3PLs in great favour with Fortune 500 firms
A study undertaken by the University of Tennessee (UT/USA) and sponsored by the logistics company Kenco showed that more than 80% of US-based Fortune 500 companies outsource their logistics operations. In coming years most of the enterprises expect to use third party logistics (3PL) providers.
Some 60 executives were interviewed for the study entitled "Selecting and managing a third party logistics provider", which also revealed that companies are still struggling to optimize their use of 3PLs - despite growth in every sector of the supply chain over the last 25 years.
Paul Dittmann, executive director of the Global Supply Chain Institute (GSCI) at the UT’s Haslam College of Business, commented, “the scope of third party logistics has widely increased and expectations of them accelerated, but that does not mean firms are using 3PLs to their full advantage.”