The Use of Third-party Logistics Services by Large US Manufacturers, The 2000 Survey

TLDR

This paper examines the findings of a survey of the chief logistics executives of Fortune 500 manufacturers concerning their use of third‑party logistics services (3PL). The typical 3PL user identified in this survey uses a wide variety of those services and purchases them from multiple providers. The survey found that 3PL use and the proportion of logistics budgets allocated to 3PL have reached all‑time highs; most users are well satisfied, especially with cost, service level, and customer service impacts, yet less than one‑third employ 3PLs for e‑commerce IT support.

Abstract

This paper examines the findings of a survey of the chief logistics executives of Fortune 500 manufacturers concerning their use of third party logistics services (3PL). The survey determined that, as a group, their use of those services has reached an all-time high, as has the percentage of their logistics budgets being given to 3PL providers. The typical 3PL user identified in this survey uses a wide variety of those services and buys them from multiple providers. While many 3PL users also rely upon 3PL providers for information technology support, less than one-third of them use those providers to support their E-commerce initiatives. Users are generally well satisfied with the impact of 3PL services on their companies, and are most satisfied with the impact on logistics costs, logistics service levels, and customer service.