Shippers are consolidating their 3PL rosters

Shippers are demanding far more from their logistics providers as disruption and supply chain complexity increase. The latest annual Third-Party Logistics Study of consulting company NTT DATA paints a contradictory picture of the shipper-3PL relationship: 88% of shippers describe their relationships with logistics providers as successful, yet half are consolidating the number of 3PLs they use.

Some 81% of shippers said disruption and supply chain complexity was driving interest in more strategic logistics partnerships, while 76% cited cost optimisation through greater collaboration and 57% digital transformation and technology integration.

Some 90% of shippers said technological capability was important when selecting a 3PL, but only 57% were satisfied with the capabilities their providers offered. Advanced analytics and network optimisation were each identified by 61% of shippers as important IT requirements from their 3PLs.

The trend towards using fewer providers could therefore present both an opportunity and a threat for forwarders. Shippers outsource an average 62% of their logistics expenditure, according to the study, but half are now consolidating their 3PL rosters.

Source: theloadstar.com