Top 5 Reasons Logistic Service Providers Should Join a Global LSP Community

Table of Contents:

1. Gain Process Efficiency and Optimization with a Wider Network of Resources in a Global LSP Community
2. Reduce Costs
3. End-to-end eCommerce Solution with a Global LSP Community
4. Save Time
5. Ensure Growth through Scalability and Flexibility 

    

Logistics service providers (LSP) are logistics intermediaries that are a crucial part of the supply chain for businesses engaged in trade. Logistic service providers facilitate the operation of businesses that buy and sell goods by helping organize shipment, warehouse management and delivery. LSPs typically provide logistic services to more than one business at any given time. The best ones tend to have an overall strategy that use leading transportation management software (TMS) and BI (business intelligence) to maximize their resources such as people and technology as well as processes and industry knowledge.

They can play a big role in gaining competitive advantages for ecommerce companies and any other business involved in buying and selling in international trade. But as business processes, regulations, and business entities in international trade become more complex, managing logistic services become increasingly difficult. Expectations are also high, particularly from eCommerce stores and SMEs that have embraced global markets specifically because they want to grow their business and become more profitable. LSPs need to find solutions for increasingly demanding and complex requirements. Which is why connecting with a global logistic service provider community is worth a look. Here are the top 5 reasons logistic service providers should join a global LSP community.

1. Gain Process Efficiency and Optimization with a Wider Network of Resources in a Global LSP Community

For businesses engaged in trade, working with the right logistics service provider that can meet and even exceed the needs is crucial.

They would look for these solutions that most logistics service providers offer:

• Supply chain management
• Freight shipping
• Warehousing solutions
• Inventory management
• Transportation services
• Order fulfillment
• International logistics

Though many businesses start off by simply needing a provider for logistics and fulfillment, many, particularly the fast-growing ones, are recognizing the need to meet more complex requirements and capitalizing on the benefits that they can gain from the LSP they choose. LSPs should consider how they can meet these more requirements and provide more benefits for their clients.

Joining a global LSP community can help providers gain a wider network of resources and carriers. This helps LSPs gain access to expertise and experience from other other participants in the supply chain. Industry knowledge and best practices for different elements of the supply chain can help manage every step of the supply chain more efficiently. For example, access to experience and expertise can help zero in on the best, most organized way to store goods, stay up-to-date with the latest technology and regulations, and so on.

2. Reduce Costs

Clients can look forward to not just more efficient delivery but also lower overhead because of the availability of resources from this wider network. They can show their clients cost-effective solutions that leverage relationships, industry knowledge, experience and assets from the global LSP community.

For example, it’s possible that a logistics service provider that is a part of a global LSP community can gain access and ties to many shipping carriers. This, in turn, can help them secure bulk discounts on shipping rates which they can pass on as savings and added value to their clients.

3. End-to-end eCommerce Solution with a Global LSP Community

LSPs that are part of a global LSP community gain a much bigger network of partners, resources and integrations that can help in almost every step of the supply chain, making it possible to offer an end-to-end ecommerce solution. They can find partners that specialize in one or a set of logistics-related tasks, such as inventory and order management, return management, custom packaging, freight shipping, state-of-the-art technology and applications, warehousing solutions, supply chain transparency, transportation services, transportation management and order fulfillment.

4. Save Time

Reduced data duplication, improved authenticity of data flow, automated handshakes across nodes, and access to accurate and up-to-date status visibility, direct and increased visibility of goods while on the move: they all save time as they also improve efficiency and reduce costs.  Access to experts in these areas, which joining a global LSP can make possible, can help LSPs provide more value to their clients.

5. Ensure Growth through Scalability and Flexibility

Flexibility to scale, especially if there are sudden spikes in demand, can help businesses face changes and remain profitable. Companies that have products affected by seasonal variations can easily adjust their inventory and other resources. Scalability and flexibility can also help businesses explore new markets and strategies and ensure growth.

Being a part of a global LSP community can strengthen a client’s logistic infrastructure which in turn can provide enough scalability and flexibility to support strategic initiatives toward growth and expansion into other markets. For example, a business can explore the ability to fulfill a larger volume of orders if it has the right logistic infrastructure behind it.

CALISTA: Helping LSPs Provide Value-Added Services

CALISTA is a global supply chain platform that brings together the key physical and non-physical logistics activities on a digital eco-system that serves the community of logistics stakeholders. These logistics activities can include regulatory, financial, transportation, and more.

CALISTA’s established network helps leverage advanced digital technologies and develop closer collaboration with partners in the businesses, governments and trade communities. The platform brings a global Logistics Service Providers (“LSPs”) community together and help them develop global supply chain solutions and provide value-added services for their customers.

To learn more about the benefits of joining a global LSP community through CALISTA, visit our page on CALISTA: Optimising Supply Chain Orchestration or contact us now!