London, 11 May 2015: Technavio, the independent tech-focused global research firm, has published a report on the 3PL market in the US 2015-2019, which is expected to grow at a CAGR of 5.37 % during the forecast period of 2014-2019.
The reduction in costs by utilizing 3PL services is expected to drive the market in the coming years. Building a logistics infrastructure is a capital-intensive process and the investment is blocked for a long time. Therefore, companies outsource their logistics services to reduce operational costs and improve efficiency of the business by focusing on the core competencies.
“Vendors in this market are opting for the M&A strategy to increase their global presence and expand their product and service portfolios, as well as to achieve economies of scale in various Supply Chain Management (SCM) processes,” says Faisal Ghaus, Vice President of Technavio.
“M&A strategy enables companies to deliver services faster and more efficiently at all points along the SCM.”
Key Market Drivers
- Cost reduction by utilizing 3PL services
- Increase in cross-border trade between US and Mexico
- Growing complexity of in-house logistics operations
- Growth of omni-channel retailing landscape
- Growth of automobile and auto components industry
Key Market Trends
- Increase in M&A
- Emergence of big data analytics in SCM
- Growing preference for eco-friendly logistics
- Use of cloud-based CRM solutions to enhance vendor-shipper relationship
- Growing preference for 3PL vendors that provide one-stop solutions
Key Market Vendors
- C.H. Robinson Worldwide Inc.
- Deutsche Post DHL
- Expeditors International of Washington (Expeditors)
- J.B. Hunt Transport Inc.
- Kuehne + Nagel International AG
- United Parcel Service Inc. (UPS)
UTi Worldwide Inc.To define the market circumstances in the next 3-4 years, Technavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
https://www.technavio.com/%3Cp%3EIf%20you%20are%20interested%20in%20more%…
