I think the answer is probably "both". Integrated providers can deliver significant benefits through improved visibility, simpler governance, better data integration, and potentially lower overall costs. However, concentrating too much of the supply chain with a single provider can create dependency risks and reduce flexibility if service levels decline or disruptions occur.
For many organisations, the optimal model may be a hybrid approach: leveraging an integrated logistics partner while retaining alternative providers or capabilities in critical areas to maintain resilience and competitive tension.
Perhaps the bigger question is not whether an integrated provider is the right strategy, but where the tipping point lies between the benefits of integration and the risks of over-dependence. Where would you draw that line?
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Pieter Nagel
Chief Executive Officer Australasin Supply Chain Institute (ASCI)
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