Trends include more vigilant business practices, industry restructuring and continued commitment to sustainability
SAN DIEGO, Sept. 27, 2010 – Today, key findings from the 17th Annual Survey of Third-Party Logistics Providers are being presented at the Council of Supply Chain Management Professionals Annual Global Conference by survey author, Dr. Robert Lieb, Professor of Supply Chain Management at Northeastern University, and Joe Gallick, Senior Vice President of Sales for Penske Logistics. The findings, sponsored by Penske Logistics, analyze responses from 31 third-party logistics company CEOs across North America, Europe and Asia-Pacific whose companies were responsible for generating approximately $37 billion in revenue in 2009.
The global economy continued to pose a challenge in 2009, with 48 percent of companies surveyed failing to meet revenue growth projections, while 80 percent of them still managed to be profitable. Pressure on 3PLs to share risk with their clients increased in 2009, with 28 of the 31 CEOs reporting that their companies now have performance-based contracts with many of their clients. Only five of the companies were involved in significant merger or acquisition activity in the year.
Eighty-seven percent of CEOs noted that some of their manufacturing customers have begun to move toward near-shoring options in the past year, a trend that is expected to trickle down to 3PLs in the years to come. Labor numbers imply an upturn for 3PLs, with 87 percent of the companies beginning to rebuild their workforces in 2009. CEOs revealed that green practices are still a major priority in the 3PL market and 80 percent of the companies surveyed now have formal sustainability groups within their companies.
"The CEOs involved in this year’s surveys are more optimistic about growth prospects than they were last year, but appear to be more cautious about how growth will be achieved," commented Lieb. "They are likely to spend more time ‘qualifying’ new accounts, while devoting less attention to accounts in industries that are more cyclical in nature."
"The last few years have caused global third-party logistics providers to reconsider the structure of their businesses within a shifting industry," said Gallick. "Many of the CEOs reported adopting new strategies that are more conservative in nature with respect to both market expansion and new service offerings."
Further insights into this year’s research findings are outlined in additional detail below:
Improved Revenue Projections
The CEOs in all three regions were considerably more bullish about future revenue growth prospects of not only their companies, but also the regional 3PL industry, than they were last year.
Reorganization of 3PL Industry
More Vigilant Business Practices
Commitment to Sustainability
In the aftermath of the recession, these companies are still heavily committed to environmental sustainability issues.
Opportunities and Issues
To access the Executive 2010 Summary, click here.
Thirty-one CEOs completed surveys via an Internet-based questionnaire during the summer of 2010. Companies participating in the annual survey included: Cardinal Logistics, DSC Logistics, DHL Exel Supply Chain, Genco Supply Chain Solutions, Kuehne+Nagel Logistics, Landstar, Menlo Logistics, Panalpina, NYK Logistics, Penske Logistics, Ryder Integrated Logistics, Schenker, Schneider Logistics, Transplace, UPS Supply Chain Solutions, UTi Integrated Logistics, Caterpillar Logistics Services, CEVA Logistics and Wincanton.
About Northeastern University’s College of Business Administration
Northeastern University College of Business Administration, established in 1922, provides its students—undergraduate, graduate and executive—with the education, tools and experience necessary to launch and accelerate successful business careers. The College credits its success to expert faculty, close partnerships with the business community, and is emphasis on rigorous academics combined with experiential learning. The college also offers graduate and undergraduate concentrations in supply chain management, as well as graduate certificates in supply chain management.
The College is highly ranked by several prestigious publications. BusinessWeek ranks the undergraduate program 32th in the U.S., #1 in internships, and #19 in the student survey in its 2010 "Best Undergraduate B-schools." U.S. News & World Report ranks the College’s Bachelor of Science in International Business program #13 in the country. Princeton Review and Entrepreneur magazine ranked the undergraduate business program 14th most entrepreneurial in the U.S.
For more information about Northeastern University's College of Business Administration, visit http://www.cba.neu.edu/.
About Penske Logistics
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to major industrial and consumer companies throughout the world. Penske Logistics delivers value through design, planning and execution in transportation, warehousing, and international freight forwarding and carrier management. Visit www.penskelogistics.com to learn more.