Segmentation of the third party logistics market

Abstract

In the last decade, it has become more common for companies to focus on their core product, and outsource parts of their activities that are not considered as their core competence. A service that has often been outsourced, to some extent, is the transportation of goods. The traditional transport companies have also become the major actors in the Third Party Logistics (TPL) market when companies outsource more parts of their logistical activities. What logistical requirements do companies have when they outsource their logistical activities? Do all companies in the same industry have the same requirements regardless of their products? This paper studies the logistical requirements of companies in different industries and structures them into segments. With the companies' different logistical requirements as a basis, we have developed a logistical segmentation of TPL customers. With the knowledge of the different logistical requirements, we have also tried to forecast the possible future development of logistical requirements. This paper will, hopefully, give the reader a better understanding and knowledge of the TPL market, and focus on an alternative ways of segmenting the market.