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How to Differentiate Yourself in the Third Party Logistics World


In the ever-changing world of logistics, third party logistics companies all share the common struggle of how to differentiate from the competition in an effort to carve out market share and drive profitability. Many focus on superior customer service. Others pride themselves on technology and innovation, while some continue to compete largely on price. These strategic models are just a few examples, each of which has merit.

third party logistics

Any of these strategies can be leveraged to win and retain some business, with success being highly dependent on execution. The problem is that none of these approaches are truly different and each of them is easy to replicate by the competition. I challenge you find a third party logistics provider who doesn’t tout one or more of these competencies and as a result, we are left with a market of providers blanketed in uniformity.

The Ultimate Competitive Advantage for Third Party Logistics Companies

The key to true differentiation lies within an organization’s culture. Companies’ cultural traits must be aligned with their growth strategy in order for them to stand out from their peers. 

Most third party logistics companies already consider themselves to be highly innovative and focused on customer service. But does their culture support this strategy, or are these companies simply paying lip service to the notion of their core competencies? Do the behaviors demonstrated at all levels of the organization show that the core values of the organization are understood and embraced, or are the core values merely a sign hanging in the corporate office entry way?

A company’s culture is something that is rooted deep within the history and customs of the organization and is not easily changed. However, when a company gets their culture right and aligns their business strategy with it, they create a recipe for success that cannot easily be duplicated and will set them apart from the competition. The ultimate competitive advantage in any industry is an organization’s culture.

This is a republish of a great post !

Topics: culture third party logistics