As shippers wrestle with tight budgets in the coming year, they’ll most likely turn to shipment consolidation and rate renegotiation to rein in costs, according to DC Velocity’s annual Outlook survey.

Source: http://www.dcvelocity.com/print/article/20130103-keeping-costs-under-control-key-focus-for-2013/

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– Forty-one percent said their spending on logistics services and material handling equipment would be on par with 2012 levels, while 40 percent expect to spend more.

As for where those dollars will go, about 40 percent said they planned to spend more on transportation services across all modes. Thirty-nine percent said their freight spend would stay the same, while 9 percent predicted a reduction. Among those respondents who expect to boost their spending on transportation, 52 percent said their expenditures would rise between 3 and 5 percent.

– Fifty-eight percent of survey respondents plan to purchase logistics technology in the coming year. Of those respondents, 27 percent said they expect to buy a warehouse management system (WMS), while 22 percent plan to purchase an inventory optimization package. Twenty percent of those respondents said they planned to buy a transportation management system (TMS), and another 18 percent will invest in an application for business intelligence or analytics.

– The survey also indicated that respondents will continue to rely heavily on third-party logistics service providers (3PLs). Of the respondents that were currently using 3PLs, 51 percent said their use of third parties would remain the same. Another 41 percent anticipated an increase, while just 8 percent expected to cut back on outsourcing.

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