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2016 #3PLStudy: The State of Logistics Outsourcing

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Over the span of 20 years, the Third Party Logistics (3PL) study has documented the evolution of 3PLs, which are shifting, in many instances, from tactical service providers to collaborative partners delivering a comprehensive suite of integrated logistics services. Additionally, providers have become more proficient at the provision of 3PL services, and customers have become better buyers and users of 3PL services. The study includes four streams of research: surveys, desk research, focus interviews and intensive, one-day facilitated shipper workshops.

The study, which is based on responses from more than 260 shippers and logistics service providers in North America, Europe, Asia-Pacific, Latin America and other regions, also looks at supply chain risk management and new competition within the industry. It is produced by Capgemini Consulting, the global strategy and transformation consulting brand of the Capgemini Group, Penn State University, the executive recruiting firm Korn/Ferry International and Penske Logistics, a global logistics and supply chain management provider.

To help document changes within the supply chain, the 20th Annual Third-Party Logistics (3PL) Study examines the global supply marketplace across a range of topics, including how shippers and 3PLs are aligning relationships, the 3PL competitive landscape and workforce innovating and agility.

Published in: Technology
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2016 #3PLStudy: The State of Logistics Outsourcing

  1. 1. 2016 Third-Party Logistics Study The State of Logistics Outsourcing Results and Findings of the 20th Annual Study Multi-Media Feed: #3PLStudy
  2. 2. 22016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Contents  About the Study  Current State of the 3PL Market  Special Topics - Aligning 3PL Relationships - 3PL Competitive Landscape - Workforce Innovation and Agility  Strategic Assessment
  3. 3. 32016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study 20th Year Anniversary of Annual 3PL Study 1996- 2000 2001- 2005 2006- 2010 2011- present 1996 Study Founded North America Focus 2013 Big Data Talent Management 2008 Green Supply Chain 1998 Importance Of IT 2002 Added Western Europe 2003 Added Asia-Pac 2004 Added Latin America 2005 Added South Africa 2012 Emerging Economies 2009 Economic Crisis 2006 First Workshops Chicago Paris Shanghai 2014 Omni- Channel Mobile Technologies 2015 3PL Competitive Landscape 2006 Special Topics
  4. 4. 42016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study 2016 20th Annual 3PL study – Major Research Thrusts Customer Study E-Mail Survey Major Industry Verticals Special Topics Focus Interviews Key Industry Experts Facilitated Discussions Capgemini Accelerated Solutions Environment (ASE) San Francisco London Singapore Paris Amsterdam New York Berlin Hong Kong Shanghai Chicago Each year, workshops are held in different locations around the world Rio De Janeiro Sydney
  5. 5. 52016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Recent 3PL Study Themes www.3plstudy.com This year’s special topics: - Aligning 3PL Relationships - 3PL Competitive Landscape - Workforce Innovation and Agility
  6. 6. 62016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Profiles of Respondents Represented
  7. 7. 72016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Contents  About the Study  Current State of the 3PL Market  Special Topics - Aligning 3PL Relationships - 3PL Competitive Landscape - Workforce Innovation and Agility  Strategic Assessment
  8. 8. 82016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Logistics Services Reported by 3PL Users
  9. 9. 92016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Benefits Experienced Through Use of 3PL Services 93% 3PL Relationships Generally Successful 83% 3PL Use Improves Service to Customers 75% 3PL Innovations Improve Logistics Effectiveness 73% Increasing Our Use of 3PL Services 70% 3PL Use Helps to Lower Logistics Costs 3PL Value
  10. 10. 102016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study The “IT Gap” – Where Do We Go from Here? 89% 85% 91% 90% 92% 92% 92% 88% 94% 93% 94% 98% 96% 93% 27% 33% 42% 40% 35% 42% 37% 42% 54% 54% 53% 55% 60% 59% 0% 20% 40% 60% 80% 100% 120% 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Year IT Capabilities Necessary Element of 3PL Expertise Shippers Satisfied with 3PL IT Capabilities IT “Gap”
