3PL Statistics 2023
– Everything You Need to Know

Last Updated on by | Reviewed by Editorial Staff

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3Pl Statistics 2023: Facts about 3Pl are important because they give you more context about what’s going on in the World in terms of 3Pl.

LLCBuddy editorial team scanned the web and collected all important 3Pl Statistics on this page. We proofread the data to make these as accurate as possible. We believe you don’t need to check any other resource on the web for 3Pl Facts; All are here only 🙂

Are you planning to form an LLC? Thus you need to know more about 3Pl? Maybe for study projects or business research or personal curiosity only, whatever it is – it’s always a good idea to know more about the most important 3Pl Statistics of 2023.

How much of an impact will 3Pl Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your 3Pl related questions here.

Please read the page carefully and don’t miss any words.

On this page, you’ll learn about the following:

Top 3Pl Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 32 3Pl Statistics on this page 🙂

3Pl “Latest” Statistics

  • According to logistic companies, finding and purchasing more warehouse space was the number one priority, according to 27% of respondents.[1]
  • Warehouse management software is used by 87% of the participating warehouses.[1]
  • 84% of customers claim that after only one bad delivery experience, they won’t use a brand again.[2]
  • Forbes reports that during the previous four years, the number of e-commerce goods delivered has climbed by more than 20%, reaching a total of 165 billion items sent in 2018.[2]
  • 86% of domestic Fortune 500 companies employ 3PLs for logistics and supply chain tasks as of 2018, according to Armstrong & Associates.[2]
  • 89% of younger customers say they’re more inclined to recommend a company when they had a good experience with it.[2]
  • Around 25% of the worldwide market in 2019 was made up of railroads, which provide prospects for cost savings, environmentally friendly surface transportation, and high capacity.[2]
  • Between 2020 and 2026, the market is expected to increase at a 9% CAGR, surpassing the USD 1 trillion mark in 2019.[2]
  • Strong regional roads that permit the transportation of a large amount of cargo will drive the APAC 3PL market’s growth at over 10% CAGR through 2026.[2]
  • Between 2017 and 2022, the Third Party Logistics industry in the US increased by 2.2% annually on average.[2]
  • U.S. eCommerce sales increased by 11% and 15% in 2018 and 2019, respectively.[2]
  • 86% of American consumers utilize at least two channels and interact with electronic media for up to 11 hours each day.[2]
  • One of the most urgent issues facing 3PLS, according to 21% of them, is finding warehouse space.[3]
  • 33% of 3PLS showed a strong profitability increase of more than 25%, and 79% of 3PLS reported better profitability over the last year.[3]
  • According to reports, the growth rate in the United States will end up being approximately 3.2% in 2021.[3]
  • 71% of people outsource their international transportation, whereas 81% of people outsource their local transportation.[4]
  • 28% of shippers said they will outsource most of their logistics, and 36% of 3PL providers concur that their clients are returning to outsourcing, albeit that percentage is down from 42% the year before.[4]
  • 55% of respondents said they were happy with their 3PL’s IT skills, and 93% of respondents said strong IT capabilities were a crucial aspect of a 3PL partner.[4]
  • 69% of respondents said they outsource their warehousing, and 50% said they outsource their freight forwarding.[4]
  • With over 425,000 sector personnel and $194 billion in total 3PL revenue thus far in 2019, the industry is growing at a 3% yearly rate.[4]
  • The 3PL market was estimated to be worth $1,027.71 billion in 2019 and is anticipated to grow to $1,789.94 billion by 2027, representing a 71% CAGR from 2020 to 20.27.[5]
  • There are no firms with more than 5% of the market in the Third-Party Logistics industry in the US, which has a low market share concentration.[6]
  • Over the five years between 2017 and 2022, the number of enterprises in the U.S. Third-Party Logistics industry in the US sector increased by 21% annually on average.[6]
  • According to research by the International Association of Refrigerated Warehouses, staff turnover was on average 32.5% in 2018.[7]
  • According to the US Bureau of Labor Statistics, the turnover rate for 2020 employees in the transportation, warehousing, and utility sector was alarmingly high at 59.5%.[7]
  • 91% of 3PL consumers and 97% of 3PL providers say their interactions are fruitful and their work yields favorable outcomes.[8]
  • 75% of shippers said that using 3PL services helped lower overall logistics costs.[8]
  • Inquire about prices when partnering with a new 3pl, there are significant initial charges, but over time, you’ll probably save money on lower overhead and labor costs.[9]
  • Breaking fulfillment commitments to customers may have a significant negative impact on your company, especially in an era when 60% of consumers worldwide demand same-day, next-day, or two-day delivery.[9]
  • 37% of retailers said they intended to recruit new 3PL fulfillment companies or switch existing ones in the next year.[9]
  • 90% of Fortune 500 companies seek assistance from third-party logistics providers.[9]
  • Rents for warehouse space are forecast to rise by 10% in the next year, and the shortage of 140 million square feet of warehouse space anticipated by 2024 will undoubtedly drive up the cost of storage facilities.[9]

