@Risk

Most shippers are cutting costs and as a result, they’re re-thinking both their supply chains and their 3PL relationships, according to a new study from Capgemini, in cooperation with Oracle, the Georgia Institute of Technology, and Panalpina.

The survey, which polled more than 1,000 logistics executives from both 3PL users and providers in North America, Europe, Asia Pacific and Latin America, examined global markets for shippers and logistics providers and found that, as you might expect, the recession has created significant challenges for both shippers and 3PLs.

Here are a few more key findings:

• 82% of shippers say they are employing cost-cutting tactics. 77% are also seeking to improve forecasting and inventory management.

• As a result, 60% report that they are rethinking their supply chains and relationships with 3PLs.

• Most (88%) shippers recognize the importance of IT-based logistics services, but less than half (42%) are satisfied with the capabilities of their provider.

• There is an intriguing disconnect between how 3PLs and shippers view the role of 3PLs in the supply chain. 88% of 3PL respondents feel they have a positive effect on customer service. But, only 59% percent of shippers agree.

• Shippers in the survey devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing. This level of expenditure is expected to increase in the next five years.

“Companies worldwide are still dealing with the effects of the economic downturn,” says Jim Morton, Senior Manager within Capgemini Consulting’s Supply Chain practice. “But shippers should embrace the opportunity to rethink their supply chains and the role that 3PLs can play in helping to attain business goals.”

Shippers also need to recognize the IT capability gap and work to improve timely collection and analysis of key performance indicators. If you want to successfully compete in today’s complex, global, and increasingly unpredictable business environment, your company needs supply chain strategies that can respond quickly to changing market conditions.