Third party logistics, popularly known as 3PL, is an outsourced logistics service framework wherein third party providers offer one or multiple procurement and fulfillment services to their clients. The service usually pertains to any one or all of these facets: freight management, contract warehousing, distribution management, fulfilment services, product sourcing, and freight consolidation.
A growing number of businesses, notably merchants, who don’t have logistics as the core competency stand to benefit from 3PL services. To sum up, clients can outsource their varied and multiple supply chain management needs to third party logistics providers. 3PL services has witnessed steady evolution driven by the rising need for cost savings among businesses numerous end-use industries.
The drive for 3PL services stems from the need for cost-effective and effective choices for managing the growing complexity of warehouse operations and supply chain in the globalized world. This has led to the rapid evolution of the global 3PL market.
The report on the global 3PL market takes a closer look at the key growth dynamics and sheds light on emerging avenues in various end-use industries. The study offers insights that can help stakeholders to identify the segments likely to attract copious investments over the assessment period of 2016 – 2024.
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Global 3PL Market: Trends and Opportunities
Burgeoning online in numerous developing regions across the globe is a key factor propelling the need for 3PL services among businesses. Rising demand by consumers for faster delivery in e-commerce is a notable trend bolstering the demand for 3PL. Decline in shipping rates in various parts of the world is one of the prominent factors driving the global 3PL market. Growing role of 3PL services in streamlining supply chain has also filliped the demand for 3PL services over the past several years.
Rapid strides made by e-commerce especially in developing countries has been offering constant impetus to the growth of the 3PL market. A growing number of small merchants in the sector may not have the necessary expertise in logistics and distribution. Hence 3PL services have gathered steam among them in recent years. Ceaseless advances in technologies pertaining to tracking technology have imparted a steady growth momentum for the global 3PL market. Substantial technological advancement made in radio frequency identification and global positioning system is a case in point.
The advent of 3PL services that are tailored to the needs of various businesses has expanded the potential of the market. The adoption of these services scales integrated operations, transportation and freight services, and warehousing for client businesses.
Global 3PL Market: Regional Outlook
The report takes a critical look at the growth prospects of the key and emerging markets. It also highlights various macroeconomic trends that will keep some regions increasingly lucrative over the assessment timeline. On the regional front, Asia Pacific is expected to rise at prominent pace, with vast avenues coming from developing economies of China and India. The growth in the regional market is fueled by rising disposable incomes and democratization of the internet. Furthermore, sizeable investments being made by prominent e-commerce players create new avenues in the Asia Pacific 3PL market. Meanwhile, Europe and North America are expected to account for attractive shares in the global 3PL market.
Global 3PL Market: Companies Mentioned in Report
The report offers detailed assessment of the prevailing competitive dynamics in various regions and highlights factors that will influence the landscape in near future. It takes a critical look at the strategies adopted by key incumbent players and new entrants to gain a better hold over the global 3PL market in the coming years. Some of the well-entrenched players operating in the 3PL market are Ryder, Kuehne + Nagel, Yusen Logistics Co., Ltd., DB Schenker, CEVA Holdings, Nippon Express, and C.H. Robinson.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers’ or customers’ journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.