The 16th annual 3PL industry study was released at this year’s CSCMP conference in Philadelphia. With more than 1600 shippers and 700 representatives from 3PL companies this years study covers the current state of the third party logistics market, emerging logistics markets, high tech/electronic, talent management and strategic assessment.
Key findings are that 64% of shippers from trucking, to rail, and ocean are increasing their use of 3PL services and an average of 42% of total logistics expenditures are spent on logistics outsourcing. At the same time, 24% of respondents reported a return to insourcing 3PL solutions and 58% report they are reducing or consolidating the number of 3PLs they use. Today’s 3PL marketplace is experiencing significant change and established 3PLs are adjusting their business models to provide greater value to customers. The report still shows a desire among shippers for third party logistics providers to improve their IT and technology offering to allow better visibility into inventory.
Current state of the market:
“While 69% of shipper respondents are satisfied with the openness, transparency, and communication received from 3PLs, only 62% of 3PLs are satisfied with these characteristics in their relationships with customers.”
Electronics:
“74% of electronics companies cite visibility as the top service they would like to see from 3PLs, no matter the size or location of the shipper.”
Talent Management:
“41% of shippers and 36% of 3PLs are concerned or significantly concerned that their organization has a number of stars, but their culture/history has not encouraged them to work collaboratively as a team (team effectiveness).”
The 2012 3PL study was supported by:
- Capgemini
- Penn State
- Panalpina
- Heidrick & Struggles
- Eyefortransport