Digital networks give LSPs a route to resilient growth
Resilience in logistics increasingly depends on how quickly an organisation can see, understand and act on change. For logistics service providers (LSPs), that places digital infrastructure at the centre of the commercial proposition. Findings from Blue Yonder’s survey of 250 retail executives show that retailers are looking for providers capable of contributing to this wider transformation.
Traditional performance still matters. Sixty percent of respondents rate reliability and on-time delivery as essential. However, 56% seek flexibility and responsiveness, and 46% prioritise cost efficiency and transparency. The preferred partner is therefore not simply the cheapest carrier or warehouse operator, but a provider able to adapt capacity and decisions as conditions change.
Building the data foundation
Retailers’ service expectations reveal where technology must make a practical difference. End-to-end visibility leads at 69%, followed by supplier and carrier coordination at 61%. Risk planning, disruption warnings and recovery response are requested by 57%, 55% and 51% respectively.
These capabilities are difficult to deliver when data is fragmented across order, warehouse and transport applications. Manual spreadsheet work effectively becomes the integration layer, slowing decisions and increasing the risk of outdated information. A unified platform can instead create a common operational record across carriers, suppliers and other partners.
That foundation supports a digital control tower: a working environment in which network events can be detected earlier, risks can be assessed and response options can be coordinated. Better structured data also improves the usefulness of machine learning and predictive AI.
Efficiency, resilience and people
Retailers identify limited technology capability as the leading LSP weakness, at 40%. Eighty-three percent expect partnerships to evolve through digital network expansion. Investment interest is strongest in machine learning and predictive AI (49%) and control towers or digital supply-chain networks (40%).
Digitalisation can support more than service quality. Earlier intervention gives operators more choices and can prevent small issues from becoming expensive disruptions. Connected workflows can reduce cost-to-serve, while automation can help address labour pressures and make logistics roles more attractive to digitally skilled employees.
New outsourcing demand reinforces the opportunity. Thirty percent of retailers are considering external order management within five years, 21% returns management and potentially 60% analytics, compared with 21% currently outsourcing analytics. LSPs that combine integration, automation and responsible use of AI can strengthen resilience while expanding their strategic relevance.
