Digital Transformation is a powerful lexicon to what is truly driving the change in industry dynamics, such as that of the last mile within the energy space. You can absolutely claim this is something near-and-dear to our hearts at FuelNOW because this is the playground in which we play, figured-ably speaking. But, in a more literal context, our mission is to be the catalyst and advocate for the 3PL ecosystem as they embrace and maneuver themselves into their best digital selves.
We are the digital platform for the 3PL ecosystem – our vision is to be the space all parties find – connect – engage – and perform their role as bulk products need to be delivered. And, when asked … because we often are … as to why anyone in the 3PL ecosystem should want to take the evolutionary step to 3PL digitization, the answer is always the same: This is the new, and prevalent, way to compete and remain economically viable.
In a recent piece on Why Digital Strategies Fail, written in The McKinsey Quarterly, it is pointed out that:
- The negative effects of digital competition on a company’s growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) are twice as large for the bottom three-quarters of companies as those at the top (Page 5). This basically tells you – what are you waiting for!
- Information helps identify looming threats and the best partners in defending value chains under digital pressure. Positioning a strength in data empowerment is what provides digitally transformed opportunities for growth, preventing stagnation(Page 5).
- Incumbents often find themselves snared because they assume market share will remain stable, that profitable niches will remain defendable, and that it’s possible to maintain leadership by outgrowing traditional rivals rather than zeroing in on the digital models that are winning share(Page 5).
Collectively, all of this is saying, “Digitizing B2B players are lowering costs and improving the reach and quality of their offerings”, (Page 12). And, why this might leave you a bit still pontificating on whether embracing digitization is necessary, or whether venturing into your own digital journey is something you need to do now … I’ll end this post with words from the World Economic Forum, “Digital transformation provides industry with unparalleled opportunities for value creation. It used to take Fortune 500 companies an average of 20 years to reach a billion-dollar valuation; today’s digital startups are getting there in four. Digital technologies are creating new profit pools by transforming customer expectations and how companies can address them.”
Bughin, Jacques, et al. The McKinsey Quarterly. January ed., McKinsey & Co., 2018.
“An Introduction to the Digital Transformation of Industries Initiative.” Travel and Tourism Competitiveness Report 2017, reports.weforum.org/digital-transformation/an-introduction-to-the-digital-transformation-initiative/.