3PL Market Procurement Intelligence Report | SpendEdge Forecasts Over USD 240 Billion Spend Growth in the 3PL Market

LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global 3PL market and the market is poised to experience spend growth of more than USD 240 billion through 2022 at a CAGR of over 5% during the forecast period. Request Free Sample Pages.

Read the 70-page research report with TOC and LOE on "The Global 3PL Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”

The COVID-19-induced lockdowns have brought bad news for enterprises in the global 3PL market. Restrictions imposed on the movement of goods have made it difficult for end-users in this market to fulfill customer’s delivery expectations. This has resulted in a downward plunging sales curve for most of the end-users. Consequently, this reduced the scope of procurement in the 3PL market. However, frontrunners in this pandemic period such as healthcare and FMCG sectors will continue to exhibit an extreme degree of reliance on 3PL service providers. While this will cater to spend growth prospects in this market, it will drive service providers to fortify their delivery infrastructure.

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Insights into the market price trends

• An increase in investments in technologies such as RFID packages is acting as a critical cost accelerating factor for service providers in the 3PL market. It is observed that a majority of service providers are shifting their operations from traditional on-premises approach to a cloud-based approach. However, it is expected that in the long run, leveraging technologies will help to curb their operational costs associated with server maintenance, thereby stabilizing their cost structure.
• To avoid the additional expenditure on maintenance, service providers are leasing vehicles instead of owning them. However, growing preference for the leasing of customized fleets will drive the overall costs for 3PL service providers.

Insights into strategies that will help buyers achieve a mutually beneficial partnership with service providers

Negotiate for a level of control

Prior to finalizing a contract, it is a recommended practice for buyers to negotiate with service providers for the inclusion of a pilot phase. This will offer buyers a clear visibility over their operational structure and how effectively they can offer logistics solutions. Buyers should seek visibility across the entire supply chain by asking suppliers to provide real-time monitoring capability through technologies such as mobile and telematics systems.

Assessment of logistics network designs

Buyers with large shipment volumes and long supply chains must assess the logistics networks of service providers to optimize lane structures, mode strategies, and capacity utilization. They must engage with service providers who are equipped with large distribution networks that leverage technology and partnerships with local carriers to ensure minimal disruption to the business.

Some of the top 3PL service providers enlisted in this report

This 3PL market procurement intelligence report has enlisted the top service providers and their cost structures, SLA terms, best selection criteria, and negotiation strategies.

• DHL
• KUEHNE + NAGEL
• DB Schenker
• Nippon Express
• C.H. Robinson
• UPS

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Some of the key topics covered in this report are:

• 3PL market spend segmentation by region
• 3PL supply market analysis
• Regional spend opportunity for 3PL service providers
• 3PL service providers cost structure
• Total cost of ownership analysis in the 3PL market
• 3PL pricing models analysis
• Category management objectives
• Cost saving opportunities in the 3PL market

Free sample of reports that you may like:

• Global 4PL Market – Procurement Intelligence Report
• Global Air Freight Market - Procurement Intelligence Report

About SpendEdge:

SpendEdge shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions. To know more, https://www.spendedge.com/request-free-proposal