As companies and sellers experience periods of growth, it can become tricky for them to meet the demands put in place by their supply chains. It doesn’t matter whether it’s contract packaging, shipping, assembly or inventory management – companies inevitably need logistical help from time to time, no matter their size or scope.

As businesses continually move toward e-commerce and away from traditional brick and mortar establishments, there is a greater demand for shipping and logistics services than ever before. Because of this, we are seeing sustained third-party logistics market growth, validated by the essential services that these companies provide!
In-depth knowledge and resources

Any 3PL provider worth their salt will have in-depth insights into the functioning of the logistics and shipping systems in your local area, being readily armed with knowledge, contacts, and expertise which will help to streamline your supply chain and making meeting your targets more realistic.

The benefits of outsourcing

Another thing fueling third-party logistics market growth is the benefits that this kind of outsourcing can bring. For example, companies using 3PL solutions no longer have to pay to build a warehouse, hire additional staff, organize transportation, and install a bunch of other necessary equipment. Instead, they simply pay the 3PL provider a fee to sort it all out for them, giving them time to focus on their core business initiatives and positively affect their bottom line going forward.

Greater market reach

3PL services are particularly useful for companies who want to transport goods to areas where they currently have no presence. Many third-party logistics providers have access to warehouses and distribution centers in parts of the country which are alien to their clients, allowing them clients to expand their supply chains and ship to parts of the country which are further away.

Scalability

The third-party logistics market growth we’re seeing can also be attributed to the scalability of these services. For example, if you’re running a business which goes through busy times of the year (such as Christmas) followed by quiet periods (such as January), then a 3PL service can scale their labor, space, and transportation resources so as to meet your ever-changing needs. This provides you with flexibility throughout the year, as a 3PL provider adjusts their services to provide you with exactly what you need, as and when you need it.

The third-party logistics market growth we’ve been seeing is set to only continue, as the need for cost-effective on-demand logistics solutions continues to rise. Transporting is particularly prone to further growth, with manufacturers across the USA and Canada continually striving to expand their reach even further – hopefully covering the whole of the North American continent!