Logistics platforms – money and data push platform economics

Affected industries: All industries, especially B2B and e-commerce

Affected supply chain segments: All segments, especially forwarding businesses and carriers

What are logistics platforms?

Logistics platforms are digital platforms that enable businesses to access logistics services, such as on-demand warehousing and last-mile delivery. By catering to multiple players, they create a digital marketplace – leveraging network effects to maximize value for all users. Bandwagon effects have encouraged businesses to join these platforms or miss out on the opportunities they offer, helping logistics platforms grow.

Logistics platforms are prominent on the freight-forwarding spot markets to match supply and demand, especially in road transportation. There, they act as digital brokers that provide an efficient, customer-centric infrastructure for participants’ data and assets. Other forms of logistics platforms even use their own physical assets to best serve their users.

What is the future of logistics platforms?

Logistics platforms with access to web-based price quoting capabilities have seen large growth. In 2021, logistics platforms were deemed relevant competition to established top players for the first time. Since then, the sector has continued to grow. To prevent a technological lock-in, in which one or a few logistics platforms become standard and practically make alternative options obsolete, initiatives like the Open Logistics Foundation are working to establish open-source standards and interfaces for processes.

Getting ahead of the trend

Businesses should consider all the advantages platforms have to offer. This could include leveraging platforms to optimize profit and scale business, as well as to standardize their data and digital processes.