c





 
 
  


 

 

The year 2006 was an eventful one for users of third party logistics services, and
the future is likely to provide even more meaningful use of the capabilities of
outsourced logistics providers. Based on results from the 2006 Eleventh Annual
Third Party Logistics Study (see www.3PLstudy.com), conducted by Georgia Tech,
Capgemini, DHL, and SAP, customers of 3PLs across North America, Europe, Asia-
Pacific, and Latin America felt that logistics represents a strategic, competitive
advantage for their companies, and that 3PLs played a major role in their logistics
and supply chain operations. C. John Langley Jr., PH. D.

Among the major findings of the 2006 study was that future outsourcing practices are likely to continue the
use of traditional services such as transportation, warehousing, and customs clearance, which are prevalent
today. Additionally, however, value-added services relating to information technology, customized logistics
solutions, and 4PL/LLP services are viewed as growing in terms of contemporary interest.

Additionally, 3PLs are viewed as valuable, and sometimes essential business partners for customers whose
logistics needs are evolving to any of the global emerging markets, such as China.

When asked about technology enablement, most customers rated this as an area where the 3PL sector is
being counted upon for leadership, functionality, and operational capability, but where the report cards to
date are viewed as needing improvement. Thus, the IT capabilities of 3PLs are likely to become even greater
differentiators of 3PLs than they are in today¶s business environment.

Looking to the future, many 3PL-customer relationships are evolving from conventional customer-supplier
relationships to true ³partnerships.´ Accomplishing this objective would allay a frequent criticism from this
year¶s survey respondents: 3PL providers many times ³react´ to situations; they do not anticipate and
identify opportunities to improve. To be fair, the study results also suggest that customers sometimes limit
their 3PL providers from demonstrating their full set of capabilities. The good news is that upgrading the
quality of customer-3PL relationships is an objective of 3PL users in all of the geographies studied.

Overall, it is clear that customers view their 3PLs as valuable resources, whether they are used in a
tactical/operational or a more strategic role. While there is a continually-shifting pattern of use of 3PLs vs.
the use of insourcing alternatives, the 3PLs have a permanent position in the strategic portfolio of resources
that are counted upon by corporate logistics and supply chain managers