Also Read

How Useful is 3PL

At its core, 3PL refers to the outsourcing of logistics processes to external specialists, specializing in various functions such as transportation, warehousing, and distribution. Over recent years, the adoption of third-party logistics has witnessed a significant increase as companies realize the potential benefits it offers. Now more than ever, companies recognize that collaborating with experienced logistics providers can provide them with a competitive edge, allowing them to focus on their core competencies and leave logistics operations to the experts.

One of the most notable advantages of working with a 3PL provider is enhanced flexibility. As organizations face ever-changing customer demands and swift shifts in market dynamics, having the ability to adapt quickly is crucial. By engaging a 3PL partner, companies gain access to a vast network of resources, infrastructure, and expertise that can support their changing needs and help them scale operations efficiently. Whether it is managing increased order volumes or expanding into new markets, partnering with a 3PL can help in rapidly scaling up or down effectively, avoiding the need for substantial capital investments or additional personnel.

Collaborating with a 3PL provider also allows businesses to tap into industry best practices and cutting-edge technologies without the burden and investment of developing these capabilities in-house. With market-leading expertise and an in-depth understanding of evolving industry trends, 3PL providers can bring fresh insights and creative solutions to address supply chain challenges. They tirelessly monitor advancements in technology and leverage sophisticated tools and systems for inventory management, demand forecasting, and transportation optimization. By leveraging these capabilities and staying ahead of industry innovations, companies can enhance operational efficiency, reduce costs, and eventually improve customer satisfaction.

Furthermore, outsourcing logistics to a 3PL provider brings improved geographical reach and accessibility to global markets. Expanding into new regions or countries can be a daunting endeavor for any organization due to unfamiliar regulations, cultural differences, and logistics challenges. In such instances, partnering with a 3PL provider with expertise in global logistics can prove invaluable. These specialists possess the knowledge and networks needed to navigate complex international logistics, ensuring smooth operations, timely delivery, and compliance with all relevant regulations. With the support of an experienced 3PL partner, companies can tap into new opportunities, widen their customer base, and establish an unrivaled global presence.

In conclusion, the rise of intensified competition and dynamic markets has made efficient supply chain management a critical aspect of organizational success. By collaborating with experienced 3PL providers, businesses actively navigate evolving challenges and elevate their logistics operations to new heights. The flexibility, expertise, technology, and global reach offered by 3PLs are undeniably valuable in meeting the demands of today’s constantly evolving business landscape.

Reference

  1. supplychaindigital – https://supplychaindigital.com/logistics/3pl-central-year-review-3pl
  2. webinarcare – https://webinarcare.com/best-3pl-software/3pl-statistics/
  3. 3plcentral – https://www.3plcentral.com/blog/3pl-statistics-you-should-know
  4. 3plworldwide – https://www.3plworldwide.com/statistics-for-3rd-party-logistics-companies/
  5. alliedmarketresearch – https://www.alliedmarketresearch.com/3PL-market
  6. ibisworld – https://www.ibisworld.com/industry-statistics/number-of-businesses/third-party-logistics-united-states/
  7. kanelogistics – https://www.kanelogistics.com/blog/whats-your-warehouse-turnover-rate
  8. plslogistics – https://www.plslogistics.com/blog/8-fascinating-statistics-from-shippers-about-3pls
  9. shopify – https://www.shopify.com/enterprise/third-party-logistics-3pl

About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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