OUTSOURCING
strategicinsight
A tale of
two 3PL studies
The results of two longstanding research projects on third-party
logistics hold some practical lessons for shippers and service providers.
Here are a few highlights from the latest studies.
THIRD-PARTY LOGISTICS MAY NOT BE A TYPICAL
subject for academic research, but it’s one that has garnered
a lot of attention over the years—so much so that presentations on two longstanding research projects on logistics outsourcing routinely play to a packed house at the Council of
Supply Chain Management Professionals’ (CSCMP) Annual
Global Conference.
These annual studies, led by Dr. Robert C. Lieb of
Northeastern University and Dr. John Langley of Penn
State, track current practices and emerging trends in third-party logistics. Both offer insights into the health of this
global industry and into the complex relationship between
shippers and third-party logistics service providers (3PLs).
What follows is a look at just some of these in-depth
studies’ findings, with an emphasis on practical takeaways
for both shippers and service providers.
FINANCIAL PICTURE IMPROVES
The older of the two studies is the “18th Annual Survey of
Third-Party Logistics Providers,” conducted by Dr. Robert C.
Lieb, professor of supply chain management at Northeastern
University’s College of Business Administration, and Dr.
Kristin Lieb, assistant professor, marketing at Emerson
College, with support from Penske Logistics. In mid-2011,
the researchers surveyed CEOs of 3PLs in North America,
Europe, and Asia; this article will consider only the North
American results, which included responses from CEOs of 17
of the largest 3PLs operating in this region.
Economic conditions for third-party service providers in
North America have dramatically improved, according to the
survey. In 2010, 88 percent of the companies surveyed met or
exceeded their revenue projections, up from 50 percent in
2009. All 17 companies were profitable in 2010, and on average
they expected to achieve 10. 8 percent revenue growth in 2011.
That suggests that 3PLs may have fresh funds to reinvest in
operations and personnel. It could also explain why 10 of the
companies were able to launch new offerings during the previous 12 months; these included reverse logistics, transportation, consulting, and purchase-order management services.
Still, the CEOs found plenty to worry about. They identi-