  11. 11. 112016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Essential IT Capabilities Suggested by 3PL Users • Warehouse/DC Management • Transportation Management (Planning) • Visibility • Transportation Management (Scheduling) • EDI • Web Portals • Network Modeling and Optimization • Bar Coding • Global Trade Management Tools • Transportation Sourcing • Customer Order Management • Supply Chain Planning • Customer Relationship Management (CRM) • Distributed Order Management • Advanced Analytics and Data Mining Tools • Cloud-Based Systems • Yard Management • RFID 60% or More 40% - 59% 25% - 39% Less than 25%
  12. 12. 122016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Contents  About the Study  Current State of the 3PL Market  Special Topics - Aligning 3PL Relationships - 3PL Competitive Landscape - Workforce Innovation and Agility  Strategic Assessment
  13. 13. 132016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study 3PLs Need to be Aligned With Their Customers and Service Providers
  14. 14. 142016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Strategic vs. Tactical 3PL Relationships
  15. 15. 152016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Business Partner Collaboration Provides the Greatest Benefit to Shipper and 3PL as Both are Aligned to Each Others’ Goals Tactical Partner Service Partner Business Partner Benefits Low Medium  Highly focused on cost  Equates logistics with expenses  Service sometimes viewed as a commodity  Outsourcing to gain efficiency and execution  Focus on getting the right solutions  Cost not considered to be the deciding factor  Shipper looking for expert advice and willing to pay for right solution  3PL strategic partner  Both parties invest in the relationship and share returns  3PL a crucial part of shipper’s business and competitive position  Both parties focus on alignment to business and operational goals  Sharing of information and strategic directions High Source: News Articles; Capgemini Consulting Analysis
  16. 16. 162016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Suggested Elements for Successful Onboarding of 3PL-Customer Relationships
  17. 17. 172016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Key Strategies That Can Optimize the 3PL Relationship Control Risk Mitigation Business Reviews Continuous Improvement 1 3 2 4
  18. 18. 182016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Facilitators of Alignment in 3PL-Customer Relationships Elements 3PLs Customers Agreed-upon performance expectations 87% 96% Formal performance reviews 80 81 “Dashboards” to understand results of 3PL operations 63 73 Providing 3PLs with information relating to shippers' goals and strategies 53 54 Visibility into workflows and process management 48 69 Cultural fit with our 3PLs 43 70 Plans for how shipper and 3PL personnel at the executive, management, and operational levels need to work together. 37 51 Multi-enterprise collaboration systems, such as between shippers, 3PLs, and service providers 25 43 Strategic plan for “succession” of the relationship 25 36 Calendar visualization to facilitate scheduling meetings and activities 21 30 Pay for performance in addition to pay for services 16 33 Data indicates percentages of clients and 3PLs indicating elements are generally present in their relationships
  19. 19. 192016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Reported Frequencies of Interactions Among 3PLs and Customers 0% 10% 20% 30% 40% 50% 60% 70% 20% 52% 15% 8% 5% 14% 66% 16% 3% 1% Customers 3PLs
  20. 20. 202016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Relationships Between 3PLs and Asset-Based Service Providers 1 3PLs are expected to have formal plans to help manage relationships with service providers 77% 91% 2 3PLs select or help to select the service providers 80% 63% 3 Meaningful sharing of information between 3PLs, service providers, and customers 81% 91% 4 3PLs have visibility into daily performance of service providers 80% 70% 5 Service failure by one of the service providers is a service failure of 3PL organization 81% 79% 6 Improvement needed in relationships between customers, 3PLs, and service providers 83% 80% Percent Agreement 3PLs Customers
  21. 21. 212016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Initiative Percentages Indicating Helpful 3PLs 3PL Users Automated way for clients to log in and see requests from 3PLs for approvals of decisions, activities, documents, and other “to-do’s” 80% 84% Real-time news feed (like Twitter or Facebook) of everything that is happening across all 3PLs used by a client 49% 57% In communicating with our 3PLs/clients, we find that most of the time email provides the needed types of functionality 59% 70% Communications Between 3PLs and Users
  22. 22. 222016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Contents  About the Study  Current State of the 3PL Market  Special Topics - Aligning 3PL Relationships - 3PL Competitive Landscape - Workforce Innovation and Agility  Strategic Assessment
