As we discussed in our last blog post, the business numbers keep getting better for 3PLs. From increases in numbers of customers and average budgets, to decreases the number of clients returning to insourcing, there’s lots of reason for optimism from 3PL companies in Canada and the U.S..

But the results of a new survey of shippers, this one by industry advisory firm SCM World, shows that not everything’s hunky-dory between 3PL service providers and their customers.

While the results of the survey show that shippers are generally happy with their logistics providers, with over 50% of respondents saying their 3PL partners are ‘good’ or ‘excellent’, there are still notable areas of concern that make it difficult for 3PLs to focus on what is otherwise a rosy picture.

The main areas of concern expressed by shippers include the major expectation that 3PLs provide more value in the form of cost savings. Conversely, the survey shows that 3PLs struggle to provide innovative solutions to those same shippers.

The Rock & the Hard Place

To meet customers’ demands to reduce costs, 3PLs tend to consolidate and ‘commoditize’ services. But to provide innovative solutions, 3PLs need to get a deeper understanding of each shipper’s business and offer targeted services.

And there’s the rub. Consolidating services to lower costs makes it difficult to provide tailored logistics for each shipper.

So What’s a 3PL to Do?

What 3PL’s can’t do is be everything to everyone. That’s a slippery slope that usually doesn’t end well for the 3PL.

Opinions are varied across the industry, but most recommend focusing on the one or two most important elements that your particular customers would like to see improved.

As reported by SupplyChainManagementReview.com, Steve Banker, of market research firm ARC Advisory Group, advises logistics providers to invest in transportation management systems that ”manages multi-leg, multi-mode, time-phased planning and execution.”

A study by Accenture says logistics companies should work with their shipper partners on supply chain risk management to minimize business interruptions due to natural disasters, world events and pricing fluctuations.

If there is anything that most pundits and industry experts agree on, it is the need to continue to continue to improve 3PL/shipper relationships.

Regardless of what shippers seek from logistics providers today and tomorrow, or what 3PLs are capable of providing, a commitment to working together to find a happy medium is the best way to maintain the forward momentum in the industry.