Outsourcing Logistics Strategy Survey Reveals Surprising Results

With this survey eyefortransport looked to gather data from the whole industry spectrum, with representation from billion dollar companies through to $50 million companies. This Executive Summary draws on the sections of the findings which speak to supply chain and logistics executives' views of the changing attitudes and approaches to negotiating new or existing contracts with third party logistics providers. The Executive Summary reveals the views shippers from a wide cross-section of vertical industries.

The survey revealed that while shippers believe lowest price to be the top criteria when selecting a new 3PL, with best quality service coming in a close second, shippers actually stated that they prioritize best quality services far above low price.

Shippers were also asked to outline their reasons for not renewing contracts with 3PLs, and the 3PLs were asked what they believed the reasons to be. The results showed a marked disparity between the supposed and actual causes; while shippers identified cost creep, poor service, and competitors offering a better service as their reasons, 3PLs have been assuming that the primary causes are competitors' lower prices, poor service and relationship management issues.

The survey also looked at how shippers rated the service provided by 3PLs and concluded that this was more positive that the same survey conducted last year. Many 3PLs' performance was rated as 'higher than expected', compared to the vast majority being rated as 'good' previously. Following on from this, shippers were asked whether they were currently planning to switch to a new 3PL – for cost or service reasons. The results were an interesting mix - with 31% changing due to service, and 34% staying put due to cost.

More survey results reveal that shippers are using fewer 3PLs at the same time, a significant change from former years, and fewer people using the services of 4PLs.

These results herald significant changes in the logistics industry and the key behaviours of decision-making executives.

For your complimentary copy of the Outsourcing Logistics Executive Summary click here http://bit.ly/zXJJOa.

These themes are at the core of the relationship between 3PL CEOs and senior supply chain executives will be discussed and debated at the 10th 3PL Summit & Chief Supply Chain Officer Forum. The next event is June 18-20, 2012 in Chicago.