{"62050":{"#nid":"62050","#data":{"type":"news","title":"15th Annual Third-Party Logistics Study Examines the Global Market for 3PL Services","body":[{"value":"\u003Cp\u003EFor the\nfifteenth year, Georgia Tech\u2019s Supply Chain \u0026amp; Logistics Institute\u0026nbsp; in cooperation with Capgemini Consulting, the\nglobal strategy and transformation consulting brand of the Capgemini Group, and\nglobal logistics provider, Panalpina, have compiled the findings from its \u003Ca href=\u0022http:\/\/www.scl.gatech.edu\/research\/supply-chain\/20103PLReport.pdf\u0022\u003EThird-Party\nLogistics (3PL) Study\u003C\/a\u003E,\nwhich examines the global market for 3PL services. This year\u2019s report, released\nlast month, reveals that 3PLs continue to provide important strategic and\noperational value to shippers throughout the world. However, significant\nuncertainty about the global economy has impacted spending, with an average of\n11 percent of company sales revenues devoted to logistics, and an average of 42\npercent of that directed to the outsourcing of logistics services, a decrease of\n10 to 15 percentage points from recent years. At the same time, 65 percent of\nshippers reported an increase in the use of outsourced logistics services\nrelative to total logistics services, suggesting that while outsourcing may\nhave increased, expenditure on 3PL services overall has decreased\u003Cstrong\u003E.\u003C\/strong\u003E\u003C\/p\u003E\n\n\n\n\u003Cp\u003E\u003Cstrong\u003E\u0026nbsp;\u003C\/strong\u003EThe 2010 Third-Party\nLogistics Study is based on almost 1,900 responses from both shippers and\nlogistics service providers in regions including North America, Europe,\nAsia-Pacific and Latin America, and also\nprovides an in-depth look at the life sciences and fast-moving consumer goods\n(FMCG) industries. Supplemented with a significant number of focus interviews\nwith industry observers and experts, findings of the web-based survey reveal\ncontinued progress and improvement in the shipper-3PL relationship, with 89\npercent of shipper respondents overall viewing their 3PL relationships as\ngenerally successful and 68 percent indicating that 3PLs help provide them with\nnew and innovative ways to improve operations. However, the report\u2019s findings\nshow that shippers continue their tendency to outsource transactional,\noperational, and repetitive activities and less so those that are strategic,\ncustomer-facing, and IT-intensive despite a large proportion of 3PLs offering\nmore advanced services.\u003C\/p\u003E\n\n\n\n\u003Cp\u003E\u0022Many\nshippers regard logistics and supply chain management as key components of\ntheir overall business success. Increased use of outsourcing and high\nsatisfaction levels suggest that 3PLs can certainly take some credit for\nhelping shippers to weather the economic storm,\u201d said C. John Langley Jr., professor\nof Supply Chain Management at Georgia Tech\u2019s H. Milton Stewart School of\nIndustrial and System\u2019s Engineering (ISyE). \u0026nbsp;\u201cDespite a challenging environment, 3PLs have\nan opportunity to continue to mature and grow by offering an increasing number\nof value-added services for shippers.\u201d\u003C\/p\u003E\n\n\n\n\n\n\n\n\u003Cp\u003EOne of the\ncritical capabilities most highly valued by shippers in their 3PL provider is\naccurate reporting and analysis of total landed cost (TLC) \u2013 the sum of all\ncosts associated with making and delivering products to the point where they\nproduce revenue. The benefits of solid TLC calculations include more agility\nand confidence in decision making, better insight into the financial performance\nof products and partners, and improved supply chain visibility. However,\ndespite the relatively high number of shipper respondents reporting an\nextensive use of TLC (45 percent), the precision and level of detail of those\ncalculations differ widely.