| [September 26, 2016] |
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Surveys Find Global 3PLs Focused on Increasing Customer Demands, Technology, Industry Restructuring and Amazon
Today, the findings of the 23rd Annual Surveys of Third Party
Logistics (3PL) Provider CEOs in North America and Europe were presented
at the Annual Meeting of the Council of Supply Chain Management
Professionals by Dr. Robert Lieb, Supply Chain Management Professor at
Northeastern University's D'Amore-McKim
School of Business.
The surveys, which involved CEOs of 22 of the largest global third party
logistics companies addressed a broad variety of topics including 3PL
industry dynamics, the growth of their E-commerce business, the impact
of recent consolidations on the industry, the importance of technology
in the industry, and Amazon's continued movement into 3PL-like
activities.
North American Survey Results
Profitability and Revenue Growth Projections
This year's
North American survey included the CEOs of 14 of the world's largest
3PLs. All reported their companies had been profitable in 2015 and all
believed the regional 3PL industry had also been profitable for the
year. They were asked to forecast revenue growth for their companies and
the regional 3PL industry for the one and three year time frames. The
average one-year company projection was 7.8% with the three-year
projection averaging 8.6%. Their regional industry projections were 3.6%
and 5.5% for the one and three year periods respectively.
North American E-Commerce Marketplace
The E-commerce
marketplace in Nrth America continues to grow and evolve. It has become
an increasingly important revenue source for 3PLs. On average, it
comprises approximately 14% of the revenue base of the 14 companies
involved in the North American survey, and their E-commerce revenues
grew by an average of 18.46% in the past year. According to the CEOs
there were a number of significant changes in that marketplace in the
past year. These changes included: steadily increasing customer demands
for shorter delivery cycles, delivery trips becoming shorter as
retailers were pressured to market position inventory, the growth of
E-commerce of heavier goods outpaced the growth of package goods,
returns became a bigger problem/3PL opportunity, and massive investments
by Amazon and Walmart exerted real pressure on other retailers to change
their strategies to compete.
Lieb noted, "While the growth of E-commerce presents real opportunities
for North American 3PLs, they are also faced with challenges to deliver
the required speed and visibility technology while being pressured by
the larger E-commerce companies to continuously reduce rates."
For full survey results, including West Coast and European results and
additional 3PL industry trends and insights, please read the full
synopsis here.
About D'Amore-McKim School of Business
Northeastern
University's D'Amore-McKim School of Business offers a unique model of
business education that purposely blends innovative classroom learning
with real-world business application. Our students explore cutting-edge
theory with professors, fusing knowledge with learning experiences that
include cooperative education or corporate residency, study abroad, and
community service. Similarly, our resulting connections with the
corporate world influence our research agendas, which, in turn, shape
innovative new business practice. This synergy enables our students to
become successful business leaders who are both thinkers and doers, and
thus highly qualified to think critically and leave their mark on the
global business world. Founded in 1922, the D'Amore-McKim School of
Business at Northeastern University is situated in the heart of Boston,
a vibrant hub of business and technology. At the undergraduate level,
both the BS in Business Administration and the BS in International
Business programs offer students the opportunity to develop into highly
motivated business leaders. Graduate students can choose from several
different full-time and part-time MBA and MS programs designed to enable
motivated professionals to accelerate their success in business. The
school is committed to embedding a global mindset into all of these
programs, as well as in its research and outreach activities.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160926006455/en/
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