2008 3 PL Study Screencast

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The State of Logistics Outsourcing 2008 Third-Party Logistics Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved. Results and Findings of the 13 th Annual Study

description

From 1996 to the present, the Third-Party Logistics (3PL) study has helped to identify and track key trends and views of the 3PL industry from the point of view of the customer.In mid-2008, 1,644 logistics executives completed a survey on trends and issues in third-party logistics. The study was produced by C. John Langley Jr., Ph.D., of the Georgia Institute of Technology, with a team of industry experts from Capgemini, DHL, and Oracle. In addition to the survey, the team conducted a facilitated workshop to interpret study results, as well as focus interviews with experts on three special topics covered in the report: integrated logistics, green supply chain and supply chain security. The findings presented are intended to help 3PLs and logistics outsourcers better understand and more effectively manage their relationships. Visit http://www.3plstudy.com

Transcript of 2008 3 PL Study Screencast

Page 1: 2008 3 PL Study Screencast

The State of Logistics Outsourcing

2008 Third-Party Logistics

Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

Results and Findings of the 13th Annual Study

Page 2: 2008 3 PL Study Screencast

2Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

The 2008 13th Annual 3PL Study Focuses Attention on Topics of Current Importance

CUSTOMER STUDY• E-mail survey – 1,644 global respondents

• Focus interviews with key industry executives

• Facilitated workshop session at Capgemini Accelerated Solutions Environment – Berlin, Germany

Page 3: 2008 3 PL Study Screencast

3Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

The 2008 13th Annual 3PL Study Focuses Attention on Topics of Current Importance

CUSTOMER STUDY• E-mail survey – 1,644 global respondents

• Focus interviews with key industry executives

• Facilitated workshop session at Capgemini Accelerated Solutions Environment – Berlin, Germany

Investigate Topics of Contemporary Interest• Integrated services

• Green supply chain 2008 Special Topics

• Supply chain security

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Current State of the 3PL Market

Most Customers are Satisfied, But Improvement Opportunities Continue to Exist

4Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

Page 5: 2008 3 PL Study Screencast

5Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

Customers Report a Number of Continuing Problems with 3PL Providers

TOP SEVEN Continuing Problems Cited by 3PL UsersAll

Regions

Service level commitments not realized 51%

Lack of continuous, ongoing improvements and achievements in offerings

42

Information technology capabilities not sufficient 39

Cost reductions not realized 36

Lack of project management skills 35

Ineffective management of key performance indicators (KPIs) 34

Unsatisfactory transition during implementation stage 30

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6Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

The IT Expectation/Performance Gap Continues…

Expectation/Performance Gap

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Integrated Logistics

Managing Systems and Services for Best Results

7Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

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DrawbacksBenefits

8Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

3PL Users Indicate Benefits and Drawbacks From the Use of “Integrated” Logistics Services

• Ease of managing outsourced services

• Focus on core business

• Improved efficiency and effectiveness

• Greater flexibility

• Reductions in number of logistics providers

• Enhanced shipment visibility

• Quicker response

• Custom solutions, and more complex solutions

• Inventory reduction

• Pro-active IT approach

• Service quality concerns

• More expensive to use external provider

• Service and systems integration are among our core competencies

• Proprietary IT capabilities are more flexible and user-friendly

• Issues with dependence on external party

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Green Supply Chain

It’s Not Whether to Act, It’s How

9Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

Page 10: 2008 3 PL Study Screencast

10Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

3PLs are Uniquely Positioned to Help Customers Plan and Execute Green Supply Chain Initiatives

Educate customer regarding green supply chain and sustainability

Leverage meaningful case studies

Provide simple diagnostic tools / maturity model

Step 1Education

Step 1Education

Step 2PlanningStep 2

PlanningStep 3

ExecutionStep 3

Execution

Measure customer’s carbon footprint

Identify change levers to reduce GHG emissions

Support business case development

Develop implementation plan

Implement green supply chain

Consolidate shipments and optimize routing

Leverage green vehicles and distribution centers

Facilitate reverse logistics for recyclables

Consultants3PLs

Green Focused 3PLs

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Supply Chain Security

Concerns Rise as Regulations, Risks Mount

11Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

Page 12: 2008 3 PL Study Screencast

Level of Security All Regions

Very secure 16%

Secure 60%

Somewhat secure 22%

Not secure 2%

12Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

The Majority of 3PL Users Are Satisfied with the Security Provided by their 3PL

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Most Serious Concerns Over Supply Chain Security Issues

All Regions

Theft of material goods (74%)

Natural disaster disrupting supply chain (33%)

Tampering with material goods (32%)

Theft of intellectual capital (26%)

Other materials smuggled within your shipments (19%)

Terrorist attack disrupting supply chain activities (17%)

13Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

But They Still Have Security Concerns

Page 14: 2008 3 PL Study Screencast

The State of Logistics Outsourcing

2008 Third-Party Logistics

Copyright 2008 C. John Langley Jr., Ph.D. and Capgemini U.S. LLC. All rights reserved.

Results and Findings of the 13th Annual Study

Visit http://3plstudy.com