Monday, September 28, 2015

LTL vs FTL vs Amazon

Warehousing is a constantly changing branch of logistics. A four walls and a roof approach to handling freight has the opportunity to make better and more informed researched decisions to be more profitable than trucking. Dr. John Langley, professor at Pennsylvania State University, said today’s 3PL providers and shippers are becoming more proficient at what they do, individually as well as together, which is improving the quality of their relationships**

“The 3PL industry continues to deliver value, savings and efficiencies by collaborating closely with customers and adjusting to rapidly changing economic conditions, business challenges such as capacity and talent shortages, as well as consumer online shopping needs that demand new and agile supply chain and fulfillment models,” he said. **

Trucking in general isn't keeping up as well. O/O and small companies are more reluctant than ever to get into the monster of LTL and it is stunting their growth. The FTL transportation part is still very reliant on load boards, fax machines, and paper agreements whereas the warehouse and 3pl part are taking orders online and getting them where they need to go in 24hrs or less. I keep reading where trucking is dying, no drivers, no freight. This is an understatement. However no door is closed without a window opening. This move from Warehouses and Amazon in particular to LTL, (piece by piece LTL) will force the industry to keep up. 

I believe this time next year, companies will be forced to consider LTL as a major contributor to base revenues. There will be more regulations for non commercial delivery vehicles, I.E. Shipt, grubhub. As the on demand delivery required by the millennial generation is a force to be reckoned with. 

-J

**http://blog.gopenske.com/logistics/3pl-industry-shows-growth-and-focus-on-relationships-innovation/

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