How Shared Visibility Enables Logistics Service Providers to Be Selective in Sharing Shipment Data

Data sharing is essential to a meaningful outsourcing partnership between shippers and logistics service providers (LSPs) as it allows supply chain partners to work together to solve problems. In fact, the 2019 23rd Annual Third Party Logistics (3PL) Study (…) found that 61 percent of 296 shippers surveyed for the report and 54 percent of 249 3PLs said that issues with data sharing between the two parties contributed to problems with customer satisfaction.

In today’s delivery economy, shippers expect their LSPs to share shipment tracking information as end-to-end supply chain visibility has emerged as a major supply chain strategy for most companies. Indeed, the use of visibility to mitigate and manage supply chain disruptions was cited as the top strategy by 61 percent of shippers surveyed in the aforementioned survey.

LSP Concerns Over Data Sharing Risks of Confidentiality

Although LSPs understand the importance of sharing information in having a strategic relationship with their customers, outsourcing providers also want to secure their communications. In sharing data, LSPs are worried about prying eyes being able to see confidential or proprietary information that could harm their commercial interests.

LSP data privacy concerns include the release of proprietary information when a carrier is hauling goods for multiple customers on the same shipment. Logistics service providers also need to ensure the carrier hauling the load remains confidential so its relationship with the carrier is not compromised.

New Functionality for Safeguarding Confidential Carrier Data

In order to allay LSP concerns about data sharing, project44 has developed new functionality in its platform that safeguards data privacy while still providing in-transit visibility. With this new functionality, called “Shared Visibility,” LSPs can share shipment data but mask the name of the carrier from the shipper or consignee. Logistics service providers can use this functionality to designate which specific customers receive certain information.

How It Works

With Shared Visibility, a logistics service provider creates rules that determine whether to include or withhold a carrier name in sharing shipment information. Each time a status shipment update from a carrier comes into the project44 system, it gets evaluated according to the LSP’s data-sharing criteria. If a shipment meets the criteria, the update is shared with a shipper or receiving company. Shippers or consignees can only view shipment information according to the rules set by the logistics service provider.

Because this functionality still allows for automatic shipment status updates, third party logistics companies can reduce manual track and trace costs. Additionally, , 3PLs can use project44’s Visibility Operations Center ( resources/project44-visibility-operations-center) for shipment status communication, which includes customizable dashboards, order details, and exception notifications.

Protecting Privacy While Meeting Customer Expectations

Increasingly, supply chain partners want shipment transparency to improve customer service, enable more efficient receiving, and optimize inventory management. With Shared Visibility, logistics service providers can meet those supply chain partner expectations for in-transit visibility while protecting their confidential and proprietary information.