3pl Report

Outsourcing Logistics Report

Outsourcing Logistics – The latest trends in using 3PL providers

January 2005

For further details please contact: Laura Goddard [e-mail] US Toll Free: 1 800 814 3459 ext 321 Rest of World: [phone]

Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 - Hyatt Regency McCormick Place, Chicago, IL www.eyefortransport.com/outsourcelog

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Outsourcing Logistics Report

Table of Contents:

I II III IV V VI VII

Introduction ……………………………………………………..………. 3 Survey overview …………………………………………….…………. 3 Overall use of 3PL services …………………………….…........... 4 Key drivers in outsourcing logistics to a 3PL …….……........ 5 Overall performance of 3PL providers …………………..….…. 6 Will companies increase their use of 3PLs ……………...…... 7 What percentage of companies not currently using 3PLs are planning to use a 3PL in the future ……..……….... 8

VIII IX

Overall industry implications and conclusions ……..…….…. 9 Outsourcing Logistics 2005: Best Practices for Managing 3PL Relationships Conference ………………………….… 11

Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 - Hyatt Regency McCormick Place, Chicago, IL www.eyefortransport.com/outsourcelog

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Outsourcing Logistics Report

I

Introduction

The 3PL industry has been growing at a steady rate, and it’s clear that more and more industry verticals are seeing real benefits from outsourcing their logistics operations to a third party. Manufacturers and retailers are continually pressured to reduce transportation costs, which has created an opportunity for companies that are able to provide more favorable rates and increase overall supply chain efficiency. Recent statistics have even shown that shippers’ logistics costs have been reduced when outsourcing to 3PLs at an average of more than 15% in North America! However, it is still a difficult decision for many to outsource.