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Survey predicts 3PL sales slump

Staff -- Modern Materials Handling, 1/1/2003

Demand for third-party logistics (3PL) services has remained especially strong in our weak economy…until now. A new survey by Accenture consultants and Northeastern University  says that just 56% of manufacturing executives would moderately increase their use of third-party logistics providers—that's down from 74% in the 2000 and 2001 surveys. Accordingly, the CEOs of 3PL providers also predicted a drop-off in sales growth—projecting an 11% one-year growth rate, down from 17% in the 2001 survey. Reasons include pricing pressures, staffing issues, increasing technology demands by customers, and complaints that the transition to a 3PL is too time-consuming, says Stephen Kendrick, a partner in Accenture's supply chain management practice.

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