• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Logistics » Careful Evaluation of Global 3PLs Needed as Merger Activity Accelerates

Careful Evaluation of Global 3PLs Needed as Merger Activity Accelerates

March 15, 2016
SupplyChainBrain

As customers consolidate providers, 3PLs are responding by expanding the breadth of logistics services they offer and their geographic availability. Over the past decade the industry has experienced rampant mergers and acquisitions (M&As). The activity has accelerated rapidly over the last 12 months with several billion-dollar deals, including DSV Group’s $1.35bn bid for UTi Worldwide, and UPS doling out $1.8bn for Coyote Logistics. FedEx’s offer for TNT Express finally gained regulatory approval from the EU.

However, companies require much more than a conglomeration of disconnected services to choose from. According to Gartner's most recent customer surveys, conducted as part of its 3PL Magic Quadrant collection, buyers of 3PL services seek a complete set of integrated services, with consistent and reliable availability wherever companies need them, all at a competitive price. Increasingly, companies want specialized capabilities, expertise and solutions specific to their industry, and demand partners that possess cultural qualities similar to their own, and an operating mentality that puts the customer's business objectives first.

Companies should take the following qualities and characteristics into consideration when determining which 3PL to work with.

• Does the 3PL provide consistent excellence in the execution of the basic logistics functions, is it proactive in service failure detection, and does it have pre-planned issue resolution procedures?

• Does it offer proactive innovation and share the advances achieved with other customers, and does it bring industry solutions (especially technology) to the company that it may not be able to accomplish on its own?

• Does it offer a seamless experience to the customer, regardless of which internal 3PL division is providing the specific service (for example, global freight forwarding, regional transportation management and contract logistics), and offer more end-to-end process improvements by integrating across traditionally disjointed functions?

• Does it develop and maintain integrated systems and technology with standardized interfaces across the spectrum of services and across regions? Is it devoted to simplifying the process of integration maintenance for the customer?

• Does it provide extreme responsiveness at the local team level, and does it have decision power to act quickly on behalf of customer needs? Is this supported by a corporate management structure that supports local needs when they span the corporate resources or when needs are outside of regular policy?

The Outlook

More mergers are likely to alter the 3PL landscape. When considering a 3PL, take special note of those that have been involved in M&A activity and confirm that there are no issues around integrating newly acquired services. Many deals take months or years to integrate and can result in sporadic service disruptions. In addition, remember that even the largest global service providers are not equal when it comes to the integrated logistics services, regional coverage and industry specialization demanded by businesses today.

    RELATED CONTENT

    RELATED VIDEOS

    Logistics Logistics Outsourcing Transportation & Distribution Business Strategy Alignment Global Supply Chain Management Pharmaceutical/Biotech
    KEYWORDS 3PL Business Strategy Alignment distribution network Gartner Supply Chain Global Supply Chain Management John Johnson Logistics Logistics Management: Third Party Logistics Logistics Outsourcing logistics services Pharmaceutical/Biotech Senior Content Specialist Supply Chain Analysis & Consulting Supply Chain Management Transportation & Distribution Transportation Management Value-Added Services
    • Related Articles

      Market Gains Confidence as Megadeal Merger & Acquisition Activity Takes Off in 2014

      The Supply Chain Executive View: Prepare Supply Chains Now for Merger Activity to Follow

      UPS Opens Hangzhou Healthcare Facility as Part of Global Expansion

    • Related Directories

      ProcureAbility

      GLS US

    SupplyChainBrain

    Hormuz Attacks Against Commercial Shipping Reach Record Highs

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • Stacks of multi-colored shipping containers arranged in rows at a port, with rows of blue and grey shipping cranes lining the background along the coastline

      Port of Savannah Approved for New 3.5M TEU Terminal

      Global Gateways
    • An overhead view of a port, with stacks of containers and vehicles moving through rows

      Podcast | AI in Supply Chain Planning: Impact, Promise and Limits

      Artificial Intelligence
    • An overhead view of a shipping port stacked with containers, with stylized lines forming a grid connecting ships and berths

      Beyond De Minimis: Why Importers Need Defensible Shipment Data

      Parcel & Express
    • On Demand Webinar Oliver Wight Wed Oct 14 2026 2p ET.png

      AI in IBP: From Data to Decisions

      Webinars
    • SCB_Q426_SAP_FSR_THUMB_2.jpg

      An AI Playbook for Your Journey to Autonomous Planning

      Global Logistics

    Digital Edition

    Scb q3 26 cover

    100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Amazon Freight Anaplan
    Arkieva AutoStore Blue Yonder
    Canadian National Railway Company Carton Cloud CoEnterprise
    Dassault Descartes Dexory
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Knapp Korber
    Lyngsoe Odyssey Logistics OMP
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    S&P Global Mobility Systech TADA
    Tive TransImpact US Bank
    Werner WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing