A new industry study has identified key operational gaps in UK third-party logistics (3PL) businesses, highlighting limited technology adoption and supplier auditing practices. The research, conducted by TEG, found that only one-third of 3PLs use eSourcing technology in carrier procurement, while 83% audit fewer than 10% of their sub-contractors annually.
The findings come as road freight operators face increasing challenges, including driver shortages and new emissions regulations. The TEG whitepaper, based on research across six leading UK-based 3PLs, outlines areas for improvement in procurement and compliance processes.
Key findings include:
- Technology adoption: Just 33% of 3PLs use eSourcing technology for carrier procurement, indicating potential for increased digitalisation.
- Compliance: 83% of 3PLs conduct limited supplier audits, presenting an opportunity to enhance carrier validation.
- Sustainability: 67% of 3PLs cite sustainability as a major procurement challenge as emissions regulations evolve.
- Skills development: 83% of carrier procurement personnel receive no formal training, affecting strategic decision-making.
The report outlines strategies to address these gaps, including implementing strategic sourcing, automating procurement processes, and improving supplier auditing practices.
“As road freight operators deal with rising costs, tightening regulations, and sustainability demands, 3PLs are searching for new solutions to old challenges. Making these solutions an essential part of day-to-day operations isn’t just an opportunity—it’s becoming a necessity. The time to adapt is now,” said Lyall Cresswell, Founder and CEO of TEG.