FIGURE 4 Transportation Services 3PLs Offer
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Multi-modal logistics
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services promise to
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be a boon for 3PLs
capable of managing
SOURCE: IL 3PL Market Insight Survey, 2007
inbound product flow
growing a portfolio of specialized services such as import/export/cus- toms (69 percent), direct-to-store (75 percent), and direct-to-home (48 per- cent) that facilitate and expedite the inbound movement of products to points of consumption. When shippers have less lever- age in terms of time and modal hand-offs, but have predictable capacity and are willing to pay for it, dedicated contract carriage (DCC) services, which 66.3 percent of 3PLs offer, are another option. Is Asset-Based an Asset? Given the difficulties compa- nies often encounter trying to locate capacity, asset-based 3PLs have long touted their leverage in accessing equipment as a major selling point. However, a near equal amount of service providers – 43.5 percent vs. 41.9 percent – identify themselves as “non-asset based” and “both asset- and non-asset based.” Non-asset based 3PLs tradition- ally bring a more objective approach to securing capacity, which cost-con- scious shippers can appreciate. 3PLs that own assets, but are willing to pro- cure outside equipment per customer needs, offer a compromise.
is still a top priority for outsourcers, but with rigid fuel costs and capacity constraints, 3PLs need to look around corners to squeeze out costs. Fortunately, the railroads have been working on the railroads, and intermodal solutions are becoming a more integral component of the U.S. transportation mix. Compared with last year’s data, 3PLs catering to rail (69.7 percent) and intermodal ser- vices (84.3 percent) are up 7.3 percent and 3.2 percent, respectively. In heavily congested areas or where trucks are scarce, shippers can leverage rail/intermodal solutions to access capacity and negotiate cheaper rates by taking long-haul cargo off the highway. Multi-modal logistics services also promise to be a boon for 3PLs capa- ble of managing inbound product flow through congested ports with innovative transport solutions. The growth and proliferation of inland ports in or near major import loca- tions – many of which are served by both rail and road – offer shippers a more efficient way to transship prod- uct to less congested areas where it can clear customs and be consoli-
through congested
ports with innovative
transport solutions.
dated for final distribution. 3PLs are also investing and
106 Inbound Logistics • July 2007
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