Cap Gemini, Penn State University, Korn Ferry, Eyefortransport and Penske have sponsored this 18th annual “State of Logistics Outsourcing” study. I commend the study to you.
The report highlights the healthy relationship that exists between manufacturers and providers. Shippers indicated an average logistics cost reduction of 11% and a general satisfaction with outsourcing.
There is both good and bad news in the report for 3PL’s. 55% of shippers select 3PL’s based on their ability to provide continuous improvement, 49% look for experience in the shipper’s vertical.
42% see established and ongoing relationships as important selection criteria. Interestingly, many shippers are moving more to contract bids and shorter contract periods to leverage competition among 3PL’s which is at odds with the notion of ‘relationships’.
Leadership is also seen as vital and shippers will, increasingly, look to the quality of the leaders in a 3PL operation in making selection decisions.
As it has been the case for many years, IT capabilities continue to be at the forefront when making selection decisions. The study states:
“…. our research also finds that 3PL IT capabilities are becoming increasingly important to shippers ….”
Visibility and connectivity are required attributes of today’s supply chain partners and your systems will come under greater scrutiny than ever.
As a 3PL this report will provide a wealth of intelligence and allow you to strategically position yourself to retain and grow your business. The report can be found here.