The logistics industry is reaching a critical turning point. While other industries have adopted universal standards that allow for smooth global operations, shipping and delivery management is trapped in fragmented systems, incompatible APIs, and manual workarounds that reduce efficiency and increase costs.
A single international shipment might pass through multiple systems, each requiring its own integrations, specialised data formats and manual reconciliation. Supply chain directors spend more time managing system complexity than driving strategic growth, while operational teams struggle with data silos that inhibit real-time decision-making.
But transformation is on the way. Logistics standardisation, like SWIFT revolutionised financial transactions and IEEE standards enabled the wireless revolution, has the potential to eliminate operational friction while unlocking previously untapped capabilities.
The hidden cost of logistics fragmentation
Today’s logistics landscape mirrors the early internet, which consisted of incompatible networks that required constant manual work to transmit information. Grand View Research demonstrates the magnitude of this challenge, with the logistics API market projected to grow from $1.48bn in 2023 to $5.3bn by 2030, driven largely by the urgent need for standardised integration and visibility.
When important shipping data is kept in carrier-specific systems, supply chain visibility suffers. A supply chain director at a major UK store explains the situation: “We manage connections with 12 different carriers, each with their own tracking format, delivery confirmation method and exception management. Our team spends hours each day translating between systems to acquire a thorough picture of our operations.”
Cross-border complexity increases as overseas exports meet different standards in each market. A single cargo travelling from Manchester to Munich may pass through systems in the UK, the Netherlands and Germany, each needing distinct data formats and integration methodologies. This fragmentation increases the expense and danger of global commerce.
Environmental impact increases as resources aren’t used efficiently. When carriers don’t use standardised communication, vehicles from various businesses frequently drive overlapping routes with partially packed loads, creating congestion and pollution. According to a World Economic Forum study, coordinated urban logistics strategies, such as shared resources, urban consolidation centres and multi-carrier delivery models, can significantly reduce the number of delivery vehicles and overall traffic in cities, while maintaining service levels and enhancing sustainability.
The expense is strategic. Supply chain transformation initiatives fail when teams are unable to effectively incorporate new technologies or expand successful pilot programs across their carrier network.
Learning from successful industry transformations
Examining how other industries achieved standardisation breakthroughs reveals the route forward. These shifts follow similar patterns that logistics can replicate.
Transforming financial services with SWIFT illustrates the power of global communications standards. Before SWIFT’s inception in 1973, international payments needed manual processes, proprietary formats and considerable reconciliation. Today, more than 11,000 financial institutions in over 200 countries and territories use standardised protocols to communicate on the SWIFT network, achieving 99.999% system availability while handling messaging volume that supports the transfer of trillions of dollars every day.
SWIFT didn’t replace existing banking systems. Instead, it provided a common translation layer that allowed for seamless communication across various institutions’ internal platforms. This technique reduced integration complexity while protecting existing investments.
Wireless communication via IEEE 802.11 demonstrates how technical standards can support entire ecosystems. The WiFi standard, introduced in 1997 (with 802.11b making it widespread in 1999), established a common architecture that enabled devices from any manufacturer to connect consistently. This standardisation decreased complexity and sparked innovation, transforming industries ranging from hospitality to healthcare.
Automotive quality through IATF 16949 is an example of successful industry-specific standardisation. By developing common quality management norms, the automotive industry gained worldwide interoperability, allowing complicated supply chains spanning many nations and thousands of suppliers. Components made in Korea connect with known quality and compatibility into systems designed in Germany and produced in Mexico.
Each transformation followed a similar pattern: collaborative development by industry experts, incremental adoption that preserved current investments, and clear business benefits that encouraged widespread participation.
The Sorted approach to logistics standardisation
Sorted is driving this shift with OpenShip, the industry’s first open, universal standard for parcel shipping. OpenShip, which is now being developed as part of our Product Roadmap 2025, solves the fundamental issues that have hampered logistics standardisation.
Single language for shipping via defined API requirements for Shipping Data Units. Instead of maintaining multiple individual carrier integrations, supply chain teams will use a single, uniform interface that works flawlessly across the entire carrier network.
Global interoperability provides real cross-border compatibility. OpenShip will ensure that a shipment created in London with UK logistics systems may be tracked, modified and delivered across European networks without requiring user intervention or data conversion. As global business grows, this skill will become increasingly important.
Load balancing and sustainability via cross-carrier optimisation. When carriers interact using defined protocols, intelligent routing is achievable. Instead of three half-empty vehicles travelling the same route, OpenShip will enable integrated shipping, which reduces vehicles, lowers emissions and increases delivery density.
Future ISO standard development positions OpenShip for industry-wide adoption. By advancing to ISO-backed framework status, we ensure that this standard may benefit the entire global logistics industry, not simply Sorted customers.
