Page 4 - Newcom

4 INSIDE THE NUMBERS
INSIDE OUTSOURCING:
HOW IT BENEFITS TRUCKING
The trend among Canadian business to outsource many logistics functions continues to be fueled by the need to reduce costs, our annual Third Party Logistics Survey indicates. Forty one percent of survey respondents chose reducing costs as their major supply chain challenge, a theme that has been prevalent since the Great Recession. More than two-thirds of shippers surveyed said they were outsourcing some or all logistics functions whileanother18%saidtheywereconsideringdoingso.Outboundandinbound transportation as well as customs brokerage and customs clearance are the services most likely to be outsourced.
MAIN SERVICES CURRENTLY OUTSOURCED
OUTSOURCING STRATEGIES
72%
63%
30%
19%
7%
Less than 20%
21-40%
Expand or improve service to new domestic markets
Outbound transportation Inbound transportation Customs brokerage Customs clearance Warehousing
Freight forwarding Shipment consolidation/distribution Cross docking
Freight bill auditing Selected manufacturing activities
63%
56%
34%
19%
11%
81-100%
61-80%
11%
Have outsourced in past and considering doing so again
4%
Have outsourced in past but no plans to outsource in future
Reduce costs
7%
Not currently outsourcing but considering doing so
11%
Have never outsourced and no immediate plans to
do so
67%
of respondents
Outsource some or
all logistics functions and will continue to do so
PERCENTAGE OF LOGISTICS EXPENDITURES DIRECTED TO OUTSOURCING
36%
17%
24%
14%
41-60%
9%
MAJOR SUPPLY CHAIN CHALLENGES
41%
of respondents
13%
7%
5%
6%
Enhance customer service
Improve supply chain execution
Expand or improve service to new international markets
NEITHER RAIN, NOR SNOW
NOR 23 HOURS OF DARKNESS
NOR THE FAILED MISSIONS OF TRUCKERS’ PAST
NORACTSOFGOD...
SHALL STAY ME AND THESE CHAINED-UP
WHEELS FROM REACHING THE FINAL OUTPOSTS
OF THIS VAST FRONTIER
Lisa Kelly on History® Network’s Ice Road Truckers® Delo® user since 2005
UNCOMMON JOBS REQUIRE UNCOMMON TOUGHNESS
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