Key results and findings in KPMG's 17th Annual Study of “The State of Logistics Outsourcing”.
When most people hear of outsourcing and offshoring, call centres and Indian tech support comes to mind. But outsourcing has been a standard business practice for years in other industries.
Companies have been outsourcing logistics services as early as the 70's. As more and more businesses relied on third party logistics service providers, they expanded to cover different geographies, commodities and modes of transport. By integrating their warehousing and transportation services with their capabilities, these providers became known as a 3PL.
KPMG releases an annual study of the 3PL market. This year, 2,342 industry executives participated in the survey. Along with 3PL providers, users and non-users of 3PL services provided relevant responses.
Key Findings:
- 65% increased outsourcing while 22% returned to insourcing
- 86% of shippers and 94% of 3PL providers were satisfied with their outsourcing relationships
- 71% of shippers are satisfied with openness, transparency, and good communication
- 67% of shippers said their 3PLs were agile and flexible
Measurable benefits to shippers who are outsourcing logistics service:
- 56% year-over-year incremental benefits
- 15% logistics cost reductions
- 8% inventory cost reductions
- 26% fixed asset reductions
- 65% order fill rate
- 72% order accuracy
Frequently outsourced logistics services:
- Transportation
- Warehousing
- Freight forwarding
Reasons not to outsource logistics decreased over time:
View Full Report: 2013 Third Party Logistics Study
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