3PL Study: Recession Impact, Going 'Green,' and Shortening of the Supply Chain are Top Priorities

Posted by Emily Thornton on Wed, Oct, 7 2009 @ 9:22 AM

< Back To Our Blog

The results of the 2009 3PL Provider CEO Perspective, a survey of 35 3PL chief executive officers in North America, Europe, and Asia-Pacific regions, indicate that the top concerns of 3PLs right now are: the impact of the recession on their business, environmental sustainability issues, and the fact that 3PL customers are taking steps to shorten their supply chains.

It is not very suprising that recession concerns are at the top of the list. Dr. Robert Lieb, who conducted the survey, explains in the Logistics Management write-up of the results:

“The recession causes 3PLs to re-think their strategy,” said Lieb, “and when things are going well and money is coming in, networks almost build themselves. But now they are forced to more closely evaluate how expenses are allocated. Coming out the recession, there may be new opportunities for business for 3PLs, with some new customers coming in that may have not used a 3PL in the past.”

This is related to the "go green" issue. According to Dr. Lieb, the main driving force behind 3PLs focused on going green is not concern for the environment, but the fact that it could save them money.

The third main 3PL concern - shortening of customers supply chains - is largely due to oil prices, says Dr. Lieb. When oil prices rise, the money a company saves by sourcing products from half-way around the world then has to go towards the cost of getting those goods home, and it's no longer efficient.

Please visit Logistics Management's website to read the full write-up of the results.

Free white paper: NVOCC Profit Optimization -This white paper will demonstrate how Transportation Management from Management Dynamics can deliver profitable growth by reducing transportation costs with a proven solution that is the market share leader for NVOCCs.

< Back To Our Blog

Topics: Export Management