Aberdeen Research Explores Best-in-Class Logistics Outsourcing Strategies
A research by Aberdeen Group analyzed what outsourcing strategies used by best-in-class companies set them apart from their competitors. The survey helps supply chain companies to decide whether they need to outsource their logistics operations to a Logistics Service Provider (LSP) or what core competencies they should keep in-house.
Argos Software, a leading supplier of enterprise software for the supply chain and logistics industry, sponsored an Aberdeen Group research report titled “Outsourced Logistics vs. In-house: Comparisons and Strategies.”
The study, conducted in August and September 2011 and involving 123 supply chain professionals, analyzes the strategies used by Best-in-Class companies when it comes to choosing a logistics service provider (LSP). The pressures driving outsourcing behavior today are the increasing supply chain complexity, the overall cost of managing supply chain, rising logistics costs, international commerce and warehouses running out of space.
According to the research, Best-in-Class companies are performing as follows:
· Best-in-Class companies had a 2.7% decrease vs. last year in baseline freight spending.
· Best-in-Class companies had a 97.2% rate of outbound orders / items on-time and complete to customers
· Best-in-Class companies had 91.5% of inbound orders / items on-time and complete to customers
· Best-in-Class companies are 1.4 times as likely as others to have an LSP that could offer services in all necessary geographic regions
The survey found that 90% of respondents are using LSPs for their supply chain management activities. Top companies are more likely to rely on LSP expertise in specialized areas such as customs brokerage for trade compliance, international freight forwarding, warehousing or cross-docking services or complete transportation management. The report also focused on how companies take advantage of key technologies to manage their logistics operations. 77% of Best-in-Class companies are currently using a Warehouse Management Solution (WMS) to improve the visibility of their supply chain and better meet their customers’ expectations.
To achieve Best-in-Class performance, Aberdeen recommends developing a future outsourcing strategy roadmap, to leverage core competencies in the supply chain, to create a balance of in-house and outsourced activities and to integrate collaboratively with external and internal partners and LSPs on enabling collaborative technologies.
Download a free copy of the report here: http://www.aberdeen.com/
About Argos Software
Argos Software develops, markets and supports business software for transportation, warehousing and the agribusiness where they have specific industry expertise. Argos Software customers range from small and medium businesses to the Global 500.With over 30 years of experience, Argos Software has a proven track record of providing customers with solutions to manage their operations and improve their business performance.
For more information about Argos Software, visit www.argosoftware.com or call 559 227 1000.