The Use of Third-Party Logistics Services by Large American Manufacturers
ROBERT C. LIEB BROOKS A. BENTZ
The Use of Third-Party Logistics Services by Large American Manufacturers: The 2003 Survey
Abstract
This article reports the findings of a survey of large American manufacturers concerning their use of third-party logistics services. Data generated in the survey show that the use of such services by this group of companies continues to grow and that the service providers continue to deliver logistics cost and service improvements to their customers, both domestically and internationally. Many of the users of third-party logistics services now share their service provider with their large vendors and customers, and this has contributed to supply chain integration. Few existing 3PL relationships were harmed by the recession as many providers and users collaborated to address related issues. The use of third-party logistics (3PL) services is an important option to be considered by large manufacturers as they develop supply chain strategies. 3PL providers offer such companies a broad range of services, not only in the domestic marketplace, but in the international arena as well. Executives considering the use of such services are faced with a complex decision, which involves a series of important control versus cost/service improvement trade-offs that must be evaluated in the context of a rapidly changing 3PL industry. The industry continues to evolve, and it is important to both 3PL providers and users of their services that industry dynamics be documented to facilitate the development of corporate supply chain strategy. This study provides insight into the user side of the 3PL marketplace. This article summarizes the findings of a 2003 survey that was part of an ongoing research effort that annually examines the use of 3PL services by U.S. Fortune 500 manufacturers. The initial survey was conducted in 1991, and annual surveys commenced in 1994.
Mr. Lieb, EM-AST&L, is professor of supply chain management, College of Business
The Use of Third-Party Logistics Services by Large American Manufacturers: The 2003 Survey
Abstract
This article reports the findings of a survey of large American manufacturers concerning their use of third-party logistics services. Data generated in the survey show that the use of such services by this group of companies continues to grow and that the service providers continue to deliver logistics cost and service improvements to their customers, both domestically and internationally. Many of the users of third-party logistics services now share their service provider with their large vendors and customers, and this has contributed to supply chain integration. Few existing 3PL relationships were harmed by the recession as many providers and users collaborated to address related issues. The use of third-party logistics (3PL) services is an important option to be considered by large manufacturers as they develop supply chain strategies. 3PL providers offer such companies a broad range of services, not only in the domestic marketplace, but in the international arena as well. Executives considering the use of such services are faced with a complex decision, which involves a series of important control versus cost/service improvement trade-offs that must be evaluated in the context of a rapidly changing 3PL industry. The industry continues to evolve, and it is important to both 3PL providers and users of their services that industry dynamics be documented to facilitate the development of corporate supply chain strategy. This study provides insight into the user side of the 3PL marketplace. This article summarizes the findings of a 2003 survey that was part of an ongoing research effort that annually examines the use of 3PL services by U.S. Fortune 500 manufacturers. The initial survey was conducted in 1991, and annual surveys commenced in 1994.
Mr. Lieb, EM-AST&L, is professor of supply chain management, College of Business
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