A glimpse to the future of 3PL industry.

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Illustration classifying L&T players according to risk adoption on business models and differentiation on technology.

Illustration classifying L&T players according to risk adoption on business models and differentiation on technology.

In our last post we opened the subject about the wrong-called “new disruptors” of the logistics and transportation industry.

In this post we will try to make a classification of players to show our vision on how and why disruption is going to happen across the industry.

The combination of new business models with modern technologies will reformulate, bottom up, the once-and-again recurrent strategic topics; will displace traditional players and raise the expectations of customers to new standards.

We have illustrated this with a 2×2 matrix that crosses the dimensions of business model and technology, to discretizes players, closer or farther, to the maximum value performance.

Traditional 3PLs

Players running Traditional Business Models using Standard Technologies.

They keep a conservative position in terms of risk taking, and don’t run or even have a differentiation plan through digital transformation.

Unless they may have already developed strong competitive edge, they will face a dilution of yields due to the exposition to price competition.

Trapped in this category we find most of the 3PLs today: immobile companies to the changes, challenges and opportunities in the industry during the last years.

Modern 3PLs

Players running Traditional Business Models using Modern Technologies.

They keep a conservative position in terms of risk taking, but at least they have a differentiation strategy through digital transformation.

Fell into this category we find most of the so wrongly termed “new disruptors”. As well, any Traditional 3PLs adopting modern technologies will end up here.

However, in the case of 3PLs, technology will not make a real difference if they keep performing a traditional mix of core competences.

In the case of Digital Brokers -Uber Freight and Flexport for example- they don’t even offer a traditional mix of core competences.

As result, this group invest in new technologies but they don’t know what to do with the emerging paradigms and how to make profit with the new opportunities.

Freight Marketplaces

Players running New Business Models using Traditional Technologies.

We consider them the first disruptors of the modern industry, a business-driven disruption: they emerged with new business models adopting a new mix of core competences though using traditional technologies.

Examples of Freight Marketplaces are DAT, TruckStop and Freightos.

Blockchain 3PL Networks 

Players running New Business Models using New Technologies.

They will do well soon as they understand the new paradigms of change, and thus, they are more ready than others to take advantage successfully of the new great opportunities.

Blockchain 3PL Networks will be likely the protagonists of the new paradigm-driven disruption: new technology plus new business model to perform the maximum known value.

 

Whether you can see where your company is today or not in this matrix, in Neurored we are enthusiastic about the upcoming transformations in our industry. Contact Us for further discussion.