Gartner: Logistics Leaders Expect Their Outsourcing Budget to Increase in the Next 2 Years
December 15, 2021
Critical Priorities Can Only Be Achieved by Collaboration with 3PLs
percent of logistics leaders increased their logistics outsourcing
budget in 2021, and 74% anticipate an increase in the next two years,
according to a survey from Gartner.
Ken Bays, Vice President Product Management at Inmar
Intelligence noted, "Supply chain service providers will win by
making their service reliable and easy to implement. That means perfect
execution and self-service data exchange capabilities that do not require an
elongated engineering engagement, which is true for any service along the supply
chain - from sourcing to last mile."
Cost reduction/cost optimization (31%)
Increase customer satisfaction (29%)
Faced with these challenges, many logistics leaders turn to their outsourcing partners for support. Although 3PLs can help address these priorities, it requires collaboration and inevitably compromise on both sides. For example, a 3PL can upgrade or acquire new technologies on behalf of their shipper customer. However, this will only be an option for the 3PL if the shipper extends their contract agreements to allow the depreciation of the investments and/or partly shares the financial burden with the 3PL partners.
"It is interesting the top shipper
priority is to improve their logistics technology, while the recent
annual 3PL study by Dr. Joh Langley of Penn State once again found a
large gap between the importance shippers place on a 3PL's technology
and their opinion of where 3PLs stand in IT," said
Dan Gilmore, chief marketing officer at supply
chain software provider Softeon.
“Nearly two-thirds of survey respondents said 3PL service providers had a positive or extremely positive effect on their competitiveness. This is the perfect foundation to build a long-lasting and meaningful partnership that enables joint investments and transparent information exchange,” Gonzalez said.
"Globalization and e-commerce are
clearly driving rapid growth in the WMS and Warehouse Automation
markets. These software and hardware innovations enable warehouse
operators to execute faster, more accurately, and more efficiently,"
Brian Zheng, HAI ROBOTICS U.S. General Manager.
Bob Bova, President and CEO of AccuSpeechMobile explained, "3PLs are a driving force for manufacturers and distributors to remain competitive in today’s consumer driven product expectancy market. The right partner combined with internal resources are the strongest way to stay ahead of the curve, mitigate negative outcomes and deliver to the expected customer experience."