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