Outsourcing is in!

That is the conclusion of the 2001 Annual 3PL (third party logistics) user and provider survey, conducted by Accenture (www.accenture.com) and Northeastern University.

The survey found that 74% of the nation's largest American manufacturing companies currently use 3PL provider services, more than double the percentage a decade ago.

What's more, 60% of those surveyed rely on 3PLs for warehouse management and nearly 40% outsource some portion of their order fulfillment services.

The trend is expanding: those same manufacturers expect to increase the portion of their logistics operating budget dedicated to 3PL outsourcing from 25% to 34% in the next 3 years.

In fact, even the recent economic turndown has had little impact on the trend.

"Ninety percent of manufacturers polled said the economic downturn has had little to no effect in changing their current level of interest or use of 3PL services," says Michael Hickey, Accenture Supply Chain Management associate partner. "Logistics outsourcing continues to transform companies as they focus on core competencies to meet their corporate objectives."

The most important factor driving the rise in outsourcing was containment of logistics costs: Eighty-four percent of 3PL users reported positive cost containment results.

The report also showed that many users rely on their 3PLs for IT support, including transportation planning and freight payment services. That's because 3PLs have aggressively embraced supply chain management and Web technologies to expand the range of services they offer to their clients.

Looking ahead, 3PL providers are counting on globalization to expand their business. They expect to provide services for their U.S. clients in Europe, Mexico, and Asia in the coming years.

The survey was mailed to the chief logistics executive of the 500 largest American manufacturing companies, and to CEOs of 20 of the top global providers of 3PL services.