3PL Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global 3PL Services market reached a value of about USD 958.2 billion in 2021. The industry is projected to grow at a CAGR of around 5.25% in the forecast period of 2022-2027 to reach a value of about USD 1302 billion by 2027.

The global 3PL Services industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The rising outsourcing of key transportation and logistics services and expanding e-commerce penetration drive industry growth. The key demand indicator is the highest category spender in the industry report by region—Asia and North America.

Industry Definition and Segmentation

In logistics and supply chain management, 3PL logistics is an organisation using third-party enterprises to outsource aspects of its distribution, warehousing, and fulfilment services. The things will be picked, packed, and sent by it. 3PL is the crucial connection that connects the production processes to the consumers. The 3PL Services industry report comprises regions (North America, Europe, Asia Pacific, the Middle East, Africa, and South America).

The North American and Asia Pacific Regions are Driving the Growth of the Industry.

The Asian and North American region holds the largest share in the market. Because of the rising populations and manufacturing bases, Japan, China, India, South Korea, and Vietnam have significant market share. In the North American region, with a shortage of truck capacity in the United States, shippers turn to exclusive contract carriage services. Furthermore, the region's growing need for cold storage is likely to enhance the 3PL industry in the future.

The rise of the e-commerce industry is driving the market; Increased globalisation, rising population, and shifting purchasing patterns have expanded import-export operations worldwide. The rapid growth of the e-commerce sector has raised transportation revenues even more. Furthermore, the expansion of the global market is a significant driver driving the 3PL industry forward. 3PL services are becoming increasingly crucial for price-conscious clients who demand a more extensive selection of high-quality items delivered on time. As a result, the development of the 3PL industry is propelling. By balancing the demands of many client shippers across transportation and distribution services, 3PL organisations may make greater use of transportation assets, resulting in economies of scale. Supply chains get longer and more complicated due to offshoring and outsourcing. The third-party logistics market is expected to be driven by an increase in demand for shipping cost reduction and a focus on timely delivery management, a decrease in company assets, the ability to focus on core business, and an advantage in managing seasonal variations.

However, the Manufacturers' lack of control over logistic services and delivery processes will likely hamper the market growth.

Best Procurement Practices

The global 3PL Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global 3PL Services regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

When outsourced items are transported straight from the production to a third-party logistics facility, the logistics provider can give the services after the inventory arrives. They handle all of the paperwork, stick to the timetable, and save money. It covers export and import regulations if items are shipped to a place outside the nation or imported from another country and delivered to the clients. 3PL businesses guarantee that all transportation standards are met. The third-party logistics organisation finds the most professional, timely, and cost-effective freight transportation for domestic or local freight. It can be transported by rail or vehicle. They also coordinate and oversee the pick-up and delivery schedules to keep things on track.

Growing Advancements in the Sector, Further Driving the 3PL Services Market.

The growing advancements in the sector are propelling the industry. Many 3PLs have already started adopting mobile devices and applications to boost their agility. Devices with radio frequency identification (RFID) chips are capable of communicating their position and storing data about themselves, allowing them to be monitored and recognised quickly. Customers may purchase, process, and track freight shipments using mobile applications loaded on their phones. Furthermore, Long-haul delivery is being replaced by just-in-time delivery by 3PL providers. The vendors are also consolidating their storage facilities into a single warehouse. Companies invest in smaller vehicles and vans to enable a rise in last-mile delivery, allowing shorter and more frequent deliveries. Hence, the industry is witnessing growth.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the 3PL Services Industry Report.

• Toll Holdings Ltd
• Qube Holdings Ltd
• Linfox
• DHL Global Forwarding
• CEVA Logistics
• SCT Logistics
• Kuehne + Nagel International AG
• Nippon Express
• DB Schenker
• C.H. Robinson
• DSV Group
• UPS Supply Chain Solutions

Market Landscape

The industry is highly fragmented and competitive, with numerous big corporations strategically creating partnerships with mid-sized or small-sized enterprises to utilise their regional logistical skills. Major regional players have been seen branching out into other territories, allowing them to expand their geographic influence. With specialised and industry-specific services, new rivals are entering the 3PL market. As a result, the market sees a lot of joint ventures, mergers, and acquisitions. The corporations emphasise technology-driven services, such as route optimisation and real-time cargo tracking. The businesses are also attempting to retain total visibility across the whole supply chain without overburdening their customers. Shipper-carrier partnerships improve information exchange and transparency between the two sides, resulting in a more favourable business climate.

Key Initiatives by Companies

• In Nankan, Taoyuan, Taiwan, UPS completed a new USD 1.5 million logistics facility in February 2020. This facility will enhance UPS's overall storage capacity by more than 30% in Taiwan.
• XPO Logistics Inc. and Mercedes-Benz Parts Logistics struck a long-term collaboration agreement in March 2020. With this partnership, the firm will be able to handle parts distribution throughout the United Kingdom through an integrated and digitally controlled transportation network.