In an ideal world, every shipment moves seamlessly, capacity is easy to find, every mode runs on time, and there are no disruptions related to weather, construction or geopolitical incidents. Of course, we don’t live in an ideal world.

The coming year will be packed with challenges, both familiar and entirely new. Higher tariffs, evolving regulatory requirements, immersive adoption of artificial intelligence, geopolitical strife, climate change and a shift away from single-source strategies all point to a period of immense change. The way that in-house logistics teams choose to respond — and the criteria they use to judge their third-party suppliers — will matter more than ever.

Organizations the world round face shortages of everything from medical supplies to agricultural commodities and battery minerals. At the same time, many economies have experienced spikes in inflation. As a result, there’s a sharp focus on logistics. While supply chains have always been central to business operations, they’re now a regular boardroom topic. 

Companies today look to drive innovation and efficiency in their supply chains to secure the flow of materials and manage costs. While they might previously have been comfortable with a single-source approach to essential supplies, the impact of the global pandemic has exposed the flaws in that strategy. As natural resources dwindle in some parts of the world, and climate change and geopolitical events make logistics increasingly unpredictable — organizations are building new supply chain strategies that include redundant sources for supply.

Multiple-supply models are more than just smart — they’re essential. In addition to managing more relationships and more complex shipping requirements, professionals need to embrace new levels of ambiguity. Any number of factors — from price changes to supply disruptions at primary vendors to shifts in market demand — can drive sudden changes in the supply chain. Multiple-supply logistics operations will need to incorporate AI, data analytics and other technologies to be able to make adjustments.

Managing the many moving parts of a multiple-supply model, though, is a tall order for an in-house logistics team. The building of models that apply technology in new ways, and responding to business needs in real time, will necessitate more strategic relationships with third-party logistics partners. The best 3PLs will be those that can act as contiguous extensions of in-house teams. They will also bring best practices in key areas, such as multimodal strategies and the application of AI, digital twins and data analytics.

The need for agile third-party partners will further intensify this year with an expected increase in tariffs and trade wars, in addition to continued uncertainty created by the Russia-Ukraine war, military activity in the Middle East, and ongoing disruptions in Taiwan and the Red Sea. The wide-ranging networks of third-party providers will become increasingly important.

Following are four keys to success, for companies looking to address these challenges with the help of third-party partners.

Choose providers with proven multimodal capabilities. Single-mode logistics providers are in a vulnerable position — they lack the flexibility to adapt how they move freight. If, for example, a labor strike emerges in the ports on one U.S. coast, imports will increase at ports on the other side of the country. Moving goods across the country will require multiple modes and a flexible network of warehouses and facilities.

Implement data and tracking. The digital tools consumers use to track deliveries have elevated B2B expectations. Business leaders expect parcel-tracking capabilities similar to those that consumers enjoy every day. In the B2B realm, emerging technologies add a layer of complexity to delivery tracking. With more changes ahead in the digital age, “on-time” means something different. 

Build expertise in safety and compliance. Regulatory changes are coming faster than ever at both the national and regional levels. Simply keeping up with new regulations can be overwhelming for an in-house team. It’s important to choose a third-party partner with the demonstrated ability to collect and share data with you in a secure manner. 

Prioritize long-term financial stability. As data becomes easier to collect and analyze, the concept of risk management becomes both more nuanced and more prominent. One way to mitigate risk across supply chains is to diligently review the financial strength of third-party providers. Choose the most stable partners to minimize risk and boost resilience. In an extreme case, for example, if a logistics company happens to enter bankruptcy, all the freight it’s hauling on behalf of customers can get caught up in that situation.

Tariffs, political instability, climate change, regulatory requirements and multi-source strategies will make the coming year a challenging one for third-party logistics providers. Some will see these conditions as barriers to quality service, while others will embrace them as drivers of innovation. Even when conditions are challenging, resilient providers can effect positive change. The approach your third-party providers take — and their view of the challenges awaiting the world this year — will have a substantial impact on your supply chain and your business.

Bill Heaney is chief commercial officer at Odyssey Logistics.