Outsourcing Survey 2010

CILT has published its 3rd annual survey of the outsourced logistics market in Europe.  Some results:

Many companies increasing the amount of transport they outsourced: warehousing remains more or less stable.

30% of the companies are expecting to increase the amount of outsourcing whilst 20% of companies were expecting to decrease it.

Length of outsourcing contract at an average of 3.4 years. (Median 3 years).

76% see their logistics provider as partner or trusted provider compare to 61% in 2008.

For more than 40% of the companies innovation from a logistics provider is important.

Reasons for outsourcing:

Benefits

BarriersExpertise of 3PLIncreased costsCost effectivenessLoss of controlFlexibilityService qualityConcentration on core businessTrustNo capital outlayLack of knowledgeSharing riskCultureCustomer service improvementChoice of supplierOperational improvementsTerms and conditionsWider access to servicesRelationship/Management/communication

Source: CILT 13/7/2011 Gwynne Richards FCILT CEO of the Institute’s Outsourcing & Procurement Forum

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