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Introduction
In June 2008, logistics professionals were studied to better understand the less-than-truckload (LTL)
services market. Specifically, the research evaluates:
n Importance attributes when selecting an LTL service provider
n Shippers’ expectations of their current LTL providers
n Usage of third party logistics (3PLs) for transportation needs
n Best-in-class service providers’ offerings
Summary
1. S hippers have many choices of modes of transportation. Among those who use LTL providers,
they also use these other modes:
n 81% use truckload
n 73% use surface package
n 72% use air
n 58% use ocean
n 37% use intermodal
n 29% use rail
3. M
ost shippers say their LTL provider meets their expectations. The areas where carriers tend
to exceed expectations are:
n positive/helpful drivers
n convenience and ease of use
n flexibility meeting needs
n customer service
n low incidence of damaged goods
Billing accuracy and freight prices rate high in importance when selecting an LTL provider but
did not rate high among carrier performance.
4. O
ne out of three shippers use a 3PL and among these shippers, six out of 10 say their
3PL provider offers warehousing and/or transportation management type services.
5. W
hen asked what sets their preferred carriers/providers apart from all others, many of the reasons
cited focus on the partnership-type relationships they have with their carriers. It is those carriers that
work with their shippers to develop solutions and solve problems—above and beyond the call of
duty—who have made their mark as exceptional providers.
0%
Freight prices Customer Billing accuracy Flexibility Convenience/ Low claims/
service meeting ease of use incidence of
needs damaged goods
3PL USAGE
Only one out of three shippers use a third party logistics provider (3PL) for their warehousing and
distribution needs. When asked what type of services their 3PL provides, six out of 10 say warehousing
and/or transportation management. Roughly a third use 3PL for inventory management.
80%
Use 3PL
60%
63% 61%
32% 40%
20% 34%
68% 27%
Don't 15%
use 3PL 0%
Warehousing Transportation Inventory Mngt Fulfillment Sorting of products
Mngt
One shipper says: “ They have worked hard to understand our business and
have learned how they can be part of the solution.”
Another says: “My best carrier goes above and beyond to help try and solve a problem.”
Another shipper says: “My carrier is always there when needed and has even had additional
equipment there in two hours. We have had only one late delivery in six years.”
Carriers that understand the challenges of their customers’ business, have invested time into
maintaining strong working relationships, provide the best possible customer service levels,
continue with accurate delivery dates and strong communication, are the ones making the mark.