Retailers, e-commerce platforms, distributors, and manufacturers are operating at unprecedented speeds, yet they face increasingly complex challenges: evolving customer demands, stricter shipping regulations, cumbersome customs requirements, and growing global risks. These interconnected factors have made transportation and logistics network management more complicated than ever before.
The Digital Transformation Imperative
Picture this scenario: customers anxiously await their orders while you struggle to track shipments because data cannot flow seamlessly between carriers, warehouses, and suppliers. This information asymmetry wastes time and money, damages customer relationships, and ultimately weakens business competitiveness. Digital transformation is no longer optional—it has become the critical path for survival and growth in today's competitive marketplace.
On December 8, 2016, editors from Logistics Management and Supply Chain Management Review hosted a virtual conference to examine operational challenges and present solutions for creating dynamic, automated networks that enable seamless communication, improved third-party collaboration, and real-time responsiveness to change. Below are key highlights from the event.
Keynote: The Digital Reinvention of Supply Chains
Speaker: Rich Sherman, Senior Fellow at Tata Consultancy Services
E-commerce is evolving into "connected commerce," where everything from consumer goods to building materials to specialty chemicals is marketed, bought, and sold online, with customers directly linked to markets and suppliers. In this era of connected commerce, businesses must reimagine digital supply chains as customer-centric networks powered by real-time visibility, end-to-end data integration, and advanced analytics.
Sherman emphasized that companies must fundamentally rethink their supply chain strategies to adapt to this rapidly changing business environment. The transformation requires moving beyond traditional linear models to create intelligent, responsive ecosystems.
Virtual Conference Sessions
Session 1: Secrets of the Supply Chain Top 25
Speaker: Michael Burkett, Gartner Research VP
Gartner's annual Supply Chain Top 25 ranking showcases global leaders in the field, with past winners including Unilever, McDonald's, and Amazon. While rankings fluctuate yearly, top performers share common characteristics that set them apart:
- Continuous innovation: How leading companies maintain their edge through ongoing improvement
- SCM IT priorities: The technology focus areas for elite supply chain organizations
- Digital initiatives: The most impactful digital transformations undertaken by industry leaders
Burkett identified four key traits of top-performing supply chains:
- Customer-centricity: Deep understanding and customization based on customer needs
- Data-driven operations: Leveraging analytics for optimization and decision-making
- Agility: Rapid adaptation to changing market conditions
- Collaboration: Strong partnerships with suppliers, customers, and logistics providers
Session 2: The "Uberization" of Freight: Revolution or Hype?
Speaker: Steve Banker, ARC Advisory Group
The concept of Uber-like freight services has captured the imagination of logistics professionals seeking cost reductions and operational flexibility. But is the freight market truly on the brink of disruption, or have investors underestimated the complexities of goods transportation?
The session explored:
- The evolving definition of "freight Uberization"
- Key enabling technologies driving this trend
- Fundamental differences between passenger and freight transportation
Banker cautioned that freight digitization involves far greater complexity than ride-sharing applications, citing unique challenges including:
- Regulatory compliance requirements
- Cargo security considerations
- Infrastructure dependencies
Session 3: Global Supply Chain Risk Management
Speaker: Beth Pride, BPE Global
As demonstrated by the Hanjin Shipping bankruptcy, risk remains an inevitable aspect of global supply chain operations, with new threat vectors constantly emerging. Growing risk awareness has led companies to implement more rigorous evaluation processes when selecting carriers, 3PL providers, and secondary suppliers.
The discussion covered:
- The growing importance of risk management practices
- Technology's expanding role in risk mitigation
- Actionable steps for global shippers
Pride outlined a comprehensive risk management framework comprising four components:
- Risk identification
- Risk assessment
- Risk mitigation planning
- Continuous risk monitoring
Session 4: 3PL Partnerships in the Digital Age
Speaker: Cathy Morrow Roberson, Logistics Trends & Insights
While modern third-party logistics providers can handle traditional end-to-end logistics globally, their ability to meet shippers' IT needs has added new dimensions to partnership evaluations. This evolution has contributed to service commoditization, prompting shippers to seek differentiated value across their provider networks.
Key discussion points included:
- Drivers behind 3PL merger and acquisition activity
- Emerging services addressing contemporary logistics needs
- Best practices for partner selection
Roberson highlighted four critical capabilities for 3PL partners:
- Advanced technological solutions
- Global service coverage
- Industry-specific expertise
- Superior customer service
Conclusion: Embracing Digital Transformation
The virtual conference provided logistics and supply chain professionals with valuable insights into industry trends, best practices, and digital solutions for contemporary challenges. By adopting digital transformation strategies, organizations can build more efficient, agile, and resilient supply chains capable of thriving in competitive markets.
True digital transformation extends beyond technological upgrades—it requires fundamental changes in business processes, organizational structures, and corporate culture. Companies that fully embrace this paradigm shift will be best positioned to lead the supply chains of tomorrow.