This market research report presents a comprehensive segmentation of the third-party logistics (3PL) market in the US by service area (domestic transportation management, international transportation management, dedicated contract carriage, and value-added warehousing and distribution). The report also provides a market share analysis of the leading companies, including C.H. Robinson, Expeditors, UPS, J.B. Hunt, Kuehne + Nagel, DHL, and UTi Worldwide.
Technavio’s market research analysts estimate the 3PL market in the US, to grow at a CAGR of 6% between 2016 and 2020. The use of 3PL services helps organizations in achieving cost reduction in their operations. The US companies are outsourcing logistics operations to 3PL providers to improve the overall efficiency of their business processes by focusing on their core competencies.
“Vendors in the 3PL market in the US have started using cloud-based customer relationship management (CRM) solutions. This is to enhance the vendor-shipper relationship by providing more visibility in the supply chain process, and minimising SCM complexity. Such solutions such as CRM, TMS, WMS, and portfolio management programs allow vendors to re-engineer their internal processes to keep pace with customer and investor requirements,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
The new market research report from Technavio provides a breakdown and analysis of the 3PL segments by technology.
The domestic transportation management (DTM) segment dominates the 3PL market in the US. These services are often contractual and are performed with freight broker services. In this market segment, C.H. Robinson was the market leader in offering various domestic transportation management services. Coyote Logistics and XPO Logistics are following C.H. Robinson by expanding their business operations through M&As.
The key vendors in the 3PL market in the US include C.H. Robinson, Expeditors, UPS, J.B. Hunt, Kuehne + Nagel, DHL, and UTi Worldwide. This market is highly fragmented because of the presence of several small and large providers. The major players have a vast geographic presence with respect to the 3PL and supply chain business in the US as well as in North America. The market is capital-intensive and requires hi-tech infrastructure. The key differentiating element in this market is the provision of value-added services to shippers.
A more detailed analysis is available in the Technavio report, 3PL Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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