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-October 10, 2008 |
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As always, the annual Third-Party Logistics study was released at the CSCMP Conference in Denver this week, under the leadership of Georgia Tech's Dr. John Langley.
It has also become perennial that the hundreds of respondents say they are not well satisfied with the technology capabilities of their 3PL providers. As shown in the graphic below, taken from the 2008 report, only about 35% of respondents are satisfied with the technology capabilities of their 3PLs
Source: 2008 Third Party Logistics Study
"One area warranting particular scrutiny is a 3PL’s planned technology investments; the gap between user IT expectations and 3PLs’ ability to meet them persists," the report notes. "It’s possible that because of all these issues, the percentage of budget devoted to outsourcing logistics, and the services outsourced, haven’t changed much over the past several years. Perhaps more investment on the part of 3PLs, and more willingness from users to try additional 3PL services, is required to push the results of 3PL relationships to the next level."
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2008-11-13
November 13, 2008
Not only is there a challenge in the IT capabilities the graph presented is a misrepresentation of the data.
The graph shows a line through the satisfaction scores which one might take as a trend line showing an improvement. With an R squared of 0.32 the data does not support a trend and a more accurate picture would be of the mean of the satisfaction values.
The report writers seem to be trying to paint a better picture than what the data indicates. Not only is there a gap, the satisfaction scores have not statistically changed in 6 years.
Heading into a slow economy they are not likely to change in the next several years if $ are needed to change the game.
Mike Entner, CPIM
Dow Chemical
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2008-11-13
November 12, 2008
What do they want out of improved IT capabilities? Specifically, where is the need? Where is the potential value? What are they missing out on? It is a very vague generalisation to say that 3PLs need better IT capabilities.
Maybe there should be some data or examples of cases where IT could have improved the service value.
Ben McCambridge
Supply Chain Projects
Polarcold Stores Ltd.
New Zealand
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2008-11-12
November 12, 2008
Agree - Unfortunately when something new is needed the 3PLs expect us to foot the bill for all of their expenses.
Linda Ihrig
Pioneer
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