Supply Chain As A Service

The supply chain now is coming to the place in both the marketplace and capabilities where it makes sense to view as a service. A very significant piece of these capabilities is related the omni retail marketplace and the growth in the market of third party logistics providers.  This is a turn of the market that makes sense when looking back on how we arrived in this time and place. I believe the realization of the supply chain as a service is the natural progression of market pressures to reduce costs and also an increase in niche and eCommerce retailers that have exploded in the market and all of these influences and demands bring us to this place where the third party logistics providers along with supply chain services and the Internet of Things driving connectivity and flexibility capabilities are converging to drive the supply chain as a service opportunities.

These factors and capabilities have come together at a time that allows the three party logistics providers to seize the moment and step into the market to provide supply chain functionality as a service and provide focused services that support all of the market’s demands.  The third party logistics providers themselves have been going through a transformation that is both driven and supported by a consolidation in the marketplace that allows the visionary and bold providers to provide a one stop shop for services that can grow and support the changes in the market.  Third party logistics providers have been focused on services over the recent years that is truly helping many of the players to participate in the market in a manner that would not have been possible even 10 years ago.

Just like other services, supply chain as a service as it has come together allows the participants in the market to focus on the activities that make them special and contract for services that are necessary for their success but they cannot provide the same level and types of services in the same time frame that a third party logistics provides can deliver the services.  These practices and relationships have truly driven the market and shaped the services demanded of the participants in a way that allows the smaller participants to enter the market with a much higher probability of success and these smaller niche players have taken these opportunities to change and topple the bigger players in the market. This is essentially a key factor in the disruptions currently experienced in the retail omni marketplace.

This is an exciting time in the market and especially in the retail marketplace in a manner that allows the participants to collaborate directly to shape services and capabilities to meet the shifting demands of the consumer.  As I have said before consumers have used technology and network services to take control of their shopping and purchasing practices. The smaller retailers, in partnership with third party logistics providers, are using these capabilities disrupt the market and the participants in this market must maintain an open and collaborative practice to understand and react to the consumer demands and supply chain as a service will support these demands effectively and efficiently