January 2022 | News | Takeaways

Get into Outsourcing

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Logistics outsourcing to third-party logistics (3PL) providers has been on the rise, and it won't likely slow anytime soon, says a recent Gartner survey, with 66% of logistics leaders increasing their outsourcing budget in 2021 and 74% set to increase their budgets in the next two years.

At the same time, nearly two-thirds of logistics leaders responding to the survey say 3PLs have a "positive" or "extremely positive" effect on their competitiveness.

Although 3PLs can help address key priorities for shippers, it requires collaboration on both sides, the report says. For example, a 3PL can upgrade new technologies on behalf of a shipper, but it's only possible if the shipper extends the contract agreement and/or partly shares the financial burden. Logistics leaders say their top three logistics priorities include:

1. Improve or update technology (37%)

2. Cost reduction/cost optimization (31%)

3. Increase customer satisfaction (29%)

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