Growing Global Marketplace Creates Increased Opportunities for Shippers and Third Party Logistics Providers to Collaborate

 Growing Global Marketplace Creates Increased Opportunities for Shippers and
 Third Party Logistics Providers to Collaborate Across Borders, Global Study

The 18th Annual Third-Party Logistics Study Showcases Continued Importance of
Shipper and 3PL Relationship

PR Newswire

PARIS, Oct. 21, 2013

PARIS, Oct. 21, 2013 /PRNewswire/ -- Capgemini Consulting, the global strategy
and transformation consulting brand of the Capgemini Group, in cooperation
with Penn State University, executive recruiting firm, Korn/Ferry
International, and global logistics and supply chain management provider,
Penske Logistics, today announced findings from the 2014 18th Annual
Third-Party Logistics (3PL) Study which examines the global outsourced
marketplace across topics such as big data, preferential sourcing, smart
growth and shipper-3PL relationships. The latest worldwide report reveals an
increasingly global marketplace, with shippers continually focused on
globalization, competition and shifting economic conditions, leaving many to
re-evaluate their supply chain strategies, in order to meet demand.
Encouragingly, shippers continue to recognize the important role 3PLs can play
in the new normal, as nearly all shipper respondents (91 per cent) stated they
regard their relationships with 3PLs as important or strategic in today's
global marketplace. 


Based on responses from over 1,300 shippers and logistics service providers in
North America, Europe, Asia-Pacific, Latin America, the report found there is
a growing emphasis on worldwide trade management and operations, with
extra-regional trade strongly outpacing intra-regional trade in many regions.
This has left shippers in a position to revisit sourcing and distribution
decisions to take advantage of expanding opportunities, and opens the door for
3PLs, on a global level, to provide shippers with new paths for growth,
sourcing and/or distribution relationships across borders. However, it was
found that shippers still take a tactical, rather than strategic approach to
Global Trade Management (GTM), relying on traditional departments, namely
logistics (23 per cent), compliance (13 per cent) and procurement (12 per
cent), to lead the charge. By investing further in global operations and
experience, 3PLs have positioned themselves to support shippers in their GTM
needs and help them to overcome common obstacles to global trade.

"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," said Dan Albright, Vice
President and North American Supply Chain Leader at Capgemini Consulting. "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 study found that with an increase in global trade and cross-border
operations, a number of international firms have looked toward Africa as a
growth market, as it presents a similar landscape of opportunities that
characterized Asia in the 1970s. Cited in the most recent findings, the
International Monetary Fund forecasts that 11 of the world's fastest-growing
economies through 2017 will be African. Promising traits seen across the
continent not only include fast-growing economies, but also an abundance of
low-cost labor and a commitment to improve infrastructure and remove barriers
to trade. However, challenges remain as Africa still sees high logistics costs
and clearance of goods at ports can often be slow, cumbersome, and
bureaucratic. Shippers and supply chain leaders must remain open to operations
across the continent, and as many suppliers, carriers and 3PLs already in the
African logistics industry operate differently due to unique environments,
there is an opportunity for logistics processes to become more standardized.

"With continued growth not only in local markets, but across-borders,
organizations need to remain committed to building their skills in order to
remain relevant and ensure a continued success in the new normal, global
marketplace," said Zack Deming, Consultant, Global Logistics & Transportation
Services Practice, Korn/Ferry International. "However with that comes a need
for increased transparency across 3PLs and shippers, as the annual report
still sites a discrepancy between shippers and 3PLs rating of agility and
flexibility to accommodate current and future business needs and challenges."

The study also found that shippers are relying on centralized sourcing in 3PL
selection more so than in past years, as 48 per cent of shippers and 61 per
cent of 3PLs say centralized procurement functions play a much bigger role in
the selection process, compared with three years ago. Shippers are seeking
strategies to control costs while striving for optimal 3PL relationships by
seeking a balance between centralization and decentralization. Those that can
properly balance cost and quality and strive for strategic, collaborative
relationships with 3PLs stand to gain the most advantages.

"Shippers and 3PLs successfully endured the downturn through greater
collaboration," said Penske's Sherry Sanger, Senior Vice President, Marketing.
"Today, shippers and 3PLs view their relationships as much more strategic,
closely aligned, and collaborative than just three years ago. Logistics
service providers are well-positioned to help shippers continue to drive
continuous improvement, savings and supply chain innovation as the economy
continues to gradually improve."

Importantly, for the last 12 years the study has been tracking the "IT Gap" –
the difference between the percentage of 3PL users indicating that IT
capabilities are a necessary element of 3PL expertise (98 per cent) and the
percentage of the same users who agree that they are satisfied with 3PL IT
capabilities (55 per cent) – and has found that percentage beginning to
stabilize. However, proper management of Big Data – which has increasingly
grown in its importance across the supply chain with 97 per cent of shippers
and 93 per cent of 3PLs feeling strongly that improved, data-driven
decision-making is essential – still faces significant internal hurdles. These
include a disconnect between internal supply chain and IT operations and a
lack of supporting IT infrastructure.

