The IT Gap in 3rd Party Logistics Providers

Outsourcing Logistics is the New Paradigm

The relationship between businesses and outsourced logistics has continued to grow year after year, with 3PLs  providing more capacity and savings than most in-house logistics operations.

As a result, 3PLs have become almost irreplaceable parts to many businesses.

While businesses and 3PLs are becoming more interconnected, many businesses aren’t satisfied with the current levels of service that 3PLs are providing.

Many of these shortcomings can be traced back to a lack of technological investment in most 3PLs.

In Cap Gemini’s 3rd Party Logistics Survey, 98% of 3PLs  agree that IT is necessary for them to operate, but only 55% of customers believe that 3PLs have adequate IT.

Despite the explosive growth in 3PLs in the last decade, 3PLs themselves have not developed technology to keep up with shifting needs.

In this paper we cover the following topics;

• Differences in Philosophy on Big Data
• How Legacy Systems Hinder Flexibility
• Reverse Logistics Remains an Issue
• Technology Must Be at the Core
• Finding Ways to Fix The Gap
• The New Age 3PLs

Download this paper and discover the gap between the technologies a 3PL provides and what a customer needs.