strategicinsight
fied pricing pressure and employee
recruitment and retention as their
top challenges. These were followed
by fuel price volatility, difficulties
meeting customer expectations, eco-
nomic uncertainty, and rising costs.
The executives said they are trying to
mitigate the impact of pricing pres-
sures through more collaborative
relationships with customers, gain-
sharing agreements, and
“unbundling” of service offerings.
DISASTERS PROMPT CHANGE
This year’s study also considered the
impact of Japan’s March 2011 earth-
quakes and tsunami on 3PLs. Although
many of their customers were affected by
that disaster, only half of the CEOs said it
had affected their own operations in
North America, mostly due to disruptions
of customers’ supply chains and declining
freight volumes into and out of Japan.
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THE SUSTAINABILITY PUSH
Despite economic uncertainty, North
American 3PLs did not reduce their commitment to environmental sustainability.
According to the survey, 10 of the 17
CEOs reported that their companies had
expanded their sustainability projects.
Examples of those efforts included providing more resources for existing programs, expanding the use of alternative
fuels, increasing involvement in the U.S.
Environmental Protection Agency’s
Smart Way program, and developing better tools for measuring carbon emissions.
Half of the 3PLs said they had launched
new environmental initiatives during the
previous year, including using solar
and/or wind energy at company facilities,
using more energy-efficient lighting in
warehouses, and instituting a “no idling”
policy at logistics centers.
The 3PLs’ environmental efforts appear
to be driven more by internal considera-