The intersection of innovation and logistics
The supply chain and logistics industries are expanding at a record pace. Every company that distributes products is consumed with "cheaper, faster, better" modes of delivery to its customers.
In addition to fast, customers also want to know their packages are being delivered safely, securely, and they expect to know precisely when and where they will arrive.
Because of these greater expectations, logistics companies are growing their Chicago-area presence and fiercely recruiting tech, sales professionals and college grads to keep up with demand. Chicago is a hotbed for the logistics industry, thanks to its unique confluence of geography, history and industry. With its blend of water, rail, highway and airport access, it is one of the top transportation hubs in the U.S., and an excellent base for companies to ship their goods. With the continuous growth for logistics services in the area, that means more great jobs are coming to Chicago and suburbs, and there's no end in sight.
Nationwide, jobs in logistics are plentiful. According to research in the Harvard Business Review, the U.S. supply chain accounts for 37 percent of U.S. jobs, and these jobs are often significantly higher paying and are largely responsible for bursts of innovation in the economy. Chicago has long been a draw for young professionals, and innovation and demand in the logistics industry provide a great career path for area college grads. Technology is sometimes blamed for net job losses realized through efficiency gains. However, with the right skill set the opposite can be true. As an example, leading analyst Gartner predicts that by 2020 artificial intelligence will create more jobs than it eliminates.
Transporting goods is more complex and expensive, and many companies are turning to Third-Party Logistics (3PL) providers to manage the movement of their goods. Driving that shift are a number of challenges, including:
• Driver Shortage - The American Trucking Association estimates that 70 percent of all tonnage shipped in the U.S. is moved by trucks. Unfortunately, there is a tremendous shortage of truck drivers, due to an aging workforce retiring and lack of young people interested in joining the profession. Higher demand for a limited pool of drivers means that manufacturers and distributors end up paying higher prices to keep their goods moving.
• Visibility into inventory - Shippers need the ability to track and trace products in motion and after delivery. Armed with the correct information, they can make decisions while goods are in transit to ensure the safety, quality and on-time delivery of their products.
• Data analytics - Access to business intelligence is critical to meeting Key Performance Indicators (KPI) for many companies. Typically, however, data analytics within the supply chain is lacking.
• Complexity - Keeping up with constantly changing rules and regulations within logistics is difficult, and noncompliance can shut down your business.
• Flexibility - Inclement weather, changes in consumer preferences and glitches within the supply chain network can create disruptions in transportation and deliveries. The ability to be flexible and adaptive is vital.
As complexity increases, more companies are turning to 3PL's for industry expertise and their ability to provide access to many different carriers, routes and modes of transport at competitive prices. To stay competitive, 3PL providers will continue to evolve, and innovation and technology will play a key part in their success. Chicago is the right place and this is the right time be a part of the logistics industry evolution.
• Bobby Harris is CEO of BlueGrace Logistics. Headquartered in Tampa, Florida, BlueGrace currently has an office in Itasca.