3PLs have two fundamental responsibilities – leading customer relationships, which focus on supply chain services and providing the management of those services.
Also, most 3PLs have achieved a clear focus on what they do best. So, they can provide expertise in order to enhance a shipper client’s supply chain.
What do shippers say about 3PLs?
3PLs and customers are becoming more proficient at what they do. This improves the quality of the relationship. Moreover, 91% of 3PL users and 97% of 3PL providers report their relationships are successful and their work has positive results. Successful relationships are defined by openness, transparency. Also, it ensures effective communication between the two parties.
3PL Industry Statistics
- The global 3PL market is expected to be worth $935.31B by 2020 because it is driven by the outsourcing of secondary business activities. (cips.org)
- 97% of shippers feel alignment is important to drive the effectiveness of big data initiatives. Also, 93% agree that data-driven decision-making is essential to the success of supply chain activities and processes. (Learn more about Big Data here)
- 75% of shippers said the use of 3PL services has contributed to overall logistics cost reductions.
- 86% of shippers said the use of 3PLs has contributed to improved customer service.
- 58% of shippers indicate they are increasing their use of outsourced logistics services this year.
- The most frequently outsourced activities are domestic transportation (86%), warehousing (66%) and freight forwarding (44%). (Read: The Importance of Transportation Management)
- 73% of shippers interact with their 3PL on a daily or hourly basis.
- Cloud technology used by 3PLs is helping shippers reduce transportation costs, improve visibility, manage inventory and achieve regulatory compliance – addressing the top challenges shippers face.
Final thoughts
The 3PL market is increasing globally, so 3PL providers are refining and expanding their core competencies. Also, 3PLs are a valuable asset to companies and help them add value to their business methods by reducing costs, optimizing processes, increasing productivity and saving time.
Learn more about our Outsourced Transportation Management services!
Source: Capgemini 2017 Third-Party Logistics Study (The State of Logistics Outsourcing)
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