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
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