Capgemini study shows IT and short-termism amongst the few hindrances in beautiful relationship
October 22, 2013
The relationship between third-party logistics (3PL) sector and its customers remains extremely strong, according to a global report.
Led by Capgemini Consulting in conjunction with Penn State University, executive recruiting firm Korn/Ferry International, and global logistics and supply chain management provider Penske Logistics, the 18th Annual Third-Party Logistics Study questioned shippers and 3PLs on such sometimes thorny issues as ‘Big Data’, preferential sourcing, smart growth and shipper-3PL relationships.
And though the 1,300 shippers and 3PLs surveyed are overwhelmingly positive about their business link – at 97 per cent and 93 per cent respectively – the survey does highlight speed bumps related to IT and a preponderance of short-term thinking.
“Global market intelligence firm IDC and other analysts declared 2013 to be the start of the Big Data era in supply chain,” the survey’s authors say.
“But shippers differ widely in their levels of interest, understanding and adoption.”
While other surveys report higher levels of participation, 30 per cent of shippers and 27 per cent of 3PLs report they are planning or currently undergoing Big Data initiatives.
“Significant internal hurdles stand in the way of Big Data success, including a disconnect between internal supply chain and IT operations and a lack of supporting IT infrastructure,”
Meanwhile, just 57 per cent of shippers and 47 per cent of 3PLs indicate they “have access to timely and comprehensive data relating to supply chain planning and operations” within their organizations.
Survey results indicate that there is both great need and great potential for the use of Big Data by shippers and 3PLs in the supply chain.
The authors say the hope and ultimate expectation is that Big Data can be used beyond predicting demand, towards shaping or changing it.
More generally, Capgemini Consulting Vice President and North American Supply Chain Leader Dan Albright notes: “As global operations expand, it‘s important for shippers to think collaboratively and build long-term relationships with 3PLs, setting a standard for cost-effective and efficient operational practices while opening the door to greater success on a worldwide scale.
“As the latest iteration of our study found, although shippers are increasingly working with 3PLs, there is an over-emphasis on short term goals at the expense of long-term, partner-focused relationships.
“This is hindering their ability to attain a more highly functioning and cost effective supply chain, as well as a solid foundation for mature, strategic 3PL relationships.”
The full report can be found here.
