Given the growing demand of logistics service providers (LSPs), your business may well need a wider range of capabilities. Considering the high demand of international trade in the current scenario, being simply a low-cost service provider is not enough to win businesses. Your business needs to transgress beyond the purview of offering just cost-effective solutions. Becoming a technology-driven LSP is not the only key to winning new contracts; the key also lies in promoting stronger client partnerships -- something that is harder for your competition to overcome.

In fact, recent trends indicate a more concentrated focus on client relationship management. It is increasingly becoming a high priority for LSPs. As supply chain gets more demanding, LSPs are finding new and smoother ways to interact with their clients. Both the LSP and the client are constantly moving towards making strategic investments in collaboration, visibility, and execution technology to improve the quality of their business partnerships.

Moreover, customers today expect advanced and adaptable solution offerings from their LSPs rather than just the price. What exactly is an advanced solution offering?

It is all about end-to-end solutions that ensure real-time visibility and accuracy, and a faster and easier access to information, working hand in hand with users' and clients' systems. IT solutions that cater to this aspect of LSP operations give users a clear advantage.

All-round visibility
LSPs now have access to technology that can offer their clients real-time information through secure browser applications and even via smart phones. Such technology-enabled solutions can provide a clear advantage to LSPs as their clients can have access to such information from anywhere. 

The information then can be even made available across the broader supply chain, thus providing an all-round visibility. As a result, LSPs save on costs, enhance customer service, and increase margins.

Fast and Easy access to information
As information is available real time across the supply chain, it can be accessed easily and faster, harnessing the Internet technology. Clients will benefit from faster speed to market, improved quality and consistency, and rapid response to changes from a solution built with such technology-enabled capabilities. It will help LSPs to be more proactive and sensitive to client requirements leading to continued client retention. 

Integrated information 
Integration technology has advanced over the years to allow faster and easier integration with various client ERP applications. Today, separate client system data can be integrated with LSP applications easily. Users get the combined information, from both systems on a single screen, all without the requirement of extensive IT work. Clients benefit from easier information exchange with their LSPs, less IT investment, and improved efficiency of their LSP partner.

So, LSPs are increasingly using IT technologies that are tailored to their unique requirements in an effort to provide enhanced service levels without shooting up internal costs. On the other hand, companies that use LSPs are taking advantage of supply chain visibility tools and making full use of electronic system-to-system communication methods such as EDI to leverage their LSPs' capabilities.

With the help of a growing edge technological solution, an LSP can deliver more complex services while keeping operating costs below those of the manually driven or lesser technology-driven processes of its competitors. The LSP also benefits from increased retention, and stronger value propositions for attracting new clients and revenue sources.

The growing edge technological capabilities enable LSPs to share a valued partnership with their clients in today's ever-changing economy. Without these technological advantages, LSPs may be unable to reduce their prices enough to overcome the higher client-ROI offered by greater technology-driven competitors. As an LSP, your customers represent many industries with varying requirements. And with more players in the outsourced distribution market, you have to differentiate in order to stay competitive.

It can very well be concluded that in order to gain a competitive edge it is important for LSPs to enhance their technological capabilities and client relationship instead of concentrating just on the price front. To achieve this, LSPs have to make a prudent choice in selecting the technological partner who has the domain expertise and technology, and is attuned to the industry's requirements.

Mr Maheshwari is the  CEO and MD of  Softlink Logistic Systems