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:
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