The 3PL industry has seen a great boost over the years. People are more willing to outsource their fulfillment and shipping to 3PLs and trust them with the process. Working with a 3PL for your business has countless benefits, the most important being that it helps you cut down on expenses.
Recent studies and data collected over the years regarding the 3PL industry has shown that using a 3PL can help you take your business to new heights. You can focus on other aspects of your business and let another company handle the entire logistics of your business.
Let’s take a look at some of the most interesting statistics regarding the 3PL industry that prove how your business can benefit from outsourcing to a third-party logistics company.
3PLs and businesses made use of rail and road as modes of transport mostly because these modes of transport can help lower expenses. Rail and road are also more environment-friendly, which is why using them more is also beneficial for the environment. Businesses all over the globe have shown an increased concern when it comes to the environment and their carbon footprint, which is why they mostly relied on rail and road for their transport and shipping needs. Businesses can also transport more products at a lower cost through these modes of transport because they provide more capacity.
The global 3PL market has become a giant when it comes to total revenue generated by the end of each year. Businesses are more inclined to trust 3PL companies with their logistics. The use of technology and providing fulfillment and shipping services has made it easier for businesses all across the globe to use 3PLs and cut expenses and overheads. Businesses tend to outsource to 3PLs so they can focus on other areas of their business and accelerate their growth without any worries or stress of order fulfillment or warehousing and inventory management.
3PL companies are providing logistics, shipping, and other services for some of the leading businesses in the world. Companies have realized the benefits of outsourcing their logistical needs to 3PLs, giving the industry a massive boost. The total revenue generated by 3PLs in 2021 stood at a staggering 961.8 billion USD, which is only going to grow in the current year. By the end of 2022, the turnover for the 3PL industry is going to cross the trillion dollar mark, showing us once again how huge 3PLs have become and how many businesses are now using them to cut costs and streamline their fulfillment processes.
When it comes to providing 3PL services, China is a country that has established itself as a leader. They are at the forefront of the 3PL movement, providing some of the best logistics support across the world. China worked hard and grew their logistics industry because they had more foreign buyers to accommodate and ship to. 3PLs in China took the initiative to become more than a regular logistics company by providing their clients with inventory management, warehousing, order delivery, and much more. The top 3PLs across the globe are also providing the same for their clients now.
There is no match yet for the 3PL industry in Asia Pacific. These logistics providers have been industry leaders for years and continue to bring in the highest revenue. However, you cannot deny that the 3PL industry in the U.S. is also growing. In 2021, the logistics industry in the U.S. generated 278 billion dollars in revenue. Not only that, the 3PL market in the U.S. is projected to surpass 297 billion dollars by the end of 2023. Although Asia Pacific is still leading the industry, the U.S. is not so far behind anymore and can take over as the leaders in the coming decade.
There is no doubt that the 3PL industry has become one of the most profitable industries globally. Businesses are relying on 3PLs for their warehousing, shipping, order fulfillment, inventory management, and much more. 3PL companies are growing rapidly, generating higher revenue with each passing year. 33% of 3PLs reported that their profitability growth was greater than 25%, showing us once again that the 3PL market has become increasingly profitable over the years and will not slow down for the next decade or so.
The global logistics market has grown significantly over the years and is showing no signs of slowing down any time soon. According to the Statista report, the total worth of the global logistics market will only grow in the coming years. 3PL companies are now more aware of how to get their target audience and use the latest technology to their advantage to become an even stronger presence.
According to the latest reports and studies regarding the growth of the 3PL market, it is evident that the industry will only go on to reach new heights in the coming decade. There are no signs of the 3PL industry slowing down any time soon. The compound annual growth rate (CAGR) from 2022 to 2032 is projected to be 7.6%, showing how fast 3PLs will be growing in the coming years. Businesses have become more comfortable outsourcing to 3PLs, giving the industry the boost it needed. The rapid growth of e-commerce and online businesses have also given 3PLs more opportunities as online businesses want to outsource their fulfillment to 3PLs more often.
3PLs can help businesses cut costs in various areas and one of them is domestic transport. The leading 3PLs offer quick and affordable domestic transport, which is why most businesses feel comfortable outsourcing their domestic deliveries to 3PLs. With the help of a 3PL, businesses can provide their local customers with fast delivery, improving their overall customer experience and satisfaction levels.
Freight forwarding is an overwhelming and oftentimes challenging process for many businesses. Outsourcing freight forwarding to 3PLs helps businesses cut down on expenses, save time, and save resources. Businesses outsource their freight forwarding to 3PLs because they can trust these companies to offer them the best transportation prices, fast deliveries, reliable storage, and rid them of the hassle of paperwork and documentation.
Warehousing and storage can cost a lot, whether you are a small business or a large enterprise. If your business is evolving and growing with time, you need more storage space. Getting more storage space on your own is expensive. Businesses also need to hire extra staff to look after their warehouse and fulfill orders on time. All of this can increase expenses instead of decreasing them. This is why businesses trust 3PLs with warehousing. The top 3PL companies have large warehouses in convenient locations, helping businesses store all their inventory and look after their materials while helping them lower their overheads and expenses.
The customer service and support you provide for your clients matters more than you think. If the customer is satisfied with the service they receive, they are more likely to come back to your business to shop from you and bring other people with them too. It is crucial that you are efficient and thorough in your dealings with your clients, maintaining complete transparency. Businesses who have outsourced to 3PLs have witnessed a significant improvement in their customer dealings and services. 3PLs can help you provide top-notch customer support, making sure your customers are always satisfied with the services.
