Outsourcing transportation logistics to a third party: simple common sense.

At the last Surface Transportation Summit which took place in mid-October, the panelists have considered the question of the effectiveness of outsourcing to a third party to carry out transport logistics.
The kickoff of the session was given by sharing the results of the annual survey published in Canadian Shipper about Canadian third party logistics service providers.
One of the most interesting results of the survey is the answer to a question asked to shippers about their main supply chain challenges. More than half of respondents said that cost reduction was the number one challenge they face. Lou Smyrlis, publisher and editorial director of Trucking Group, Newcom Business Media said: “This is not something we’ve seen just in this year when the economy started to slip back into negative growth.” “We have seen this trend in our survey and other surveys repeatedly over the last five years. It seems like shippers are very concerned with controlling cost” Smyrlis added.
The survey also probed respondents about their tendencies to resort to outsourcing. Two thirds of respondents said they outsourced part of their logistics, while 20% admitted not using outsourcing services, but plan to do so, and only 14% have never outsources and do not intend to do so.
The last question asked in the survey was: Does the recourse to outsourcing has actually improved your logistics operations? 41% of the sample said yes, they had been able to cut costs – a major concern for the survey sample. In addition, 18% said their service had also improved.
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Source: Canadian Shipper