As Logistics Management has been tracking over the past 18 months, the challenges presented by the pandemic has found domestic and global shippers leaning more heavily on their third-party logistics (3PL) providers.
And not surprisingly, the 3PL market has witnessed impressive growth as a result. As contributing editor Karen Thuermer recently reported, the U.S. 3PL market gross revenues grew 8.8% in 2020, bringing the total U.S. market to $231.5 billion, according to estimates by 3PL analyst firm Armstrong & Associates Inc.
“The Armstrong team found that the majority of that growth came from international and domestic transportation management, which responded to pandemic-related demands and the need to restock inventories as the economy began to re-open,” says Thuermer. “And this momentum is not about to slow down any time soon.”
In fact, Armstrong is projecting that revenue for 3PLs will stay strong throughout 2021, particularly in the domestic transportation management and freight brokerage sectors. The firm is currently estimating 20% growth by year’s end over 2020, and expects the overall 3PL market to continue to see double-digit growth over the next year.
However, 3PL operators are not without their challenges. For one, development of the e-commerce sector and increases in demand for services that manage supply chains worldwide are expected to escalate.
“Numerous factors continue to have an impact on the 3PL industry, most notably consolidation, e-commerce, and digitalization as well as the need to be resilient and responsive,” adds Thuermer. “However, the 3PL market tends to lead in technological and services innovation, so my estimate is that most providers will be up to the task.”
According to Logistics Management readers, the 40 3PLs listed in this category were not only equal to the task over the course of a bumpy 2020, but were able to stand out above the crowd by maintaining world-class services levels.
This year we have 19 winners in the Transportation Management Solutions category, with C.H. Robinson putting up the top, overall weighted score with an impressive 47.52.
Americold (10.27) and UPS Supply Chain Solutions (10.27) led the way in the Carrier Selection/Negotiation attribute this year, while TForce Worldwide put up top marks in Order Fulfillment (10.78) and Inventory Management (9.56). Echo Global Logistics had the highest mark in Transportation/Distribution (10.14), while BNSF Logistics posted an attribute-high 10.75 in Logistics Information Systems.
In this year’s Value-added Warehousing and Distribution Solutions category, Expeditors posted a 3PL category-high 52.66 overall weighted score and led the way in the Logistics Information Systems attribute with a notable 12.27.
Kuehne + Nagel put up top marks in Customer Service/Value-added Service (11.30); Ceva led the way in Order Fulfillment (12.69); Cardinal had high marks in Transportation/Distribution (12.07); while Averitt Express Supply Chain Solutions posted top score in Inventory Management (9.74).
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2021 Quest for Quality Winners Categories LTL | TRUCKLOAD | RAIL/INTERMODAL | OCEAN CARRIERS | PORTS | 3PL | AIR CARRIERS and FREIGHT FORWARDERS | |