Shippers have faced a perfect storm of market conditions in 2020 due to COVID-19’s impact on consumer behavior, global trade, and the economy. In the first half of 2020, inventory levels were depleted by waves of panic buying, with companies struggling months later to recover their supply chains from the extreme supply and demand imbalances.
As states issued stay-at-home orders, consumers shifted their spending online, which droved companies to accelerate e-commerce and omnichannel capabilities. In a recent study commissioned by GlobalTranz, 90% of supply chain leaders report their company has enhanced its e-commerce capabilities because of COVID-19 and 89% of supply chain leaders said COVID-19 had accelerated their company’s adoption of an omnichannel strategy.
Supply chain leaders who are planning 2021 budgets face a lot of uncertainty. What they do know is this: 2021 is not expected to be easier for shippers. Carriers like UPS have announced non-contract service rate increases. According to a recent FreightWaves article, Deutsche Bank’s Transportation and Consumer-Packaged Goods (CPG) equity research analysts project trucking rates to increase as much as 15% – 20% in 2021. In response to projected rate increases, logistics managers are opening contract talks early and extending existing contracts where possible to protect their 2021 transportation budgets, according to JOC.com.
While many supply chain leaders are looking to continue 2020 terms into 2021 for incumbent providers, many are entering RFP bid season in hopes of finding new logistics providers to help them succeed. With so much uncertainty, shippers are looking to their logistics partners to provide them with technology, capacity, and solutions to help them thrive in 2021 and beyond.
What Do Supply Chain Leaders Look For In A Logistics Partner?
In a recent survey commissioned by GlobalTranz, supply chain leaders shared the most critical capabilities they look for in a prospective supply chain and logistics partner. Among the 12 most important qualities, data visibility, customized solutions, and ease of use of technology platforms were cited as the top attributes.
Technology, Customized Solutions, And Predictive Analytics Are Critical Components When Evaluating A New Logistics Partner
2021 is predicted to be a challenging year for shippers but partnering with a logistics partner who can provide end-to-end visibility, customized supply chain solutions, and predictive analytics will be critical.
As you evaluate logistics partners this RFP bid season, keep in mind the 12 qualities supply chain leaders look for in a logistics partner. Additionally, consider asking potential new logistics partners the following questions:
- What is your track record in the logistics industry?
- Do you have experience serving clients in my industry vertical?
- Who are your other clients?
- Do you offer a robust TMS that will provide my organization with track and trace capabilities, real-time data, and predictive analytics?
- How are your operations and account management teams structured?
Take Control of Your 2021 Transportation Operations With GlobalTranz
Shippers who leverage strategic partnerships with logistics providers will set themselves up for success in 2021. As you start your logistics RFP bid season, look for logistics providers, like GlobalTranz, who can provide the people, proven processes, and technology needed to protect you from uncertainty in 2021 and beyond.