Reading-based Penske Logistics recently participated in the creation of the 28th Annual Third-Party Logistics Study, which was created by supply chain professor and researcher Dr. C. John Langley of Penn State University, along with NTT DATA and Penske.
The study examined how supply chains are navigating today’s challenges through the adoption of data-driven approaches and emerging technologies.
The study surveyed third-party logistics (3PL) providers and users of 3PL services to understand the current state of 3PLs, how 3PL relationships are evolving, the increasing flow of data and the growing importance of automation.
“The 2024 3PL Study does an excellent job of untangling the complexities of today’s supply chain and providing nuanced understandings of its underpinnings,” shared Andy Moses, senior vice president, sales and solutions for Penske Logistics. “There are many needs that shippers have in the current environment and third-party logistics providers are in prime position to stabilize and adapt as needed.”
According to the report, shippers are more satisfied with their 3PLs in the most recent study. Shippers conveyed their positivity at a 95% response rate, up 12% from last year.
The battle for talent is also on the rise with 78% of shippers and 40% of 3PLs saying that labor challenges have impacted their service level agreements.
According to the report, the hardest positions to fill are for hourly workers, such as pickers and packers, and licensed hourly workers, such as truck drivers and equipment operators. 3PLs and shippers said they are adopting technology and automation to increase efficiency, make work safer and attract employees.
The amount of data flowing between shippers and 3PLs continues to grow. Almost half of shippers and 3PLs identified the need and have plans toward automating supply chain planning decisions, and 25% of shippers and 27% of 3PLs said they have already started to automate low-risk decisions.
Shippers see the greatest value in supply planning (65%), demand forecasting (61%) and inventory management (61%). 3PLs noted that they valued route optimization the most (61%), followed by inventory management (55%) and freight invoicing and billing (54%).
The report also found that emerging technology is vital to future growth in the industry according to 87% of shippers and 94% of 3PLs. The top areas of interest are advanced predictive analytics, wearables and mobile technology, consolidated e-commerce platforms and warehouse automation and robotics.
Shippers and 3PLs are actively working to balance the need for resiliency with inventory levels, sourcing and cost.
Information is aiding supply chains via data-driven decisions that allow for contingency planning and network optimization.
The report noted that direct-to-consumer online sales have started to slow down, with shippers and logistics providers working to meet the ever-evolving needs of the consumer.
“The 3PL sector continues to face a number of externalities, and providers of logistics services are focused on improving logistics effectiveness and reducing overall supply chain costs,” Langley said. “3PLs and their customers are leveraging their relationships along with technology, data, analytics and supply chain talent to increase agility and enhance success.”
