Even in a well-oiled logistics chain, there can be significant waste. Much of it occurs around what can be called “blind handoffs”—when two (or more) parties are involved in the handover of goods on their journey between manufacturers, warehouses, retail stores, and consumers’ homes. These points are where costly miscommunication, loss of information, and delays are most likely to happen. McKinsey analysis finds that between 13 and 19 percent of logistics costs could stem from these inefficient interactions, amounting to up to $95 billion in losses a year—in the United States economy alone.
Until now, the most common approach taken by shippers and carriers to reduce waste has been to increase visibility across their logistics…