An increase in globalization has helped third-party logistics providers in setting up a worldwide network of manufacturing activities.
Third-party logistics (3PL) is where a manufacturer outsources logistics and distribution activities. Likewise, many of today’s 3PL providers offer specialized services such as inventory management, cross-docking, door-to-door delivery and packaging services. That’s why the 3PL market is expected to witness growth at good pace, according to a study produced by Allied Market Research, Portland, Ore. Moreover, the demand is expected to rise due to increase in the focus of manufacturer and retailers on their core business (known as core competencies) and subcontracting activities, such as logistics where they have less expertise.
The study, “World Third Party Logistics (3PL) Market - Opportunities and Forecasts, 2014-2022,” shows an increase in the globalization has helped in setting up a worldwide network of manufacturing activities. To maintain efficiency, the demand of 3PL companies is expected to rise. The scope of 3PL services is also expected to increase, as productivity gains in supply chain in terms of cost and reliability can be derived with the help of managerial and information technology expertise provided by 3PL companies. Increase in the e-commerce industry and reverse logistics operations are also driving the market of 3PL industry.