Global Third-party Logistics (3PL) Market Report 2023-2028: 3PL Providers Focus on Reducing Last-Mile Delivery Distances, Fast Data and Connectivity Revolutionizing Supply Chain and Logistics
DUBLIN, Nov. 27, 2023 /PRNewswire/ -- The "Third-party Logistics (3PL) Market - Global Industry Size, Share, Trends Opportunity, and Forecast, 2028F" report has been added to ResearchAndMarkets.com's offering.
Global Third-party Logistics (3PL) Market has valued at USD 1.5 Trillion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 9.9% through 2028.
Third-party logistics model delivers greater asset utilization and asset sharing alliances, which increases its demand, and contributes toward the growth of the 3PL market. At present, third-party logistics is commercially available in varying transportation modes and service types, including dedicated contract carriage (DCC), domestic and international transportation management.
Companies that provide international deliveries typically work with two or three dozen delivery partners specializing in different geographic areas. Large e-commerce companies, such as Amazon, have huge in-house teams that act as their third-party logistics. They spend a lot of money and effort managing, controlling, and improving their logistics.
Moreover, Kestraa, a Brazilian logistics startup, raised $2.7 million funding from Canary Ventures and various angel investors for logistics software. Kestraa is a cloud-based B2B solution for freight-management, connecting ship-owners, cargo agents, freight forwarders, government systems, and more. The software allows stakeholders to manage their shipments, anticipate delays, and optimize on delivery time. Customers are also able to monitor the delivery process of their goods.
Key Market Trends
Last-mile delivery is critical for both retaining and acquiring new customers. Simply put, last-mile operations can make or break a company. This has been one of the most important logistics trends for several years, and it shows no signs of abating. More 3PL companies are working to reduce last-mile delivery distances by locating fulfillment hubs in more accessible locations, such as urban centers.
Warehouse management systems (WMS) of today have extensive computing power, large amounts of data storage, and the ability to connect to other critical applications such as enterprise resource planning (ERP) and customer relationship management (CRM). It is no loner enough to simply track shipments; businesses must optimize every step of the process, from raw materials to the production line, marketing, and delivery of the product to the end customer.
Growth in E-commerce Sales Driving the Market
On the fulfillment front, all shippers have a set of performance metrics or key performance indicators (KPIs) to work toward. In today's fast-paced fulfillment environment, meeting these targets can be difficult, especially if fulfillment is not a core competency for the shipper. Knowing this, the third-party logistics (3PL) industry has stepped up its game, offering a broader portfolio of services to a broader range of customers.
Once the domain of extremely high-volume operations, even small businesses selling clothing online recognize the value of outsourcing some or all of their fulfillment operations to a reputable third party. The e-commerce boom has prompted more businesses to investigate 3PL options.
As a result, 3PLs are offering shippers strategic locations, more space to accommodate higher inventory volumes, and a wider range of delivery options. As the volume of returns has increased in the last year, e-commerce shippers want to work with 3PLs that can help customers with the returns process. Omni-channel logistics services are also in high demand, with automation serving as a critical component of e-commerce fulfillment processes.
More 3PLs will be needed in the future to add value in the last mile of the supply chain, where getting large and bulky items from the final point of distribution to the customer's location remains a major challenge. Getting furniture, fitness equipment, and other large items to customers' doors requires extra planning, especially if they require quick delivery.
Service Type Insights:
Company Profiles: Detailed analysis of the major companies present in the Global Third-party Logistics (3PL) Market.
Global Third-party Logistics (3PL) Market, By Service Type:
Global Third-party Logistics (3PL) Market, By Industry:
Global Third-party Logistics (3PL) Market, By Region:
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