The document summarizes the key findings of an annual study on logistics outsourcing. It shows that international transportation is outsourced by 83% of customers and domestic transportation by 79%. While cooperation is tactical, collaboration is seen as more strategic. Most users are satisfied with their third-party logistics provider's IT capabilities. Emerging markets like India, China, Poland and Brazil are seen as top geographies for expanding activities. The single biggest challenges in China and India are attracting good local staff and ability to deliver on agreed service levels.

1. Results and findings of the 12 th annual study The State of Logistics Outsourcing 2007 THIRD-PARTY LOGISTICS

2. 2007 3PL Study Geographic Areas Represented North America (364) 28% Europe (341) 26% Asia Pacific (302) 23% Latin America (269) 21% Note: Figures indicate number of responses from each major geography studied. Current State

5. Customer Use of Outsourced Logistics Services Current State 79 International Transportation 83% Domestic Transportation % Users All Regions Outsourced Logistics Services

6. ” “ Cooperation is tactical; collaboration is strategic

7. Elements of Successful Collaboration Collaboration

8. Percentage of Users That Are Satisfied with Their 3PL’s IT Capabilities Technology

9. Top Five Geographies Where Countries Plan to Expand Their Activities Emerging Markets 50% India 21% Poland 28% Brazil 32% Russia 63% China % Users All Regions Geography

10. Single, Biggest Supply Chain Challenge When Dealing with China and India Emerging Markets Challenge 33 10 Bad Physical Infrastructure 2 9 Language Problems 3 5 Lack of IT Capabilities 23 25 Ability to Deliver Against Promises/Agreed Service Levels 8 13 Attracting and Retaining Good Local Staff 16 22 Legislation 15% 14% Cultural Differences India China

11. Strategic Assessment

12. www.3plstudy.com