Outsourced Logistics Expected To Grow Across EU

Total spend on logistics outsourcing across the "EU15" will reach some 175.5 billion euros (US$218 billion) by 2008 and account for 45% of total logistics spend, according to market analyst firm Datamonitor plc. (The EU15 is comprised of the 15 member countries that made up the European Union prior to the May 2004 accession of 10 new countries.) The London-based information provider says reduced budgets, the desire for high-speed delivery systems, as well as forthcoming European legislation are driving the move away from in-house logistics models. In the European grocery retail sector, Datamonitor says outsourced logistics will account for 42% of total logistics spend in 2008, up from 39% in 2003. In the automotive sector, the percentage will increase from 52.2% in 2003 to 54.9% in 2008. Outsourced logistics spend will account for 24% of total logistics spend in pharmaceuticals in 2008, compared with 23% in 2003.