@Risk

3PLs and their customers appear to be misunderstanding each other’s priorities.

For example, the recently published Global 3PL & Logistics Outsourcing Strategy Report 2011-12, from eyefortransport, found that:

• 36 percent of 3PLs believe lowest price is the most important factor for shippers when choosing a new 3PL, as opposed to best quality service (30 percent).  Shippers, on the other hand, rate best quality service as the most important factor (64 percent) and lowest price as far less important than 3PLs expect (15 percent).
• When it comes to the non-renewal of existing 3PL contracts, 3PLs overestimated the importance of their competitors offering a cheaper price by a dramatic 49 percent.

This kind of fundamental disconnect needs to be addressed so the industry can successfully face the challenges that lie ahead.

“This year’s survey findings really reinforced some of the trends we’ve seen for the last 18 months,” said eyefortransport’s Executive Director, Katharine O’Reilly.  “The insights are not really unexpected, but when you see figures like this, especially in areas where 3PLs and their customers are fundamentally misunderstanding each other’s priorities, we really sit up and take note.  These are gaps in understanding that need to be filled if the industry is to move forward and grow as it should.”

In other findings: (more…)

This year, the annual 3PL Market Report North America from eyefortransport focuses on the core issues supply chain and logistics companies are facing as they emerge from the global recession –and as you might expect, the results are somewhat of a mixed bag, revealing  a healthy dose of cautious optimism.

For instance, when asked how they think worldwide economic conditions will affect their companies’ financial performance in the next 12 months,  36 percent of 3PLs, 47 percent of manufacturers/retailers, and 23 percent of solution providers said that growth will be slower than predicted.

But, 31 percent of 3PLs, 26 percent of manufacturers/retailers, and 29 percent of solution providers said they expect revenues to increase.

10 percent of 3PLs, 15 percent of manufacturers/retailers, and 23 percent of solution providers think growth will be as  strong as predicted.

But, 17 percent of 3PLs, 7 percent of manufacturers/retailers, and 18 percent of solution providers said they are not likely to see growth, at all. 6 percent of 3PLs, 5 percent of manufacturers/retailers, and 7 percent of solution providers expect revenues to decline.

Overall, this year’s results are generally more positive compared to eyefortransport’s previous reports,though, indicating the increased optimism I’ve seen in other industries, as well. (more…)

Supply chain are becoming increasingly global and complex –and now more than ever before, companies are beginning to focus on their suppler networks to gain a competitive edge, leverage innovative ideas, and cut costs.  But, how are supply chain executives juggling all these challenges? Are they taking full advantage of the supply chain management IT /technology that’s now available?

New research from eyefortransport offers some insights. The latest “Logistics Technology Report” summarizes survey results from more than 300 executives from the supply chain and logistics industry. The poll was conducted in October and November 2009 and focused on the use of IT and technology in supply chains.

Here are a few key findings I found interesting: (more…)