Global Third Party Logistics Market is expected to grow from US$ 805.4 Bn in 2017 to US$ 1,240 Bn by 2025 at a CAGR of 5.6% over the forecast period 2018 and 2025.
Third party logistics is moving towards increased information base and large-scale operations owing to maximize operational efficiency and improve profitability. There is an improvement in the strategic nature of relationships between shippers and third-party logistics providers. Globally, 3PL firms are increasing their employee strength, organization skills, broadening their service offerings, investing in new technology, and expanding their geographical reach in order to deliver data driven solutions.
Moreover, 3PL firms are also implementing several software based solutions in their operations in order to reduce the inefficiency and costs with saving time for operations. Moreover, the implementation of speech recognition software in warehouse management system communications will support order turn-round and inventory records with reducing employee-training requirements. Along with this, acceptance of cloud-based technology in 3PL companies will respond demands by recognizing the need for customer access which is expected to better meet the seasonal trends efficiently.
Third Party Logistics Market Insights
Rise in demand for reducing overall operational cost and focus on managing timely delivery
Logistics is the core area of the third party logistics (3PL) firms and their proficiency in this areas is always superior to that of the core companies. 3PL firms have the expertise to keep IT systems updated and deliver the logistic services more time & cost effectively along with this they own the ability to meet the technical requirements. Outsourcing logistic function from a third party is helpful for core companies as these firms manage and maintain warehouse, transportation, and other operations with more efficiently with expertise. Also, 3PL eliminates the need to invest in technology, warehouse space, transportation, a trained staff in order to execute the logistics process. Additionally, hiring the third party firms is more cost-effective than investing in own logistic operations. Thus, reducing overall operational cost and managing timely delivery are expected to drive the third party logistics market.
Inclination of manufacturing companies on reducing assets and emphasize on core business
The services offered by 3PL firms add substantial value to the manufacturing companies. These firms help different companies to reduce weak points that outcomes in loss of revenue or profits and further help to assure maximal profitability. 3PL companies specialize in several logistics operations which offers network analysis, mode network optimization, warehousing, management of vendor compliance, and other logistic operations. In contrast with this, it is challenging for the core companies to gain such logistic expertise such as inventory management & storage, contract packaging, assembly needs, or shipping etc. in every business division. Thus, choosing a 3PL firm, company is basically opting for experts in logistics. This enable the company to devote their time and resources on areas of core competency & actual business instead of using it on managing logistic operations. Along with this, the company doesn’t need to spend on building their own warehouse facility, to hire additional labor, and installing several new technology by opting for 3PL which reduces company’s cost significantly. This factor is expected to drive the third party logistics market.
Third party logistics Market by Region
Few of the recent strategies by some of the players in third party logistics market landscape are listed below:
2018: Nippon Express Co., Ltd. completed the acquisition of the equity interest in Traconf S.r.l. which is an apparel logistics service provider through Nippon Express Europe GmbH.
2018: UPS Worldwide Express develop To assist businesses to deliver crucial goods in emerging markets. The service is extended in 57 countries consist of South Korea, Pakistan, and Brazil.
2018: GEODIS signed contract with Biosystems S.A, Pharma and Healthcare centric industry to provide lab instruments and temperature-controlled reagents in around 35 countries globally. Through this contract, GEODIS uses its vast global network to conduct customs activities.
The report segments the global third party logistics market are as follows:
Global Third Party Logistics Market – By Mode of Transport
Global Third Party Logistics Market – By Services
Global Third Party Logistics Market – By End User
Global Third Party Logistics Market – By Customer
Global Third Party Logistics Market – By Geography
Global Third party logistics Market - Company Profiles