When the 3PL market first started off, its services were used exclusively by the automobile industry to help manufacturers to focus on their core operations. Things changed in the past year however, after 2012 brought a huge boom in globalization, trade volume, and resurgence of the global economy. The business world is more competitive than ever, and almost all industries from food & beverage, to healthcare, to consumer goods & retail are using 3PL providers to give their company an advantage over others.
As such, the Global 3PL Market is valued at well over US$ 600 billion and set to continue growing at a 4.47 percent CAGR thanks to a few drivers—one of the most paramount of which is the cost reduction achieved by shippers by availing the services of 3PL providers.
By outsourcing the logistics and other SCM-related services of their operations to 3PL providers, customers can improve the efficiency of their business by focusing on their core competencies. Moreover, shippers achieve huge cost savings mainly by avoiding warehousing expenses, vehicles, and machinery involved in the process.
Furthermore, 3PL providers offer value addition to the SCM needs of shippers by customizing services according to their requirements. Hence, shipper can partly outsource their logistics needs and carry out the remaining functions in-house. This helps the shippers to increase their productivity and efficiency. The exhibit above shows the level of cost reduction achieved in various verticals by using the services of 3PL providers.
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And to think, this is just one of the market’s many drivers. Throw the massive growth in the automobile and IT hardware industries as well as the new favourable and 3PL friendly government trade policies into the mix, and the market seems bound for sure-fire success. With all this being said, we’re confident in standing behind the Global 3PL Market as a worthwhile field to invest and participate in!
For more information, view our 2012-2016 market research report on the Global 3PL Market.
