Logistics outsourcing continues to lag behind many other industries

The level of logistics outsourcing in the chemical industry is still significantly lower than in other manufacturing sectors. However, the increasing professionalization of logistics service providers in recent years has opened up further opportunities to outsource processes in this industry segment.

While the 2016 study predicted the greatest future growth in relation to the previous level of outsourcing in filling, analytics and the operation of silo storage facilities, the participants in the 2019 study primarily expect future growth in the areas of tank storage management, internal plant transport and loading/labeling.

4PL approach on the retreat again in the chemical industry?

Although the 4PL approach has been able to establish itself to some extent in the chemical industry, the current study results show that neither significant cost nor quality benefits are expected from a 4PL concept by the participants. Rather, alternatives such as supply chain visibility or control tower approaches offer similar advantages without creating dependency problems.

The very critical assessment of the 4PL concept therefore implies that this very special concept appears to be suitable for only a few companies and is therefore more likely to lead a niche existence than experience a hype.

Logistics performance confirmed as a driver of company performance!

Of the companies with above-average success, over 70% have above-average logistics performance (2016: 64%), while around 56% of the companies with below-average success also have below-average logistics performance (2016: 80%). In the 2019 study, only 13% of all participants (2016: 23%) managed to achieve above-average company results with poor logistics.

"Is this an indication that poorer or better logistics performance may also result in poorer or better company performance? At the very least, the survey results suggest such a correlation - even if the evaluations may not be statistically significant," says Dr. Klaus-Peter Jung.

Company growth continues to be THE driver of logistics projects, service improvement is gaining in importance over cost reduction

There is a clear focus on past projects at strategic, infrastructural and operational level with different objectives. According to the participants, the focus of future projects will shift away from cost reduction and more towards service improvement. In 2019, the main driver for logistics projects in the past five years was again identified as the company's own growth. In contrast, new topics include demographic change in second place, Brexit in third place and staff shortages in logistics in fourth place.