2027 Might See a Market Growth of Third-party Logistics at a CAGR of 7.1 percent

The global 3PL market was valued at USD 1,027.71 billion in 2019, and is projected to reach USD 1,789.94 billion by 2027, registering a CAGR of 7.1 percent from 2020 to 2027.

FREMONT, CA: A 3PL is a company that undertakes the management of courses of goods in a company’s supply chain and the smooth delivery of products from the manufacturer to the consumer on time. These services add value to the complete process, from the accession of goods to the distribution of finished products to the customers, demonstrating a productive and structured supply chain. Retailers and manufacturers use 3PL services to focus on their particular key competencies while outsourcing secondary services. The growth of the global 3PL market is enhanced and supplemented by advanced IT solutions like EDI and VMI. The world's 3PL market is further expected to witness considerable growth during the forecast period because of the increase in the development of the e-commerce industry and also the rise in trade activities around the globe. Moreover, the different rules and regulations in different countries have resulted in making the manufacturers 

See Also : Logistics Tech Startups

uncomfortable, which in turn has increased the demand for 3PL expertise companies to deal with them. Also, there is always a risk to reputation or business due to a lack of control over outsourced activities, which might hamper the growth of the 3PL mark. There is an attempt by the transportation and logistics provider companies to improve and upgrade their services to offer reliable service levels and improve efficiency. To provide innovative delivery solutions to first-party companies, third-party logistics service providers are embracing the newest IT solutions like warehouse management systems (WMS) and transport management systems (TMS).

The pre-eminent transportation service companies are taking initiatives to evoke the interest of companies to adopt committed contract carriage. For instance, Penske Corporation is a logistics service provider that puts forward a guide to untangle the process for first-party companies to assess the dedicated carriage services. It is noteworthy that the third-party logistics giants are obtaining other logistics service providers so that they can expand their businesses and market shares.