Executive Briefings

Study: Third Party Logistics Will Be Worth $925Bn by 2020

The global third party logistics (3PL) market is expected to be worth $925.31bn by 2020 and will be partially driven by the outsourcing of secondary business activities, according to a new report.

Study: Third Party Logistics Will Be Worth $925Bn by 2020

Orbis Research's study found that the challenges of managing geographically dispersed supply chain operations as a result of increased globalization has led to several companies to outsource their logistics function. Difficulties with addressing logistical challenges has also led to increased outsourcing by wholesalers and retailers, thereby boosting the 3PL industry.

It found that emerging trends such as Big Data and availability of bespoke 3PL services are expected to drive the market over the forecast period.

One fast growing segment of the trucking and distribution industry is expected to be Dedicated Contract Carriage (DCC), which refers to vehicles, drivers, and other resources exclusively devoted to serving part of a transportation network.

Several prominent retailers such as Wal-Mart, Target and Kroger are increasingly relying on this kind of service in order to increase truck capacity and reduce costs.

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Orbis Research's study found that the challenges of managing geographically dispersed supply chain operations as a result of increased globalization has led to several companies to outsource their logistics function. Difficulties with addressing logistical challenges has also led to increased outsourcing by wholesalers and retailers, thereby boosting the 3PL industry.

It found that emerging trends such as Big Data and availability of bespoke 3PL services are expected to drive the market over the forecast period.

One fast growing segment of the trucking and distribution industry is expected to be Dedicated Contract Carriage (DCC), which refers to vehicles, drivers, and other resources exclusively devoted to serving part of a transportation network.

Several prominent retailers such as Wal-Mart, Target and Kroger are increasingly relying on this kind of service in order to increase truck capacity and reduce costs.

Read Full Article

Study: Third Party Logistics Will Be Worth $925Bn by 2020