The search for a logistics provider can be a daunting task. The logistics industry can be fragmented geographically and can differ greatly by the type of services offered. The ocean sphere is predominantly dominated by large suppliers with high concentration of the business assigned to the top players. The air logistics space can be more fragmented and regionalised. The warehousing and transportation space is somewhat a mix of the previous two segments where there is quite a substantial concentration of global business with the top contenders while there is also high regionalisation with an added layer of competitive and dispersed offering from local players. Add to this the ever changing acquisition and divestiture aspects of the industry and you’re in for quite a ride. Beyond this, there is an overarching necessity to sub-segment these logistics pillars by varying types of industries served.
When navigating this quest for finding a suitable logistics provider the searcher should understand the above market dynamics at the very minimum. Each pillar of the logistics industry operates in varying competitive environments with different economic models which requires the party sourcing for whichever segment of the logistics services to understand the basics of these concepts.
This is where the consultancy practice comes in with the support. As each segment of the industry is quite nuanced, it’s best to allow the experts to offer their expertise. The big names in consultancy can often bring value in ocean and air sourcing events – they have high exposure to big name shippers and can coordinate the relatively small number of players in these segments. For warehousing and distribution, smaller and regionalised consultancies can offer a good outcome. That is because they work closer to the markets they serve and can interact with higher number of logistics providers, often also the local players. Logistics Avenue Consulting has expertise working with large and local 3PLs in Europe, especially in Poland. Also, Logistics Avenue Consulting has launched 3plfinder.io which will bring all relevant warehousing and distribution providers in Europe onto one easy-to-use search platform.
