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Logistics has undergone significant transformation in the past five years; as the rate of change accelerates, the path to future-proofed supply chains increasingly involves third-party contract logistics providers.
Logistics has undergone significant transformation in the past five years; as the rate of change accelerates, the path to future-proofed supply chains increasingly involves third-party contract logistics providers.
Published 01-31-24
Submitted by DP World
The world of logistics has undergone significant transformations in recent years, and the pace of change is only accelerating. Organizations in North America have had to navigate a range of challenges, from global pandemics to political instability, labor disruptions, and rising labor costs, all while contending with the emergence of new technologies like automation and artificial intelligence (AI).
In this ever-evolving landscape, the path to future-proofing supply chains is increasingly leading to third-party contract logistics providers, according to a recent article in the AJOT.
The article, “DP World Canada’s Expert Insights on Contract Logistics,” highlights several reasons why organizations are turning to contract logistics providers:
Mike Valentine, Chief Commercial Officer, USA/Mexico at DP World, raises a crucial question: "Is it smarter to develop innovative capacity in artificial intelligence and automation and build distribution centers across the continent, or outsource those costs and risks to contract logistics providers?"
The article identifies five logistics trends that are shaping the future of supply chains and making outsourcing to contract logistics providers more appealing:
In conclusion, contract logistics providers act as a relief valve for companies grappling with the complexities of the global economic, political, environmental, and technological landscape. This outsourcing allows organizations to concentrate on their core strengths, products, and brands while reducing risk, accessing innovation, and strengthening their supply chains.
As Tabare Dominguez, Vice President Commercial at DP World Canada, notes, “Complexity is increasing. Change is accelerating. Companies aren't just looking for partners that can help them make smart decisions about logistics. They want to outsource that function.”
Access the full article here: DP World Canada’s Expert Insights on Contract Logistics.
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