What is collaboration? It is working together as a team to achieve a goal. But, how well do logistics service providers collaborate with each other? No two competitors can collaborate with each other without compromising the information and structure of both the companies. But, this is the only way to improve profits and efficiency in today’s world. Collaboration essentially incorporates value-added services, service expansion and the future of an organization.
When shipping a large quantity of products on a recurring basis, value-added service may include perks. They may also include industry expertise and training programs for partners. Value-added services are also known as fourth party logistics providers or 4PLs, that enable an organization to work smarter and more efficiently without increasing the cost of purchasing such services from another consultant. This increases their competitive advantage without risking the reputation of stakeholders.
Companies can collaborate and pool resources to complete their goals within the right time accurately. The benefits of logistics providers as 4PLs and collaboration is that the demand for reduced shipping costs can be addressed and the existing fleet and compliance measures can meet the changes in regulatory requirements. Organizations that collaborate with logistics service providers enhance probability and savings almost immediately because 4PLs can give both small and medium sized businesses access to better shipping rates, advanced analytics capabilities and a wider range of resources in order to improve efficiency in the shipping process. If you are looking for collaborating with one such service provider too, you can get in touch with Jayem Logistics, the top logistics service provider in India, who has been providing premium logistics solutions to its clients since the past 30 years! It is also the largest warehousing company in India with specially designed warehouses for space maximization and speedy turnaround time.
Another benefit of collaboration between 4PLs and shippers is that it helps to safeguard against any uncertainties in the industry. For example, let us talk about labour shortage that may come up in the near future with shippers turning towards robotics to improve efficiency. Thus, for the workers in shippers who do not have collaboration with large-scale logistics service providers or 4PLs, the potential investment requirements may get a company bankrupt. This means that big businesses that highly invest in their current systems will have a greater demand for skilled workers in new positions, and shippers will require large amount of resources to survive.
Logistics providers or 4PLs seek to build relationships with organizations that last longer than the typical 3-year contract. However, every time a contract is renewed, the terms change considerably, which are not in favour of the organization. This is why the cost of operating increases with each renewal of collaboration between logistics service providers and shippers. But, the duration of a contract indicates the stability of the organization and what the future of the company will be. This helps stakeholders decide better about how future projections and cost savings will benefit from collaborative relationships.
Today, very few organizations believe that logistics service providers can improve collaboration and result in better rates and efficiency for all partners for a longer tome. But, it is essential to realize that collaboration is one of the biggest trends for logistics service providers this year.