The pandemic has accelerated the growth of outsourced managed logistics services far ahead of analysts’ 2019 predictions.
In Gartner’s Logistics & Contract Manufacturing Outsourcing Survey conducted in 2021, 63% supply chain professions expressed a “very positive or extremely positive effect” from outsourced service providers and up to 74% are increasing their budgets for this essential area of supply chain management.
Logistics as a service providers employ logistics professionals to manage a company’s transportation network including freight for multiple modes, and inbound/outbound logistics from production facilities to warehouses, retailers, and end users/consumers.
The logisticians are experts at efficiency—always looking for ways to do it better, faster, and for less money. They understand how ever-changing market conditions, such as capacity issues, driver shortages, rising carrier costs, and customer service demands can impact the supply chain.
Their expertise also extends into operating a transportation management systems (TMS). There are a lot of robust TMS solutions on the market, and it takes time and skill to be able to utilize the system’s full capabilities. To unveil the best practices in transportation management, companies need detailed data that can be leveraged to create and track key performance indicators (KPIs). Once the data is interpreted, LaaS providers can work with shippers to develop new logistical strategies to better serve customers and reduce costs.
