New 3PL Study Offers Specific Industries Focus

Oct. 26, 2006
The study is a collaborative effort between the Georgia Institute of Technology and Capgemini, with support from DHL and SAP. A no-surprise insight is

The study is a collaborative effort between the Georgia Institute of Technology and Capgemini, with support from DHL and SAP. A no-surprise insight is that there is continuing offshore sourcing with China being the major origin. While both sides—60%--of the 3PL equation regard technology as a major factor, consumers feel that providers are lacking in this area of their operations.

The study focuses on four vertical industries in particular. These are the key findings:

Automotive users outsource more 3PL services, relying on them for more transportation management than do other industry sectors. Their third party services most used are for transportation, shipment consolidation, cross-docking and as lead logistics providers.

• Manufacturers of chemicals are using more 3PL providers for the ability to reach new markets and manage the many challenges that are part of global commerce. As a rule, the manufacturers want to be in control of making critical decisions.

• Most current logistics spend for outsourcing by the high tech and electronics industries goes toward assembly, sequencing and packaging. Over time 3PLs have been targeted on upgrading the management of these dynamic supply chains.

life sciences and healthcare industries vertical. Its emphasis is on the ability of a 3PL to provide services in transportation, warehousing, customs clearance and brokerage.

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