  23. 23. 232016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study The use of new technologies has helped 3PL players to combat external challenges and improve internal operations
  24. 24. 242016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study The benefits and breadth of application of cloud technology can deeply impact a 3PL in a multifaceted way Transportation Management Systems (TMS)  Provides full order visibility  Real time connectivity with supply chain partners  Tracking shipment and routing progress  Role-based access for the various users in the supply chain  Multi tenant architecture Global Trade Management (GTM)  Based on the AderbeenGroup report, 55% of the companies were expected to implement SaaS GTM solution in 2014 (compared to 37% three year ago)  Facilitates transportation planning  Trade compliance and customs management Warehouse Management System (WMS)  Support day to day operation in a warehouse  Tracking inventory levels and stock locations  Billing and invoicing  Controlling inbound and outbound inventory Supply Chain Planning  Achieve more than 15% higher perfect-order rates  End to end supply chain management  Multi-channel warehousing management  In-store inventory management There are 5 key benefit to implementing cloud technologies: Lower Cost of Set-Up Pay-As-You-Go Pricing and Features Fast Deployment Self Sufficiency Real Time Global Visibility
  25. 25. 252016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study This year’s survey respondents utilize their cloud technologies in many capacities 60% 40% 38% 38% 33% 32% 28% 27% 25% 13% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% %respondentsleveragingthetechnologies 60% of respondents named visibility across operational processes as the key driver for use of cloud technologies in logistics
  26. 26. 262016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study 0% 10% 20% 30% 40% 50% 60% 70% Shippers are turning to 3PLs to help continue balancing cost and service given future complexities Total survey respondents = 5,000 3PL users Challenges faced by shippers, 2014 Key Shipper and 3PL interactions due to capacity consolidation 12% 12% 13% 17% 17% 18% 20% 20% 22% 31% 32% 63% Vendor Management Technology Strategy and… Expanding/sourcing from… Expanding/Selling to New… Regulations, Security,… Reducing Labor Costs Managing Inventory Retaining and Training Labor Supply Chai Visibility Improved Customer Service Business Process… Cutting Transportation Cost
  27. 27. 272016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study As the landscape is changing, new companies have pushed the envelope by offering fulfillment services  Two-Day delivery was launched  Grocery delivery at convenient time  Examples:  Introduction of same- day delivery services by Shutl — The company helped to match same-day orders with high- speed couriers  Examples:  Shop for items from local store and get delivery same day or overnight by Google  Sunday delivery was started by Amazon  Adoption of free and same day delivery by various e- commerce companies — Amazon launched same day delivery in the US and the UK — China Smart Logistic Network (CSN) was launched by Alibaba to offer same day delivery across all cities in China  Examples: 2005-2007 2008-2011 time period2012-2014 Reduced fulfillment days and customized delivery time Introduced one day Fulfillment Complete adoption of one day fulfillment and introduction of overnight, same day and Sunday delivery Over the past decade, the delivery time has shrunk from a couple of days to same day EvolutionofDelivery
  28. 28. 282016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study How are most companies meeting these growing expectations...? Investing in new capabilities yourself Leveraging new capabilities from other companies in different industries Choosing not to invest Leveraging new capabilities from competitors 58% 40% 20% 15%
  29. 29. 292016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Large, global 3PLs still seem to be dominating the landscape 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large, global providers (e.g., Panalpina, UPS) Regional, full service providers (e.g., Toll) Specialized providers (e.g., freight forwarders, air) Evolving service providers (e.g., UberRush, Amazon, Google Express)
