Shipper-3PL collaboration a key theme of 20th Annual 3PL Study

A focus on collaboration and strong relationships between third-party logistics (3PL) providers serving as one of a main building blocks for supply chain success was a key theme in the 2016 20th Annual Third-Party Logistics Study released at this week’s Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Diego by Capgemini Group, Penn State University, Korn Ferry, and Penske Logistics.

The study’s findings are based on feedback from 267 shippers and 3PLs in North America, Europe, Asia-Pacific, and Latin America.

The theme of relationships was front and center in the study’s findings, with the study showing that 93 percent of 3PL users, or shippers, and 94 percent of 3PL service providers indicated their relationships are successful, with their work bearing positive results.

Taking that a step further, the 3PL study found that 70 percent of shippers and 85 percent of 3PLs point to 3PL service usage as a main driver in over all logistics cost reductions, and 83 percent of shippers and 94 percent of 3PLs noting leveraging 3PL services has led to better customer service. What’s more, 75 percent of shippers and 88 percent of 3PLs say that 3PLs provide what was described as new and innovative ways to improve logistics effectiveness.

The study identified various tools 3PLs need in order to be successful, with the top five including: warehouse/DC management at 64 percent; transportation management (planning) at 60 percent; visibility at 60 percent; transportation management (scheduling) at 60 percent; and electronic data interchange (EDI) at 54 percent.

The survey again also focused on what it describes as an “IT Gap,” which it defines as shipper’s opinions on whether they feel information technologies are a necessary element of 3PL expertise and whether they are satisfied with their 3PL providers’ IT capabilities.

The IT gap in the earlier years of this study was wide, but in recent years it has narrowed, with 93 percent viewing IT as a necessary element of 3PL expertise and 59 percent of shippers indicating they are satisfied with 3PL IT capabilities. This represents a significant gain from 2002, when the IT gap was first measured in the study, with a mere 27 percent of shippers saying they were satisfied with 3PL IT capabilities.