Gartner Research

Growing Reliance on Outsourcing Warrants a Change in Logistics Management

Published: 31 March 2017

ID: G00320583

Analyst(s): Greg Aimi, David Gonzalez

Summary

As companies outsource more of their logistics, their performance becomes more dependent on their 3PL partners. Supply chain leaders responsible for logistics must develop capabilities beyond execution to include governance and holistic management of their 3PL provider portfolio.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • With 58% of shippers planning to increase outsourcing, a company's performance is much more dependent on how well supply chain leaders responsible for logistics manage their third-party logistics providers
  • Forty-seven percent of businesses report they are consolidating their 3PL portfolio by demanding more value-added services, greater geographical reach and specialized industry capabilities from a smaller set of 3PLs, increasing the significance of who supply chain leaders use and how they manage them

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