The Future of 3PLs
Outsourced logistics services also known as third-party logistics (3PLs) has grown significantly since 2015. What is driving this $160 billion industry? Two key factors are lower fuel prices as well as a number of mergers and acquisitions.
The trucking industry continues to contribute to the significant growth but that growth puts pressure on 3PLs to manage carrier selection, risk and the supply chain. As more shippers use 3PLs they want contract rates to reduce the cost fluctuation. 3PLs face several challenges as they continue to change and adapt to shipping demands such as:
- Outside pressures – shipper instability
- Impact of e-commerce – growth and capacity
- Technology and value-added – adapting to technology changes and needs
Read MHI’s blog to learn how 3PLs gain efficiencies through innovative solutions and information sharing.