The world of logistics has undergone significant transformations in recent years, and the pace of change is only accelerating. Organizations in North America have had to navigate a range of challenges, from global pandemics to political instability, labor disruptions, and rising labor costs, all while contending with the emergence of new technologies like automation and artificial intelligence (AI).

In this ever-evolving landscape, the path to future-proofing supply chains is increasingly leading to third-party contract logistics providers, according to a recent article in the AJOT.

The article, “DP World Canada’s Expert Insights on Contract Logistics,” highlights several reasons why organizations are turning to contract logistics providers:

• Complex and Unpredictable Changes: The recent years have witnessed a series of rapid and unpredictable changes, making supply chains more complex and challenging to manage. Outsourcing logistics to experts in the field offers a solution to navigate these uncertainties.
• Cost Reduction and Efficiency Improvement: Contract logistics providers offer cost-effective solutions, improved operational efficiency, and inventory optimization. These benefits help organizations streamline their operations and reduce expenses.
• Focus on Core Competencies: Many organizations, particularly in technology and fast fashion, are realizing that logistics is not their core competency. Instead, they prefer to concentrate on areas such as product development, manufacturing, marketing, and sales, leaving logistics to the experts.