The global 3PL services market was valued at over USD 830 billion in 2016 and is expected to surpass USD 1067 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on 3PL services for the period 2017-2021. This market research study discusses the major drivers and key emerging trends that will influence the growth of the public relations services market during the forecast period. Some of the top vendors listed in this industry analysis include DHL, Kuehne + Nagel, DB Schenker, Nippon Express, and C.H. ROBINSON.
In terms of geographical analysis, APAC is the largest shareholder in the global market, with a market share of around 19%. China was the key revenue generating country in this region by accounting for almost 23% of the market in the Americas.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The suppliers in the global market are focusing on developing robotics solutions to address labor shortage, increase productivity and responsiveness, and incorporate agility in supply chain management. The implementation of robotics in logistics simplifies warehouse management and reduces dependency on the human workforce. The vendors in the market are developing robots that can transfer different shapes and sizes of products from source pallets into target pallets, which thereby reduces manual effort and saves the cost of production.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Reduced operational costs
The use of 3PL services helps buyers to reduce paperwork, billing, and audits, thereby allowing them to focus on core business activities. Various 3PL providers provide efficient systems to manage industry-specific requirements and provide logistics requirement at low costs. The use of these services helps buyers to reduce the investment in equipment, facilities, and personnel. For instance, by engaging with 3PL providers, buyers can opt for cost-effective shipping strategies such as pool point distribution that considerably reduces costs as the cargo loads are shared.
Advanced technology solutions that provide visibility
The suppliers provide visibility in the supply chain, reduce lead times, and improves response times by offering advanced technological platforms for WMS and TMS. Some of the solutions offered use telematics and algorithms to analyze large volumes of data to provide optimized solutions that reduce the cost of operations and saves times. The 3PL service providers offer incentivized scheduling, EDI, and warehouse automation that simplifies complexities and allows buyers to make data-driven decisions while improving efficiency along the supply chain.
Use of multimodal transport
The 3PL vendors in the market offer multimodal transport solutions that help the buyers to save transport costs and clear bottlenecks. The service providers offer freight optimization via technology systems that analyze freight shipment activities and provide information on express routes. For instance, time-definite ocean shipping typically costs 75% less than air freight.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global 3PL Services Market – Procurement Market Intelligence Report 2017-2021.’
