Should You Outsource or Not?

New monograph from Tompkins Associates is a complete guide to understanding and assessing 3PL providers.

Raleigh, NC, October 7, 2002—As companies continue to find ways to become more efficient and make the most of a slow economy, many will also continue to turn to third party logistics (3PL) providers to outsource their logistics function. For those who are still undecided about whether or not to outsource, or how to begin the process of outsourcing, the new monograph, "Third Party Logistics" by Tompkins Associates is a must-have guide for taking the first steps into the 3PL arena.

According to the U.S. Department of Commerce, logistics in the U.S. is a $900 billion dollar industry, and of this, $46 billion is spent on third party logistics (3PL). As service improvements and cost savings continue to drive logistics outsourcing services, analysts at U.S. Bancorp Piper Jaffray believe that this market will continue to grow at an annual rate of 15% over the next several years.

"Today, 3PLs are getting better and better at what they do best-many are able to offer a wide range of services, including full supply chain capabilities and an even greater value through a larger IT investment," says Mike Glodziak, Managing Director of Tompkins Associates of Canada. "Even if 3PL outsourcing is not on a company's immediate horizon, many are still investigating its benefits as 3PLs continue to offer greater flexibility now and in the future."

For those companies who are considering outsouring or want to understand their 3PL relationship better, "Third Party Logistics" provides a complete guide to the 3PL relationship. The monograph will help readers understand the 3PL process, from the question of insource vs. outsource, the selection process, the importance of service agreements and contracts and performance measurement issues, to the keys of on-going 3PL relationship management. And, for those who are ready to take the step to 3PL, "Third Party Logistics" includes a 112-point benchmarking assessment tool that can help companies quickly evaluate potential 3PL providers. The assessment evaluates nine key areas including organization culture, service offering, customer service and technology.

"Third Party Logistics" and other supply chain resources are available for free by visiting www.tompkinsinc.com/publications/monograph. For more information on Tompkins Associates and its supply chain services, contact sales@tompkinsinc.com or call 800-789-1257.

Media Contact:
E-mail Myra Schwartz or call 919-876-3667.

See Also:
Company Fact Sheet