  30. 30. 302016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Some new capabilities in last mile fulfillment are needed to maintain service while controlling costs Last Mile Requirements Description Constraints to Implementation Source: Talking Logistics, Capgemini Consulting Analysis, High Medium Low Adoption Electronic Confirmation and Proof of Delivery  The confirmation of delivery of goods has evolved from mobile signatures  The system confirms appointments while en route; validates presence (they came and you were not home); electronic proof of delivery; and follow-up on customer satisfaction  The wide industry still uses paperwork for closing the financial transaction Mobile and Telematics  Logistics players use GPS and AVL for precise locating and directing of vehicles  Technologies also provide driver instructions, monitor delivery status, and link to execution for real-time routing changes  Many fleets are yet to fully implement these services  Regulation will aid the adoption of telematics Dynamic Incentivized Scheduling  Logistics providers need to devise economic models and dynamic schedules which are attractive choices to the customer and profitability to shipper  Logistic providers provide a variety of pickup or drop points and also time slots for delivery  Limited availability  Lack of visibility and predictive analysis over delivery operations Continuous Route Optimization  Logistics companies need to optimize the large number of stops within a route  The traditional ERP or TMS system are unable to deal with constraints such as real-time congestion, vehicle type, driving time regulations and delivery time windows  Need complex decision making and powerful optimizers to cope with the last mile process
  31. 31. 312016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Contents  About the Study  Current State of the 3PL Market  Special Topics - Aligning 3PL Relationships - 3PL Competitive Landscape - Workforce Innovation and Agility  Strategic Assessment
  32. 32. 322016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study An unprecedented labor shortage • Worldwide transportation functions across various industry face a major labor shortage in blue collar jobs • Worldwide warehousing and logistics functions face a shortage mainly in middle management jobs • Major countries facing a truck driver shortage • High insurance rates for the youth • Licensing laws increasing waiting periods Australia • Other Industries more attractive than trucking • Regulation scrutinizing driver operations • Abolition of compulsory military service • Three year training period • Fall in Large good vehicle licensing • Regulation scrutinizing driver operations • Lower wages • Aging population • Lack of proper training US Germany UK Japan Canada
  33. 33. 332016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Skilled labor shortage will increase in the coming 5 years; truck driver and warehousing staff shortage is expected to surge the most 75% 60% 58% 55% 44% 70% 62% 52% 43% 32% Skilled Labor Supply Chain Planners Entry-Level Logistics Managers Truck drivers Warehousing Staff Talent Shortage in the Logistics Industry (% of companies) 2014 Next 5 years  Warehousing staff responsibilities have evolved from basic moving of goods to planning, developing, organizing, directing, managing and evaluating operations  These responsibilities are expected to be handled by warehousing managers  Many countries over the past years have reported truck driver shortage  Truck driver shortage is expected to intensify in the coming years as majority of the baby boomers will retire and regulations are becoming more stringent  The lagging behind logistics curriculum has contributed to shortage of entry level managers in the logistics industry  Logistics companies are trying to increase awareness and tying up with education institutions to bring them on par with the industry needs  The increasing emphasis on efficiency across the supply chain operation has increased the demand for supply chain managers  Companies are employing supply chain management tools to gain better visibility over operations  Changing dynamics of the logistics industry has increased the demand for skilled labor  This trend is likely to continue in the coming years Total= 1,757 global industry players Source: Trends and Strategies in Logistics, LPI 2014 – World bank at Kuehne Logistics University; News Articles; Capgemini Consulting Analysis Most of the logistics companies are facing a shortage of talent, as the dynamics of the logistics industry change
  34. 34. 342016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Are you prepared? 52% • Shippers feel they can rely on their 3PL’s preparation for the labor shortage’s impact on their business 79% • 3PLs feel their shippers are unprepared for the labor shortage’s impact on their supply chain The industry will likely depend on 3PLs to prepare for the labor shortage
