Today’s Pickup: More companies outsourcing logistics services

Good day,

According to research from KPMG and HfS Research, more companies than ever are outsourcing their supply chain and logistics services as the job of moving product becomes more complicated. 

The firms said that 37% of companies have already outsourced these jobs. That number is up from 21% in a similar survey in 2013. The results are published in the State of the Outsourcing, Shared Services, and Operations Industry.

The study also found that 39% of companies still use a shared services model for supply chain and logistics services. According to Inbound Logistics, the study also found that 32% of organizations have already or are currently transitioning or piloting robotics process automation.

Did you know?

Cybersecurity breaches are expected to cost companies $6.8 billion by 2020, up from just $1.7 billion in 2015, according to management consultants Oliver Wyman.


 “We at FedEx, like many major U.S. companies, are concerned the window for tax reform is closing. Our current federal tax system is simply not globally competitive, retarding investment and the high paying jobs that follow.”

Fred Smith, FedEx CEO

In other news:

 FedEx’s Fred Smith takes lead on tax reform

Unhappy that tax reform is not moving forward, FedEx chairman Fred Smith has led an effort to create an alternative tax plan. (Bloomberg)

Samsung to build South Carolina appliance plant

Samsung electronics will invest $380 million in a new plant in Newbury, SC, to build its appliances, creating nearly 1,000 jobs. (Wall Street Journal)

Navistar shuffles executive ranks

Truck maker Navistar has made several moves in its executive ranks in an effort to shore up its sales and position the company for growth, including naming a vice president of export. (Fleet Owner)

Maersk terminals shut down due to cyberattack

The AP Moller-Maersk terminal at Port Elizabeth, N.J. will be closed today for the third straight day following the massive cyberattack that struck Maersk this week. (LandLine)

Starsky Robotics truck drivers work with coders

Starsky Robotics likes to say it hires truck drivers. The autonomous truck startup does, and they are working with coders to build the next-generation trucking model. (Transport Topics)

Final Thoughts

With more companies looking to outsource their supply chains according to a recent report, there is opportunity for freight companies with expertise to diversify their operations.

Hammer down everyone!

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Brian Straight

Brian Straight covers general transportation news and leads the editorial team as Managing Editor. A journalism graduate of the University of Rhode Island, he has covered everything from a presidential election, to professional sports and Little League baseball, and for more than 10 years has covered trucking and logistics. Before joining FreightWaves, he was previously responsible for the editorial quality and production of Fleet Owner magazine and Brian lives in Connecticut with his wife and two kids and spends his time coaching his son’s baseball team, golfing with his daughter, and pursuing his never-ending quest to become a professional bowler.