5PL Solutions: Introduction
- 5PL solutions are made up with an arrangement of 3PL (Third Party Logistics) solution and 4PL (Fourth Party Logistics) solution. The companies in 3PL supports the process of outsourcing transportation resources and 4PL handles the entire supply chain and provides superior level of logistics.
- 5PL (Fifty Party Logistics) service providers assure the management of supply chain networks. A 5PL provider implements and develops a superior possible supply chain or network.
- 5PL solutions providing companies realize more opportunity to alternative models through the integration of economic logistics solutions and consumer-centered demands that helps to enhance service offering and achieve superior sustainability.
- 5PL solutions are used to plan, organize, and implement logistics solutions for contract- based companies that primarily focus on using cutting-edge technologies such as Internet of Things (IoT) and logistics automation.
- Furthermore, 5PL solutions are based on Information Technology (IT) infrastructure that demands new management technology that accounts for the principle of group behavior and self-organization. Joint decision-making and logistical coordination mechanisms are integrated in order to establish more sustainable supply chain designs.
Global 5PL Solutions Market: Dynamics
Global 5PL Solutions Market: Key Drivers
- Growing cross-country free trade activities are opening up avenues for manufacturers to penetrate both developed and developing economies. The business practices are expected to boost the expansion of many manufacturing industries, such as electronics, automotive, and industrial manufacturing, all of which will help to fuel the rise of 5PL solutions.
- The growing demand for 5PL solutions around the world is attributed to increased national and international trade agreements. Demand for digital transformation in the logistics sector is also being driven by the introduction of important technologies such as IoT, Blockchain, Big Data, AI/ML, and Analytics.
- In addition, increasing m-commerce penetration, internet penetration, and e-commerce growth are likely to boost demand for 5PL solutions in the coming years. Multimodal logistics, supporting fast and efficient shipping, and complete security and transparency are all features of 5PL solutions.
- However, expansion of the 5PL solutions market is hampered by several government regulations in the logistics and transportation sector. In addition, the high initial investment necessary for acquiring 5PL solutions, as well as the high operational expenditures, would prove to be a challenge to the global 5PL solutions market in the future.
Impact of COVID-19 on the Global 5PL Solutions Market
- The COVID-19 outbreak has had a significant impact on the logistics industry. Lockdowns and temporary production halts caused by the economic crisis have thrown the entire industrial supply chain in disarray in a variety of industries. The logistics market is facing increased uncertainty due to waning manufacturing confidence and reduced demand for raw materials and commodities. Furthermore, changes in consumer purchasing behavior as a result of the pandemic's uncertainties could have a significant impact on the growth of the 5PL solutions market in the near future. However, over the foreseeable term, the market is expected to return to moderate growth.
Europe to Account for Major Share of the Global 5PL Solutions Market
- In terms of region, the global 5PL solutions market can be divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
- The 5PL solutions market is likely to be driven by Europe due to the increasing number of free trade agreements in the region. Europe is expected to maintain its dominance over the market during the forecast years. Increased free trade gives European firms more opportunity to sell their products in other developed and developing countries. These free trade agreements are likely to boost volume shipments in many industrial areas, including in electronics, driving up demand for 5PL solutions.
- However, due to increased manufacturing productions for electronics, automotive, and semiconductor components, the 5PL solutions for Asia Pacific are seeing rapid growth, resulting in a significant demand for 5PL logistics solutions.
Global 5PL Solutions Market: Competition Landscape
- Several 5PL solution providers are actively focused on green logistics to ensure regulatory compliance with stringent government regulations on logistics and freight activities for sustainability. Various companies are actively focused on organic growth strategies such as portfolio expansion, product approvals, certification, and product launches. Strategic growth plans witnessed in the 5PL solutions market include partnerships, collaborations, strategic agreements, and acquisitions
Key players operating in the global 5PL solutions market include:
- 5PL Logistics Solutions
- Deutsche Post AG
- DB Schenker
- Kuehne + Nagel Management AG
- CEVA Logistics AG
- United Parcel Service Inc.
- Dachser Group SE & Co. KG
- A.P. Moller - Maersk
- Schultz Shipping
- Nippon Express Co., Ltd.
- C.H. Robinson
- UPS Supply Chain Solutions Inc.
- XPO Logistics
- Hitachi Transport System, Ltd.
- Expeditors International of Washington, Inc.
- J.B. Hunt Transport Services, Inc.
- Toll Holdings Limited
Global 5PL Solutions Market: Research Scope
Global 5PL Solutions Market, by Service
Global 5PL Solutions Market, by Application
- Electronic Commerce
- Logistics Companies
Global 5PL Solutions Market, by Region
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
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.