small task. Resigned to the fact that transportation management pro- cesses leave little room for efficiency and cost savings, companies are considering two approaches to ratio- nalizing their global warehousing
facility? Or partner with a developer to design and build a new facility for lease? Nearly 60 percent of 3PLs offer location services to address these concerns. A second approach to optimizing distribution efficiency is reengineer- ing processes and systems within the four walls to expedite prod- uct movement and inventory turns. Companies often look to system enhancements including innovative pick/pack and subassembly machi- nations, or more strategic initiatives such as crossdocking, to increase pro- ductivity, reduce errors, and improve the flow of inbound and outbound product movement. Accordingly, 81.4 percent and 72 percent of 3PLs pro- vide solutions and services in these respective operational functions.
FIGURE 6 Warehousing Solutions 3PLs Offer
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Choosing the Top 100 3PLs
Now that you have the inside scoop on the ebb and flow of global outsourcing trends, Inbound Logistics takes you straight to the source: our annual Top 100 3PL Providers list. Choosing the Top 100 is never easy, and the responsibility becomes increasingly difficult year after year, as the pace of change and the number of new service providers willing to tempt fate in the 3PL Zone grows. This year, we streamlined our list from more than 500 companies through a diligent process of collect- ing and evaluating surveys, personal interviews, and online research. The service providers we selected are companies that offer the diverse operational capabilities and experi- ence to meet readers’ unique needs. Whether you use this index purely as a reference or as a navigational beacon to steer your company into the new dimension of global out- sourcing, we hope it puts the market in perspective for you. ■
SOURCE: IL 3PL Market Insight Survey, 2007
and distribution networks. First, companies are looking beyond the four walls to identify how and where they should locate product to best match demand with supply. For some companies this means staging inventory further back in the supply chain and placing more responsibility on their supply partners. As a result, 3PLs offering vendor-managed inventory capabili- ties are growing in number, with 55 percent providing services in this area. On the domestic front, companies are leveraging third-party expertise to identify sites suitable for distribu- tion and warehouse facilities. After choosing an appropriate loca- tion, companies are then challenged with finding the best strategy for get- ting the facility up and running. Should they invest in and build their own? Lease or purchase an existing
As site selection grows
increasingly important,
companies are
leveraging third-party
expertise to identify
locations suitable
for distribution and
warehouse facilities.
110 Inbound Logistics • July 2007
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