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The Impact of E-commerce on Third-Party Logistics Market Trends


The e-commerce industry has been witnessing commendable growth over the years, primarily driven by the introduction of various technologies, which is likely to positively influence global third-party logistics (3PL) market size. Various leading e-commerce companies are adopting 3PL in their operation to simplify supply chain solutions.


3PL providers ensure timely delivery of products and monitor issues regarding tracking, shipping, warehousing, and inventory worldwide. Improving economic conditions primarily in developing countries like China, India, Japan, Singapore, and Thailand along with changing consumer preferences is supplementing the use of e-commerce sites to purchase products ranging from food to electronic items.


The third-party logistics industry has recently emerged as one of the most lucrative sectors worldwide, owing to the wide set of collaborative services extended by third-party logistics providers. Prominent third-party logistics companies constantly improving their offerings include CEVA Logistics, UPS Supply Chain Solutions, FedEx, DB Schenker, and DHL, among various others.

How is the third-party logistics industry shaping the development of supply chain management systems?


3PL providers, in essence, help retailers to improve their services and enhance their customer base. The adoption of these services majorly assists e-commerce companies to maximize their operational efficiency and improve the profitability of sellers.


3PL services assist in reducing the cost of shopping, lowers the time taken to deliver the product, enhances consumer satisfaction, and fulfills the need for advanced supply chain management. With the massive expansion of companies across the world and the simultaneous growth in their consumer pools, the 3PL market will observe a meteoric rise in the near future.


Why are advanced software technologies impacting the adoption of third-party logistics services?


Major third-party logistics providers are heavily investing in novel technologies, expanding their service portfolio, and widening their global reach. Software solutions widely being used by the companies for logistics applications include cloud ERP and SCMs. The software renders several benefits like real-time data, online documentation for international freight, warehouse management, and inventory tracking in order to gain the attention of current and potential manufacturers.


The deployment of superior technology unfailingly leads to efficient results and by extension high profits. Notable 3PL industry players are readily adopting various advanced technologies for transportation management, distribution center management, supply chain management, and data analytics.


Will Europe emerge as a promising revenue pocket for the third-party logistics 3PL market?

Regionally, Europe is poised to emerge as one of the profitable revenue terrains in the coming years primarily owing to the high internet penetration in the region. The enhanced purchasing power among the people and the constantly changing demand patterns are shifting the marketplace online due to a wide variety of product availability at a relatively lower price.


The advanced manufacturing industry which produces high-quality products is another integral factor supplementing the demand for products in the region. Reportedly, in the year 2019, the UK became the ninth biggest manufacturing hub in the world, showcasing an annual output revenue of close to USD 192 billion. European free trade agreements with several other countries across the globe are amplifying 3PL market prospects.

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