Despite the billions spent on shipping industry consolidation in the name of efficiency and better customer service, almost three-quarters of large shippers would rather do business with several shipping providers than centralize their operations with one major supplier, according to a Unisys Corporation survey of global shippers released recently. The survey, which tackled questions relating to logistics services, information technology, security and regulations, found that 70% of those surveyed answered “no” when asked whether they expected to move to a “one-stop shop” provider. Rather, many respondents indicated that they had an intentional, specific logistics strategy to diversify their business among multiple providers to encourage competition and lower prices. They felt that multiple suppliers keep prices and services competitive, and that often niche logistics providers deliver a better service, communicate faster and are more flexible.
“These survey results demonstrate that costs and reliability are key priorities for shippers, so they understand the best services and modes to use for their business,” said Christopher Shawdon, vice president and partner, Logistics Solutions, Unisys. The Unisys survey consisted of in-depth interviews with senior management from 52 major intercontinental corporations in industries such as technology, pharmaceuticals, food and retail. Other key findings of the Unisys survey included concerns regarding fuel costs and the air traffic capacity in Asia, and questions regarding size: respondents overall felt that the bigger a logistics provider was, the less flexible and user-friendly its systems were. And, while most respondents believed in improved IT security, many respondents asserted that anti-terrorism security and related regulatory requirements put the most pressure on their supply chains. Finally, the majority of respondents surveyed felt that IT helped move things through the supply chain faster. The faster shipments moved, the less chance there was that goods would be stolen, they said. Triangle Management Services conducted the interviews for this survey; the respondents have responsibility for intercontinental freight, distribution, logistics and supply chain management. The companies in this survey have, on average, annual global sales of $28 billion and annual intercontinental transport expenditures of $150 million www.unisys.com.
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