Manufacturing Industry

Service providers under pressure to control rates.(third-party logistics industry, market information)(Statistical Data Included)

Purchasing, April, 2000 by Milligan, Brian

Third-party logistics pro-viders say manufacturers expect a lot, including tracing and tracking, short leadtimes and bundled services. But in today's ultra-competitive environment, who is going to pay for all the value-added services? That's the dilemma that the 3PL industry finds itself in today.

And while the industry remains healthy in the booming economy, some carrier representatives say they worry that something has to give sooner or later. "Obviously, people are looking for more for less," says Larry Marzullo, chairman and CEO of Illinois-based transportation and logistics company The Bekins Co. "There is so much competition out there, and the Internet is bringing so much to the payroll, doing more for less is going to be the way of the future...

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