Aiming for a Result-Driven Logistics? Know How 3PLs can Make a Difference


Recently, the 22nd Annual Surveys of Third-Party Logistics Provider or 3PL industry leaders have revealed the current trends in the Supply Chain Industry. The survey, which was sponsored by a third-party logistics provider, have divulged an important information about 3PL CEOs that are enthusiastic with the current state and the future revenue growth that is possible on both their companies and other regional 3PL industries.

The annual survey that includes 30 CEOs from world’s largest 3PLs realized that there are more than 80% of the companies that was surveyed had a profitable moment in 2014. It was found that CEOs from the North America and Asia-Pacific Region had three-year revenue growth averages for their companies of 7.85% and 11.50% while the European CEOs have managed to forecast a 5.33% growth on the same period.

With the impressive growth in revenue, the two leading regions were also asked to project their regional industry revenue growth rates for the next three years, wherein North America reveals a projected growth of 5.92%, European CEOs with 4% and the Asia-Pacific CEOs with 5.75%.

The great news for the 3PL in the Supply Chain industry is inevitable since according to the president of a 3PL service provider, the 3PL industry continues to deliver value, cost-effective solutions and great efficiency through the close collaboration of the customers and the providers – thus enabling them to rapidly adjust from the economic conditions, business challenges and in meeting the consumer online shopping needs that requires new and agile supply chain.

Other than this, more and more companies are seeing the bright idea of entrusting the logistics on third party logistics service providers as it gives them many benefits such as being able to reduce the operational costs, and more importantly, allowing the company to focus more on their core competencies.

The hype of having 3PL firms to do the logistics for companies in various industries is that it adds to the bottom line of the customer and the supplier. This is made possible by having supply chain management solutions that involve accurate, organized inventory and optimized supply chain management system.

Some economic advantages of opting for the logistics services provided by 3PLs are;

  • Elimination of making capital investments to infrastructures.
  • Acquisitions of logistics expertise where total delivered costs are minimized.
  • Through advanced planning and management, reducing the inventory costs becomes possible.
  • Users were able to increase their access to global resources, services, processes, and technologies.
  • Scaled economies through resource-sharing, discounts on volume shipping, and increase in shipment visibility.
  • Enhancement of adaptability and flexibility of companies to respond to the changes in the world market
  • The addition of value to the manufacturing and marketing operations due to accurate and timely data reporting.
  • Improvement in the quality of customer service via shorter shipment times.
  • Logistics operations and total logistics cost become measurable and scalable because they can now be identified
  • Impressive gains in the productivity through the application of technology when managed effectively.

These are some of the profound benefits of having third-party 3PLs around to do the logistics works for companies who are struggling with the manufacturing and distribution costs. Which is why as much as possible, companies are highly advised to have their logistics outsourced to third-party 3PLs to ensure the growth of their revenue in the coming years.

4 comments on “Aiming for a Result-Driven Logistics? Know How 3PLs can Make a Difference

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