3PL Study 2008

This week at the CSCMP conference in Denver the annual and always interesting 3PL Study was released. It was not surprising to see logistics providers evenly split between interest in pursuing green supply chain initiatives and those who are pessimistic about it fitting into their business with all the hype going around.

Also not surprising (given the study is sponsored by logistics software, and IT consulting firms) was that only 35% of users of 3PL Services said they were happy with their provider’s IT capabilities. I do think this is something important to keep in mind, but not a signal to 3PL’s to go out and embark on foolish IT expenditures.

Never lose site of the fact that technology investments should be used to accelerate your business and make you better and more effective at what you do, rather than a poorly planned expense executed out of fear or as a reaction to the competition.

  • Do be aware of the hidden costs of supply chain software
  • Do make IT investments that will increase value for your customers
  • Do ensure that increased value for your customers also means increased efficiencies rather than thinner margins.