Shifting Expectations in Shipper-
3PL Relationships
In the five years that this study has surveyed
3PLs in addition to shippers, in most instances
3PLs rate their capabilities higher than shippers
do. Although there are likely a number of
reasons for this disparity, they do point to
a need for more alignment among shipper
and 3PL ratings on the key attributes and
capabilities of 3PLs.
The news this year is that shippers and 3PLs
have come into alignment in rating 3PLs’
capabilities in openness, transparency and
effective communication. The 2014 3PL Study
survey showed 70% of shippers and 69% of
3PLs are satisfied with each others’ openness,
transparency and communication.
However, a difference still exists between 3PL
and shipper ratings of agility and flexibility
toaccommodate current andfuturebusiness
needs and challenges. This year 99% of 3PLs
feel their customers expect these qualities
in their 3PLs, while only 66% of shipper
respondents judge their 3PLs as sufficiently
agile and flexible. This continuing gap suggests
a further need for improvement.
For the past three years, this report has
addressed the extent to which contemporary
shipper-3PL relationships were moving up on
the “maturity curve” in use of best practices
and relationship-building initiatives. Two
common themes of these discussions are
“gainsharing” and “collaboration” in shipper-
3PL relationships. Recently, it has been
unclear in which directions these initiatives
have been headed, particularly through
the recent recession. However, this year’s
study results reinforce the validity of these
concepts as legitimate and useful elements of
well-structured shipper-3PL relationships:
• “Gainsharing”between3PLs andshippers:
Nearly half (47%) of shippers report having
engaged in “gainsharing” arrangements with
their 3PLs, while 60% of 3PL respondents
indicate they have engaged in gainsharing.
In recent years this report has characterized
gainsharing as a sign of a more mature,
evolved relationship. However, in light of
the ongoing variance in the reported rates of
gainsharing, our current opinion is that while
the use of gainsharing is a valuable element
of many shipper-3PL relationships, there are
other relationships where some variation of
a more traditional “fee-for-service” model is
preferred. Future research will continue to
take a deeper dive into this topic.
• Interest in collaborating with other
companies, even competitors, to achieve
logistics cost and service improvements:
Slightly more shippers (48% compared
with 41% last year) express interest in
collaborating with other companies, even
competitors, to achieve logistics cost and
service improvements. Substantially more
3PLs (70%) indicate they are engaging in this
type of collaboration. As with gainsharing, it
is likely that this approach is more suitable
in certain types of shipper-3PL relationships
than in others.