Bright future for the LSP

Bright future for the LSP

by Cliff Lynch
1. February 2013 09:18

According to Armstrong & Associates, revenues from value-added warehousing in North America for 2012 totaled approximately $35 billion; and they forecast that while there will be growth in 2013, if will be fairly modest due to the economy. With all due respect to Armstrong, I believe just the opposite will be true.

As supply chain managers have been plagued by uncertain economic and industry conditions, they have learned that to offer cost-effective service to their customers, they must be much more flexible than they have been in the past. Shifts in modes and networks have been necessary to ensure lowest costs and maximum service levels. And flexibility is just what an LSP offers. By outsourcing major parts of supply chain activities, it is much easier to make modifications when necessary. Making these same modifications with company-owned assets is much more difficult and time-consuming, particularly when the supply chain manager usually is operating with fewer resources.

In my opinion, all this bodes well for the logistics providers. As long as they keep costs in line and effectively offer the service their clients require, 2013 could be a very good year.

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