The role of Third-Party Logistics (3PL) providers has evolved significantly in today’s complex global supply chains. According to Heston Hodges, President and CEO of LMR, “The role of the 3PL has evolved to so much more than simply brokering freight. As supply chains have gotten more complex and the workforce changes employment much more frequently, a void in logistics expertise has led manufacturers to rely heavily on 3PLs to fill the gaps.” LMR recognized this shift over 30 years ago, transitioning to focus on dedicated management solutions for the bulk chemical market. This strategy allows LMR to provide comprehensive back-office support, handling crucial functions such as contract/pricing management, inventory management, data visibility, and SAP transactions. This variable cost model ensures continuous service even during staff absences.
Innovative Strategies and Technology Integration
When Grammer acquired LMR in 2022, the vision was to cross-sell services that both companies could provide together. Heston explains, “Many logistics companies sell themselves as a ‘1 stop shop’ however the Grammer and LMR partnership truly lives up to that in the bulk chemical and industrial gases space.” The partnership leverages combined strengths, including technology and robust carrier relationships, allowing them to manage complex products and processes efficiently. The integration enables them to offer transload/rail and specialized trucking solutions, creating new growth opportunities.
Addressing Challenges in Logistics
A significant challenge for logistics providers is hiring and developing experienced personnel. Heston notes, “Many of the larger 3PLs today have moved predominately to a transportation software offering. The problem is that the further these 3PLs travel down the SAS road, their personnel are geared more towards software support.” LMR, however, continues to invest in visibility and tracking tools while developing logistics specialists to provide real operational solutions.
Technology Integration and Future Trends
Technology integration, such as AI, IoT, and real-time data analytics, is transforming 3PL services and enhancing customer experiences. Heston mentions, “Integration among Shippers, 3PLs, and carriers has become the requirement in order to minimize visibility gaps. We all want the same user experience provided by companies like Amazon.” Looking towards the future, service differentiation is key. “Bulk chemicals will always be more complex than standard truckload/LTL freight and will require more specialized expertise to manage. Our focus on managing bulk liquids and gases enables us to provide a full-service ‘1 stop shop’ for the select clients in the bulk chemical market,” says Heston.
The insights from Heston Hodges highlight the evolving role of 3PLs in the logistics landscape, emphasizing the importance of specialized expertise, technology integration, and comprehensive service offerings to meet the industry’s growing demands.