Report: Third-Party Logistics Shows 3.2% Growth

Third-party logistics (3PL) showed a 3.2% growth in gross revenues in 2013 compared to a year earlier, according to a report issued earlier this month the consulting firm of Armstrong & Associates. And analysts predicted that growth will be 5.2% for 2014 as the US economy continues to show improvement

A third-party logistics provider is a company that provides service to its customers of outsourced — or “third party” — logistics services for part, or all of their supply chain management functions.

This year, net revenues are expected to increase by 4.3% from $64.6 billion in 2013 to $67.4 billion, according to an A&A news release.

Domestic Transportation Management (DTM) will increase 7.5%, the analysts predicted. Growth inDT continues to be fed by the expansion of the base of customers using 3PLs.

“It is common now for customers with as little as $3 million in transportation spend to use at least one 3PL,” the report stated. “Similarly, third-party logistics services provided are more systems-driven rather than just load-by-load transactions. Systems based ‘Enterprise Accounts’ constitute a significant part of the business for all  major domestic transportation managers.”

A&A is a supply chain management market research and consulting firm specializing in strategic planning, logistics, outsourcing, competitive benchmarking, mergers and acquisitions, 3PL service/cost benchmarking and supply chain system evaluation and selection. It is based in West Allis, Wisconsin, a suburb of Milwaukee.