Global shippers spend less on outsourcing

Ongoing volatility and low economic growth in a number of global markets is negatively impacting the demand for outsourced logistics services. This according to the 2015 Annual Third Party Logistics study conducted by French company, Capegemini Consulting, on behalf of a number of global logistics businesses. Global shippers report that an average of 36% of their total logistics spend is being outsourced, compared to 44% reported last year. The study further revealed that the most frequently outsourced activities tended to be more transactional, repetitive and operational, relating to transportation, distribution and warehousing. Contrary to the figures relating to the logistics spend however, 67% of shippers indicated in the survey that they were increasing their use of outsourced logistics services this year, while only 26% were returning to insourcing at least one of their logistics activities. An average of 53% reported that they were reducing or consolidating the number of 3PL companies they used.