Retailers are broadening their expectations of logistics service providers (LSPs), according to Blue Yonder’s LSP Survey. The research, based on 250 retail executives, points to a market in which transport execution is only the starting point for a longer-term partnership.
On-time reliability remains the leading requirement, cited by 60% of respondents. Flexibility and responsiveness follow at 56%, with cost efficiency and transparency at 46%. Retailers also want end-to-end visibility (69%), coordination across suppliers and carriers (61%), risk planning (57%) and early disruption alerts (55%).
Technology is now a major dividing line. Forty percent of retailers identify inadequate technological capability as their main concern with LSPs, followed by inflexible commercial models at 33% and weak cost efficiency at 32%. Legacy applications and disconnected data make it harder to identify problems quickly or coordinate a response.
Retailers expect partnerships to develop through digital supply-chain network expansion, an expectation shared by 83% of respondents. Investment priorities include machine learning and predictive AI, cited by 49%, and control towers or digital networks, cited by 40%.
A connected data platform can provide a shared operational view for carriers, suppliers and logistics teams. It can support earlier warnings, faster decisions and AI-assisted recovery actions while reducing manual reconciliation between order, warehouse and transport systems.
The opportunity extends beyond traditional logistics. Thirty percent of retailers are considering outsourcing order management within five years, and 21% are considering outsourced returns management. Analytics has particularly strong potential: its outsourcing rate could rise from 21% today to 60%.
As retailers expand their use of LSPs, providers that combine dependable execution with digital integration, predictive insight and scalable response will be better placed to secure strategic contracts.
A multilingual professional experienced in Europe, Canada, and China, Herbert has developed invaluable networks in the automotive and energy industries. He has led high-profile projects involving ENBW, Mercedes-Benz Group, Siemens Group, and the Fraunhofer Institute.