Why Many of the Largest LSPs Leverage a Supply Chain Orchestration Solution

Posted by Martin Verwijmeren on Oct 21, 2019, 5:06:38 PM

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Logistics service providers (LSPs) face a unique challenge. In addition to the evolving customer demands within an increasingly global, networked, multi-channel supply chain, these professionals juggle a variety of clients with differing supply chain and management needs.

Many of the leading LSPs, such as DSV, CEVA, and GEODIS, have opted for a more holistic approach to management through a Supply Chain Orchestration solution which connects siloed systems. Here’s how the solution provides such companies with unprecedented opportunities for superior service, innovation, and profitability.

Connect Fragmented Systems

Working with multiple organizations, logistics service providers must integrate fragmented IT landscapes. That’s why many of them leverage Supply Chain Orchestration solutions to connect to and complement disparate systems.

While many stand-alone Control Towers offer a single version of the truth, most solutions on the market are limited in their depth of functionality, in-app actionability, or in their end-to-end scope.

Rather than address a narrow pain point, a Supply Chain Orchestration solution connects to and complements disparate systems to help LSPs manage their entire ecosystem. For instance, with a holistic approach, they can make smarter planning and execution decisions by leveraging information about inventory, sourcing, and replenishment. By integrating inbound, outbound, and after-sales flows, logistics service providers create one smooth and continuous end-to-end flow, broadening opportunities for optimization and multi-party collaboration.

Create a Reliable and Dynamic Environment

logistics-service-providers-dynamicA good number of logistics service providers operate on a global playing field where they must manage highly complex and diverse supply chains with multiple sources and fulfillment centers worldwide. Add to that the challenges surrounding uncertainty, overseeing remote deliveries, and consistently and cost-effectively carrying out both regular and rush orders under strict time windows.

Many top LSPs leverage Supply Chain Orchestration to dynamically manage multi-leg and multi-modal transportation and integrate complementary processes into their flows, such as customs and special handling, to streamline international shipments. Because logistics providers work with substantial business networks, they enjoy the solution’s flexibility and configurability which allow them to set unique rules for each customer and always select the optimal carrier based on each order’s specifications.

Supply Chain Orchestration is also order-centric, which means the solution focuses on individual order requirements rather than batch processing. As a result, LSPs gain unparalleled opportunities for optimization through pre-booking, order consolidation, and decomposition. In the latter instance, logistics providers can “decompose” or break up complete shipments into various legs to isolate and optimize expedites, as well as control and monitor progress on more granular levels via milestones.

Support Future Customers and Service Portfolio Expansion

Staying relevant often requires that logistics providers expand their company’s service portfolio to attract new and diverse clients. A move that offers tremendous potential for growth, but also broadens the already hefty challenges, demands, and complexities LSPs have to deal with.

Supply Chain Orchestration is highly flexible, configurable, and scalable to accommodate different types of flows. Because it spans the end-to-end supply chain, the solution can easily integrate a wide range of systems to work with multiple different clients and markets — becoming one customer’s TMS and another’s reverse logistics – without having to introduce any new systems or silos.

The solution’s flexibility and configurability also allow these companies to onboard new customers quickly and seamlessly and go to market faster.

 

Businesses turn to logistics service providers to consistently deliver on the perfect order – no matter the geographic span, demand, or disruption. Accruing stand-alone capabilities builds walls between networks and creates organizational and functional silos. To stay ahead of the game, many of the most notable players opt for an integrated, natively multi-modal, multi-capable, and holistic solution, such as Supply Chain Orchestration. This way, they unify the disparate systems between networks and converge every supply chain function and flow to ensure no opportunity is missed.

 

MPO helps some of the world’s largest shippers and logistics service providers embrace the increasing complexity of their global supply chains and achieve real, sustainable results that drive business-critical performance, increase customer satisfaction, and reduce inventory and transportation costs. To learn more about how our unique and order-centric Supply Chain Orchestration solution can assist you in delighting customers and maximizing sales request a demo today!

 

Topics: Supply Chain Orchestration, Supply Chain Optimization, Logistics, Logistics service providers

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