Hot Trends Emerge as Organizations Re-evaluate Their Logistics Outsourcing Functions, According to IDC

FRAMINGHAM, MA – MARCH 28, 2001 – The Internet and technology advances are taking the logistics outsourcing marketplace to new heights. They are also leading organizations down new roads, forcing them to reevaluate their logistics functions.

 

"The key trend in logistics outsourcing is that both the demand side and the supply side are catching on fast to Web enablement," said Romala Ravi, senior analyst with IDC’s eLogistics program. "The supply side has seen the proliferation of new Web-based elogistics services in the past year. On the demand side, companies are looking to find the right fit – seeking Web-based services for their logistics processes and evaluating service providers that have launched these services."

According to IDC, many companies are looking to streamline their logistics processes, consolidate the number of outsourcers they use, and leverage the Internet to improve logistics functions. "Companies traditionally have thought of logistics outsourcing services as ‘point solutions’," Ravi said. "However, companies are now looking for more integration of their disparate business processes so that they can have operational visibility across the organization."

The future remains bright for logistics outsourcing, but IDC believes new technologies and Web-based logistics services cannot exist or make sense to users without linking to existing processes, relationships, and systems. As a result, partnerships between technology companies and brick-and-mortar logistics service providers will become increasingly important.

IDC’s recently published bulletin, Key Trends in the Logistics Outsourcing Marketplace (IDC #B24119), analyzes trends in logistics outsourcing and examines how technology advances are affecting the demand for and supply of logistics outsourcing services. The bulletin examines factors driving and inhibiting logistics outsourcing and looks at outsourcing needs by company size. To purchase this bulletin, contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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