Friday 28th Oct 2016 - Logistics Manager

Two-thirds of companies to outsource supply chain

Supply chain management is one of the most important factors driving business growth according to more than 3,800 leaders and influencers across the industry, based on a survey conducted by MORI on behalf of Exel.

The survey also reveals that within two years time, most respondents in UK and Ireland anticipate they will outsource up to 68% of their supply chain. The division between different activities within the supply chain is shrinking, with 73% of all respondents stating that integrated logistics solutions, covering the entire spectrum of supply chain management, are relevant to their business.

When asked about which factors are most important when choosing a provider, the top two answers were the capability to offer core contract logistics and freight management services. Both facts make a strong business case for global, end-to-end supply chain management.

The results also highlight that cost reduction is by far the most critical issue facing the supply chain today (58%), followed by reliability (38%) and integration of the supply chain (32%), with 78% of respondents looking to third-party logistics companies to identify ways of reducing their supply chain costs.

For contract logistics, value for money is the top criteria for selecting a contract logistics provider and for freight management reliability is key, closely followed by value for money.