Some surprising facts surface in recent 3PL survey

The 18th Annual Survey of Third-Party Logistics Providers released at last week’s Council of Supply Chain Management Professionals Annual Global Conference revealed logistics companies experienced improved economic conditions in 2010
By Patrick Burnson, Executive Editor
October 11, 2011 - SCMR Editorial

Dr. Robert Lieb, Professor of Supply Chain Management at Northeastern University, told SCMR in an exclusive interview that there was more than met the eye in a recent 3PL survey.

The 18th Annual Survey of Third-Party Logistics Providers released at last week’s Council of Supply Chain Management Professionals Annual Global Conference revealed logistics companies experienced improved economic conditions in 2010, with 88 percent of companies surveyed in North America meeting or exceeding their revenue projections, as compared with only 50 percent in 2009.

Joe Gallick, Senior Vice President of Sales for Penske Logistics (the survey’s underwriter) also helped gather the findings.

“What we discovered was quite surprising,” said Lieb. “We expected to see a disruption caused by the natural disaster in Japan last spring, but the industry proved to be remarkably resilient.”

Furthermore, he noted, growth projections are most optimistic in Asia, with companies expecting to grow 15.8 percent in the next year, as compared to 10.8 percent expected in North America and 8.4 percent in Europe.

“Another thing that jumped out at us was the widespread usage of social networking,” he said. “It now permeates the entire industry.”

Which may explain, added Lieb, the continuing reliance on collaboration and synchronization of the supply chain.

“We don’t see any signs that 3PLs and 4PLs will be merged into some kind of global ‘lead logistics supplier,’” he said. “As annoying as the acronyms may seem, they really do define two different business models. One player – or one technological ‘solution’ – can’t do it all.”

Key findings of the survey include:
*Logistics companies experienced improved economic conditions in 2010, with 88 percent of companies surveyed in North America meeting or exceeding their revenue projections, as compared with only 50 percent in 2009.
*In Europe, economic conditions continued to be challenging for third-party logistics companies with only 55 percent of companies surveyed meeting or exceeding their revenue growth projections for the year.

*Sixteen of the 36 CEOs reported their companies launched new sustainability initiatives during 2010.

 



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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!

Recent Entries

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

Article Topics

News · 3PL · Global · Management · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.