Imagine a Director of Logistics, juggling countless tasks daily—coordinating shipments, negotiating with carriers, tracking deliveries, and managing a team, all while trying to keep costs down and efficiency up. The demands are relentless, and the stakes are high, especially with 64% of companies experiencing supply chain talent shortages, notes Forbes. For many shippers, this scenario is all too familiar. Traditional in-house logistics management, typically overseen by Directors of Logistics or Directors of Procurement, is being revolutionized by the concept of logistics-as-a-service and its relationship to managed transportation.
This innovative approach involves outsourcing logistics processes to expert teams, like those at IL2000, enabling businesses to focus on their core competencies. At the forefront of this transformation is IL2000, offering a unique and comprehensive LaaS solution that leverages advanced technology and a robust supply chain consulting approach. Let’s take a closer look at what LaaS really is, why it exists, and what it means for the future of your supply chain.
What is logistics-as-a-service (LaaS)?
Logistics-as-a-service (LaaS) is a model that takes the traditional in-house logistics processes and outsources them to specialized providers, but it’s not a transactional approach. Think about it like the responsibilities of the whole Director of Logistics and much of the administrative work being handled by a third-party. This combined approach considers the full needs of your supply chain, not just a single load, which in turn, allows businesses to tap into the expertise, technology, and resources of logistics professionals, significantly improving their operational efficiency and scalability. IL2000 integrates this need with a solid supply chain consulting approach, ensuring that clients (shippers) receive tailored solutions that align with their specific needs and objectives.
Why LaaS exists
The need for LaaS arises from several key challenges that businesses face in managing their logistics operations:
- Limited transportation resources - Many companies lack the resources to maintain an in-house logistics strategy, e.g., trucks, drivers, and logistics specialists, leading to inefficiencies and increased costs.
- Changing requirements - The dynamic nature of the market demands flexibility and adaptability, which can be challenging for in-house teams to manage.
- Talent shortages - Finding and retaining skilled logistics professionals are hard issues.
- Inability to secure better rates - Negotiating competitive rates as part of logistics engineering with carriers requires expertise and industry knowledge that many businesses do not possess.
While those issues exist, how does LaaS solve shipper’s pain points? Answering that question is best boiled down to a few core benefits of working with a partner for LaaS:
Bird’s-eye view - LaaS provides a comprehensive view of the entire supply chain, enabling better decision-making and strategic planning.- Expert insight - Shippers often miss critical details in their logistics operations. IL2000’s experts provide the insight needed to identify and address these gaps.
- Eliminating carrier management and vetting - With IL2000, shippers no longer need to spend time vetting carriers. A simple click in the TMS, provided by IL2000, is all they need to move their freight efficiently.
- Cost optimization - By leveraging IL2000’s expertise and technology, shippers can balance costs with shipping and delivery requirements.
- Enhanced visibility - Real-time tracking and comprehensive analytics provide shippers with complete visibility into their logistics operations.
- Transportation Management System (TMS) - IL2000’s TMS offers real-time tracking, route optimization, and easy shipment management.
- APIs and business intelligence tools - These technologies feed into IL2000’s business intelligence platform, providing valuable insights and analytics.
It is worth noting that no individual point above can enable true LaaS on its own. LaaS relies on the whole suite of activities, including the people and processes, to work. That unique value-add is precisely why the future of LaaS looks promising with continuous advancements in technology and increasing adoption by businesses seeking to optimize their logistics operations.
Get on the right road with IL2000 and complete logistics-as-a-service
Logistics-as-a-service is not a passing trend. It’s transforming the way businesses manage their logistics operations. Outsourcing logistics to experts like IL2000 helps shippers overcome key challenges, streamline operations, and achieve their strategic goals. With a robust supply chain consulting approach, advanced technology, and a dedicated team of logistics professionals, IL2000’s LaaS solution offers unparalleled benefits for shippers looking to enhance their logistics efficiency.
Speak with an IL2000 consulting engagement executive to learn more about how you can put the power of LaaS to work today.