September 28, 2010

The 2010 15th annual 3PL study focuses attention ontopics of current importance

3PL Customer study and Provider study Investigate customer needs and experiences Validate customer perspectives from 3PL providers point of

view Identify areas for future improvement

Topics of contemporary interest Total landed cost (TLC) Life sciences Fast-moving consumer goods

Strategic assessment of future of 3PL-customer relationships

2010 Special Topics

Survey respondents represented a range of geographies and industries

Industry %1. High-Tech / Electronics2. Consumer Products3. Food and Beverage4. Automotive and Transport Equipment5. Life Sciences and Pharma/Healthcare6. Industrial Manufacturing7. Retail8. ChemicalAdditional Industries (14)Other

1210

998866

1814

Changing use of 3PL Services by Shippers in 2010

65% of Shippers Report Increase in Use of Outsourced Logistics Services

24% of Shippers Report Returning to Insourcing Some of Their Logistics Activities

46% of Shippers Are Consolidating Number of 3PLs They Use

3PLs provide a wide range of outsourced logistics services

Outsourced Logistics Service2010 3PL Provider

Percentages

All Regions

Domestic Transportation 86%Warehousing 85Transportation Planning and Management 76Customer Service 71Cross-Docking 70International Transportation 67Product Labeling, Packaging, Assembly, Kitting 67

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3PLs provide a wide range of outsourced logistics services

Outsourced Logistics Service2010 3PL Provider

Percentages

All Regions

Supply Chain Consultancy Services Provided by 3PLs 65%

Order Entry, Processing and Fulfillment 65Reverse Logistics (defective, repair, return) 62Information Technology (IT) Services 58Forwarding 56Customs Brokerage 54LLP/4PL Services 45

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Having the means to quickly and accurately compute total landed cost enables shippers to realize important benefits

Decision Making

Cost Insights

Price & Margin

Communication

Today’s use of sophisticated computer models to forecast the performance of supply chains is a requisite for continued improvement

in a competitive market place

Today’s use of sophisticated computer models to forecast the performance of supply chains is a requisite for continued improvement

in a competitive market place

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Shipment visibility and inventory control ranked high, for both users and 3PLs, as important services to provide

% respondents by what they deem as important services and capabilities that 3PLs provide

NOTE: Shown above are excerpts of the top 6 services that users want and 3PLs provide. The full list of services will be found in the final 3PL report.

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Users

Shipment visibility and inventory control ranked high, for both users and 3PLs, as important services to provide

% respondents by services that they actively provide to customers

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3PLs

NOTE: Shown above are excerpts of the top 6 services that users want and 3PLs provide. The full list of services will be found in the final 3PL report.

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Improving shipment density/load utilization

Reducing logistics costs

Having a supply chain disruption/mitigation strategy in place

Building sustainability into the supply chain

Ensuring Perfect Order Fulfillment

Shortening new product time-to-market and supply chain integration

Accommodating sales promotions

Rapidly sensing and responding to changes in consumer demand

Gathering and utilizing in-store data on products

Growing market share in emerging economies

74%

69%

68%

65%

62%

46%

42%

35%

32%

29%

Shippers consider 3PL usefulness depending on the issue

% user respondents by type of issue 3PL is seen as helping to manage

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Do 3PLs provide shippers with new and innovative ways to improve logistics effectiveness?Both 3PLs and shippers may bear some responsibility for an “innovation gap”

Shippers68% believe 3PLs provide value added innovation

Some shippers remain satisfied with core service delivery

But clearly, many shipper expect more innovation

3PLs95% believe 3PLs provide

value added innovation

Should have capability to deliver based on industry and

cross-industry experience

58% indicate that shippers are hesitant to share

requisite data

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Thank You!

Check out our website at www.3plstudy.com

Download the 2010 and earlier reports

Find additional information about the 2010 3PL Study

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