Faced with unprecedented supply chain complexity, more companies are making a strategic choice to focus on their core business, while outsourcing their warehousing and transportation to the experts — logistics services providers, or LSPs. Among Fortune 500 companies, 80% are outsourcing logistics — and 68% of all businesses report that they’ve achieved cost savings from logistics outsourcing. The  global market for logistics outsourcing is expected to reach an impressive $1.642 trillion by 2032.

That’s obviously great news for LSPs, but it also means that now they must master supply chain complexity across multiple customer organizations, multiple industries and multiple regions. From volatile demand and shifting order priorities to extreme weather and physical roadblocks, LSPs need to plan and replan, dynamically, across dozens of customers in near real time.

The only way to accomplish this multi-enterprise supply chain orchestration with speed, precision and scale is via advanced technology tools. Enabled by artificial intelligence (AI) and machine learning (ML), today’s warehouse and transportation management solutions ingest enormous volumes of real-time data — both internal and external — then identify exceptions, replan dynamically and execute course corrections autonomously. These advanced solutions are ideal for mastering the incredibly complex challenges facing LSPs today.

As LSPs work to establish technology leadership and offer a differentiated level of customer service, they face a critical question: Should they buy off-the-shelf logistics software — or build their own unique digital ecosystem from the ground up? As they consider this complicated choice, LSPs are looking at factors like total cost of ownership (TCO), speed of launch, the need for customization, maintenance and upgrades, and other issues.

Build-and-buy: A new path to digital transformation

Our newest eBook, “Build Technology Leadership with Blue Yonder” offers a third option: A composable journey that combines both build and buy. To help LSPs and other organizations get quickly up-to-speed with AI, ML and other technology innovations, Blue Yonder offers its industry-leading capabilities as cloud-native, plug-and-play applications and microservices that are easy to install and add.

LSPs can achieve a rapid, seamless and cost-effective digital transformation by launching Blue Yonder transportation management and warehouse management solutions via the cloud. They can easily customize these systems to each customer’s needs and integrate them with their existing enterprise resource planning (ERP) and order management system (OMS). LSPs can also add specialized capabilities from Blue Yonder like yard management, labor management, warehouse execution, billing and returns management as composable microservices that are simply, seamlessly added to the existing technology stack.

Blue Yonder’s modern, composable approach to establishing technology leadership enables LSPs to simultaneously buy and build, as they leverage proven, purpose-built solutions to create their own customized tech ecosystem. LSPs can quickly achieve a digital transformation and deliver world-class managed services across the end-to-end logistics operation.

In a changing landscape, LSPs must remain agile

Not only does Blue Yonder’s composable, build-and-buy approach enable LSPs to get up to speed quickly, but it also allows them to remain agile as conditions change. A cloud-native, plug-and play approach ensures that LSPs are always accessing the newest Blue Yonder software features and functionality, as well as the fastest processors, to deliver the highest-quality managed services to their customers.

Blue Yonder also makes it easy to onboard new customers, or add new service areas like returns management, as the business landscape continues to shift. LSPs can evolve at their own pace, without ever experiencing the downtime and disruption of a rip-and-replace event.

 At Blue Yonder, we understand that AI, ML, predictive analytics, what-if scenario generation and other advanced capabilities can seem intimidating. That’s why we make them available to LSPs and other customers via an easy, intuitive user interface — and apply them in practical, value-added ways. Our transportation management, warehouse management and other solutions are ingesting volumes of data and performing rigorous analysis behind the scenes 24-7 — but their outputs are easily understood, intelligent recommendations the entire team can get behind.

Take the first step toward tech leadership today

It’s no coincidence that Blue Yonder’s hybrid build-and-buy approach is perfectly suited to the needs of the world’s LSPs. Every day Blue Yonder software is used by more than 175 LSPs across the globe, including 4PLs, 3PLs, specialty logistics providers, contract warehousing companies, transportation contractors and cold chain specialists.

We understand the needs of LSPs. And we’re uniquely positioned to meet those needs, as the only supply chain software provider that spans the full breadth of logistics operations: Transportation, warehousing and distribution, digital supply chain network, yard management, commerce and reverse logistics.

Instead of scrambling to build digital leadership from the ground up, LSPs can count on Blue Yonder to provide the end-to-end capabilities, resources and scalability they need to serve the growing demand for managed logistics services. By making Blue Yonder your strategic partner in driving growth, you’ll be leveraging our technology leadership to build your own. Read our newest eBook, or learn more about our specialized offerings for LSPs here.