For more information and to access the full study please log onto:

About the 2014 Third-Party Logistics Study
For 18 years this study has documented the significant transformation of the
3PL industry. In that time 3PLs have evolved from tactical service providers
to become, in the most evolved relationships, collaborative partners
delivering in many instances a comprehensive suite of integrated logistics
services. Dr. C. John Langley, Clinical Professor, Supply Chain Information
Systems and Director of Development, Center for Supply Chain Research at Smeal
College of Business at The Pennsylvania State University, initiated this study
to capture and measure this rapidly evolving industry. This year's survey
circulated in mid-2013, garnering 812 usable responses, from both users and
non-users of 3PL services, as well as responses to a separate, related version
of the survey by 581 respondents from the 3PL sector. The study report and
additional materials are also presented via its own Web site,

About Capgemini Consulting:
Capgemini Consulting is the global strategy and transformation consulting
organization of the Capgemini Group, specializing in advising and supporting
enterprises in significant transformation, from innovative strategy to
execution and with an unstinting focus on results. With the new digital
economy creating significant disruptions and opportunities, our global team of
over 3,600 talented individuals work with leading companies and governments to
master Digital Transformation, drawing on our understanding of the digital
economy and our leadership in business transformation and organizational
Find out more at:

About Penn State University
Penn State University Penn State is designated as the sole landgrant
institution of the Commonwealth of Pennsylvania. The University's main campus
is located in State College, Pennsylvania. Penn State's Smeal College of
Business is one of the largest business schools in the United States and is
home to the Supply Chain & Information Systems (SC&IS) academic department and
the Center for Supply Chain Research (CSCR). With more than 30 faculty members
and over 600 students, SC&IS is one of the largest and most respected academic
concentrations of supply chain education and research in the world. SC&IS
offers supply chain programs for every educational level, including
undergraduate, graduate, and doctorate degrees, in addition to a very popular
online, 30-credit professional master's degree program in supply chain
management. The supply chain educational portfolio also includes open
enrollment, custom, and certificate programs developed by Smeal's Penn State
Executive Programs and CSCR, which helps to integrate Smeal into the broader
business community. Along with executive education, CSCR focuses its efforts
in research, benchmarking, and corporate sponsorship. CSCR corporate sponsors
direct the Center's research initiatives by identifying relevant supply chain
issues that their organizations are experiencing in today's business
environment. This process also helps to encourage Penn State researchers to
advance the state of scholarship in the supply chain management field. Penn
State's Smeal College of Business has the No. 1 undergraduate and graduate
programs in supply chain management, according to the most current report from

For more information, please visit and

Penske Logistics
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing.With
operations in North America, South America, Europe and Asia, Penske Logistics
provides supply chain management and logistics services to leading companies
around the world.Penske Logistics delivers value through its design, planning
and execution in transportation, warehousing and freight management.To learn
more visit Connect with Penske Logistics on social
media: Move Ahead Blog, Facebook, Twitter, LinkedIn, Google+  and YouTube.

About Korn/Ferry International
Korn/Ferry International is a premier global provider of talent management
solutions, with a presence throughout the Americas, Asia Pacific, Europe, the
Middle East and Africa. The firm delivers services and solutions that help
clients cultivate greatness through the attraction, engagement, development
and retention of their talent. Visit for more information on
Korn/Ferry International, and for thought
leadership, intellectual property and research.

Established in 1998, eyefortransport has become one of the leading providers
of business intelligence, independent research, news and executive level
events for the supply chain & logistics industries. eyefortransport has two
primary focuses. 1) To provide executive networking opportunities in the
supply chain & logistics industries via the more than 15 events we annually
organize and host in North America, Europe and Asia and online via the tens of
thousands of users of The events are designed to complement and
enhance the business connections available through our online network, and
bring together the industry elite. Regularly attended by CEOs and senior
management from the transport and logistics industry and Heads of Supply Chain
of major companies, the events focus on current developments and latest
trends, and are enhanced by highlevel, exclusive networking opportunities. 2)
To deliver industry education through dozens of industry reports, surveys,
newsletters, webinars and senior-level presentations at leading events.
For the list of current research, news and conferences we produce please visit

SOURCE Penske Logistics

Contact: Capgemini press contact: Nicolas Atlan, +33 (0)1 47 54 50 76,; Korn/Ferry International press contact: Nicole
Roberts, +1-310 226-2619,; Penske press contact:
Randy Ryerson, 484-401-4643,
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