For a major corporation, we worked with management to develop a strategy for its "third-party logistics" (a.k.a. "3PL") subsidiary. The third party logistics marketplace includes outsourcing of services for warehousing, transportation, and other supply chain-related activities.
Approach
We conducted a detailed review of the third party logistics market with three primary goals:
- Describe the industry
- Assess industry performance and trends
- Profile major third-party logistics providers
Key elements of the approach included:
- Surveying more than 20 third-party logistics customers in different industry segments
- Interviewing 15 industry experts
- Reviewing industry literature and articles
Value Added
The project resulted in a detailed profile of the industry, including historical/projected market growth, market segmentation and competitive dynamics. Competitive positioning and expected financial attractiveness were reviewed in detail for the client's subsidiary.
A variety of strategic alternatives were identified and evaluated including market expansion and business divestiture. The client is currently using the information to finalize and implement its third party logistics strategy.
