The global freight market is large, complex, and fragmented, and like so many industries it negotiated a chaotic past year. Last year, this market had to adjust to changes in customs and border regulations in addition to the unprecedented impact of COVID-19 on the worldwide economy. Many companies have had to update both their supply chains and logistics strategies to evolve with the changing industry landscape. Looking forward into 2021 there are a number of factors to consider when planning for this year’s industry trends and the market’s trajectory in general.
The term “3PL” (third-party logistics) can encompass a wide range of services and shipping solutions including less than truckload (LTL) and truckload brokerage, intermodal, transportation management, freight forwarding, value-added logistics, warehousing, reverse logistics and last-mile logistics.
Last year started with a trade war between China and the US which disrupted global supply chains for many industries. Compounded by the COVID-19 pandemic, which added to the shift away from China and towards U.S. companies establishing new supply chain partners. At Westset, we serve both domestic and international clients. Our proximity to the Ports of Long Beach, Los Angeles, and LAX make us an ideally situated partner. Understanding and critically negotiating the physical, political, and safety concerns both domestically and abroad has been crucial, but especially during the pandemic. In terms of politics, the shift from a Trump to a Biden administration will undoubtedly see changes in trade relationships and domestic finances. It’s important to have supply chain partners that stay up to date with the latest regulations and logistics trends both domestically and abroad.
Across industries, businesses have become increasingly reliant on technology. This comes as many companies shifted to at-home or distanced work models in the face of the coronavirus pandemic. Technology continues to empower the freight industry by enabling modern, efficient methods for managing cargo and supply chains.
Ecommerce was already on the ride pre-COVID, but its influence has grown exponentially during the pandemic as people try to maintain some normalcy while staying home. So, while the rise of ecommerce, which has been a pervasive force throughout the global supply chain, but the level of service is only possible with the use of sophisticated operating, planning and inventory systems made possible by technology.
Supply Chains and Logistics Strategies
The shock to international supply chains since the pandemic broke out has been unparalleled. It has highlighted the organizational need to develop solid, yet flexible, supply chains. A successful supply chain is contingent on reliable partners. Risk management has received increasing attention as companies adjust to the havoc caused by the coronavirus pandemic on a global scale.
In this day and age of expanding global supply chains and networks, efficient, data-driven supply chain planning is more critical than ever before. Westset is a reliable 3PL provider expertly equipped to help support complex supply chains. Ecommerce has amplified the importance of the supply chain function in almost every business that ships physical goods. We are a superior warehousing, distribution and last mile logistics solutions provider that can fit seamlessly and effectively into your company’s supply chain.
The ultimate goal of any logistics strategy is to deliver what customers want when they want it. A comprehensive logistics strategy should be not just strategic but consider the structural, functional, and implementable organization levels as well. At Westset, we know that the standard offering does not always fit your business needs. We are agile in our approach and will assess your needs for a customized solution.
The key to both a successful supply chain and an efficient, effective logistics strategy going into 2021 is developing relationships with the right partners along the way. Contact Westset here now to find out how we can help you in 2021 and beyond.