Surveys Find 3PLs Hitting Their Stride Amid Economic Uncertainty

The 21st Annu­al Sur­veys of Third-Par­ty Logis­tics Provider CEOs, which this year includ­ed the CEOs of 27 of the world’s largest 3PLs, found that approx­i­mate­ly 75 per­cent of the com­pa­nies involved in the sur­veys were prof­itable in 2013.

The CEOs were also asked to project region­al 3PL indus­try rev­enue growth rates for the next three years. North Amer­i­can CEOs pro­ject­ed aver­age rev­enue growth rates of 6.54 per­cent; Euro­pean CEOs pro­ject­ed aver­age rev­enue growth rates of 4.17 per­cent; and CEOs in the Asia-Pacif­ic region pro­ject­ed aver­age rev­enue growth rates of 10.4 per­cent.

An encap­su­la­tion of key sur­vey find­ings are as fol­lows:

♦ 3PL Rev­enue Growth Pro­jec­tions
Near­ly three quar­ters of these com­pa­nies either met or exceed­ed their region­al rev­enue pro­jec­tions in 2013.

♦ Near-Shoring Trend Con­tin­ues
In the North Amer­i­can region, near-shoring activ­i­ties are grow­ing, with over 75 per­cent of North Amer­i­can CEOs report­ing that some of their cus­tomers have shift­ed some of their oper­a­tions from Chi­na to Mex­i­co.

♦ E-Com­merce Growth
CEOs in all three regions not­ed not only the sub­stan­tial growth in e-com­merce over the past year, but also the long-term growth poten­tial of that mar­ket­place and the oppor­tu­ni­ties that growth might pro­vide 3PLs. Near­ly all of the 3PLs already sup­port some e-com­merce cus­tomers with ser­vices rang­ing from ware­hous­ing through ful­fill­ment and reverse logis­tics.

♦ Sup­ply Chain and Logis­tics Indus­try Trends and Insights:
 Capac­i­ty Issues in North Amer­i­ca: Near­ly 70 per­cent of North Amer­i­can 3PL CEOs report­ed capac­i­ty short­ages across modes
Merg­ers and Acqui­si­tions: These com­pa­nies project rel­a­tive­ly lit­tle rev­enue growth relat­ed to merg­ers and acqui­si­tions dur­ing the next three years.
—Sus­tain­abil­i­ty: Com­pa­nies remain com­mit­ted to envi­ron­men­tal and sus­tain­abil­i­ty issues, but the empha­sis has shift­ed to main­tain­ing and expand­ing exist­ing sus­tain­abil­i­ty pro­grams (55 per­cent) over launch­ing new pro­grams (29.6 per­cent).
—Growth in East­ern Europe: Five of the eight Euro­pean CEOs sur­veyed oper­ate in Rus­sia, and they cit­ed grow­ing oppor­tu­ni­ties to sup­port health­care and retail indus­tries there.
—Ama­zon and the 3PL Indus­try: The 3PL CEOs acknowl­edged the impact that Ama­zon has had on the field of sup­ply chain man­age­ment, par­tic­u­lar­ly in terms of rais­ing cus­tomer ser­vice lev­el expec­ta­tions and focus­ing on ship­ment vis­i­bil­i­ty.

Get all the details of the sur­vey, spon­sored by Penske Logis­tics.

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