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execs
continue to hand over the keys to the warehouse
Distribution
and warehousing are the functions most frequently outsourced to
third-party logistics providers (3PLs), says the seventh annual
report on third-party logistics produced by Georgia Tech, Ryder
System and Cap Gemini Ernst and Young.
The study, which
surveyed 260 logistics and supply chain executives from around the
world, indicated that more than three-quarters of all companies—and
90 percent of those surveyed in Europe and Asia—currently outsourced
some logistics services. Seventy-seven percent of those who do use
3PLs outsource distribution center or warehouse management activities.
Next on the list were Webenabled communications (64 percent), transportation
management (62 percent) and export/import and related activities
(61 percent).
“This year’s
study highlights more demanding customer expectations of 3PL services
and increasingly sophisticated requirements for technology-based
and strategic supply chain services,” says C. John Langley Jr.,
professor of supply chain management and 3PL study leader at Georgia
Tech.
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