Technology has evolved and has also given the logistics sector plenty of tools. With this evolution, many companies have taken advantage of it and developed solutions to become more competitive, reduce costs, and maximize profits. The Cyber 4PLs are part of it and they have incorporated a new business model into international logistics.

Cyber 4PLs are a type of logistics provider, that offer digital services, and are not restricted to either long-term assets or investments. In its traditional form – 4PL -, they can be part of the client or outside of it and they have a high level of knowledge of the supply chain. That’s the reason why they work as a nexus between clients and other providers. Part of their functions includes consultancy, strategic planning, use of advanced communicational technologies with other agents, etc. 

This new “cyber” modality gives them the opportunity to create solutions especially focused on the customer. Thus, they can develop new production models to sell quickly and gain more contracts in the future.

With this trend rising up, traditional freight forwarders must be aware of it to respond quickly.

What are the Cyber 4PLs doing?

Markets evolve and suffer changes constantly, many of them are very difficult to handle, so adapting is a matter of survival. But these changes are also pushed by the technological transformation and here’s where the Cyber 4PL is more relevant as they can link the technological development with the logistics one.

They are a combination of knowledge, domain, and market experience, specialists in systems integration, data analysis, adaptive digital platforms, and advanced capability in production. Besides, by being digital they can offer their services to their customers whenever and wherever they want.

Their principal assets are the people who compose them and that have gained experience, which means intellectual property and software algorithms. They have flexible hierarchical structures because they concentrate their efforts on combining all the labor forces. These are composed of software developers, systems analysts, data specialists and non-traditional managers focused on talent acquisition.

The construction of this business model is not easy peasy for traditional freight forwarders, and this is because Cyber 4PLs have almost all the characteristics of a startup. The challenge here will be to decide to either join this movement as an associate or with a complete independent division inside the company.

There isn’t a threat yet for those who offer logistics services to the different parts of the supply chain, but these trends are worthy of consideration because they are going strong in the industry and can affect our main metrics.

The new business models adapt opportunely to market changes, and we must learn or join them to achieve a digital takeoff of the sector and become more competitive. Ascending in the supply chain and discovering that special thing that differentiates us from others must be our priority, and our first step can be digitization. At Cargofive, we know that this step could be difficult and that’s why we are always willing to give you our hand and support. We are just a click away!

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