WT100 Blog


Integrated Logistics Outsourcing – The Expanding Role of 3PLs (PART 1)

September 4, 2012

As companies continue to seek out new ways to ensure optimal logistics performance, many are finding value in tapping their primary third-party providers for a greater variety of services.

A recent industry study sponsored by Saddle Creek Logistics Services examines the broader role that 3PLs are being asked to play in today’s marketplace. The report is based upon online survey responses from respondents who have influence over logistics functions at their companies and outsource some or all of their logistics services.

Increased consolidation. Currently, the majority of respondents (60.4 percent) have chosen to outsource to a select group of two to four providers, while 16.5 percent of respondents outsource to a single third-party provider for all of their logistics services. These figures reflect a growing trend toward consolidation of providers in order to leverage their capabilities, resources and purchasing power.

In the past 12 to 18 months, 19.8 percent of respondents say they have reduced the number of third-party providers they utilize. This trend will continue as 28.6 percent of respondents say they will consolidate providers in the next 12 to 18 months.

Expanded service. While companies seem to be cutting back on the number of providers they use, they are asking existing partners to take on greater responsibility – expecting them to provide a broader array of logistics services to support a seamless, integrated supply chain. The vast majority of respondents (73.6 percent) outsource to providers who offer two or more logistics services. Transportation and warehousing are the most common, but a variety of other capabilities are being tapped as well – product customization, cross-docking, e-fulfillment, etc.

Greater value. Respondents definitely find value in outsourcing to a provider with the ability to offer a variety of logistics services. More than half (52.3 percent) rate the importance of integration as 4 or 5 on a scale of 1-5.

Learn what’s driving companies to seek out integrated services in the next edition of the WT100 Blog.
 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

KC SmartPort Momentum

Kansas City SmartPort Momentum 2013 focused on 3PLs, the issues facing the industry, and the role or logistics in economic development

Podcasts

 

Calculating a true landed cost for global sourcing directly correlates with the profitability of purchased goods. However, few companies can command real-time visibility in to all the costs involved for cross border movements. In this podcast, World Trade 100 and Amber Road highlight how a comprehensive global trade platform that converges both logistics and compliance costs can deliver true landed cost visibility.

 

Speaker: Hung Lee, Senior Product Manager, Amber Road

More Podcasts

World Trade 100 Magazine

april cover wt100 2014

2014 April

Check out the April 2014 edition of World Trade WT100, featuring articles on fueling changes for trucking plus much more!

Table Of Contents Subscribe

Supply Chain Disruptions

Which are the most common causes of disruptions in your supply chain?
View Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members

STAY CONNECTED