September 28, 2010
The 2010 15th annual 3PL study focuses attention ontopics of current importance
3PL Customer study and Provider study Investigate customer needs and experiences Validate customer perspectives from 3PL providers point of
view Identify areas for future improvement
Topics of contemporary interest Total landed cost (TLC) Life sciences Fast-moving consumer goods
Strategic assessment of future of 3PL-customer relationships
2010 Special Topics
Survey respondents represented a range of geographies and industries
Industry %1. High-Tech / Electronics2. Consumer Products3. Food and Beverage4. Automotive and Transport Equipment5. Life Sciences and Pharma/Healthcare6. Industrial Manufacturing7. Retail8. ChemicalAdditional Industries (14)Other
1210
998866
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Changing use of 3PL Services by Shippers in 2010
65% of Shippers Report Increase in Use of Outsourced Logistics Services
24% of Shippers Report Returning to Insourcing Some of Their Logistics Activities
46% of Shippers Are Consolidating Number of 3PLs They Use
3PLs provide a wide range of outsourced logistics services
Outsourced Logistics Service2010 3PL Provider
Percentages
All Regions
Domestic Transportation 86%Warehousing 85Transportation Planning and Management 76Customer Service 71Cross-Docking 70International Transportation 67Product Labeling, Packaging, Assembly, Kitting 67
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3PLs provide a wide range of outsourced logistics services
Outsourced Logistics Service2010 3PL Provider
Percentages
All Regions
Supply Chain Consultancy Services Provided by 3PLs 65%
Order Entry, Processing and Fulfillment 65Reverse Logistics (defective, repair, return) 62Information Technology (IT) Services 58Forwarding 56Customs Brokerage 54LLP/4PL Services 45
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Having the means to quickly and accurately compute total landed cost enables shippers to realize important benefits
Decision Making
Cost Insights
Price & Margin
Communication
Today’s use of sophisticated computer models to forecast the performance of supply chains is a requisite for continued improvement
in a competitive market place
Today’s use of sophisticated computer models to forecast the performance of supply chains is a requisite for continued improvement
in a competitive market place
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Shipment visibility and inventory control ranked high, for both users and 3PLs, as important services to provide
% respondents by what they deem as important services and capabilities that 3PLs provide
NOTE: Shown above are excerpts of the top 6 services that users want and 3PLs provide. The full list of services will be found in the final 3PL report.
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Users
Shipment visibility and inventory control ranked high, for both users and 3PLs, as important services to provide
% respondents by services that they actively provide to customers
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3PLs
NOTE: Shown above are excerpts of the top 6 services that users want and 3PLs provide. The full list of services will be found in the final 3PL report.
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Improving shipment density/load utilization
Reducing logistics costs
Having a supply chain disruption/mitigation strategy in place
Building sustainability into the supply chain
Ensuring Perfect Order Fulfillment
Shortening new product time-to-market and supply chain integration
Accommodating sales promotions
Rapidly sensing and responding to changes in consumer demand
Gathering and utilizing in-store data on products
Growing market share in emerging economies
74%
69%
68%
65%
62%
46%
42%
35%
32%
29%
Shippers consider 3PL usefulness depending on the issue
% user respondents by type of issue 3PL is seen as helping to manage
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Do 3PLs provide shippers with new and innovative ways to improve logistics effectiveness?Both 3PLs and shippers may bear some responsibility for an “innovation gap”
Shippers68% believe 3PLs provide value added innovation
Some shippers remain satisfied with core service delivery
But clearly, many shipper expect more innovation
3PLs95% believe 3PLs provide
value added innovation
Should have capability to deliver based on industry and
cross-industry experience
58% indicate that shippers are hesitant to share
requisite data
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Thank You!
Check out our website at www.3plstudy.com
Download the 2010 and earlier reports
Find additional information about the 2010 3PL Study
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