3PLs Grow in Every Sector
Small and Mid-Size Companies Ready to Outsource
The third party logistics industry had double digit growth in every sector last year, according to a survey by Armstrong & Associates, Inc. Overall, usage increased by 16.5%. Non-asset-based domestic transportation management grew by 18% while international business was up over 10%.
Richard Armstrong, president of the Wisconsin firm, anticipates growth of 15 to 20% this year. He noted that small to mid-size companies, the mainstay of clients of business INSIDER readers, are the right size to have their integrated supply chain managed by a single, contract logistics company. Armstrong predicted the strong growth pattern for at least the next three or four years. He includes transportation for E-commerce in his prediction of growth.
Customer Service now "in"
American Shipper magazine, in their review of 3PL promises and fulfillment (Nov 99) suggests that software is no longer the compelling selling force behind continuing growth for third parties. The next big emphasis, they predict, will be on customer service.
Transportation intermediaries seem to be well aware of this curve in customer demand. Discussions with both brokers and logistics management firms show a pronounced emphasis this year, not only on making claims about customer service, but actually providing it. Executives are providing the appropriate setting, software, hiring standards, training, procedures and incentives.
Future issues of business INSIDER will explore and report on customer service of TIs and brokerage departments of carriers.
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