Over the past 10 years, the landscape of Fourth party logistics (4PL) has changed in major ways, and we can expect it to grow and evolve even more with emerging ‘smart’ working practices and mobile technologies. Competition within the industry is heating up to serve the increasing demand and efficient and accurate 4PL processes geared towards decreasing costs while providing 24/7 services will be crucial for owners to adopt for future success. Here are 4 short-term predictions for fourth party logistics in 2020.
Increased collaboration between shippers and fourth party logistics companies.
Fourth party logistics companies will rely heavily on technology to collaborate, connect and engage with their customers. Electronic data exchanges will become vital, not only for the performance and integrity of the data, but the increased flexibility and speed of change it allows for.
Fourth party logistics technology will become smarter and more dedicated.
Smarter software and technology systems investments will be pursued by companies in 2020. Transportation Management Systems type software solutions will lower both costs and inefficiency while saving time. We can also expect to see standards elevate to voice prompting and commands for supply chain processes like inventory inquiries and tracking freight. There will be improvements in speech recognition software for direct Warehouse Management System communications that will help with inventory records and order turnaround.
The globalization of the economy.
In 2020, world economy integration and 4PLs will be expected to work on a larger scale with a distinctly global outlook. Global distribution presents many opportunities and will open markets worldwide with increasingly complex supply chains, cost variations and processes which will give rise to expert 4PL’s. Next year we can also expect to see many challenges being faced down to increase growth dramatically, largely due to emerging and expanding markets on a large scale. Swift change will happen within the fourth party logistics industry along with standardization in shipper and supply chain management expectations.
Increased focus on environment sustainability.
By finding effective solutions to reduce inefficient processes, a big focus will be placed on sustainability next year and going forward. Building and equipment will be purchased based on green-friendly cost-reductions in transportation and energy use. To lower overhead costs, businesses and even some competitors will combine their transportation of goods to cut overall maintenance and fuel costs.
Over the next five years, the industry will be shaped by technology in vital ways. Companies who are adaptable and quick to adopt these changes will lead the field. Let TSI assist your business with our advanced system and expertise. Send an email to firstname.lastname@example.org to find out more.