Outsourcing Survey 2010

CILT has published its 3rd annual survey of the outsourced logistics market in Europe. Some results:

Many companies increasing the amount of transport they outsourced: warehousing remains more or less stable.

30% of the companies are expecting to increase the amount of outsourcing whilst 20% of companies were expecting to decrease it.

Length of outsourcing contract at an average of 3.4 years. (Median 3 years).

76% see their logistics provider as partner or trusted provider compare to 61% in 2008.

For more than 40% of the companies innovation from a logistics provider is important.

Reasons for outsourcing:

Benefits	Barriers
Expertise of 3PL	Increased costs
Cost effectiveness	Loss of control
Flexibility	Service quality
Concentration on core business	Trust
No capital outlay	Lack of knowledge
Sharing risk	Culture
Customer service improvement	Choice of supplier
Operational improvements	Terms and conditions
Wider access to services	Relationship/Management/communication

Source: CILT 13/7/2011 Gwynne Richards FCILT CEO of the Institute’s Outsourcing & Procurement Forum