STRATEGIES SHIPPERS AND 3PL USE TO MANAGE CHALLENGES DC network optimization and realignment 56% Nearshoring or reshoring 53% Strategic sourcing strategies 52%
SERVICES SHIPPERS BUY Motor freight 67% Third-party logistics solutions 55% Rail / intermodal 38% Expedited, small package deliveries 34% Ocean / ocean intermodal 24% Warehousing, fulfillment, DC services 24% Air freight, expedited 22% Supply chain technology, software, systems 20% Transportation equipment 16% Global shipping, freight forwarding solutions 13% Materials handling equipment, solutions 12% Port, site, facility selection 5%
Supply chain design 51% 4PL/LLP partnerships 46% Managed technology services 45% Lean best practices 44% Intermodal transportation 41% Co-locating, collaborative distribution 33% Demand-driven logistics 32% Supply chain decentralization 21% None 1%
When the shippers in our survey get down to work, the service they are most apt to purchase is motor freight transportation, cited by 67% of respondents. Smaller numbers of shippers buy services in other modes: rail/intermodal (38%), expedited/small package deliveries (34%), ocean or ocean intermodal (24%), and air freight and expedited transportation (22%). When it comes to outsourcing, 55% buy third-party logistics solutions, 24% buy warehousing, fulfillment and/or distribution center services, and 13% buy global shipping or freight forwarding solutions. Twenty percent of the shipper-respondents buy supply chain technology, software or systems, while only 12% buy equipment and solutions for materials handling. My contacts provide excellent service. Not just identifying the best, most cost-ecient, and reliable shipping option but also problem solving on the back end.
One year ago, two challenges for managing logistics challenges rose above the rest: 1. using a fourth-party logistics (4PL) provider or lead logistics partner (LLP) to oversee the contributions of various service providers, and 2. using supply chain design to improve operations. Those strategies are still popular in 2023. Forty-six percent of this year’s respondents rely on the 4PL or LLP model, and 51% overcome challenges through supply chain design. But three other strategies have become even more important. In 2023, 56% of respondents manage challenges by optimizing and realigning their distribution center (DC) networks. Another growing trend is the quest to develop a shorter, tighter supply chain. This year, 53% of respondents use reshoring or nearshoring to manage their challenges, compared with 43% in 2022. In a similar vein, 52% this year seek improvements through strategic sourcing.
Work with just one 3PL, and you gain a partner who deeply understands your business, plus a single place to call for all your needs. Work with more than one 3PL, and you benefit from those partners’ di¥erent strengths in di¥erent areas. Which is the best course? It depends on circumstances, say 40% of survey respondents. Thirty-seven percent say a shipper should always work with more than one logistics partner, while 23% advocate building a strong relationship with a single 3PL. SHOULD SHIPPERS PARTNER WITH ONE OR MORE 3PLs?
23% JUST ONE
40% IT DEPENDS
37% MORE THAN ONE
74 Inbound Logistics • July 2023
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