Logistic Companies Adopt Web Based Business Models

One of the benefits of attending this year’s Council of Supply Chain Management Professional’s Conference (CSCMP) was learning about trends that are on the horizon in the world of logistics. One such change is how technology is enabling companies to connect based on need and availability.

On a basic level, business models such as Uber and Airbnb put consumers in touch with service providers that have openings. For Uber, consumers are connected to drivers with the touch of a button. Only the drivers that are nearby and have available time respond to the consumer’s request. Conversely, Airbnb connects travelers to accommodations that are relevant to their desired location and can quickly see if the timeframe is available.

In the same respect, warehousing and distribution centers have situational or seasonal demands such as trucking and varying needs of warehouse space. Emerging to fulfill these needs are companies that make transportation and warehouse space available on an as need basis; and like Uber and Airbnb, technology facilitates the availability and scheduling.

One such logistics provider is “Quick Transport Solutions.” As described on their website, “We are your one-stop-shop for everything you need to run your transportation and freight logistics business. Our website allows you to post load or find trucks, post trucks or find loads . . .” For the most part, flexible transportation services are available on a regional level so a little research can put you in contact with a quick source for varying transportation needs.

Flexible warehouse space is a more widely known option; however, the communication platform (online and mobile scheduling) is expected to grow as companies look for low risk options for cost savings.

Regardless of how fast and wide spread online and mobile booking of logistics services becomes, I fully expect more national players to seize the opportunity to provide convenience and creative approaches to deliver more services on an as needed basis.

 

Executive Vice President Diron Raines leads client partnership engagement for nGROUP. Raines manages assessment and benefits case development to ensure a good fit prior to initiation of projects. He brings years of senior management expertise in strategy practice for a Big Four consulting firm, developing portfolio strategies, manufacturing strategy, operations planning and shareholder value analysis.

 

About nGROUP For over 25 years, the nGROUP Performance System for labor intensive functions has been adopted by executives in manufacturing and distribution facilities to solve business issues and achieve corporate objectives. As a consultant or on-site outscouring partner, nGROUP consistently outperforms other production methods, increasing productivity, quality and morale, and reducing labor costs by a minimum of 10-25%.