DC Velocity - January 2012

buy contract logistics services. Of
those respondents who use third-
party logistics service providers
(3PLs), 26 percent said they
planned to increase their use of
contract services in 2012. Sixty-one
percent said their use of 3PLs would
stay the same, while 13 percent
expected to cut back on outsourc-
ing. Readers have some flexibility
when it comes to changing their
outsourcing plans: Of those who
use 3PLs, 88 percent said the aver-
age length of their contracts is three
years or less.

Hogging the Spotlight!

investing in warehousing and material handling products and services in the coming year. The top choices: racks and shelving ( 51 percent), lift trucks ( 45 percent), batteries and battery handling products ( 37 percent), safety products ( 36 percent), and dock products ( 34 percent).

They also intend to invest in technology. At the top of their shopping list were warehouse management systems (WMS), with 27 percent, and transportation management systems (TMS), with 24 percent. But it appears readers won’t just be buying supply chain execution software this year. Twenty-one percent of survey takers said they planned to purchase business intelligence applications, software designed to help users analyze and improve their end-to-end supply chains. Inventory optimization software ( 19 percent), planning and forecasting software ( 18 percent), and demand planning apps ( 14 percent) were also popular choices.

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REINING IN COSTS

Although there was no real consensus among survey respondents about the economic outlook, readers aren’t just sitting back and waiting to see what happens. Given the events of the past year— earthquakes, floods, civil unrest in the Middle East, and unpredictable oil prices—it’s no surprise they’re taking steps to rein in costs in 2012.

Readers appear to be sticking with tried-and-true methods to keep their logistics spending under control. Forty-one percent said they would consolidate more shipments into truckloads, and the same number said they intended to renegotiate rates with carriers. Nearly as many— 36 percent—said they planned to cut back on express shipments. Another popular approach to controlling costs is a supply chain network redesign, cited by 26 percent of survey takers. Other favored tactics included switching more shipments from truck to rail, shipping orders to customers less frequently, and using fewer carriers. (See Exhibit 2.)