Our unified platform already demonstrates these principles in action. We are breaking down the artificial barriers between shipping management and tracking supervision using Shipping Data Units (SDUs). Teams use a single system to monitor shipping numbers, analyse carrier performance and manage customer communications, giving them total insight over all activities.
Technical advantages of standardised logistics APIs
Logistics standardisation enables technology transformations that go much beyond mere data sharing. Standardised APIs enable possibilities that would be unattainable in a fragmented environment.
Real-time carrier health monitoring becomes possible when all carriers communicate using standard protocols. Unified dashboards enable supply chain teams to spot performance concerns, capacity bottlenecks and service outages across their entire network. This visibility enables proactive decision-making instead of reactive problem-solving.
Predictive analytics across carriers uses standardised data to find patterns and optimise operations. When shipment data is in uniform formats, machine learning algorithms can analyse performance trends, anticipate delivery windows and make routing changes to optimise cost and service outcomes.
Automated failover and redundancy using standardised carrier switching. If a primary carrier encounters capacity constraints or service outages, common APIs allow for automatic rerouting to alternate providers with no operator intervention or system reconfiguration.
Integrated exception management that applies across the whole logistical network. When delivery exceptions occur, defined standards enable a coordinated response from multiple carriers, customs authorities and distribution facilities. This collaboration shortens resolution time and enhances customer communication.
Environmental transformation through intelligent coordination
Individual efficiency gains cannot reach the same environmental benefits as industry standards. The key is system-wide optimisation, which is only attainable when carriers interact via similar protocols.
Cross-carrier load balancing eliminates the inefficiency of multiple carriers running parallel routes with partially filled vehicles. Today, standardised APIs and digital logistics platforms make it possible for carriers to share real-time information on available capacity and route plans, enabling dynamic coordination and higher vehicle utilisation. Modern urban consolidation centres in the Netherlands – such as Binnenstadservice – and recent industry pilots like the UK’s Logistics Living Lab, have shown how API-driven collaboration allows even competing firms to consolidate deliveries, cut empty running and reduce city-centre traffic, all while maintaining or improving delivery performance.
Dynamic route optimisation across the entire logistics network becomes possible when carriers share standardised location and capacity data. Instead of each carrier optimising individual routes, the system can coordinate deliveries to minimise total distance travelled and fuel consumption.
Sustainable carrier selection through standardised environmental reporting. When all carriers submit emissions data in common formats, supply chain teams can automatically route shipments through the most sustainable options without reducing service quality or increasing costs.
According to maritime transport studies (from numerous sources), standardised shipping protocols could help to meet global emission reduction targets. By minimising duplicate routes and empty miles, industry collaboration helps the logistics sector reduce its carbon footprint while increasing profitability.
Strategic implementation roadmap
Forward-thinking supply chain leaders are already getting ready for this shift by assessing their present integration architecture and identifying opportunities for standardisation benefits.
The Assessment phase entails mapping current carrier relationships and finding integration complexity pain points. Supply chain teams should keep track of the number of different systems, manual processes and data reconciliation needs they now need to retain visibility across their logistics network.
Pilot implementation involves the selective deployment of standardised platforms. Rather than attempting full transformation immediately, successful businesses begin with specific use cases, such as tracking visibility or exception management, that demonstrate tangible value while developing internal knowledge.
Gradual expansion occurs as standards mature and network effects grow. Early adopters benefit from decreased complexity and improved visibility, while late adopters gain access to established ecosystem features such as automatic carrier selection and cross-network optimisation.
Complete integration when OpenShip and comparable standards reach critical mass adoption. At this level, supply chain teams will have access to features that would be unattainable in a fragmented environment, such as real-time capacity sharing across global carrier networks or automated routing based on environmental effect optimisation.
Companies who start this path now will be better positioned to reap the full benefits of industry standardisation as it increases over the following five years.
The path to connected logistics
Industry standardisation reflects a fundamental change toward collaborative efficiency that benefits everyone involved. Supply chain directors who embrace this transition will position their companies for long-term competitive advantage while also contributing to industry progress.
The shift toward uniform logistics has already begun. Our development of OpenShip is only the first stage in a larger change that will reshape how products travel around the world.
As we move toward a future in which transportation operations follow sophisticated, standardised standards, the prospects for innovation grow. When the entire sector adheres to shared standards, real-time global capacity optimisation, automated multi-modal routing and predictive exception management become feasible.
The moment has come for supply chain leaders to take action and embrace this future. Companies that invest in standardised logistics systems now will shape the connected, efficient and sustainable supply chains of the future.
Want to learn how OpenShip and Sorted’s unified platform will transform your logistics operations? The future of logistics is connected, intelligent and standard, and it starts with your next strategic decision.
The move toward logistics platforms that are truly unified has already begun. The question is whether your company will be at the front of this change or have to scramble to catch up.