Search

This article reports the findings of a survey of large American manufacturers concerning their use of third-party logistics services. Data generated in the survey show that the use of such services by this group of companies continues to grow and that the service providers continue to deliver logistics cost and service improvements to their customers, both domestically and internationally. Many of the users of third-party logistics services now share their service provider with their large vendors and customers, and this has contributed to supply chain integration. Few existing 3PL relationships were harmed by the recession as many providers and users collaborated to address related issues. [ABSTRACT FROM AUTHOR]

This article provides insights into the third-party logistics (3PL) industry by examining the results of a survey of the CEOs of eighteen of the largest 3PL companies in the U.S. Their responses to questions concerning current conditions in the industry and the industry's outlook are not only reported, but also analyzed and compared to the results obtained in previous surveys. Based on the data obtained, the authors raise important questions concerning the industry's prospects, as well as strategic initiatives. [ABSTRACT FROM AUTHOR]

This article presents a follow-up of a third party logistics (3PL) provider research undertaken by the authors during the past four years in the U.S. This research reveals the perspectives of chief executive officers (CEOs) of 1997 on the current status and future prospects of the 3PL service industry in the U.S. An annual survey of the CEOs of 25 of the largest U.S. corporations within the industry, based on annual sales volume, was conducted under the study. Most of these companies are subsidiaries of companies in the transportation or warehousing business, and they often engage in joint marketing and advertising activities with their corporate parents. While all 25 CEOs agreed to participate in the 1997 survey, only 21 completed questionnaires were returned. The responses indicated that industry practices vary widely, not only from company to company, but also from contract to contract. The most commonly reported format consists of a fixed management fee plus variable transaction charges. Among the other pricing formats reported were cost plus a performance incentive, and a variety of gain-sharing agreements.

The use of third-party logistics services by large US manufacturers continues to grow. Increasingly, those services are used to support international sourcing and sales activities. Use of these services is often triggered by specific events such as a corporate restructuring, a top management change or a benchmarking effort. Nearly two-thirds of users report they experienced significant impediments in implementing third-party agreements. After starting conservatively, the typical user buys a wide variety of logistics services. Users generally report that buying logistics services has had a positive impact on their organizations, particularly with respect to logistics costs and customer service. However, many also report negative impact on employee morale linked to downsizing the logistics workforce. More than two-thirds of users report cancelling at least one-third-party logistics contract. Nevertheless, if given complete responsibility to make the decision, >70% of users would increase their companies' use of such services. [ABSTRACT FROM AUTHOR]

Focuses on the role of public opinions regarding automobile safety in the development of automobile safety programs in the U.S. Role of the U.S. Department of Transportation in the development of automobile safety programs; Federal regulations regarding the installation of airbags in new automobiles; Success of recent efforts to combat drunken driving.

This article provides information gathered in a survey of the CEOs of the 25 largest third-party logistics companies operating in the US. Their industry is relatively new, with more than half of their companies having initiated operations since 1984. Most of their companies are subsidiaries of large transportation or warehousing enterprises. These service providers are becoming increasingly international, with nearly all of them having expanded their operations outside the US. As the industry continues to evolve, the large providers are increasingly turning to alliances with other companies as a means of broadening their services offerings. Transportation services, warehousing, and value-added services are the industry's most significant revenue generators. The net investment, employment base, and customer base of these companies vary considerably. All of the survey respondents reported annual revenues in excess of $50 million, with one exceeding $1 billion. Many of the companies have attempted to niche themselves in particular industries, and, to date, they have primary focused their sales efforts on large corporations. The industry continues to grow rapidly, with more than two-thirds of the CEOs projecting one and three year company growth rates in excess of 20 percent. According to the CEOs, the most important industrial dynamics affecting the industry are increased interest in outsourcing logistics activities, greater interest in one-stop shopping, and increased CEO/CFO participation in considering the third-party option. [ABSTRACT FROM AUTHOR]

This article presents a survey on the comparison of the use of third-party logistics services by large American manufacturers. The survey consisting of a cover letter, questionnaire, and postage-paid return envelope was mailed to the chief logistics executive of each of the 500 largest manufacturers in the U.S. as identified by the journal "Fortune." The executives were selected from the Official Directory of Industrial and Commercial Traffic Executives as published by the K-Ill Directory Corp. In some instances, the data provided in the Directory were updated with information available in the Council of Logistics Management's membership directory. Of the 500 questionnaires distributed, 92 completed questionnaires were returned by those surveyed and 18 were returned as undeliverable. The effective response rate was 22%. Fifty-five of the 92 respondents indicated that their companies use third-party logistics services, and in subsequent sections of this paper they are referred to as "users." This represents a major increase in the usage rates reported in 1991 and 1994, which were 37% and 38% respectively.

The article reports the findings of a survey of the chief logistics executives of the 500 largest manufacturers in the United States concerning their use of third-party logistics services. One of the most widely discussed contemporary topics in the field of business logistics is the evolution of third-party logistics. Third-party logistics involves the use of external companies to perform logistics functions that have traditionally been performed within an organization. The functions performed by the third party can encompass the entire logistics process or selected activities within that process. The number of companies offering such services has expanded rapidly during the past several years. Those companies have tended to enter the industry through public warehousing, transportation services, or corporate spin-offs. While many third-party providers are small, a number of major players have entered the industry, including Federal Express, Roadway Express, CSX Transportation Inc., and United Parcel Service. The concept of third-party logistics has led to considerable debate within the logistics community. Those advocating the use of third-party services contend that manufacturers should concentrate on their core business, while allowing others to manage the logistics function.