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Survey from consultancy highlights tension between clients and 3PLs

28 March 2019

Less than a fifth (18%) of UK companies are happy with their 3PLs, according to the research.

Scala surveyed a selection of the UK’s best-known businesses and 3PLs with regards to customer satisfaction rates. The aim of the research was to identify how satisfied companies are with the performance of their 3PLs, and how satisfied 3PLs think their clients are with their performance.

The topline results highlighted significant discrepancies between the satisfaction levels 3PL customers have with their Third-Party Logistics suppliers, and the perceived satisfaction rates of the 3PLs themselves.

On the whole, 3PLs could be doing better, with just 18% of companies surveyed claiming to be “very satisfied” with the performance of their 3PL. Common satisfaction pain points for businesses included a lack of proactivity from 3PLs, a lack of continuous improvement and a constant focus on cost instead of quality.

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The report also highlighted 3PL gripes such as ‘the increased commoditisation of logistics services’ by customers.

John Perry, managing director at SCALA, commented: “Two things are clear from this research. Firstly, customers of 3PLs need to be more vigilant in their approach to tendering, awarding and managing their 3PL contracts. Secondly, 3PLs should be doing more to increase satisfaction levels amongst their customers and identifying better ways to accurately gauge the state of their customer relationships.

“The key to achieving better synchronisation between 3PLs and their customers lies first and foremost in ensuring customers and 3PLs are aligned to successfully achieving the customer’s key business objectives. Once a contract is awarded, this then needs to be implemented through regular, formal review meetings, that look at objective measures of performance both of those business objectives and the detailed SLA logistics performance measures that are effectively communicated between both parties. Too often, KPIs are set at the outset and then consigned to a bottom drawer.”

To download the report please visit: https://www.scalagroup.co.uk/wp-content/uploads/2019/03/3rdpartyreport.pdf