3PL LOGISTICS MARKET WILL REACH 1,924 BILLION USD

According to Global Newswire, the third-party logistics (3PL) market will grow more than 1,924 billion USD at a CAGR of 9.10% in the period of 2022 – 2028.

Third-party logistics (3PL) services are in high demand as businesses seek to outsource. These services include shipping management, warehousing and distribution, order fulfillment, … The most important benefit of 3PL logistics is that it allows businesses to focus on their core competencies. It can help businesses save costs, improve customer service, expand markets …

Besides, as e-commerce continues to grow, the 3PL logistics market is also promoted. 3PL service providers can help e-commerce companies from warehousing, shipping to profitability and customer service. Currently, e-commerce accounts for nearly 53% of the 3PL logistics market share.

The warehousing industry also holds about 30% of the third-party logistics market. The number of warehouses has been increasing rapidly due to the globalization of the economy ad the increase of international trade. As a result, businesses have more storage space, helping them grow, expand their operations, better manage and track their inventory.

The companies providing 3PL logistics services play an important role in the current economy. In recent years, 3PL companies have increasingly tended to apply new technology such as automation to improve service quality. Automation helps 3PL services improve efficiency and accuracy by reducing or eliminating time-consuming and error-prone manual tasks. In addition, automating order traking and shipmen tracing helps third parties to keep customers informed of order status. Automated systems also help reduce costs in association with 3PL services by streamlining processes and reducing the demand for manual labor.

Automation has been also proving its advantage to 3PL service providers in terms of transportation management. Automated routing system can plan the most efficient route for each delivery based on traffic and weight conditions. It means that deliveries can be made faster at a lower cost.

Besides the advantages, the 3PL logistics market has been facing significant challenges in the supply chain of the customer. With the boom of e-commerce and globalization, 3PL are under pressure to provide more customized and faster services. At the same time, they must also manage increasingly complex supply chains and deal with volatile customer demand.

In addition to the above challenges, visibility issues have been also posing many obstacles for 3PL logistics serves. In order to manage the supply chain effectively, logistics service providers should have a deep vision into all aspects of the chain. The lack of visibility makes it difficult to identify and resolve supply chain problems.

As companies continue to grow and expand, their demand for logistics services also increases. It often leads to capacity pressure for logistics service providers who may not be able to keep up with demand. It easily leads to delays in shipments that make customers unhappy.

Thanh Thu (according to Global Newswire)