The state of logistics – Wrapping Up 2019

In this post, we share with you key findings of the “2019 23rd Annual Third-Party Logistics Study: The State of Logistics Outsourcing,” C. John Langley Jr., Ph.D., and Infosys, 2019.

About shippers and 3Pls relationship:

91% of shippers report that the relationships they have with their 3PLs generally have been successful.

The majority of shippers -89% – reported that 3PLs have contributed to improving
services to the ultimate customer.

72% of 3PL users agree that the use of 3PLs has contributed to lower overall logistics costs

Shippers outsource a wide range of logistics services, with the most common being domestic transportation (81%), international transportation (71%), warehousing (69%), freight forwarding (50%) and customs brokerage (40%)

2019 Key Takeaways

The complexity of last-mile deliveries

Customers want even faster shipping times and have specific delivery demands.  Shoppers demand fast, reliable delivery. They also value a good returns policy and free return shipping.

Integration of  IT-based services to help create value for the shipper’s customers.

Examples of information technologies, systems or tools that help create value for customers are transportation management, warehouse/distribution center management, visibility, and electronic data interchange.

Segmented experiential supply chains

Understanding the demands of particular customers shippers/3PLs can create segmented
experiential supply chains to meet the changing needs of a wide spectrum of consumers.

Revaluate supply chains based on costs

Cost continues to be a leading factor in shippers decision-making process. The desire to lower overall operating costs is one of the primary reasons shippers and 3PLs revaluate supply chains.

Visibility and partnerships to mitigate supply chain disruptions

Supply chain visibility tools and partnerships and the top two tools shippers and 3PLs use to mitigate and manage supply chain disruptions. Visibility allows all parties to know what is needed, what is coming and when it will arrive.

Source: “2019 23rd Annual Third-Party Logistics Study: The State of Logistics Outsourcing,” C. John Langley Jr., Ph.D., and Infosys, 2019.