We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Big data, analytics gaining traction, annual shipper-3PL survey concludes
newsworthy

Big data, analytics gaining traction, annual shipper-3PL survey concludes

September 30, 2016
Mark B. Solomon
No Comments

The use of "big data" is taking on bigger relevance among shippers and their logistics providers.

"The 21st Annual Third-Party Logistics Study," which canvassed 342 shippers and their third-party partners on issues impacting their businesses and partnerships, found that 98 percent of third-party logistics providers (3PLs) and 93 percent of shippers believed data-driven decision-making was essential to the future of supply chain activities. About 86 percent of 3PLs and 81 percent of shippers said the massive data sets&emdash;and a process known as "analytics" used to leverage the data in an effort to improve organizational processes&emdash;would become a core competency of their supply chain organizations.

Among 3PLs, 71 percent said big data's most valuable attribute lies in improving process quality and performance. About 70 percent said it is most important in enhancing logistics optimization, and 53 percent said it is optimally used to create better integration across the supply chain.

Similarly about 60 percent of shippers said big data and analytics would work best to improve supply chain integration. About 55 percent said it would have the most impact on enhancing data quality. About 52 percent said it would have the most value in improving process quality and performance.

However, there is a modest disconnect between the importance that shippers attach to big data, and the perceptions held by their partners about their interest in the subject, according to the survey. About 79 percent of shippers said they see significant value of big data and analytics. About 65 percent of their providers&emdash;a 14 percentage-point drop&emdash;reported their customers thought the subject was key to their supply chain performance. This gap may indicate that 3PLs are understating the importance of the big data process inside their customers' organizations.

Also, shippers have become more pragmatic about how much their partners can hope to achieve through their efforts. About 35 percent of shippers surveyed said they believed 3PLs could support their big data initiatives, down from 44 percent in 2014.

Tom McKenna, senior vice president, engineering and technology for Reading, Pa.-based 3PL Penske Logistics, said the supply chain is still just beginning to understand how to process the avalanche of data as well as how to then properly evaluate where it would have the biggest bang for the buck. In an interview earlier this week at the Council of Supply Chain Management Professionals (CSCMP) annual global meeting in Orlando, McKenna said one of the challenges faced by shippers and 3PLs alike is that each side collects its own mountain of data, which then must be merged to gain the most visibility into a problem and its execution.

Penske uses the process to support what McKenna called its "strategic accounts," which are larger companies with deep, long-term relationships that are not based on transactions, but on the overall value a company sees in the relationship.

The survey's core finding—a broad gauge of how the two sides feel about their relationships—appeared to bring modestly encouraging news. About 91 percent of shippers and 97 percent of 3PLs said their relationships were mutually successful and the work was yielding positive results. About 86 percent of shippers and 98 percent of 3PLs said their efforts led to improvements in customer service.

At the same time, 90 percent of 3PLs said they brought innovative solutions to the table, while about 73 percent of shippers felt that way. In addition, 93 percent of 3PLs said the joint work yielded cost reductions, while 75 percent of shippers thought was the case, the survey found.

The two sides were deeply divided on how much value stems from collaborating with other companies, even rivals, to achieve greater overarching value. About 86 percent of 3PLs thought collaboration with outsiders would be beneficial, while only 44 percent of shippers surveyed felt that way. The gap may underscore that a 3PL is quite comfortable working with multiple shippers, some of who may compete with each other, while shippers are loath to see much positive coming from deep dives with the competition.

McKeenna said the broad outcome of the survey is that shippers increasingly see more value in their 3PL relationships. This, in turn, is narrowing the long-standing perception gap between shipper's views on a 3PL's value, and how effectively the 3PL believes it's performing.

The survey was produced by Capgemini Consulting, Penn State University, and Penske Logistics. Shippers comprised 44 percent of respondents, providers accounted for 43 percent, and so-called nonusers made up the rest. About 54 percent of respondents worked for companies with more than $1 billion in sales, while 21 percent represented firms with annual sales of $25 billion or more.

Supply Chain Services Publications & Associations Business Management & Finance
KEYWORDS Capgemini Council of Supply Chain Management Professionals Penn State University Penske Logistics
  • Related Articles

    "Help Wanted" the keywords for 2015, annual survey of 3PL industry concludes

    Big data analytics in supply chain: Tackling the tidal wave

    Big data analytics' growing pains

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • The Home Depot opens automated DC in greater Atlanta

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • A guide to Brexit for ecommerce businesses

Now Playing on DCV-TV

Jlt procure rugged devices thumb

What it takes to procure the right rugged devices for your warehouse

DCV-TV 4: Viewer Contributed
Procuring new rugged devices for your warehouse is often a big decision and a significant investment. It needs careful planning and consideration. It involves more than ticking boxes on a spec sheet. It includes testing and getting employee buy in. And it's about finding a partner that can work with you to deploy...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing