change?
- an established network that can create limitations
- new technologies that change cost models to call existing business models into question
- dynamic pricing that takes capacity utilisation more fully into account
The needs of logistics customers
The core needs of most customers haven’t changed; however, their expectations have increased. Whether those customers are consumers shipping packages, or OEMs partnering with an LSP on the production line, their needs are often the same.
The future of logistics
To meet the growing expectations of customers, whilst remaining profitable and generating growth logistics companies must have:
- an identity
- a strategy that homes in on markets where they have the ‘right to win’
- distinct capabilities upon which to compete
- an open mind to partnerships and collaboration if additional capabilities are required to succeed, and should
- create and review cost and resource efficiencies on an ongoing basis
Focusing on efficiencies, digital fitness, productivity and innovation to meet changing customer expectations is a must. Building and refining these and other capabilities, and then bringing them to scale across the enterprise will create a robust business.
Change in the competitive environment
Company culture needs to exude agility and flexibility to make it easy to work across boundaries. This is a ‘real’ challenge for a mature industry where change is not the norm. T&L companies need to embrace change to face the challenge for success, otherwise, they risk being left behind.
Digital transformation is key, and companies need to adapt to this in order to succeed in today’s marketplace.
Cost efficiencies are key
Logistics companies must manage costs effectively on an ongoing basis to reduce them. By creating resource efficiencies they can focus on lead generation, digitisation, asset productivity and innovation.
Investments have to focus on value propositions, partnerships, collaborations and key capabilities.
Disruption lies ahead
Companies need to anticipate how their capabilities will evolve. Successful logistics businesses will develop services and solutions that create demand through insights that:
- consider the industry, competitors and customers/prospects
- are bespoke to your logistics company to generate high-quality leads and customer retention
- create a competitive advantage for lead generation, relationship development, and bids and tenders
Fuel growth of your logistics company with Brittain. We are an unparalleled transport and logistics sector specialist.