It wasn’t too long ago that nobody knew the term 3PL. Today more than 80% of Fortune 500 companies utilize warehousing, distribution, software services, and domestic and international transportation management that are the backbone of 3PL.
3PL companies handle the basics:
3PLs can offer additional services, such as:
- Product Packaging
- Door-To-Door Delivery
- Inventory Management
- Cross-Docking (loading freight directly onto outbound trucks without storing in a warehouse)
What’s Causing The Growth?
Over 162 logistics and transportation companies made the Fortune 5000 list in 2018.
Fueled by economic globalization, the industry is expected to be more than $1B by 2022. These kinds of increases require regular improvements to operations.
Market consolidation is also contributing to 3PL growth, focusing on the knowledge of the markets and business collaboration. Growth in manufacturing and emerging markets.
Reducing shipping costs is one of the major drivers of 3PL, as well as more timely delivery of goods. One benefit of a 3PL is that the company may be able to find a lower shipping cost than a company could find on its own.
Outsourcing a company’s supply chain operations to improve inventory management and faster deliveries allow companies to focus on their company’s core competencies. Getting a product from point A to point B takes a fair amount of coordination, no matter what the product. Whether you’re a small startup ecommerce company or a large company selling to retailers, bringing in a partner for your supply chain means you have one less thing to worry about.
Improvement of industry software, particularly cloud-based ERP and SCM types, greatly increase both efficiency and visibility throughout the entire process. Oracle and SAP lead the companies working cloud supply chain management (SCM) market, which expects to experience an aggressive increase in compound annual growth rate (CAGR) by 2024. Manufacturers are interested in various 3PL IT solutions because of available features for international shipments, such as online documentation and inventory tracking.
The expansion of e-commerce is offering incredible growth opportunities for 3PL companies. Increasing orders and reduced delivery time is pushing companies to increase efficiency and to deliver more orders faster.
With all these benefits and more that are available to companies large and small, local and worldwide, why wouldn’t you outsource your SCM to a 3PL company?
Contact 3PL WorldWide For Your Supply Chain Needs
With warehouses on both coasts and a host of support services, 3PL Worldwide takes the hassle of supply chain management off your hands. Let us handle your entire supply chain or just parts of it. You take care of the rest. Interested in talking to us? Contact us at (888) 456-1920 or use our online contact form.