3PLs remain in transition
By Staff -- Modern Materials Handling, 1/1/2000
The overall market for third-party logistics providers (3PLs) remains in transition, responding to changes in customer needs and values by expanding their service offerings, including e-commerce and other information technology capabilities, according to a recent study.The study also finds that 3PLs have historically been viewed as vendors whose key themes were cost control and service performance. However, today new partnerships are emerging and the emphasis has shifted to value, innovation, and performance in an increasingly global context.
Top findings of the study include:
- The market for 3PL services is growing 18%-22% annually
- Nearly 90% of customers are satisfied with their logistics service providers
- Almost 100% of respondents who said they used a 3PL to meet certain objectives indicated their objectives were met by the 3PL, including asset reduction, strategic/operational flexibility, and expansion of geographic coverage, both domestic and global.
- There is a shift from the use of transportation-based providers to providers that are oriented toward warehousing and distribution.
The fourth annual logistics survey was conducted by the University of Tennessee's Center for Logistics Research in conjunction with Exel Logistics and Ernst & Young.
For more information or a complete copy of the study call Wendie McGinnis at 614-890-3406.
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