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ITS Logistics

DAT iQ Live: Freight market analysis with Peter Weis

October 3, 2023
Ken Adamo

“What is the market saying about data trends and the role that data plays on the journey to more autonomous supply chains?” asks Dean Croke, Principal Analyst.

“There has always been this historical issue around pure software providers vs 3PL solutions in terms of solving BCO and shipper supply chain visibility and data issues. It goes all the way back to my days at GT Nexus over 20 years ago. Think back, originally who had the advantage? It was the 3PLs who had the advantage. They were the early movers, they had the business knowledge, they had the customer relationships and they had enough IT capabilities to put some solutions out there to keep the early software players at bay. However, the world is changing and there is this collision course going on right now based on data and software combined to make the platform. I would say the bigger issue is data. There are these pure software companies that are now coming into the market pursuing visibility. These companies are shiny, they are great marketers and they have won a lot of deals, they have made some splashes. They are taking away some business from traditional 3PLs who have focused too much on operations and not enough on innovation. So there is those software players and then there are those tech forward 3PLs who are also terrific at customer facing market facing software. However, they can’t get their back in data right. This has created because they have struggled and have had layoffs, some of their struggles are well known in their market place. That leaves traditionally 3PLs with another opportunity to get their data right, to innovate more and either adopt to the innovation needs of their customers or shrink their way to oblivion. What I am seeing now is that after this initial splash, if it is not a backlash it is a dose of very healthy skepticism that the flashy tech forward 3PLs or the pure software providers know this industry well enough…” says Peter Weis, CIO and SVP at ITS Logistics.

Listen to the full video here.

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