According to a new study from Penn State University, Penske Logistics and NTT Data, the supply chain is relying more on data-driven approaches and emerging technologies to handle today’s shipping challenges.
Presented during the Council of Supply Chain Management Professionals (CSCMP) EDGE Conference in Kissimmee, Fla., the 28th Annual Third-Party Logistics Study surveyed third-party logistics (3PL) providers and users of 3PL services. The study found that 3PL-shipper relationships are continuing to strengthen and to help shippers manage workforce challenges, economic volatility, the continued growth of the cold chain, and consumers shifting expectations.
The study found that 95 percent of shippers were more satisfied with their 3PLs, up from 12 percent in the last year. However, the study also found that the number of shippers who were either reducing or consolidating their 3PLs increased from 17 percent last year to 78 percent this year.
The study also found that 78 percent of shippers and 40 percent of 3PLs said labor challenges have affected their ability to provide service, with the hardest positions to fill being those of hourly workers, and licensed hourly workers like truck drivers and equipment operators. Technology adoption helps shippers and 3PLs increase efficiency, make work safety and attract employees.
The study also found that data, analytics and intelligence is driving supply chain optimization with 25 percent of shippers and 27 percent of 3PLs saying they had automated low-risk decisions. And that 87 percent of shippers and 94 percent of 3 PLs view emerging technology adoption as vital to supply chain growth.
“The 2024 3PL Study does an excellent job of untangling the complexities of today’s supply chain and providing nuanced understandings of its underpinnings,” Andy Moses, senior vice president, sales and solutions with Penske Logistics, said. “There are many needs that shippers have in the current environment and third-party logistics providers are in prime position to stabilize and adapt as needed.”