DC Velocity - February 2012

tions than by customers’ demands, the researchers said. Respondents said that only 8 percent of their customers had asked for an analysis of their supply chains’ environmental impact.

Furthermore, when asked how often
their company’s “green” capabilities were
a major factor in determining whether
they won either new business or contract
extensions, 15 of the CEOs said “infre-
quently,” and only two said “frequently.”
“Questions about 3PLs’ green practices
will typically be part of a request for pro-
posal, but it’s of low importance [to ship-
pers] compared to economics,” said Joe
Gallick, senior vice president of sales for
Penske Logistics, in an interview.

FOCUS ON TALENT MANAGEMENT

The second research report, the “2012 16th Annual Third-Party Logistics (3PL) Study,” was led by Dr. C. John Langley Jr., clinical professor of supply chain management at Penn State University, and the consulting firm CapGemini, with support from Panalpina, Heidrick & Struggles, and eyefortransport.

The 2012 study was based on over 2,250 responses from shippers and logistics service providers worldwide, gathered through questionnaires, interviews, and workshops. The report examines the current state of the 3PL industry, emerging markets, strategic trends, outsourcing in the electronics industry, and for the first time, talent management.

Many shippers and 3PLs, the research found, are troubled by the state of talent management—recruiting, developing skills and experience, retention, performance reviewing, succession planning, and so forth—within their organizations, and they see an opportunity to improve it, Langley said in an e-mail interview.

Action is critical, as shippers and 3PLs agreed that having the right people and leadership in place would be the most important factor in their companies’ success in the next five years, he added.

With supply chains growing more complex, companies require leaders who are more multifaceted, the researchers said. Operational execution was the skill most highly valued by both shippers and 3PLs. Other key skills included talent manage-

ment and development, strategic planning, relationship building and networking, technical competence, and change management.

Economic conditions affect the
ways in which shippers and 3PLs
work together, the researchers said.
For example, 24 percent of shipper
respondents reported “insourcing”
some formerly outsourced services.
Meanwhile, 58 percent said they are
reducing or consolidating the num-
ber of 3PLs they use—a finding
that’s consistent with current trends
in procurement and strategic sourc-
ing, according to the report.

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