3PL Survey: What keeps you up at night?

Here's a hint. For CEOs at some of the world's largest 3PLs, it isn't the economy

By ·

Fuel prices are going through the roof. Customers that once valued long-term relationships are now low-cost shoppers. And an economic recovery long stuck in neutral might be shifting into reverse.

So what keeps the CEOs at some of the world’s largest 3PLs up at night? What do they think are their most significant problems?

That was one of the questions posed to 3PL CEOs in North America, Europe and Asia as part of the 18th 3PL Provider CEO Perspective, a survey conducted by Robert Lieb, a professor of supply chain management at Northeastern University, Kristin Lieb, assistant professor of marketing at Emerson College and Joseph Gallick, senior VP of sales for Penske Logistics.

The answer was the shortage of talent and it was consistent across all three regions. In fact, in North America, economic uncertainty was a distant fourth, behind pricing pressures and fuel price volatility.

In Europe, talent shortage was higher on the list than lowered volumes and profitability, 3PL stability, pricing pressures and the requirement to provide consistent excellence.

And, in Asia finding and retaining talent was a considered a bigger problem than rising labor costs, a rapidly changing marketplace, infrastructure challenges, compliance with government regulations, competition from other 3PLs and customers focusing on their unit handling costs.

Interestingly, hiring and retaining talent, especially competent engineers, was at the top of the list of issues facing the materials handling industry at both of the product section meetings I attended during the spring meeting of the Material Handling Industry of America (http://www.mhia.org) last month.

What that says to me is that CEOs in our industry, more so than politicians, are focusing on the big picture. Rising costs, competition and compliance are important issues in the short-term, but experienced and educated talent has more to do with the long term success.

There’s a lesson in there somewhere. 

About the Author

Bob Trebilcock
Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Efficiency improvements in Track/Trace Enhances Customer Loyalty
Consumer satisfaction with the quality of your products is clearly important, but the service you provide before and after the sale is equally important to any business, but often overlooked as benefiting the bottom line.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...