\u003C\/p\u003E\u003Cp\u003ECalculating\nthe TLC of materials and finished goods is not always an easy task. Difficulty\nin defining all the factors contributing to total cost, and then obtaining all\nthe necessary data, can be challenging. Too often, businesses rely on only\npartial data or inaccurate estimates that can lead to incorrect results, with\n58 percent of 3PLs reporting a hesitance from shippers to share information\nwith them. That might be the reason why, despite the high value of TLC\ncalculations, just 23 percent of 3PL respondents reported providing extensive\nTLC analysis to their customers. This level of interaction requires a high\nlevel of trust, and considerable discussion is required among 3PLs and their\ncustomers to better understand the factors, roles, and KPIs to be used in a shared end-to-end\ncalculation effort. \u003C\/p\u003E\n\n\n\n\u003Cp\u003E\u0026nbsp;\u201cTLC enables companies to capture both the\nobvious and hidden costs associated with product movement, revealing the true\ncost of sourcing and logistics decisions,\u201d said Dennis Wereldsma, Global Transportation\nSector Lead, Capgemini. \u201cTransforming from basic to more sophisticated TLC\napplication requires C-level leadership, process change, and systems\ntransformation. However, while TLC is highly important, because of the\ncomplexities, TLC adoption must be approached as an evolutionary, rather than\nrevolutionary process.\u201d\u003C\/p\u003E\n\n\n\n\u003Cp\u003E\u003Cstrong\u003E\u0026nbsp;\u003C\/strong\u003ESpotlight: 3PL in the Life Sciences Industry:\u003C\/p\u003E\n\n\u003Cp\u003EWithin the\nLife Sciences industry, careful and expedient handling is often critical for\nproduct safety and because of this, control and visibility is essential.\nLogistics challenges here include product integrity and compliance\nrequirements, an inherently complex trading partner ecosystem, and demanding\ncustomer service and cost requirements. Fifty-four percent of life sciences\nshippers surveyed felt the complexity of the supply chain model represents a\nsignificant challenge, but 87 percent felt 3PLs could add significant value\nhere by linking together the various different parties involved. In addition,\n62 percent of shippers within the Life Sciences industry cite ensuring product\nquality as a significant challenge and rank quality procedures highly (70\npercent) as a service they want 3PLs to provide. Shipment visibility, quality\nand compliance procedures, stringent inventory control, temperature control\ncapabilities, and security are important steps to ensure product integrity,\nprevent counterfeiting, and ensure safe delivery, and momentum is moving\ntowards the use of RFID\ntags here. Indeed, around half of shipper and 3PL respondents agree that there is\na strong business case for RFID in Life Sciences. \u003C\/p\u003E\n\n\n\n\u003Cp\u003ESpotlight: 3PL in the Fast-Moving Consumer Goods\nIndustry:\u003C\/p\u003E\n\n\u003Cp\u003ELarge\nvolumes and low margins mean FMCG companies must respond quickly to deliver\nin-demand, on-trend products to increasingly demanding shoppers. After cost\nreduction, FMCG companies\u2019 biggest priorities for logistics include perfect\norder fulfillment (87 percent), rapidly sensing and responding to changes in\nconsumer demand (83 percent) and shortening new product time-to-market and\nsupply chain integration (81 percent). Also, as sustainability grows in\nimportance for consumers, shippers\u2019 interest in strategies such as improving\nshipment density and load utilization has also increased. Shippers within the\nFMCG industry value the role 3PLs play here, as well as with reducing costs and\ndealing with supply chain disruption, although they are less likely to see 3PLs\nplaying a key role in shortening new product time-to-market and supply chain\nintegration. FMCG shippers\u2019 efforts to reduce logistics costs include warehouse\nand transportation sharing. Two-thirds of those engaging in these strategies\nhave recognized cost savings but this has been limited, with 58 percent of\nrespondents recognizing less than 5 percent cost savings.