Global 3PL Market: Overview
Third party logistics, popularly known as 3PL, is an outsourced logistics service framework wherein third party providers offer one or multiple procurement and fulfillment services to their clients. The service usually pertains to any one or all of these facets: freight management, contract warehousing, distribution management, fulfilment services, product sourcing, and freight consolidation. A growing number of businesses, notably merchants, who don’t have logistics as the core competency stand to benefit from 3PL services. To sum up, clients can outsource their varied and multiple supply chain management needs to third party logistics providers. 3PL services has witnessed steady evolution driven by the rising need for cost savings among businesses numerous end-use industries.
The drive for 3PL services stems from the need for cost-effective and effective choices for managing the growing complexity of warehouse operations and supply chain in the globalized world. This has led to the rapid evolution of the global 3PL market.
The report on the global 3PL market takes a closer look at the key growth dynamics and sheds light on emerging avenues in various end-use industries. The study offers insights that can help stakeholders to identify the segments likely to attract copious investments over the assessment period of 2016 - 2024.
Global 3PL Market: Trends and Opportunities
Burgeoning online in numerous developing regions across the globe is a key factor propelling the need for 3PL services among businesses. Rising demand by consumers for faster delivery in e-commerce is a notable trend bolstering the demand for 3PL. Decline in shipping rates in various parts of the world is one of the prominent factors driving the global 3PL market. Growing role of 3PL services in streamlining supply chain has also filliped the demand for 3PL services over the past several years.
Rapid strides made by e-commerce especially in developing countries has been offering constant impetus to the growth of the 3PL market. A growing number of small merchants in the sector may not have the necessary expertise in logistics and distribution. Hence 3PL services have gathered steam among them in recent years. Ceaseless advances in technologies pertaining to tracking technology have imparted a steady growth momentum for the global 3PL market. Substantial technological advancement made in radio frequency identification and global positioning system is a case in point. The advent of 3PL services that are tailored to the needs of various businesses has expanded the potential of the market. The adoption of these services scales integrated operations, transportation and freight services, and warehousing for client businesses.
Global 3PL Market: Regional Outlook
The report takes a critical look at the growth prospects of the key and emerging markets. It also highlights various macroeconomic trends that will keep some regions increasingly lucrative over the assessment timeline. On the regional front, Asia Pacific is expected to rise at prominent pace, with vast avenues coming from developing economies of China and India. The growth in the regional market is fueled by rising disposable incomes and democratization of the internet. Furthermore, sizeable investments being made by prominent e-commerce players create new avenues in the Asia Pacific 3PL market. Meanwhile, Europe and North America are expected to account for attractive shares in the global 3PL market.
Global 3PL Market: Companies Mentioned in Report
The report offers detailed assessment of the prevailing competitive dynamics in various regions and highlights factors that will influence the landscape in near future. It takes a critical look at the strategies adopted by key incumbent players and new entrants to gain a better hold over the global 3PL market in the coming years. Some of the well-entrenched players operating in the 3PL market are Ryder, Kuehne + Nagel, Yusen Logistics Co., Ltd., DB Schenker, CEVA Holdings, Nippon Express, and C.H. Robinson.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.