One secret and one not-so-secret trend in logistics over the last two years.
Not so secret: there's been massive layoffs in every logistics and transportation department.
Secret: There have also been well-earned promotions, many of which they seized by spearheading game-changing results through bespoke and innovative partnerships with tech-powered solution providers.
Promotions in transportation departments used to come from cost reductions and OTD metrics.
Now they come through enhanced customer experiences, revenue enablement AND cost reduction AND OTD metrics. Might sound crazy, but it's now possible with technology.
The playbook used to be simple:
- Setting and forgetting with big legacy providers, asking them to reduce costs by 10% once a year
- Running quarterly RFPs focused mainly on lowering costs
- Going with an incumbent because they're already integrated and nothing imaginable is worse than battling for IT resources
This playbook helped transportation leaders meet KPIs that look good on paper but miss on the downstream and overall customer experience.
It made sense. Compensation and job security were based on OTD and cost reduction.
If your company was losing customers to competitors with more agile and customer-friendly supply chains, you could still look like a winner with high OTD and lowered costs every quarter.
In reality, the buck just got passed to sales, marketing and retention teams. And if they couldn’t make the customers come back and get enough new ones, then the supply chain and transportation teams got laid off due to “lack of demand”.
Transportation teams can fix this. Enhanced customer experiences and revenue enablement without spending more or sacrificing OTD is the way to secure your company's current and future demand. Talk with other transportation peers. The one's that have adopted this thinking and partnered with tech-powered solution providers not only survived but were also promoted.
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