22 DC VELOCITY DECEMBER 2013 www.dcvelocity.com
newsworthy
The perceptions that shippers and their third-party logistics
service providers (3PLs) have of each other have rarely been
aligned. 3PLs believe shippers are satisfied with their partners’ capabilities, especially in the information technology
(IT) realm. Shippers believe their providers are not as technologically agile as they need to be. Shippers complain their
3PLs think too tactically and reactively; 3PLs argue they
would behave more proactively if they had access to their
customers’ strategic thinking.
The needle hasn’t moved much in recent years. However,
the “2014 18th Annual Third-Party Logistics Study,” which
canvassed 1,300 shippers and 3PLs on four continents, predicts the relationship has reached an inflection point. The
triggers, it finds, will be the two megaforces of globalization
and “big data,” the term used for a collection of data sets so
large and complex that it is difficult to process with traditional applications.
The ability of 3PLs to master massive and increasingly
complex data flows and to manage cross-border and extraterritorial trade will determine which partnerships succeed
and which will not, according to the report.
IT GAP
For the past 12 years, a subsection of the study has tracked
the differential between the percentage of 3PL users indi-
cating that IT capabilities are a necessary element of a
provider’s skill set, and the percentage of users that are sat-
isfied with their partner’s IT capabilities. This year, 98 per-
cent of shippers said IT expertise is important, but only 55
percent said they were happy with their provider’s per-
formance. That ratio has remained largely unchanged, and
the study’s authors expect it to stabilize at current levels.
Meanwhile, about 70 percent of 3PLs said their capabilities
are in line with shipper expectations.
Both sides (97 percent of shippers, 93 percent of 3PLs)
agree on the importance of data-driven decision making.
The need to convert mountains of data into useful information, and to do it on a global scale, has become so paramount that it will either force a narrowing of the IT gap or
widen it exponentially as more 3PLs find themselves not
up to the task, said Shanton J. Wilcox, a principal of
Capgemini Consulting, which conducted the survey along
with executive recruiter Korn/Ferry International, Penn
State University, and logistics and supply chain concern
Penske.
THE GLOBALIZATION CHALLENGE
In what is seen as an encouraging trend, 91 percent of shippers said their 3PL relationships are critical to navigating
today’s global landscape. However, the report found that
shippers fail to take a holistic approach to global trade management functions, relying on siloed departments to perform specific tasks rather than operate in a cross-function-al manner. This, in turn, makes it more difficult for 3PLs to
deliver a high level of service, especially in emerging markets that are already tough to navigate. ;
Big data, globalization may force shippers,
3PLs to rethink their relationships
Edward J. Ryan has been appointed chief executive officer
of Descartes Systems Group, a logistics software company.
… Clark Material Handling Co. has appointed Farrukh
Ghani chief financial officer for its North
America operations. … Hytrol Conveyor
Co. Inc., a provider of automated material
handling solutions, has promoted Chris
Glenn to vice president of manufacturing
and engineering operations. … Doug
VanDerveer has joined Choptank
Transport as director of specialized logis-
tics. … Third-party logistics service provider Genco has
named Andy Smith president of its consumer and indus-
trial business unit. Additionally, Art Smuck, president of
the company’s technology solutions business, has been
appointed to the newly created position of group presi-
dent. … Aaron Jones, currently vice president at Bastian
Solutions, a global material handling systems integrator,
will replace Bill Bastian II as president of
Bastian effective Jan. 1, 2014. Bill Bastian
II will serve as CEO of Bastian Solutions. …
Veteran maritime professional Rick
Schiappacasse has been named director,
Latin America sales, for the Jacksonville
Port Authority in Florida. … Dave Sanford
has been named deputy executive director
at Port Manatee in Florida. The port has also promoted
Matthew F. Appice to senior director of trade develop-
ment and sales, and added Virginia Zimmermann as mar-
keting and public relations assistant. … Material handling
company Intelligrated has appointed Rod Selby to the
position of director, Asia Pacific business development.
newsmakers
GLENN
SCHIAPPACASSE
