Statistics And Facts About 3PL Services
Businesses and their operations are consistently undergoing changes which is also the reason behind their success and survivability. Outsourcing business operations is not anything new, but outsourcing the supply chain is considerably new and has offered great benefits. No matter the size or type, third-party logistics providers (3PL) are becoming influential in the corporate landscape. According to https://redstagfulfillment.com/3pl-definition-process-resources/, many eCommerce companies are able to expand operations on a shoestring. Following are some facts and statistics that might help grow your confidence in 3PL services.
- Global Logistics
The size and numbers behind the global logistics market are genuinely astounding. According to a 2021 report published by Statista, the total worth of global logistics stands at 8.6 trillion USD. The figure is set to grow massively in the coming years. However, 3PL companies have tapped into a fraction of this market and are looking at innovative ways to overtake the global logistics market.
- Biggest Providers
China is considered a pioneer in promoting 3PL services. This is why their 3PL companies are the leaders in logistics support. The services started at the turn of the century to accommodate foreign buyers; however, they have grown exponentially since then. A standard 3PL company does more than complete supply chains now; they are responsible for order delivery, inventory management, and product shipping. They can package and label the product and also offer warehousing solutions.
- Revenue
3PL companies have been responsible for the shipment and other logistical support for some of the biggest companies in the world. According to a report in 2021, the total revenue generated for the year by 3PL providers stands at 961.8 billion USD. The turnover is expected to surpass the trillion-dollar mark in 2022 as more businesses are looking to cut costs and bring efficiency to their order fulfillment process.
- Customer Services
When customers become satisfied with the service, chances are they will come back and bring new customers with them. This is essential for online and eCommerce businesses where word of mouth is the strongest and most effective marketing strategy. According to some reports, 86% of businesses agree their customer dealing has improved since hiring a 3PL company.
- Growth in the US
The US logistics market in 2021 made 278 billion dollars, and according to some projections, it is set to surpass 297 billion dollars by the end of 2023. Traditionally, 3PL services in the Asia Pacific make more revenue than any other region; however, the US stands at a close second and is set to take over the logistics market in the next decade.
- Outsourced services
Although 3PL services offer all kinds of logistical services, businesses use a couple of them extensively. Domestic transportation is used by 86%, 66% use warehousing services, and around 44% trust 3PL with freight forwarding.
All businesses trust 3PL services, but their support for small and medium businesses is undeniable. The coming decade is set to show the rest of the world why 3PL services are the future of businesses.
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