SHIPPERS, IS PRICE OR SERVICE MORE IMPORTANT?
Service
74 %
Price
26 %
Strategies Shippers and 3PLs Use to Manage Challenges STRATEGIES SHIPPERS AND 3PLS USE TO MANAGE CHALLENGES DC network optimization and realignment 57 %
Services Shippers Buy
SERVICES SHIPPERS BUY Motor freight
3PL SERVIC Transportation Truckload
82 %
Expedited, small package deliveries
74 %
LTL
Supply chain design
Logistics technology, TMS, WMS
57 %
72 %
Intermodal
Nearshoring or reshoring
Third-party logistics solutions
89 %
55 %
69 %
Dedicated contr
4PL/LLP partnerships
Warehousing, fulfillment, DC services
52 %
64 %
Rail
Lean best practices
Air freight, expedited
52 %
54 %
Final mile
Strategic sourcing strategies
Ocean/ocean intermodal
47 %
44 %
Bulk
Intermodal transportation
Rail/intermodal
43 %
44 %
Managed technology services
Equipment/drive
Global shipping, freight forwarding solutions
43 %
40 %
Demand-driven logistics
Air cargo
Port, site, facility selection
37 %
38 %
Co-locating, collaborative distribution
Ocean
SHOULD SHIPPERS PARTNER WITH ONE OR MORE 3PLS? It depends 39 % Materials handling equipment, solutions 35 % Fleet operations, dedicated contract carriers 30 % Transportation equipment 16 %
36 %
Supply chain decentralization 18 %
Small package
Several of the top strategies that shippers and 3PLs use to manage challenges involve geography—where a company sources or produces, and how goods flow through the supply chain to ultimately reach customers. Those strategies include DC network optimization and realignment (cited by 57%), supply chain design (57%), and nearshoring or reshoring (55%). Another popular strategy is to use a fourth-party logistics (4PL) provider or lead logistics partner (LLP) to orchestrate the activities of various service providers. This year, 52% of respondents mentioned that strategy, making it a bit more popular than last year, when the number was 46%. Still another that has moved up the list is the use of lean best practices. In 2023, 44% of respondents mentioned a focus on lean; in 2024, 52% of respondents say they are striving to improve eciency and eliminate waste through lean practices.
White glove
Fleet acquisition 26
3PLs continue to be the go-to source for all manner of transportation services. Motor freight sits at the top of the list with 82% of shippers in our survey indicating they purchase over-the-road transportation through their 3PLs—up from 67% in 2023. Meanwhile, a robust number—74%—turn to logistics partners for expedited transportation and small package deliveries.
Logistics Inbound logistic
33 % Not surprisingly, most shippers are investing in technology. Seventy-two percent say they buy systems for transportation or warehouse management or other logistics applications, up significantly from last year. Sixty-nine percent buy third-party logistics solutions. Just one
Lead logistics p
More than one Fewer shippers purchase other modes of transportation through their 3PLs but the numbers are still significant: 54% buy air freight or expedited services, 44% purchase ocean or ocean intermodal transportation, and 44% procure rail or intermodal services. 28 %
Inventory mana
Should Shippers Partner
One shipper might build a deep relationship with a single 3PL that meets all its needs and finds opportunities across dierent aspects of its operations. Another shipper entrusts dierent 3PLs with dierent activities, geographies, or business divisions. Neither approach is best, say 39% of this year’s shipper and 3PL respondents. It all depends on individual circumstances. Another 33% of respondents this year say it’s best to forge a partnership with a single 3PL. That’s significantly more than the 23% who recommended that course in 2023. The remaining 28% this year say it’s best to work with more than one 3PL.
Just in time
It depends 39 %
Omnichannel lo
More than one 28 %
with One or More 3PLs?
Vendor manage
Just one 33 %
Logistics proces
84 Inbound Logistics • July 2024
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