Logistics 4.0 or 4PL Collaboration

The continuing adoption of digital technologies and robotics by business, particularly during the COVID-19 pandemic, is forcing companies to adapt to new realities. This in turn transforms customer collaboration models pointing them toward stronger relationships and enhanced business trust.

The COVID-19 pandemic put companies’ use of advanced technologies to the test. Today, businesses are more keen to adopt more cutting-edge, advanced solutions to prepare for yet more unpredictable scenarios. This being said, the pursuit of independence and enhanced effectiveness must not mean novelty should be rolled-out thoughtlessly. Here at Rohlig Suus Logistics, we always check if a solution will generate optimal benefits for our customers, employees, business partners and the environment. While I believe the logistics industry is only starting out on its journey toward a full digital transformation, I can see new and worthwhile solutions popping up in the market increasingly more often. Businesses have also become more daring when it comes to implementing innovation.

Undoubtedly the other type of fall-out from the COVID-19 pandemic is a shift in the business operating model with companies increasingly more going for business diversification when it comes to supplier choice, industries serviced and the portfolio of services on offer. This approach substantially boosts business resistance to market volatility. I’m also seeing the pandemic accelerating the transformation of the existing collaboration model. Whilst the challenges we’ve had to face at the pandemic’s outset have visibly tested our business relationships, we are witnessing a growth in the popularity of 4PL-type projects. To-date, as part of 3PL projects, customers would approach service providers with ready-made logistics blueprints seeking concept confirmation. While 4PL definitely builds on this approach, it also incorporates the experience of a logistics services provider. Today, a customer provides data on its business, product segmentation and end recipients and the logistics company uses these data to design the ultimate solution in terms of cost-effectiveness and quality. On the one hand, this approach enables the logistics operator to tailor the best solution to a specific customer, and on the other, the customer needs to be able to put more trust in the operator.

Author:

Adam Galek, Rohlig Suus Logistics

Last Updated on January 19, 2021 by Karolina Ampulska