Why LSPs need to re-invent their profession

Today transport is a commodity. So is warehousing. Both services can be started up from scratch on an asset-free basis leasing assets for the transport and warehouse on demand. Large multis have established themselves to partner and serve customers and their efficiency in this low margin business is extreme. The cut-throat competition is comparable to the ones airlines face globally.



To compete in such a marketplace, the only differetiatior is how the LSPs service their customers, how they leverage information to continuously improve their relationships with their customer and become strategic partners.



But even these approaches do not provide a winning business model for the likes of DHL, K&N or Agility. The problem here is that business success depends from the critical assets a company owns in the supply chain. And the reality is that LSPs do not own any critical assets. Most of them are perfectly interchangeable.



That is why the LSPs need to re-invent themselves.