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Outsourced 3PL Market: Multinational Supply Chain Efficiencies Driving Growth
Koncept Analytics, Aug 2007, Pages: 34
Global manufacturing companies are striving to improve their supply chain efficiencies with improving global trade, diversified geographical operations, and adoption of the outsourcing route. These manufacturing companies require global services, relationships, and technologies that only larger third-party logistics (3PL) firms can provide.
3PL providers have everything to gain from this increasing global phenomenon of outsourcing and globalization. Following a non-asset based model, 3PL providers have more flexibility in a softer demand environment than asset-based carriers as these providers do not need to own planes, ships, fleet of trucks or a substantial fixed cost network.
The 3PL industry is highly fragmented with the global presence of around 4000 3PL providers. Although there are a large number of companies competing in one or more segments of the industry, but the number of firms with a global network that offer a full complement of logistics services is more limited. Increased fragmented market has lately, spurred consolidation. As a result, only those 3PL firms are likely to gain major share of the market that has got broader service offerings, better and innovative technologies and capacity relationships.
The report is a study of the global logistics industry with specific focus on the 3PL segment. It analyzes the global and US logistics industry, the growth of 3PL segment globally and also in the United States. The report assesses the various factors that are driving the growth of the 3PL markets, the opportunities that are there in the Asian market and also the challenges the companies are facing. The report also analyzes the positioning, strategies and customer segments of the top seven global 3PL companies.
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