According to a recent study, the global 3PL market is likely to surpass $925 billion in the year 2020.This growth is being supported by advancements in big data technologies and the availability of industry-specific services.
Global businesses are outsourcing more and more secondary business activities like logistics, in order to focus on core business operations, with the use of a freight e-sourcing system, these businesses are able to create better and faster synergies with their 3PL providers.
Asia Pacific alone contributed to more than 29 percent of the total global demand for 3PL services in 2013. This was mainly due to growing warehousing and distribution facilities in countries like Indonesia, China, India, Singapore, and Thailand, services that can also be procured via TenderEasy, allowing more flexibility in your logistics design.
Logistics software and decline in labor and transportation costs contribute to the growth of North American 3PL.
The U.S. is witnessing the emergence of technologically advanced logistics software solutions and, along with Mexico, a steady decline in labor and transportation costs. These factors contribute to the high growth of North American 3PL market by 2020. Although, Europe’s 3PL market was adversely affected by the eurozone crisis, it is expected to witness a revival in future mainly due to increasing demand from automotive and life science sectors.
Dedicated contract carriage (DCC) where a rate management system is essential, will experience rapid growth in the trucking and distribution industry. Leading retailers like Target, Kroger, and Walmart are relying on DCC for increasing truck capacity and lowering costs.
FedEx, DHL, C.H. Robinson Worldwide, UPS Supply Chain Solutions, Kuehne + Nagel and J.B. are the main players in the global 3PL market. The market is fragmented with various established players and new entrants vying for the same customer base, buyers using a tendering solution and tendering more often, will be able to optimize their freight procurement using their leverage.
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