A look back at the evolution of logistics is an interesting one. Defined as “the management of materials flow through an organization, from raw materials through to finished goods”, logistics had been relatively unchanged for hundreds of years. Civilizations moved boxes, put products on ships, cars, trucks, trains and planes, and traveled all over the world to get materials and goods from here to there. Other than the mode of transport though, logistics remained rather stagnant until about 20 or so years ago. Since then, the evolution of technology, the internet, e-commerce, omni-channel logistics, and ever emerging and changing consumer markets have created a tangled and complex web of the supply chain.
In that dynamic environment, third party logistics companies, or 3PLs, evolved, expanded, and grew both individually and as a sector in order to solve the transportation and warehousing needs for both manufacturers and retailers. With constant changes and increasing prices, logistics became a knowledge-heavy competency that didn’t make sense for businesses to do on their own. In the 1990s, 3PLs helped shippers achieve real value as they recognized that outsourcing was an extension of the business. From there an increasing number of manufactures and retailers outsourced their logistics needs and it really began to evolve.
According to Marty Wadle, Senior Vice President of Supply Chain Solutions for Ruan, “Twenty years ago, shippers just wanted us to move their freight, now they want to know what’s going on with their freight, and how we can move it more efficiently and economically the next time.” The expectations are always escalating including those for price and visibility. 3PLs have had to continually innovate to further optimize logistics operations and change with the times. External pressures have even forced 3PLs to adapt from exclusively reducing costs in the supply chain to helping manage change in order to retain partners and gain new ones.
At ES3, we believe in transforming the supply chain in order to meet those pressures and expectations. For more than 10 years we have been adapting to the needs of our partners and perfecting the 3PL model. ES3 is a proven leader, and our expertise in enabling distribution through shared supply chains has transformed the industry.
Source: Inbound Logistics