0 Replies Latest reply on Mar 5, 2010 7:27 AM by dustinmattison

    Are Shippers Pushing 3PLs to the Brink of Collapse?

    dustinmattison Apprentice


      Gross revenue is down, yet customers continue to demand more services

      Gross revenue in the US 3PL sector declined 15.2% last year compared to 2008, the first year-over-year decline since 1995. To compound the problem,  3PLs are not alone, their customers are experiencing declines as high as 40% and as a result are putting pressure on their logistics providers to reduce costs. To that end many shippers and 3PLs have renewed their commitment to quality improvement programs like Six Sigma, but it is a double-edged sword.

      Are shippers pushing their logistics providers to the brink of collapse, or is this just another evolution of the 3PL sector? Again, the upside is increased collaboration and a renewed interest in the principles of total quality management, but the downside, at least in the midst of an economic downturn, is the risk of investing in additional tools and capabilities, like those needed to analyze and optimize inventory management. http://www.joc.com/logistics-economy/3pls%E2%80%99-tactical-evolution