\u003C\/p\u003E\n\n\n\n\u003Cp\u003E\u201cThe\ndifferences in the priorities reported by shippers in the Life Sciences and\nFMCG industries show how important it is for 3PL providers\nto\u0026nbsp;provide\u0026nbsp;industry-specific solutions and to work closely with their\ncustomers to really understand their needs and\u0026nbsp;provide the best possible\nservice, ultimately helping contribute to their overall business success,\u201d said\u0026nbsp;\u0026nbsp;Sven\nHoemmken,\u0026nbsp;Global Head of Sales, Panalpina. \u003C\/p\u003E\n\n\n\n\n\n\n\n\u003Cp\u003E\u0026nbsp;\u003Cstrong\u003EAbout\nCapgemini\u003C\/strong\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Ca href=\u0022http:\/\/www.capgemini.com.\u0022\u003ECapgemini,\u003C\/a\u003E\none of the world\u0027s foremost providers of consulting, technology, and\noutsourcing services, enables its clients to transform and perform through\ntechnologies. Capgemini provides its clients with insights and capabilities\nthat boost their freedom to achieve superior results through a unique way of\nworking, the Collaborative Business Experience\u003Csup\u003ETM\u003C\/sup\u003E. The Group relies\non its global delivery model called Rightshore\u003Csup\u003E\u00ae\u003C\/sup\u003E, which\naims to get the right balance of the best talent from multiple\nlocations, working as one team to create and deliver the optimum solution for\nclients. Present in more than 30 countries,\nCapgemini reported 2009 global revenues of EUR 8.4 billion and employs 95,000\npeople worldwide. \u003C\/p\u003E\n\n\n\n\n\n\n\n\n\n\u003Cp\u003E\u003Ca href=\u0022http:\/\/www.capgemini.com\/consulting\u0022\u003ECapgemini Consulting\u003C\/a\u003E is the Global Strategy and\nTransformation Consulting brand of the Capgemini Group, specializing in\nadvising and supporting organizations in transforming their business, from the\ndevelopment of innovative strategy through to execution, with a consistent focus\non sustainable results. Capgemini Consulting proposes to leading companies and\ngovernments a fresh approach which uses innovative methods, technology and the\ntalents of over 4,000 consultants world-wide. \u003C\/p\u003E\n\n\n\n\n\n\n\n\u003Cp\u003E\u0026nbsp;\u003Cstrong\u003EAbout The Georgia Institute of\nTechnology\u003C\/strong\u003E\u003C\/p\u003E\n\n\u003Cp\u003EThe Georgia Institute of Technology,\nlocated in Atlanta, is a leader in supply chain and logistics education.\nThrough its \u003Ca href=\u0022http:\/\/www.isye.gatech.edu \u0022\u003ESchool of Industrial and Systems Engineering\u003C\/a\u003E and the \u003Ca href=\u0022http:\/\/www.scl.gatech.edu\u0022\u003ESupply\nChain \u0026amp; Logistics Institute\u003C\/a\u003E, Georgia Tech is committed to serving\nlogistics educational needs through its degree programs and its comprehensive\nprofessional education program. Georgia Tech also conducts a fully accredited\nExecutive Masters in International Logistics and Supply Chain Strategy (EMIL\n-SCS ) program, a Supply Chain Executive Forum, and a Leaders in Logistics\nResearch Program and will soon commence a Georgia Tech M.S. Degree in Supply\nChain Engineering. Global involvement is facilitated through The Logistics\nInstitute Asia Pacific, a program in partnership with the National University\nof Singapore, and the SCL \u2019s recently developed network of Logistics Innovation\nCenters in Latin America helping countries to improve logistics performance and\nfacilitate trade. SCL currently has centers in Costa Rica and Panama and is\ndeveloping plans for Mexico, Chile, and Brazil.