Expected Growth Within the 3PL Industry

The 3PL industry has grown a lot over recent decades as it has expanded its reach to countries all around the globe. Recently, Allied Market Research published a report showing that the industry is expected to reach $1.11 trillion by 2022. This remarkable growth shows how important 3PL services have become to businesses that want to improve customer satisfaction, shorten supply chains, and evolve quickly when markets change.

Areas of Expected Growth Within the 3PL Industry

3PL's growth becomes even more interesting when you look at the specific numbers. Some sections of the industry are growing faster than others. Apparel and footwear sold via e-commerce sites, for instance, make up an increasingly large chunk of the industry. Apparel and accessories now account for over $60 billion of the global economy and represent over 17 percent of all e-commerce business-to-customer (B2C) sales.

E-commerce apparel sales are expected to keep growing for the foreseeable future. In 2015, about 2.5 billion units of apparel, footwear, and accessories were sold online. By 2018, that number should grow to 3.4 billion.

Of course, e-commerce apparel sales aren't the only factor fueling the 3PL industry's growth. The 2016 Third-Party Logistics Study shows that manufacturing accounts for 18 percent of the industry, while healthcare and pharmaceuticals represent 14 percent of the industry. 3PL growth, in other words, is coming from a lot of different areas. Still, apparel stands out as the most important sector in B2C sales.

How 3PL Benefits E-Commerce Sites

E-commerce has easily outgrown brick-and-mortar stores in recent years. To some extent, that's because shoppers find it more convenient to order products online. Instead of driving to a crowded store that may not have the desired product in stock, they can shop online and have their orders delivered by mail. The shopping experience can't get much easier than that.

The success of e-commerce, however, depends on reacting to market changes and customer demands quickly. A bad customer service experience, such as an order that arrives later than expected or contains damaged products, could cause significant harm to a business, especially now that customers use social media to air their grievances against companies.

A reliable 3PL can improve most aspects of e-commerce by streamlining the supply chain, monitoring inventory, and tracking products to your customer's door. When unforeseen circumstances arise, an experienced 3PL can change its approach to make sure your customers get the products and services they expect.

Getting the 3PL Services You Need to Compete

Just because the 3PL industry is growing doesn't mean that every 3PL business is keeping up with the latest technologies and services. It's essential to choose an option that matches your company's needs. For instance, it helps to choose a 3PL provider that specializes in apparel to help you keep up with this ever-growing category of web-based shipping and has a centrally located warehouse that can quickly deliver packages nationwide.

The Apparel Logistics Group (TALG) provides a range of services that help e-commerce companies succeed. Visit TALG's apparel 3PL consultation page and request a conversation with a company representative to learn more about how the company can make your business more competitive.

Posted: 8/24/2016 4:44:59 PM by Global Administrator | with 0 comments

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