Top 5 benefits of Third Party Logistics - Supply Chain

The third party logistics market was valued at US$ 899.4 billion in 2019 and is projected to reach US$ 1,329.4 billion by 2027; it is expected to grow at a CAGR of 4.2% during the forecast period

Logistics is the core area of the third party logistics (3PL) firms and their proficiency in this area is always superior to that of the core companies. 3PL firms have the expertise to keep IT systems updated and deliver the logistic services in less time with reduced cost. Additionally,3PL firms can strategize to reduce company’s inventory cost, overall shipping and delivery costs, and can meet the technical requirements. The core companies may not have time or expertise to keep logistic services and systems updated. The companies often face challenges while meeting timely delivery of products during high business growth.

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The List of Companies - Third Party Logistics Market

1. SINOTRANS Limited
2. DB Group
3. Deutsche Post Ag
4. Geodis
5. United Parcel Service, Inc. (Ups)
6. XPO Logistics, Inc.
7. Kuehne + Nagel International AG
8. C.H. Robinson Worldwide, Inc
9. DSV A/S
10. Nippon Express Co., Ltd

Impact of COVID-19 Pandemic on Third party logisticsMarket

The impact of COVID-19 varied from country to country across the European region as selected countries witnessed a surge in the number of confirmed cases and subsequently attracted stringent regulations. For instance, countries such as Italy, Russia, and Spain have faced a notable disruption of supply chain activities due to the prolonged lockdown imposed by the government. As a result, the closure of national borders and restricted movement of goods haveaffected the growth of third party logistics market. Moreover, due to COVID-19 pandemic, a large number of small & medium enterprise owners have faced financial difficulty owing to the limited movement of goods across the European region.

Growing Focus of Manufacturing Companies Towards Reducing Assets and Emphasize on Core Business

The services offered by 3PL firms add substantial value to the manufacturing companies. These firms help various companies to overcome weak points that outcomes in loss of revenue or profits and further help to assure maximal profitability. 3PL companies are specialized in several logistics operations such as network analysis, mode network optimization, warehousing, management of vendor compliance, and other logistic operations.

In contrast with this, it is challenging for the core companies to recruit such logistic expertise in inventory management and storage, contract packaging, assembly needs, and shipping, among others in every business division. Thus, by choosing a 3PL firm, company is basically opting for experts in logistics, which enables the company to devote their time and resources on areas of core competency and actual business instead of using it on managing logistic operations. Moreover, the company doesn’t have to spend on building their own warehouse facility, hire additional labor, and install new technology by opting for 3PL firm.