Logistics lines blurring: report predicts growth in integrated logistics services, with technology having large impact. (Logistics).(Brief Article)

Publication: Traffic World

Publication Date: 24-JUN-02

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The market for logistics business process outsourcing, or BPO, which encompasses the physical flow of products as well as the information and processes that go with it, will increase at a five-year compound annual growth rate of 17 percent to $380.7 billion by 2006, according to a report entitled "Worldwide Logistics BPO Forecast and Analysis, 2002-2006" by Framingham, Mass.-based research firm IDC.

Familiar market drivers such as globalization are behind the growth but there also are new factors such as the emergence of stronger e-logistics players. As shippers demand a broader portfolio of services and third-party providers strive to keep pace with changing demand, "it will become increasingly difficult to categorize logistics service providers by their functional expertise," said IDC.

Over the last year or so service providers have expanded their offerings across the supply chain, moving into areas such as asset planning and event management. They also are looking to exploit new opportunities in consulting and...

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