12015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
2015 Third-PartyLogistics Study
The State of Logistics Outsourcing
Results and Findings of the 19th Annual Study
Twitter Feed: #3PLStudy
32015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Contents About the Study
Current State of the 3PL Market
Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
Strategic Assessment
42015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
2015 19th Annual 3PL study – Major research thrusts
Customer Study
E-Mail SurveyMajor Industry Verticals
Special Topics
Focus InterviewsKey Industry Experts
Facilitated Discussions
Capgemini AcceleratedSolutions Environment (ASE)
San FranciscoLondon
Singapore
Paris
Amsterdam
New York
Berlin
Hong Kong
Shanghai
Chicago
Each year, workshops are held in different locations around the world
São Paulo
Sydney
52015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Recent 3PL Study themes
www.3plstudy.com
This year’s special topics:• CRM and Mobile Technologies• Omni Channel• Strategic Workforce Management • Mexico
62015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Profiles of respondents represented
40%
44%
16%
User
3PL/4PL
Non-user
72015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Contents About the Study
Current State of the 3PL Market
Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
Strategic Assessment
82015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Outsourced logistics services
Outsourced Logistics Services
Percentages of 3PL Users
Order management and fulfillment 18%
Inventory management 18
Supply chain consultancy services provided by 3PLs 15
Information technology (IT) services 15
Service parts logistics 14
Fleet management 13
LLP (Lead Logistics Provider) / 4PL services 11
Customer service 5
Sustainability/green supply chain-related services 3
Outsourced Logistics Services
Percentages of 3PL Users
Domestic transportation 80%
International transportation 70
Warehousing 67
Customs brokerage 53
Freight forwarding 51
Reverse logistics (defective, repair, return) 36
Freight bill auditing and payment 33
Product labeling, packaging, assembly, kitting 30
Cross-docking 30
Transportation management and planning 25
92015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Benefits delivered by use of 3PL services
Benefits 2015 Study Results
Logistics Cost Reduction 9%
Inventory Cost Reduction 5%
Logistics Fixed Asset Reduction 15%
Order Fill RateChanged From 60%
Changed To 66%
Order AccuracyChanged From 61%
Changed To 66%
102015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
What tools 3PLs need to be successful (top 6)
Shippers Providers
1. Transportation management (execution)
2. EDI3. Transportation management
(planning)4. Warehouse/DC management5. Visibility (order, shipment,
inventory, etc.)6. Web portals for booking,
order tracking, inventory, etc.
1. EDI2. Transportation management
(execution)3. Customer order management4. Transportation management
(planning)5. Visibility (order, shipment,
inventory, etc.)6. Web portals for booking,
order tracking, inventory, etc.
112015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
The “IT Gap”
02 03 04 05 06 07 08 09 10 11 12 13 140%
20%
40%
60%
80%
100%
120%
89%85%
91% 90% 92% 92% 92% 88%94% 93% 94% 98% 96%
27% 33%42% 40% 35% 42% 37% 42%
54% 54% 53% 55%60%
IT Capabilities Necessary Element of 3PL ExpertiseShippers Satisfied with 3PL IT Capabilities
Year
IT “Gap”
122015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Contents About the Study
Current State of the 3PL Market
Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
Strategic Assessment
132015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
3PL CRM solutions leverage mobile and cloud technologies
3PL
Customers
Customer Relationship Management
3PLs provide more timely information better service to customers
Solutions provide real-time visibility into the extended supply chain
Mobile solutions help 3PL players with shipment-specific services such as track and trace
Integration with TMS and WMS solutions
Leveraging Mobile
Technologies
Leveraging Cloud - based
solutions
Cloud-based CRM solutions enable 3PLs to launch new services, target new industries, and address global supply chain issues
Enhance information flow between 3PLs and customers to help reduce costs, improve operational capabilities, sourcing activities, etc.
Provide end-to-end solutions for entire supply chain
142015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Cloud- based CRM solutions lead to greater customer service and enhanced visibility for 3PL customers
Source: “Role of IT in 3rd Party Logistics providers”:HRMars
Inventory and Logistics
ManagementCustomer Service
Information Flow
Information Flow
Warehousing Material Flow
Transportation
Role of cloud-based solutions
3PLs and Cloud-Based
Solutions
Information Flow
152015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
3PLs and CRM Solutions – Example benefits
Increased Productivity
Benefits
1
2
Systematic Way
to Track Business Activity
Measurability of Marketing and Sales Activity
3
Individual
Customer Service4
Automated
Information Updating5
Safety of Shipments6
AGREED that CRM is essential to providing capable support to customers
77%PROVIDE
RS
70%SHIPPER
S
162015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
“Must-have” CRM requirements
AVAILABILITY of real-time tracking information relating to customer shipments
EASY access to cost and shipment pricing information
INCREASED ability of 3PL sales executives to respond to customer requests
GREATER visibility of global operations
MORE professional and productive sales calls and customer presentations by 3PL sales executives
172015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
What do 3PL sales executives do with their available time?
