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Supply Chain Leaders Embracing Change Management to Address Impact of AI and Consumer Demand for Speed

The 2025 Third-Party Logistics Study, spearheaded by Dr. C. John Langley of Penn State University and developed in collaboration with NTT DATA and Penske Logisticswas unveiled at the Council of Supply Chain Management Professionals (CSCMP) EDGEIn its 29th year, the study delves into the evolving dynamics of the supply chain under the theme "Navigating Change," reflecting the current challenges within the industry.

The research highlights three pivotal areas: Change management in shipper (companies that manufacture goods or provide services) and 3PL (Third-Party Logistics providers) relationships; artificial intelligence; and the importance of the direct-to-consumer experience.

The research provides a deeper dive into the current state of the 3PL market, and contemporary issues like nearshoring and trends in commercial real estate and supply chain labor are also contained within.  

Some key learnings from the 2025 3PL Study include:

  • Change management is essential to keeping pace in the marketplace: Shippers (61%) and 3PLs (73%) both agree that supply chain change management is vital. Demand for change management is driven by customer experience, economic factors and technological advancements. Among survey respondents, 58% of shippers and 76% of 3PLs are currently employing a change management framework.
  • Artificial intelligence is a supply chain competitive advantage: Both shippers and 3PLs are in agreement that AI can be pivotal in automating data analysis, identifying patterns, solving problems and automating repetitive tasks. Results uncovered that 33% of shippers are seeking implementations related to supply planning and demand forecasting, while 19% of 3PLs reported planning implementation in this area. Also, 27% of shippers expressed an interest in transportation and route optimization technologies, while 22% of 3PLs noted they are planning to install these capabilities.
  • The continued e-commerce effect is shaping the direct-to-consumer experience: 48% of shippers and 53% of 3PLs reported that customers routinely expect deliveries in less than two days, and 27% of shippers and 26% of 3PLs noted that there are three-day or less delivery expectations. Shippers (44%) and 3PLs (38%) are willing to absorb a small percentage of the costs related to shipping speeds. Both shippers and 3PLs view delivery speed and further delivery visibility as strong areas of differentiation.

The study surveyed 3PL providers and users of 3PL services to understand the current state of 3PLs and how 3PL relationships are evolving with their customers. The research continues to capture and measure this evolving industry and document the transformation of the third-party logistics sector as new challenges and opportunities emerge. The 2025 study and past versions are available for download at www.3PLStudy.com.

"While users and providers of 3PL services continue to report successful relationships, they find themselves having to deal with an increasingly wide range of challenges," said Dr. C. John Langley, Professor, Supply Chain & Information Systems, Penn State University. "While examples include economic concerns, geopolitical unrest, and changing markets for supply chain services, they also are taking advantage of change management processes to benefit from new and improved capabilities such as AI and direct-to-customer proficiencies."

"This year's study once again achieves success with providing readers with a nuanced understanding of the key issues facing our supply chains today," said Ramu Pannala, Vice President of Supply Chain Technology, Penske Logistics. "Technology will drive the industry forward in many exciting ways."

"This reinforces what we see in the market regarding businesses trying to manage through the volatility of day-to-day operations, relying on new capabilities like AI, and deeper partner relationships," said Shanton Wilcox, Senior Vice President, Supply Chain Consulting, NTT DATA.  "All of these efforts and investments rely on change management to increase the likelihood of success."

Published Tuesday, October 01, 2024 12:52 PM by David Marshall
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