Third-party logistics providers (3PLs) have become an integral part of the supply chain industry, and many are expanding the services they provide to shippers. But what services are 3PLs and fourth-party logistics providers (4PLs) really providing? And are 3PLs and 4PLs meeting their customers’ needs?
APQC conducted a survey on the topic earlier this year and has published the survey results in our 3PLs/4PLs Survey Summary Report. Our survey received 52 responses from organizations that contract with 3PLs/4PLs. The survey responses yielded some interesting findings.
For example, 42 percent of the organizations contract with 5 or more 3PLs/4PLs, which may indicate that shippers contract with providers that specialize in certain logistics processes.
The results also reveal that most of the organizations are outsourcing common processes, such as outbound transportation and warehousing, but that many are keeping product returns handling in-house. The responses were nearly evenly split between organizations outsourcing product returns handling and transportation and those that do not outsource this process.
APQC members can see more of the survey results in the 3PLs/4PLs Survey Summary Report.
Does your organization outsource product returns handling? Or does your organization keep this process in-house? If you use a 3PL or 4PL, are you satisfied with the services your organization receives?