\u003C\/p\u003E\n\n\n\n\n\n\n\n\u003Cp\u003E\u0026nbsp;\u003Cstrong\u003EAbout \u003C\/strong\u003E\u003Cstrong\u003EThe Panalpina Group\u003C\/strong\u003E\u003C\/p\u003E\n\n\u003Cp\u003EThe\n\u003Ca href=\u0022http:\/\/www.panalpina.com\u0022\u003EPanalpina Group\u003C\/a\u003E is one of the world\u2019s leading suppliers of forwarding and\nlogistics services, specializing in end-to-end supply chain management\nsolutions and intercontinental air freight and ocean freight shipments. Thanks\nto its in-depth industry know-how and state-of-the-art IT systems, Panalpina\nprovides globally integrated door-to door services tailored to its customers\u2019\nindividual needs. The Panalpina Group operates a close-knit network with some 500\nbranches in over 80 countries. In a further 80 countries, it cooperates closely\nwith partner companies. Panalpina employs over 14,000 people worldwide.\u003C\/p\u003E\n\n\n\n\u003Cp\u003E\u0026nbsp;Panalpina\nhas extensive experience with customers in many key industries. With dedicated\nexperts in key global markets, Panalpina has the people, products, skills, and\ncapabilities to meet the demanding needs of its global customers.\u003C\/p\u003E\n\n\n\n\u003Cp\u003E\u0026nbsp;Panalpina\u2019s\nbusiness is Global Supply Chain Management. Panalpina delivers compelling\nsolutions that provide value to all customers - every time. Panalpina has a\npassion for solutions.\u003C\/p\u003E\n\n\n\n\n\n\n\n\u003Cp\u003E\u003Cstrong\u003E\u0026nbsp;\u003C\/strong\u003E\u003Ca href=\u0022http:\/\/www.scl.gatech.edu\/research\/supply-chain\/20103PLReport.pdf\u0022\u003EClick here\u003C\/a\u003E to read the entire study. \u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EFor the\nfifteenth year, Georgia Tech\u2019s Supply Chain \u0026amp; Logistics Institute\u0026nbsp; in cooperation with Capgemini Consulting, the\nglobal strategy and transformation consulting brand of the Capgemini Group, and\nglobal logistics provider, Panalpina, has compiled the findings from its Third-Party\nLogistics Study ,\nwhich examines the global market for 3PL services.\u003C\/p\u003E","format":"limited_html"}],"field_summary_sentence":[{"value":"15th Annual Third-Party Logistics Study Examines the Global Market for 3PL Services"}],"uid":"27328","created_gmt":"2010-10-11 12:18:26","changed_gmt":"2016-10-08 03:07:34","author":"Edie Cohen","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2010-10-11T00:00:00-04:00","iso_date":"2010-10-11T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"hg_media":{"61482":{"id":"61482","type":"image","title":"2010 Third-Party Logistics Study","body":null,"created":"1449176337","gmt_created":"2015-12-03 20:58:57","changed":"1475894536","gmt_changed":"2016-10-08 02:42:16","alt":"2010 Third-Party Logistics Study","file":{"fid":"191365","name":"2010_cover.jpg","image_path":"\/sites\/default\/files\/images\/2010_cover_0.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/images\/2010_cover_0.jpg","mime":"image\/jpeg","size":665016,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/images\/2010_cover_0.jpg?itok=5zkZjTuO"}},"57771":{"id":"57771","type":"image","title":"C. John Langley","body":null,"created":"1449176051","gmt_created":"2015-12-03 20:54:11","changed":"1475894506","gmt_changed":"2016-10-08 02:41:46","alt":"C. John Langley","file":{"fid":"190656","name":"tll73940.jpg","image_path":"\/sites\/default\/files\/images\/tll73940_0.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/images\/tll73940_0.jpg","mime":"image\/jpeg","size":7555,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/images\/tll73940_0.jpg?itok=K4POd6Gs"}}},"media_ids":["61482","57771"],"groups":[{"id":"1242","name":"School of Industrial and Systems Engineering (ISYE)"}],"categories":[{"id":"145","name":"Engineering"}],"keywords":[{"id":"7884","name":"3PL"},{"id":"1215","name":"gerogia tech"},{"id":"426","name":"isye"},{"id":"167077","name":"scl"}],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Ca href=\u0022mailto:barbara.christopher@isye.gatech.edu\u0022\u003E\u003Cstrong\u003EBarbara \nChristopher\u003C\/strong\u003E\u003C\/a\u003E\u003Cbr \/\u003EIndustrial and Systems Engineering\u003Cbr \/\u003E\u003Cstrong\u003E404.385.3102\u003C\/strong\u003E\u003C\/p\u003E","format":"limited_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}