Each year in late June, we get the State of Logistics Report from CSCMP, which I summarize under the banner of "The State of the Logistics Union."
Then in early fall we get the annual "3PL Study," released at the CSCMP Edge conference. And so it was again this year with the 2024/2025 study, now in its amazing 29th year, all under the leadership of my friend Dr. John Langley of Penn State.
So this week you get my somewhat belated summary of the 3PL report (we read more so you can read less), which I might as well title the "State of the 3PL Union," as it is a compendium of data points from the logistics service provider sector – though with some unwelcomed changes.
Gilmore Says.... |
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| This year the text was gone too, as it appears the IT Gap has been phased out. Pity. |
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The continuous Langley's leadership has in the past few years been pared with a stable sponsor mix. This year's report was again sponsored by consulting and technology firm NTT Data, Penn State and Penske Logistics. Without the sponsors the report wouldn't happen, so they are worthy of some public recognition.
Since I knew I could get a copy of the report later I didn't attend the CSCMP presentation, but I did duck my head into the session room and it was well attended as is it is every CSCMP. The interest in logistics outsourcing obviously remains high.
The report is based in part on survey responses from shippers and 3PLs worldwide. It may be in there somewhere, but again this year I cannot find a total number of respondents.
As I can attest from our work here at SCDigest, getting people to complete surveys is increasingly difficult.
Just 27% of total respondents were 3PLs, well down from most years. 44% were shippers using 3PLs and 9% were shippers not using outsourcing. The remaining 20% were various others.
For its history, the report focused on a large set of survey data and related discussion across a set of issues that were very similar each year.
But last year the amount of this data was cut way back, and further chopped this year, so that it is a shell of its former self. Some changes in an annual study like this are good, while others not as welcomed.
There were just a few data points in the core section, though there were more in what I will call “special topics” sections – more on those in a bit. A sampling of what we did get is as follows:
Most shippers that use 3PL services (95%) reported their outsourcing relationships as generally successful, up from 89% last year. As in the past, 3PLs responded even more favorably than shippers, with nearly all (99%) reporting successful relationships, up from 94% in 2023.
As I noted last year, I am tempted to call BS on the 95% number for shippers, which just seems too high, but then again as the question is phrased as “relationships are generally successful” maybe that number is right.
One of the other data points is that 87% of shippers agree they are increasing their use of outsourced services. That is up significantly from the previous year’s 62%. Can this again really be right, especially when 3PLs perceive that shippers’ use of outsourced services remained consistent with last year?
Hard to say. I am sure the researchers were scratching their heads on this one too, but the data is the data.
That was about it for core survey data. I will note that SCDigest was always interested in the dreaded "IT Gap," which the report had been following for many years. That gap refers to the percentage difference between how shippers place 3PL IT capabilities in terms importance (always very high), versus their view of actual 3PL IT capabilities, always with a much lower score.
For years the IT Gap was large but shrinking. However, for reasons that are unclear, it spiked back up in six years ago and stayed there, as is normally illustrated in a chart tracking the gap over many years.
Last year, the report just briefly addressed the IT Gap, but disappointingly without the usual graphic that really told the story.
This year the text was gone too, as it appears the IT Gap has been phased out. Pity.
On technology, however, shipper respondents cited control tower visibility as the most frequently requested technology they are looking for from 3PLs.
Examples include visibility, tracking and asset management, and 68% of shipper respondents cited these capabilities, up from 49% last year.
Along with that core data as usual comes thoughts on a set of focus topics, usually supported by some additional survey data.
This year, that includes a fairly long section on “change management” between 3PLs and shippers, followed by sections on AI and “The Importance of the Direct-to-Consumer Experience.”
I will offer some highlight from the change management section below, and save my comments on the other two plus a few other “contemporary issues” next week.
The report early on revisits the well-known quote from the late, legendary GE CEO Jack Welch now many years ago that “If the rate of change on the outside exceeds the rate of change on the inside … the end is near.”
Both shippers and 3PLs believe change management is very important. As shown in the graphic below, most respondents (61% of shippers and 73% of 3PLs) characterize the importance of change to their supply chains as critical or significant.
Source: 3PL Study 2026
The report notes the plethora of change management frameworks, and says using one of them is a key factor in success.
In addition to being guided by a structured process, the report says several other factors are critical to success. People and leadership rank among the most critical elements, the report says.
Other keys to change management success from the report include:
• Establish priorities for change
• Design effective and comprehensive processes for change management
• Identify elements and priorities to keep people fully engaged and
committed to success of the overall change process
• Imperative for leaders to lead
There’s a lot more, but will end here by noting this section of the report observes that “Barriers to change remain. Just 23% of shippers and 24% of 3PLs report their organizations are extremely receptive to change. Among shippers and 3PLs, 45% and 53%, respectively, say their organization is only moderately receptive to change.
With that I will wrap things up for this week.
Overall, this is a very interesting document as usual. That said, at almost 50 pages of actual content (before various appendices) it again is very long.
I also believe the report is trending too much towards sort of a 3PL marketing document, and less on the traditional data and analysis.
That said, will be back next week after a review of the special topic sections
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