Logistics News

2019 3PL Study highlights ongoing changes in shipper-3PL dynamics

​Data for the survey was based on feedback from 651 usable responses from shippers, or users of 3PL services, and non-users of 3PL services, as well as 3PL sector respondents.

The intersection of supply chain technology, changing online consumer spending habits, data management, delivery preferences, and other factors are all serving as game changers in how 3PLs are continually striving to better serve shippers.

That is a key takeaway from the 2019 22nd Annual Third-Party Logistics Study, which was released today by Infosys Consulting, Penn State University, Penske Logistics, and Korn Ferry at the Council of Supply Chain Management Professionals (CSCMP) Edge conference in Nashville, Tennessee.

Data for the survey was based on feedback from 651 usable responses from shippers, or users of 3PL services, and non-users of 3PL services, as well as 3PL sector respondents.

Looking at shipper-3PL relationships, the study found that 91% of surveyed shippers said that their relationships with 3PLs “generally have been successful,” with 98% of 3PLs indicating their customer relationships have generally been successful. What’s more, 89% of shippers and 98% of 3PLs were in accord that 3PL usage had translated into improving customer services “to the ultimate customers.” And 73% of 3PL users and 91% of providers stated that 3PLs provide new and innovative ways to improve logistics effectiveness.

In an interview, Joe Carlier, senior vice president of global sales for Penske Logistics, said that when looking at the state of the 3PL sector in 2018, there appears to be a perfect storm effect in play.

“Since the beginning of the year, there has been a host of disruptions impacting the industry, starting with the ongoing driver shortage,” he said. “But this year with manufacturing output increasing, GDP growth, low unemployment, and capacity tightening up the way it is, everything is coming together. One of the drivers behind capacity was obviously the ELD mandate. There are a host of things all coming together…but I cannot recall a time in which so many disruptors have come together at the same time.”

Carlier also cited how the role of technology and the rapid deployment of new technologies, while helpful, can create “noise” as well, in trying to figure out what is needed, what adoption rates are going to be, and costs and benefits, which, he said, are serving as contributors to a unique time in the 3PL sector.    

That was made clear in the study, which explained that shippers are “increasingly” aware” that if they lack the technological capabilities to meet their goals, they need to partner with those that do. And it added that as the amount of available data increases, shippers and their 3PL partners need to be able to take information and make it relevant, something that is being reflected in technology investments to analyze shippers’ operations, with 93% of shippers stating that IT capabilities are a necessary part of 3PL expertise, and 55% of shippers indicating they are satisfied with 3PL IT capabilities.

Penske’s Carlier said that from a 3PL perspective, the further upstream a 3PL can be, the more strategic and effective its decisions can be, specifically when addressing technologies like a WMS or a TMS and really understanding the needs within a shipper.

“There are a lot of times where that relationship doesn’t work, and I think it is really because of both parties are not really spending the time to really understand the business requirements,” he said. “If you are deploying a TMS or a WMS but don’t understand the throughput, there is no artificial intelligence that is going to know exactly what the business needs are….so the further upstream 3PLs can get to understand those business requirements and the business rules that are affecting shippers, the more perfected that relationship can be. There are collaborative decisions through each one of those steps as you are looking at the supply chain in totality.”

With the changes, or shifts, in consumer buying habits, including what the study called a blend of in-person and online purchases, that, in turn, require quicker responses than in the past, the study’s takeaways showed some interesting contrasts.

One focused on agility, with 42% of shipper respondents having not made required changes to improve their agility over the last five years, and 51% saying they are open to new ideas to create more opportunities for 3PLs to introduce and implement innovations.

Other notable takeaways from the 2019 Third-Party Logistics Study include:

  • how 72% of shippers and 71% of 3PLs agree that shippers/customers recognize the need for capable last-yard logistics services, with 53% of shippers saying they effectively manage last-yard logistics needs and only 34% agree that their customers effectively manage these needs;
  • 4% of shippers said they are high-performing in omni-channel retailing, 38% are inconsistent, 36% have no capability; and 18% said they are competent, and 3% of 3PLs said they are high-performing, 24% said they are competent; 14% are efficient, 31% said they had no capability; and 28% said they were inconsistent;
  • to meet omni-channel goals, 72% of shippers are investing in enterprise resource planning software, 56% are investing in warehouse management systems, 38% are investing in transportation management systems; and 38% are investing supply chain visibility and 24% are investing in WMS add-ons like labor management, analytics, and slotting organization;
  • the most common supply chain disruptions shippers face are increased transportation costs (77%), transportation and logistics network disruptions (76%) and increases in supplier costs (67%); and
  • looking at shipper-3PL data sharing, the study found that 61% of shippers and 54% of 3PLs said issues with data sharing between the two parties led to customer satisfaction issues, as well as late payments, not renewing a contract, and negative word of mouth

Article Topics
3PL   3PL Study   CSCMP   All topics


Comments
You must be logged in to post a comment. Login.

About the Author
Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
 
Latest Logistics News
New Digital Supply Chains are Powered by Artificial Intelligence and Predictive Analytics
Using AI and machine learning rather than using business-based rules to manage small parcel, ltl, truckload, intermodal, air and ocean shipments, the NextGen Transportation Management Systems bring a level…

Managing Online Shipping & Returns Expectations
How do you offer generous shipping and returns policies on your website to help first-time visitors feel more at ease about buying from an unknown brand, and do so without going broke?

Transportation & Supply Chain Predictions for 2019
For 2019, we believe the U.S. transportation industry and supply chain professionals will place more emphasis on digitization within the supply chain to help them address future complex challenges.

Developing a Less-than-Truckload & Ecommerce Focused Shipping Strategy
Companies must embrace the combined nature of omnichannel to realize its benefits, and the same is true of combined less-than-truckload and e-commerce shipping strategies.


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles