This document summarizes the findings of the 19th annual Third-Party Logistics Study. It discusses topics like the current state of the 3PL market, special topics such as CRM and mobile technologies, omni-channel fulfillment, workforce management and opportunities in Mexico. The study is based on surveys of users, providers and non-users of 3PL services and focuses on key issues facing the industry such as the skills and tools needed by 3PLs to succeed and the gap between required and available IT capabilities. It also provides strategic insights on evolving business models and risks in the logistics industry.

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2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

2. 2015 Third-Party
Logistics Study
The State of
Logistics Outsourcing
Results and Findings of the
19th Annual Study
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#3PLStudy

3. 3
Contents
 About the Study
 Current State of the 3PL Market
 Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
 Strategic Assessment
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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2015 19th Annual 3PL study – Major research thrusts
Customer Study
E-Mail Survey
Major Industry Verticals
Special Topics
Focus Interviews
Key Industry Experts
São Paulo
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Facilitated Discussions
Capgemini Accelerated
Solutions Environment (ASE)
San Francisco
London
Singapore
Amsterdam
Paris
New York
Berlin
Hong Kong
Shanghai
Chicago
Sydney
Each year, workshops are held in different locations around the world

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Recent 3PL Study themes
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
This year’s special topics:
• CRM and Mobile Technologies
• Omni Channel
• Strategic Workforce Management
• Mexico
www.3plstudy.com

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Profiles of respondents represented
40%
User
44%
3PL/4PL
16%
Non-user
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Contents
 About the Study
 Current State of the 3PL Market
 Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
 Strategic Assessment
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Outsourced logistics services
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Outsourced Logistics
Services
Percentages
of 3PL Users
Order management and
fulfillment
18%
Inventory management 18
Supply chain consultancy
services provided by 3PLs
15
Information technology (IT)
services
15
Service parts logistics 14
Fleet management 13
LLP (Lead Logistics Provider)
11
/ 4PL services
Customer service 5
Sustainability/green supply
3
chain-related services
Outsourced Logistics
Services
Percentages
of 3PL Users
Domestic transportation 80%
International transportation 70
Warehousing 67
Customs brokerage 53
Freight forwarding 51
Reverse logistics (defective,
36
repair, return)
Freight bill auditing and
payment
33
Product labeling, packaging,
assembly, kitting
30
Cross-docking 30
Transportation management
25
and planning

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Benefits delivered by use of 3PL services
Benefits
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
2015 Study
Results
Logistics Cost Reduction 9%
Inventory Cost Reduction 5%
Logistics Fixed Asset Reduction 15%
Order Fill Rate
Changed From 60%
Changed To 66%
Order Accuracy
Changed From 61%
Changed To 66%

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What tools 3PLs need to be successful (top 6)
Shippers Providers
1. Transportation management
(execution)
2. EDI
3. Transportation management
(planning)
4. Warehouse/DC management
5. Visibility (order, shipment,
inventory, etc.)
6. Web portals for booking,
order tracking, inventory, etc.
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
1. EDI
2. Transportation management
(execution)
3. Customer order management
4. Transportation management
(planning)
5. Visibility (order, shipment,
inventory, etc.)
6. Web portals for booking,
order tracking, inventory, etc.

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The “IT Gap”
89%
85%
91% 90% 92% 92% 92% 88%
120%
100%
80%
60%
40%
20%
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
94% 93% 94%
98% 96%
27% 33%
42% 40% 35% 42% 37% 42%
54% 54% 53% 55%
60%
0%
02 03 04 05 06 07 08 09 10 11 12 13 14
Year
IT Capabilities Necessary Element of 3PL Expertise
Shippers Satisfied with 3PL IT Capabilities
IT
“Gap”

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Contents
 About the Study
 Current State of the 3PL Market
 Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
 Strategic Assessment
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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3PL CRM solutions leverage mobile and cloud technologies
3PL
Customer
Relationship
Management
Customers
 3PLs provide more timely information better service
to customers
 Solutions provide real-time visibility into the
extended supply chain
 Mobile solutions help 3PL players with shipment-specific
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
services such as track and trace
 Integration with TMS and WMS solutions
Leveraging
Mobile
Technologies
Leveraging
Cloud -
based
solutions
 Cloud-based CRM solutions enable 3PLs to launch
new services, target new industries, and address
global supply chain issues
 Enhance information flow between 3PLs and
customers to help reduce costs, improve operational
capabilities, sourcing activities, etc.
 Provide end-to-end solutions for entire supply chain

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Cloud- based CRM solutions lead to greater customer service and
enhanced visibility for 3PL customers
Inventory and
Logistics
Management
Source: “Role of IT in 3rd Party Logistics providers”:HRMars
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Customer Service
Information
Flow
Information
Flow
Warehousing Material
Flow
Transportation
Role of cloud-based
solutions
3PLs and
Cloud-Based
Solutions
Information
Flow

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3PLs and CRM Solutions – Example benefits
Safety of Shipments
70%
SHIPPERS
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Increased Productivity
Benefits
1
2 Systematic Way
to Track
Business Activity
Measurability of Marketing
and Sales Activity
3
Individual
Customer Service
4
Automated
Information Updating
5
6
77%
PROVIDERS
AGREED that CRM is essential to providing capable support to customers

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“Must-have” CRM requirements
 AVAILABILITY of real-time tracking information relating to
customer shipments
 EASY access to cost and shipment pricing information
 INCREASED ability of 3PL sales executives to respond to customer
requests
 GREATER visibility of global operations
 MORE professional and productive sales calls and customer
presentations by 3PL sales executives
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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What do 3PL sales executives do with their available time?
23%
CUSTOMER-FACING
PHONE MEETINGS/
CONVERSATIONS
22%
CUSTOMER
FACE-TO-FACE
MEETINGS
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
55%
SPEND THEIR TIME
ON INTERNAL ISSUES
• Internal management meetings
• Responses to RFPs
• Preparation and data collection
• Inputting and updating data
• Pricing issues

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What if you had 20% more sales capacity through the
“CRM of your dreams?”
10%
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
28%
“Expand into new
geographies”
24%
“Launch new
services”
24%
“Reduce
costs and
run a more
lean
organization”
14%
“Hire more
account execs in
the same
geographies”
“Reduce
costs & staff
functions”

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Contents
 About the Study
 Current State of the 3PL Market
 Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
 Strategic Assessment
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Retail landscape is evolving rapidly and adjusting to changes in
customer’s demand as well as technological innovations
Executive Summary
Changing
Retail
Landscape Venturing new
Growing Middle
Class demand
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
markets
Impact on
Retailers –
Customer’s
Perspective
Closed Loop
Marketing Next Generation
Sales
Progressive
Service
Innovative
Products
Customer
Centered
Strategy
Focus on consumer
engagement
Reduction in
store size
Greater utilization
of store space
Shift to non-traditional
formats
Personalized
products
Impact on
Retailers –
Technology
Perspective Mobile Point of
Sale
Digital Wallets
Electronic Price Tags RFID
Mobile
Promotions
Digital
Promotions
Personalized
products
Innovative
Delivery
Solutions Online Shopping
With Local Store
Pickup
Google
Shopping
Express
In-vehicle
Pickup
Delivery
Lockers
Sunday
Delivery
Delivery
Drone
Customers
Delivering
Packages
Buy Online Pick
Up In An Hour
Warehouse
Pickup

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The survey data highlights the immaturity of omni-channel Supply
Chains while most are focused on customer service
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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What is holding back Shippers from integrating Omni-channel
fulfillment?
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Contents
 About the Study
 Current State of the 3PL Market
 Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
 Strategic Assessment
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Did you know?
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Which of the following will be the primary drivers of your
organization’s success in the next 5 years?
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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What capabilities does your organization value most in a functional or
business leader?
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Supply Chain Talent
Industry Demands for New Supply Chain Talent
 The estimated demand for Supply Chain professionals to exceed supply in the ratio of 6:1
 The average hiring growth rate expected to be higher than the average growth rate across other
occupations
Supply Chain Professional Dynamics
Supply Chain Talent Gap
 60mn people to exit the workforce
by 2015
 Only 40 mn people to fill up the gap
 More evident gap across middle
and senior management level in the
Transport and Logistics industry
Potential Shortage
 Only ‘hard skills’ involved in operations management would not be sufficient in the future
 Optimum mix of both ”Soft” and “Hard” skills involving leadership qualities and cross-functional
competencies will shape the industry
 Due to dynamic nature of the industry, 3 out of 4 jobs in supply chain are expected to change by 2015
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
 Shortage of new new talent due to
the constant evolution of supply
chain processes
 Demand for supply chain experts
to grow exponentially with
demand being greater than supply
across all supply chain roles
Supply
Chain
Talent

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Organizational Challenges to Workforce Management
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Contents
 About the Study
 Current State of the 3PL Market
 Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
 Strategic Assessment
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

30. Mexico is a leading Latin American nation specializing in manufacturing
and exports of goods
30
Mexico – Economic Overview
GDP
 GDP $1,177.4 bn
 GDP per capita $10,058.5
 GDP PPP* as (%) share 2.16%
of world total
Investment and Savings
 Total Investment (% of GDP) 24.68%
 Gross National Savings (% of GDP) 23.74%
All figures ending 2012
Source: “The Global Competitiveness Report 2013 -2014”:World Economic Forum, Index Mundi
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
Import and Export
 Import $370.8 bn
 Import Partners US (50.5%), China (15.5%)
Japan (4.8%)
 Export $370.9 bn
 Export Partners US (78%)
MEXICO
People
 Population 114.8 mn
 Labour Force 50.64 mn
 Median Age 27.7 yrs

31. An open economy backed by sound fundamentals and several alliances
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offer lucrative opportunities for doing business in Mexico
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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From a business perspective, Mexico is renowned as a low-cost
manufacturing and export destination
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Top industries doing business in Mexico
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Moving operations to Mexico
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Moving operations to Mexico and Why
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Security, Crime and Corruption is the most-concerning factor for those
currently doing business or looking to do business in Mexico
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Opportunities
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Trends in Logistics Service Offerings in Mexico
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Contents
 About the Study
 Current State of the 3PL Market
 Special Topics
- CRM and Mobile Technologies
- Omni Channel
- Strategic Workforce Management
- Mexico
 Strategic Assessment
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Strategic assessment topics for 2015
Evolution of the 3PL Business
Model: New Competition
Supply Chain Risk Management
The Intensifying Truck
Driver Shortage
Working Corporate Social
Responsibility
Into the Supply Chain
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study

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Questions?
2015 Third-Party Logistics Study – Results and Findings of the 19th Annual Study
For further information:
Pick up a copy of the study at one of
the Media Boxes
Check out our website at
www.3plstudy.com
Thank You!