Outsourced logistics trends creates buyer/seller needs gap

The model for providing logistics services will have to undergo major changes to keep up with customers' evolving needs, according to a new report from IBM Business Consulting Services.

As logistics customers outsource more, they will look for a broader range of services, and greater reliability at a lower total cost, IBM predicts.

Look for a small number of logistics providers—between 5 percent and 10 percent—to reinvent themselves in the face of these new realities, the report says. They will offer end-to-end supply chain integration and business process capabilities, including supplier management, procurement, contract manufacturing, logistics services, global trade financial and tax management, performance management, and customer service.

"The future logistics provider will be more global, concentrated, segmented around customer type, and universally better at execution," says Tig Gilliam, IBM partner and global supply chain management leader.