In a comprehensive market study to be published April 22nd, 2005, ARC details a Logistics Service Provider (3PL) Maturity Model to help service providers benchmark themselves against the competition and help manufacturers and retailers evaluate different providers. The model defines different levels of maturity across a variety of important attributes including Technology, Industry Focus and Diversification, and Brand Management.

According to Adrian Gonzalez, Director of ARC's Logistics Executive Council and author of the upcoming study Strategic Guide for Logistics Service Providers (3PLs): Industry Trends, Provider Profiles, and Maturity Model, "The primary objective and challenge of most Logistics Service Providers today is to grow profitably in an evermore global, competitive, and demanding business environment. The Maturity Model serves as a framework for strategy development and as a guide for continuous improvement."

Overview of Strategic Guide for Logistics Service Providers Study

This study was initiated at the request of ARC clients -- including manufacturers, retailers, software vendors, and logistics service providers -- who are interested in obtaining answers to the following questions related to the Logistics Service Provider industry (also known as Third Party Logistics):

-- What are the key trends and issues facing the industry and how are service providers responding?

-- What is the role of technology and how is the landscape changing? Which software vendors are best positioned to service this industry?

-- What differentiates one service provider from another? Who are the industry leaders by vertical industry, type of service, or geographic region?

-- How can a 3PL benchmark itself against the competition? What are the key attributes clients must consider when assessing service providers?

Gonzalez comments, "This study is a cost-effective way for anyone interested in the Logistics Service Provider (LSP) market to access and leverage the wealth of intellectual property we've collected the past few years via various consulting and research projects. It fills in the gaps left unaddressed by other reports, such as providing an in-depth analysis of IT trends and software vendors relative to the LSP industry."

Role of Technology

Logistics Service Providers must take a holistic and integrated view of their IT requirements and infrastructure, especially as their scale and scope continue to expand. In other words, LSPs must think beyond Transportation and Warehouse Management when developing their IT strategy; they must also consider solutions that address Financials and Human Resource Management, Customer Relationship Management, Global Trade Management, and Value Added Services.

The study highlights these different solution types and key technology trends such as the emergence of "On Demand" solutions and Service Based Architectures. It also profiles fourteen enterprise and best-of-breed software vendors who currently serve LSP customers or are likely to focus on this market in the near future.

Service Provider Profiles

The study also includes quantitative profiles of twenty service providers who are generally recognized as market leaders or innovative by clients, the media, and analysts. Collectively, these twenty service providers accounted for over $52 billion in Gross Revenues in 2004. The list of providers is by no means comprehensive; it's simply a representation of the overall market. Each provider profile contains revenue breakdowns by Geography, Sector, Vertical Industry, and Service.