Shippers partner with 3PLs to provide shipping services for these companies. They can use services provided by 3PLs, like advanced tracking technology and software to make their processes more efficient and streamlined. Working with 3PLs help shippers provide more accuracy with each order and improve their own customer service. Teaming up with 3PLs is beneficial for shipping companies, which is why they use their services and incorporate them into their own. Interacting with 3PLs regularly ensures that all operations and shipping processes are moving forward as smoothly as possible.
A decade ago, only 46% of the companies working with 3PLs were Fortune 500 businesses. However, there has been a significant increase in this percentage as more and more of these businesses have started trusting 3PLs and outsourcing various areas of their business to them. Usually, 3PLs are used by e-commerce brands who want to outsource their order fulfillment and focus on growing their online brand reputation. Businesses that outsource to 3PLs understand the benefits they can get as 3PLs enable them to manage their expenses while also maintaining the efficiency of their supply chain and order fulfillment.
Building a successful relationship between a 3PL provider and a 3PL user is easy when there is complete transparency and regard for work ethic. Businesses who have outsourced to 3PL companies have significantly benefited from the positive results they have seen over the years, which has led to an increase in the revenue for the 3PL industry. 3PL companies have also claimed that their partnerships with businesses have been successful, making both parties satisfied with the results. When there is effective communication and efficient delivery of services between the two parties, the relationship is bound to be successful.
One of the major reasons why businesses have started working with 3PLs more often now is the reduction of overall costs. A 3PL can help you cut down on various extra expenses and provide businesses with capital that they can invest in other opportunities that will help them grow their business. 3PLs provide end-to-end services, including storage and shipping, which can help businesses save a large amount of money. Using a 3PL for order fulfillment also means a business no longer has to hire extra people to fulfill orders and spend money on their salaries.
Of course, after working with a 3PL and seeing how much a business can benefit from their services it is not shocking that most businesses want to increase their use of 3PLs in the future as well. Outsourcing logistics takes a huge burden off of your shoulders, which is why businesses are becoming more keen on using the services provided by 3PLs. The benefits of working with a 3PL are countless, and businesses have realized that they can take advantage of the top-notch services provided by 3PLs.
3PLs are important for any business as they help deliver accurate and fast orders to customers. When a business outsources their logistics and order fulfillment to a 3PL, they can offer their own customers low delivery charges and a personalized experience through custom packaging. 3PLs will help businesses win over more customers and build a strong customer base. When a 3PL provides a business’s customers with a positive experience on the business’s behalf, they are also helping build their brand reputation and generating more sales and marketing opportunities for them.
If a business wants to make sure their customers keep coming back to their store and increasing their sales, they need to provide the best delivery experience. Even one bad delivery experience can turn customers away from your business, which is why you need a 3PL. The leading 3PL companies will make sure that all your customers get their orders on time and that the orders are always accurate. Businesses can benefit significantly from the fast and accurate shipping provided by 3PLs as it helps in retaining clients and making sure they don’t leave your business and go and shop at your competitor’s store.
The online business and e-commerce market is growing faster than ever. Almost all businesses have online sales channels, which is why they need a 3PL that can provide top-notch software solutions and integrate with their online stores. 3PLs that use software to automate and streamline the logistics for a business are more likely to be successful and have more businesses ready to work with them.
3PLs understand that having IT capabilities is crucial in today’s day and age, which is why they already have their own software that they use and offer to the businesses they work with. 3PLs have gained experience over the years when it comes to technology, which is why most businesses that are working with 3PLs are satisfied with the IT solutions the 3PLs have to offer.
When it comes to the use of big data to improve operations, it is crucial to have a strategic approach and well-aligned ideas. If the strategy and data is not aligned, using big data will get you nowhere, according to the shippers that work with 3PLs. These shippers want 3PLs to have all the data initiatives organized, making them easy to analyze and use for further improvement.
Shippers that work with 3PLs are more inclined on having data that they can use to make future decisions. It is important that 3PLs use the adequate software and strategies to record data related to shipping times and needs. The data collected can help make the shipping process more efficient and organized. Using data can also help 3PLs create accurate inventory forecasts for businesses that store their inventory with a 3PL.
Using software has become common for 3PLs. Most of the leading 3PLs in the world develop their own software or warehouse management system, which helps them integrate with online businesses without any hassle. Software used by 3PLs streamlines all their operations, making them more efficient. Most 3PL warehouses use software to track inventory and stock levels, track orders, manage employees, create inventory forecasts, and much more. 3PLs are using advanced technologies to provide businesses that work with them with the best possible experience.
As the 3PL market continues to grow and expand, it is clear that more businesses are feeling comfortable working with 3PLs and outsourcing most of their logistical tasks. The statistics prove that companies who have teamed up with 3PLs have had a positive experience, so why should you get left behind?
Partnering with a leading 3PL, like Meteor Space, can help you unlock the full potential of your business. We provide end-to-end services, taking care of all your needs. From warehousing and storage, inventory management, pick and pack, software solutions, to fast and affordable shipping: we offer everything!
Once you outsource your logistics and fulfillment to Meteor Space, you can have the time to focus on other aspects of your business, develop better marketing and sales strategies, and invest money in bigger opportunities that come your way.
We will help you cut down on your expenses and free up your time and resources. Our bespoke software is here to streamline all your operations and provide you with a 360-degree view regarding all our processes. Most importantly, we make sure all your orders reach your customers on time and create the best experience for them!