CSCMP Sights Risk Management as Key Supply Chain and Logistics Trend
September 23, 2020
For the past quarter-century, the Third-Party Logistics Study has examined industry trends that matter. The 2021 3PL Study, released today in conjunction with the Council of Supply Chain Management Professionals virtual CSCMP EDGE Live! conference, explores topics that are top-of-mind in today's supply chain: 3PL/4PL future direction; technology's direct impact on scalability and mobility; the COVID-19 effect; and risk management.
The study is created and supported by Infosys Consulting, Penn State University and Penske Logistics.
"This year's 3PL study once again found a significant "IT Gap," in which shippers view 3PL technology as very important, but believe that most are lacking in capabilities," noted Dan Gilmore, chief marketing officer at supply chain software provider Softeon. He added that "This gap exists because many 3PLs have yet to invest in modern systems for Warehouse Management, Distributed Order Management, robotics support and more. Others have invested, but are not fully using the capabilities that they have. The 3PL IT Gap will continue until both issues are addressed by logistics service providers."These are some concepts found within the 2021 3PL Study:
For the last 25 years, this study has documented the transformation of the third-party logistics industry. Dr. C. John Langley, clinical professor, supply chain information systems and director of development, Center for Supply Chain Research at Smeal College of Business at The Pennsylvania State University, initiated this research to capture and measure this evolving industry.
Langley stated: "Each of the past 25 years has been a great one for the 3PL Study. Thanks very much to the study sponsors and industry executives who have participated in our research efforts. We hope that the results, findings, and perspectives in our annual reports have helped to better understand and anticipate progress and change in the supply chain and 3PL sectors. Also, we look forward to future editions of the annual 3PL Study."
COVID-19 also highlighted the need for supply chain visibility and real-time data.
Andrew Hogenson, global managing partner, consumer goods, retail & logistics, Infosys Consulting: "COVID-19 has revealed the vulnerability of modern supply chains. Effective risk management will be key to prepare for future disruptions and to achieve recovery and growth in the post pandemic era."
"Visibility is increasingly vital in the supply chain, but even more so when there is a risk of disruption or during a recovery," said Andy Moses, senior vice president of sales and solutions for Penske Logistics. "Visibility allows those within the supply chain to get ahead of an interruption, potentially mitigating problems before they have an impact on customers or other stakeholders in the supply chain. Properly orchestrated and tech enabled, visibility sets the stage for a rapid response by alerting supply chain execution teams to focus on the issues of greatest importance, out of the thousands and millions of ordinary transactions occurring."