  35. 35. 352016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Source: Employment Market Survey Report 2013-14, Supply Chain & Logistics, Executive Logistics; Gartner Supply Chain Executive Conference 2014 ; News Articles; Capgemini Consulting Analysis 58.6% 25.5% 16.0% Talent Finding, 2014 Hard to Find Talent No Change Become Easier to Find Talent 54.4%29.5% 16.2% Expected Logistics Hiring, 2014 Increased Remained the Same Decreased The industry is struggling to find the right talent to fill positions, and hiring is expected to intensify in the coming years  Labor shortage was of the leading challenges facing the industry at the at the APICS, Gartner Supply Chain Executives and CSCMP annual conferences  Executives participating in the conference expressed that filling roles over the coming years will becoming tougher  Going forward, the demand for supply chain jobs is likely to increase, however the supply of labor is expected to shrink – Supply chain jobs are expected to grow by 25% over the next decade – Almost 25% of the current workforce in supply chain management is expected to retire by 2015 Total: 5,178 employees of Supply chain and logistics industry from 80 countries Current Talent Scenario in Supply Chain Industry (1/2)
  36. 36. 362016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Supply chain operation have become complex over the years, requiring employees at all levels with better analytic capabilities Current Talent Scenario in Supply Chain Industry (2/2) 48.3% 42.2% 9.5% Workforce distribution based on designation, 2014 Non Management Employees Middle Management Senior Management (e.g. CEO, CFO) Source: Employment Market Survey Report 2013-14, Supply Chain & Logistics, Executive Logistics; Gartner Supply Chain Executive Conference 2014; News Articles; Capgemini Consulting Analysis 40.2% 42.8% 4.8% 12.2% Workforce qualification, 2014 Undergraduate Postgraduate No tertiary qualification Other tertiary qualification Total: 5,178 employees of Supply chain and logistics industry from 80 countries  Less than 20% of the current workforce in the industry have the new required skill set  The number of supply chain university courses have increased over the past years, however the academic curriculum still lags behind the current needs of the industry  Executive, management and non-management skills have drastically changed over the last 20 years:  dealing with a crisis  understanding various technology  increased complexity and transparency of supply chain
  37. 37. 372016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Logistics employees prefer in-house trainings by professional mentors and instructors 3.3% 3.3% 6.8% 10.6% 31.2% 45.0% 9.1% 9.2% 15.8% 13.3% 19.4% 33.4% None of these Books or other reference material On-line courses Tuition reimbursement for off-site courses or seminars Professional Mentoring On-site workshop sessions led by an instructor Training Preference, 2014 Training received Employee expectations Source: Employment Market Survey Report 2013-14, Supply Chain & Logistics, Executive Logistics; News Articles; Capgemini Consulting Analysis Total = 5,178 employees of Supply chain and logistics industry from 80 countries Almost 25% of the logistics companies provide on-line courses and books or other reference material trainings while only 10% of the employees prefer these modes of trainings  On-site workshop session, professional monitoring and online courses are mainly provided for improving workers skill levels  Employees prefer professional mentoring and on-site workshop sessions by instructors to other training  Employees laid the most emphasis on three training and development areas namely – Technical/Professional development – Management development – Leadership development Areas with large gap between expectation and actual trainings 41.4% 27.5% 25.3% 5.8% Orientation and Training received, 2014 Satisfied Netural Dissatisfied Not applicable
  38. 38. 382016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study The labor shortage will alter 3PL workforce challenges Today’s workforce challenges for 3PLs and shippers Developing leaders Retaining high performers Enhancing employee motivation and engagement Attracting the best talent Reducing workforce costs 1 2 3 4 5 Workforce challenges of tomorrow due to labor shortages Lack of continuity and thus quality of service or product Growing turnover Decreased productivity and output Not finding the right people fast enough Inability to promote and accelerate careers of high potentials 1 2 3 4 5
  39. 39. 392016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study 3PL & Shipper Response Innovative and dynamic employee development and hiring strategies will play a critical role in most organizations’ response to the anticipated labor shortage. Developing built-in succession or talent pipeline programs (career acceleration and identifying opportunities for high potential workers) Training programs to develop "homegrown" labor/talent Cross-training or role transitioning (warehouse roles, warehouse worker to driver, etc.) Increased mobile or remote workforce Increased use of HR outsourcing and recruiting providers Establishing partnerships/sponsorship with programs like driver schools, supply chain conferences, etc.
  40. 40. 402016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Most common challenges attracting labor Long time to hire Poor quality of labor pool Hard to fill niche talent positions 1 2 3 Absence of technology or technology deployed but not optimized Underdeveloped or under-performing presence in new talent channels Inability to offer competitive compensation package 4 5 6
  41. 41. 412016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Outsourcing of Labor Management 62% 24% 10% 4% Managing Labor within Warehouse, 2014 Company operated Mix of company and 3PL Company owned with plans to outsource to 3PL 3PL Reduce direct (i.e. salary, benefits, etc.) and Continuous improvements in productivity and quality Reduced human and equipment assets Reduce indirect (i.e. recruiting, training, etc.) labor costs Fear of losing control Feel the company can do it for less cost Fear of possible lack of knowledge about their work environments Reasons for Outsourcing Reasons against Outsourcing Companies outsourcing warehousing labor management to 3PL have realized improved productivity, and reduced direct and indirect cost  Labor cost accounts for 50% to 70% of the total expenses of warehousing function  Outsourcing of labor management to third party logistics helps in maintaining labor cost and also improves productivity and quality of work  Companies outsourcing their labor management expect 3PL to provide continuous improvement program and demand-driven workforce flexibility Total = 252 top logistics and supply chain managers Source: Labor Management Strategies in the Warehouse, Logistics Management, August 2014; News Articles; Capgemini Consulting Analysis
  42. 42. 422016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Initiatives for Talent Management Partnering to Develop Curriculum Graduate Training Programs School and University Guest Lectures Automation of Operations Real Time Monitoring to Improve Productivity Labor forecasting, planning and scheduling  Logistics companies are trying to bring logistics curriculum up to par with current operational needs  Paid Internships, sponsoring projects and consulting assignments or research are some of the practices adopted  Graduate training programs offer employees the opportunity to cross train across various departments  Companies connect with other industry graduate trainees and the broader future workforce  Interweave theory with practice through collaboration with institutions  Employees from leading logistics companies give guest lectures to attract and contact potential employees at a early stage  Accurate forecasting of labor requirement and scheduling based on demand  Logistics companies are able to cater to more business with less capacity  Some logistics companies are trying to improve their current productivity to deal with labor shortage  Companies are adopting real time monitoring to increase labor productivity  Automation has been introduced across various material handling and warehousing operations  However, a vast majority of the industry still run a human driven process for most logistics operations Source: Labor Management Strategies in the Warehouse, Logistics Management, August 2014; News Articles; Capgemini Consulting Analysis High Example Adoption Example Adoption High Example Adoption Example Adoption Example Adoption Low Medium Example Adoption High High
  43. 43. 432016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Initiatives Example Adopters Driverless Trucking Foreign Employees Increase Female Participation  Trucking associations such as Victorian Transport Association and Linfox are encourage women to enter the industry  US and Japan is also planning to adopt the same approach to deal with labor shortage in their countries  Australian Trucking Association appealed to the government to make available 457 visas for foreign truck drivers  Japanese government is considering opening the labor market to foreign employees  Lead truck operated by a human driver followed in close formation by a small fleet of driverless vehicles “tethered” by a series of sensors  Japanese caravan program and EU the SARTRE program are testing driverless trucks Current campaigns to overcome labor shortage
  44. 44. 442016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Contents  About the Study  Current State of the 3PL Market  Special Topics - Aligning 3PL Relationships - 3PL Competitive Landscape - Workforce Innovation and Agility  Strategic Assessment
  45. 45. 452016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Strategic assessment topics for 2016 The Greening of the Supply Chain Securing the Supply Chain The Widening of the Panama Canal Building an Employer, Industry Brand to Attract Workers
  46. 46. 462016 Third-Party Logistics Study – Results and Findings of the 20th Annual Study Questions? Thank You! For further information: Pick up a copy of the study at one of the Media Boxes Check out our website at www.3plstudy.com

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