LSP strategy in a very different year

With tariff negotiations underway and industry trends favoring nearshoring and process shifts, logistics service providers (LSPs) must remain flexible and strategic to manage changing costs and supply chain availability.

Ann Marie Jonkman, Vice President of Global Industry Strategy at Blue Yonder, sees both challenges and opportunities ahead.

Navigating Cost and Efficiency in Logistics

Logistics companies are always seeking ways to improve labor costs and efficiency. Now, they are closely watching tariff negotiations to understand how trade policies will impact operations.

“If there’s one constant, it’s change,” Jonkman said. “But what’s truly transformative is how technology enables us to adapt quickly. Many of our LSP customers started investing in advanced supply chain solutions last year, anticipating ongoing market shifts.”

“They’re asking us, ‘How can we leverage technology to stay competitive and resilient?’” she added. “Whether it’s optimizing transportation routes or improving inventory placement, technology is our greatest asset in navigating these changes.”

A Tailored Approach to Supply Chain Strategy

Given the uncertainties ahead, Jonkman emphasized that there is no one-size-fits-all strategy.

“Every company has a unique business mix, and that shapes their approach,” she explained. “For example, if you import primarily from Canada or Mexico rather than overseas markets, the impact of tariff changes will differ significantly.”

Potential strategies include increasing North American sourcing, adjusting ocean container use, exploring alternative routes, and forming partnerships with other LSPs to expand geographical flexibility.

“You need to analyze a vast amount of data to fully understand cost implications,” Jonkman noted. “You can’t simply hope the impact will be minimal or assume business as usual. Today’s technology allows us to assess complex data sets and adjust strategies in real time.”

The Role of AI in Logistics Adaptation

With advancements in AI and machine learning, waiting weeks or months for critical data is no longer necessary.

“I started in operations, and if you’ve worked in that space, you know conditions can change instantly,” Jonkman said. “Success depends on having strategies in place that account for labor, product positioning, final-mile delivery, and manufacturing timelines—aligning all of these factors quickly is what allows businesses to pivot effectively.”

Beyond logistics, Blue Yonder serves the retail and manufacturing sectors, where tariff changes and nearshoring trends will have varied impacts.

“For some companies, making their supply chain more efficient means keeping operations within the U.S.,” Jonkman explained. “But if your products are sourced from China, Africa, or the Caribbean, tariffs will still apply. The key is optimizing domestic operations to offset those costs.”

Potential cost-saving strategies include leveraging less-than-truckload (LTL) and parcel freight, automating processes, and forming partnerships within an LSP network. However, Jonkman cautioned that no single solution guarantees success.

“You have to evaluate every component carefully,” she said. “Some costs will be passed on to consumers—but how much? It’s crucial to consider the full end-to-end supply chain rather than relying on a simplistic solution like moving everything to domestic production.”

Connecting Data for Greater Visibility

Jonkman highlighted the power of AI in guiding both client and internal operations toward better decision-making.

“Flexibility starts with visibility,” she said. “Right now, companies often rely on multiple disconnected systems to gather relevant data. I encourage transportation leaders to assess their siloed systems and explore how they can be connected.”

Key cost drivers—including shipments, detention charges, capacity, and labor—must be analyzed holistically to prevent unexpected expenses.

“You need real-time visibility into every stage of your supply chain,” Jonkman emphasized. “Without it, you’re reacting to reports at the end of the week or month rather than making proactive adjustments.”

“When you connect siloed systems and apply AI to extract insights, you can make better, faster decisions,” she added.

Even in a typical year, these factors require careful management. But with the additional complexities of 2025, Jonkman underscored the need for expert guidance.

“This year will bring a variety of disruptions,” she concluded. “Companies need the right strategic partners in their corner—because that’s exactly what our customers are asking us to help them solve.”

Click here to learn more about Blue Yonder.

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