As with many other areas of logistics, the continued growth of e-commerce plays a key role in driving a persistent increase in the global third-party logistics (3PL) market, which is estimated to reach $1.3 trillion by 2024. Evolving e-commerce demands and changing consumer behaviors have led to increases in shipping volumes, carrier services, and parcel destinations, all of which increasingly complicate traditional 3PL operations.
To successfully navigate the challenges of today’s changing shipping environment, many prominent 3PLs have adopted technology to help reduce operational costs and improve efficiencies. Investing in technology empowers 3PLs to take a more advanced approach to end-to-end shipping execution.
That’s the case with many of the 3PL vendors in the 2020 Magic Quadrant for Third-Party Logistics Worldwide. Published by leading research and advisory firm, Gartner, this Magic Quadrant is a highly-regarded research report evaluating the capabilities and services of several global 3PL service providers, which supply chain leaders can leverage to inform and support the selection and appointment of global 3PL partners.
Logistyx would like to congratulate the innovative 3PL Leaders included in this year’s Magic Quadrant, many of which we’re proud to partner with, including DB Schenker, DHL, Kuehne + Nagel, UPS Supply Chain Solutions, and XPO Logistics. These providers show an exemplary proficiency for understanding the market, trends and customer needs, and translating those into well-executed service offerings further specialized for any number of industries.
Working with Logistyx and utilizing our cloud Transportation Management System (TMS) for parcel shipping enables a 3PL provider to successfully solve many shipping challenges, including the ability to:
- Manage their own carrier contracts as well as their customers’ carrier contracts in one system
- Increase carrier service choices, including multi-carrier services from FedEx, UPS, and the USPS, in addition to regional parcel carriers and same-day courier services such as Deliv and Shipt
- Use “zone skipping” to improve customer service and decrease transportation costs
- Aggregate and normalize shipping data across carriers, so 3PLs know when deliveries moving to a particular region, customer, or via a particular carrier are not meeting service levels
If you’re a 3PL looking to compete with the leaders in your industry and increase your parcel shipping execution capabilities, contact us today.