The Use of Third-Party Logistics Services by Large American Manufacturers: The 2004 Survey

This article examines the findings of a survey conducted during 2004 of large American manufacturers that addressed their use of third-party logistics (3PL) services. The survey data show that the percentage of those companies using such services is at a record high level, and that users are giving...

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Bibliographic Details
Published inTransportation journal Vol. 44; no. 2; pp. 5 - 15
Main Authors LIEB, ROBERT, BENTZ, BROOKS A.
Format Journal Article
LanguageEnglish
Published Lock Haven, PA The American Society of Traffic and Logistics 01.04.2005
American Society of Transportation and Logistics
Pennsylvania State University Press
Subjects
Applied sciences
Business
Business structures
Capital costs
European Union
Exact sciences and technology
Executives
Freight
Freight forwarding
Geography
Ground, air and sea transportation, marine construction
Industrial market
Logistics
Logistics management
Manufacturers
Manufacturing
Outsourcing
Polls & surveys
Public Policy
Questionnaires
Radio frequency identification
Supply chain management
Technology
Third party
Transportation
United States
North America
America
United States > US
Geography
Services
Survey
2004
Manufacturer
Outsourcing
Logistics
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Summary:This article examines the findings of a survey conducted during 2004 of large American manufacturers that addressed their use of third-party logistics (3PL) services. The survey data show that the percentage of those companies using such services is at a record high level, and that users are giving a steadily increasing percentage of their logistics operating budgets to 3PL service providers. Many 3PL relationships are long-term in nature, and the service providers continue to deliver value to their clients. The movement of large American manufacturers into other geographies for sourcing, manufacturing, and sales has led many of their 3PL service providers to expand into those areas to support those activities. During the next several years, the possible adoption of radio frequency identification (RFID) technology by many of these manufacturers will pose significant challenges to their 3PL providers in attempting to meet the related needs of their clients.
ISSN:0041-1612
2157-328X
DOI:10.2307/20713595