[The Jolt] Outsourced logistics win in downturn

Global - Despite the ongoing crisis, the global outsourced logistics industry is ready for strong expansion plans.  As manufacturers aim to focus on their competency, a growing trend towards outsourcing by manufacturers is emerging, said a recent survey.

A Frost & Sullivan's study, 360 Degree CEO Perspective of the Global Logistics Industry, predicts that the global outsourced logistics industry will reach US$648.57 billion by 2014.

According to the survey, increased outsourcing of manufacturing activity coupled with multiple sourcing locations and a widespread consumer base have resulted in supply chains becoming longer and more extensive.

As supply chains become more complex, logistics functions are increasingly being outsourced to logistics service providers, who manage logistical functions such as transport, storage, distribution and their associated risks.

"The global logistics market is at a prolific phase of its development. Although the transportation segment was hit by rising fuel prices, the industry has maintained a steady profit of 10-15%." said Archana Rajagopalan, research associate at Frost & Sullivan.

To avoid fuel pressure, Rajagopalan said 3PLs could look into improving the efficiency of their assets by using technologies such as fleet and warehouse management solutions.