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News & Events

The State Of Logistics Outsourcing - A Survey

In their 12th annual study on logistics outsourcing, Capgemini, a leading technology and outsourcing consulting company, illustrate some emerging trends and some useful observations on the state of the third party logistics industry. More than 1,500 senior supply chain executives from 61 countries participated in the survey. A common observation amongst all participants was that “Logistics represents a strategic, competitive advantage for our company.”

The most revealing statistic is that among companies that do not outsource logistics, nearly half are considering outsourcing at least part of their operation in the future. The reasons for this are simple. The majority of respondents who do outsource report cost savings that average 13% after outsourcing. These are significant numbers.

Although there is a desire to work with 3PL’s there doesn’t appear to be a general consensus on how to go about it. One thing is certain, and this supports our philosophy here at 3PL Links: Meaningful personal relationships, including what each party brings to the table, are crucial.

The report concludes with several areas of great interest to 3PL – customer relationships.

·      Supply Chain Value – 3PL’s and customers need to align goals and objectives to help achieve overall supply chain objectives

·      Business Network Transformation – Outsourcing will continue to grow into new services, ultimately enabling business networking.

·      Leveraging Information Technology – it is imperative that companies make better use of existing technology, standardizing data and establishing cross-industry platforms for 3PL’s.

·      Customer Management of 3PL Services – Customers, along with 3PL’s, need to develop a strategic plan to help guide the relationship in the desired directions.

·      Sustainability of Collaborative Relationships – Customers and 3PL’s must invest in two-way processes and move toward collaborative and sustainable supply chain business models over the long term.

Collaboration is viewed as critical to the success of any customer 3PL relationship. As we all know, creating good relationships is hard work, particularly when those relationships involve the sensitive issues of outsourcing key logistics activities. C. John Langley Jr., Ph.D., a contributor to the report, goes so far as to say that collaboration is the only way forward. At 3PL links we pride ourselves on our commitment to our working relationships.

Overall, based on survey response, many 3PL users were overwhelmingly positive about their experience. Even non-users discovered that when they examined their operations, there were places where a 3PL could fit and offer real value.

The report goes on to address IT and emerging markets, and offers a strategic analysis of their finding. To view the report in its entirety you can download a PDF of the document here. *Adobe Acrobat reader is required.