Given the growing demands on logistics service providers (LSPs), your business may well possibly need a wider range of capabilities. Considering the high demands of the global trade in the current scenario, simply being the low cost service provider is not enough to win the businesses. Your business needs to transgress beyond the purview of offering just cost-effective solutions. Becoming a technology-driven LSP is not the only key to winning new contracts; it also includes promoting stronger client partnerships, something which is harder for the competition to overcome.
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In fact recent trends indicate a more concentrated focus on client relationship management. It is increasingly becoming a high priority for LSPs. As supply chain gets more demanding, LSPs are finding new and smoother ways to interact with their clients. The LSP as well as the client are constantly moving towards making strategic investments in collaboration, visibility, and execution technology to improve the quality of their business partnerships.
Moreover, customers today expect advanced and adaptable solution offerings from their LSPs than just price. What exactly is an advanced solution offering? It is all about end-to-end solutions that ensure real-time visibility and accuracy and a faster and easier access to information, working hand-in-hand with users and client’s systems. IT solutions that cater to this aspect of LSPs operations give the users a clear advantage. |
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All-round Visibility
LSPs now have access to technology that can offer their clients real-time information through secure browser applications and even via smart phones. Such technology enabled solutions can provide a clear advantage to the LSPs as their clients can have access to such information from anywhere. The information then can even be made available across the broader supply chain thus providing an all-round visibility. As a result, LSPs save on costs, enhance customer service and increase margins.
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Fast and Easy access to Information
As information is available real time across the supply chain, it can be accessed easily and faster, harnessing the internet technology. The clients will benefit from faster speed to market, improved quality and consistency, and rapid response to changes from a solution built with such technology enabled capabilities. . It will help the LSP be more proactive and sensitive to the client requirements leading to continued client retention.
Integrated Information |
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Integration technology has advanced over the years to allow faster and easier integration with various client ERP applications. Today, separate client system data can be integrated with the LSPs applications easily. Users get the combined information, from both systems on a single screen, all without the requirement of extensive IT work. Clients benefit from easier information exchange with their LSPs, less IT investment, and improved quality and efficiency of their LSP partner.
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So, LSPs are increasingly using IT technology that are tailored to their unique requirements in an effort to provide enhanced service levels without shooting up internal costs. On the other hand, companies that use LSPs are taking advantage of supply chain visibility tools, and making full use of electronic system-to-system communication methods like EDI to leverage their LSPs capabilities.
With the help of a growing edge technological solution a LSP can deliver more complex services while keeping operating costs below those of the manually-driven or lesser technology driven processes of its competitors. The LSP also benefits from increased retention, closer client partnerships, and stronger value propositions for attracting new clients and revenue sources.
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The growing edge technological capabilities enable the LSPs to share a valued partnership with the clients in today’s ever changing economy. Without these technological advantages, LSPs may be unable to reduce their prices low enough to overcome the higher client ROI offered by greater technology-driven competitors. As a LSP, your customers represent many industries with varying requirements. And with more players in the outsourced distribution market, you have to differentiate in order to stay competitive.
It can very well be concluded that in order to gain a competitive edge it is important for LSPs to enhance their technological capabilities and client relationship instead of concentrating just on the price front. To achieve this, the LSP has to make a prudent choice in selecting the technological partner who has the expertise in domain and technology and is attuned to the industry’s requirements.
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| Mr. Amit Maheshwari is CEO and Co-Founder of Softlink Logistic Systems Pvt. Ltd., India’s leading software products company, which has recently launched two new products, ‘Logi-Sys’ & ‘X-Ponent’. Mr. Maheshwari has over two decades of cumulative logistics industry knowledge, experience and technological expertise. He can be contacted at amit@softlinkglobal.com. |
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