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:
|Expertise of 3PL||Increased costs|
|Cost effectiveness||Loss of control|
|Concentration on core business||Trust|
|No capital outlay||Lack of knowledge|
|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