The pressures driving logistics outsourcing behavior today are the increasing supply chain complexity, the overall cost of managing the supply chain, rising logistics costs, international commerce, and warehouses running out of space. That's the findings of a report from Aberdeen Research entitled "Outsourced Logistics vs. In-house: Comparisons and Strategies".
According to the research, Best-in-Class companies are performing as follows:
• They had a 2.7% decrease vs. last year in baseline freight spending
• Best-in-Class companies had a 97.2% rate of outbound orders / items on-time and complete to customers
• Such companies had 91.5% of inbound orders / items on-time and complete to customers
• Best-in-Class companies are 1.4 times as likely as others to have an LSP that could offer services in all necessary geographic regions
The survey found that 90 percent of respondents are using LSPs for their supply chain management activities. Top companies are more likely to rely on LSP expertise in specialized areas such as customs brokerage for trade compliance, international freight forwarding, warehousing or cross-docking services or complete transportation management. The report also focused on how companies take advantage of key technologies to manage their logistics operations. Seventy-seven percent of best-in-class companies are currently using a warehouse management solution to improve the visibility of their supply chain and better meet their customers' expectations.
A free copy of the report, sponsored in part by Argos Software, can be downloaded here.
Source: Aberdeen Research
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