Survey Highlights Potential For SC Improvements
October 16th, 2008
Improved collaboration and integration between third party logistics providers (3PLs) and their customers can lead to supply chain (SC) improvements in several key areas, including green initiatives and cargo security. This is one of the key findings of an in-depth study of more than 1600 logistics providers world-wide – “The State of Logistics Outsourcing,” – undertaken by Capgemini. The findings show 3PL users value relationships with their service providers highly, with 89% of all users surveyed agreeing 3PLs represent a strategic, competitive advantage to their companies. The report points out improvements can be achieved in creating greener supply chains through improved 3PL/user co-operation.
Green Talk But Less Action. According to 98% of respondents, green supply chain initiatives are essential for future business success but at the same time there is an unwillingness to invest additional funds to make their supply chains greener. The survey shows the “greening” of supply chains will impact increasingly on network design, transport modes used, selection of equipment, business processes and balance sheets. But only 46% of respondents say the effect of SC operations on the environment is a factor when selecting a 3PL.
Security Cost Concerns. Improved communication is also key with respect to supply chain security. Although 76% of respondents call their 3PLs secure, the survey reveals a gap between 3PL users’ expectations and the current security capabilities of their logistics providers. The report notes companies are becoming increasingly concerned about the costs of meeting compliance mandates designed to enhance SC security in the face of terrorist threats.
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