CUSTOMER FACE-TO-FACE MEETINGS
22%
CUSTOMER-FACING PHONE MEETINGS/ CONVERSATIONS
23%
55%SPEND THEIR TIME ON INTERNAL ISSUES• Internal management
meetings• Responses to RFPs• Preparation and data
collection• Inputting and updating
data• Pricing issues
182015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
What if you had 20% more sales capacity through the “CRM of your dreams?”
28%“Expand into new
geographies”
24%“Launch new
services”
24%“Reduce costs and
run a more lean
organization”
“Hire more account execs in the same
geographies”
14%“Reduce costs &
staff functions”
10%
192015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Contents About the Study
Current State of the 3PL Market
Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
Strategic Assessment
202015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Retail landscape is evolving rapidly and adjusting to changes in customer’s demand as well as technological innovations
Executive Summary
Growing Middle Class demand
Changing Retail
Landscape Venturing new markets
Impact on Retailers – Customer’s Perspective
Closed Loop Marketing Next Generation
Sales
Progressive Service
Innovative Products
Customer Centered Strategy
Focus on consumer engagement
Reduction in store size
Greater utilization of store space
Shift to non- traditional
formats
Personalized products
Impact on Retailers – Technology Perspective Mobile Point of
Sale Digital Wallets
Electronic Price Tags RFIDMobile
Promotions
Digital Promotions
Personalized products
Innovative Delivery
Solutions Online Shopping With Local Store
Pickup
Google Shopping Express
In-vehicle Pickup
Delivery Lockers
Sunday Delivery
Delivery Drone
Buy Online Pick Up In An Hour
Customers Delivering Packages
Warehouse Pickup
212015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
The survey data highlights the immaturity of omni-channel Supply Chains while most are focused on customer service
222015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
What is holding back Shippers from integrating Omni-channel fulfillment?
232015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Contents About the Study
Current State of the 3PL Market
Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
Strategic Assessment
242015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Did you know?
252015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Which of the following will be the primary drivers of your organization’s success in the next 5 years?
262015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
What capabilities does your organization value most in a functional or business leader?
272015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Supply Chain Talent
The estimated demand for Supply Chain professionals to exceed supply in the ratio of 6:1 The average hiring growth rate expected to be higher than the average growth rate across other
occupations
Industry Demands for New Supply Chain Talent
Only ‘hard skills’ involved in operations management would not be sufficient in the future Optimum mix of both ”Soft” and “Hard” skills involving leadership qualities and cross-functional
competencies will shape the industry Due to dynamic nature of the industry, 3 out of 4 jobs in supply chain are expected to change by 2015
Supply Chain Professional Dynamics
60mn people to exit the workforce by 2015
Only 40 mn people to fill up the gap More evident gap across middle and
senior management level in the Transport and Logistics industry
Supply Chain Talent Gap
Shortage of new new talent due to the constant evolution of supply chain processes
Demand for supply chain experts to grow exponentially with demand being greater than supply across all supply chain roles
Potential Shortage
Supply Chain Talent
282015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Organizational Challenges to Workforce Management
292015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Contents About the Study
Current State of the 3PL Market
Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
Strategic Assessment
302015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Mexico is a leading Latin American nation specializing in manufacturing and exports of goods
Mexico – Economic Overview
All figures ending 2012Source: “The Global Competitiveness Report 2013 -2014”:World Economic Forum, Index Mundi
GDP $1,177.4 bn
GDP per capita $10,058.5 GDP PPP* as (%) share
2.16% of world total
GDP
Total Investment (% of GDP) 24.68% Gross National Savings (% of GDP) 23.74%
Investment and Savings
Import $370.8 bn Import Partners US (50.5%), China (15.5%)
Japan (4.8%) Export $370.9 bn Export Partners US (78%)
Import and Export
MEXICO
Population 114.8 mn Labour Force 50.64 mn Median Age 27.7 yrs
People
312015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
An open economy backed by sound fundamentals and several alliances offer lucrative opportunities for doing business in Mexico
322015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
From a business perspective, Mexico is renowned as a low-cost manufacturing and export destination
332015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Top industries doing business in Mexico
342015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Moving operations to Mexico
352015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Moving operations to Mexico and Why
362015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Security, Crime and Corruption is the most-concerning factor for those currently doing business or looking to do business in Mexico
372015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Opportunities
382015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Trends in Logistics Service Offerings in Mexico
392015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Contents About the Study
Current State of the 3PL Market
Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
Strategic Assessment
402015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Strategic assessment topics for 2015
Evolution of the 3PL Business Model: New Competition
Supply Chain Risk Management
The Intensifying Truck Driver Shortage
Working Corporate Social Responsibility
Into the Supply Chain
412015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Questions?
Thank You!
For further information:
Pick up a copy of the study at one of the Media Boxes
Check out our website at www.3plstudy.com