3PLs under pressure on costs, warns IGD report

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Logistics service providers must prepare for further cost pressures, according to the Institute of Grocery Distribution’s “Retail Logistics 2006” report.
“Consolidation in the logistics market, high fuel prices, the effects of the Working Time Directive and the impact of the new WEEE Directive on the return of electronic goods will all play a part.”
The findings also revealed that international sourcing and consolidation is likely to impact on levels of third party logistics outsourcing. “As the retailers seek external expertise and scale efficiencies, there will be a deepening of existing logistics relationships, as well as new opportunities for service providers with currently lower market penetration.”

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