Hi,
This month, we were included in an article in Inbound Logistics, “Technology Enables You to Be Positively Different.” It was Q&A format:
How can logistics technologies be utilized as a competitive differentiator?
As a transportation management software company, we see shippers and 3PL’s urgently differentiating themselves because their respective markets are so crowded. Overall, companies prefer to attract customers by providing unique brand-driven customer experiences and services rather than compete on price. Strategic and practical use of the right technologies enables sharp pricing competitiveness, better customer experiences, reduces expenses and raises productivity.
What we are seeing in online retailing is an example. A few years ago, “shipping and handling” was a known profit center for online retailers—consumers bought product and paid to have it delivered. “Free shipping” was uncommon and typically offered by a handful of online retailers only during the holiday season. Times have changed with about 75% of the largest online retailers offered free shipping during the past holiday season. And, many retailers such as L.L. Bean and Target are now offering free shipping throughout the year, no restrictions.
Supply chain technologies enable such differentiations. In our example of online retailing, the logistics technologies have to dovetail into the entire supply chain structure, as online retailers must now specifically understand and manage transportation costs and quality level of carriers to be able to offer their customers transportation-based incentives.
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