Third-party Logistics Market Procurement Intelligence Report, 2025

Third-party Logistics Market Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model Analysis, Day One Analysis, Low & Best Cost Country Analysis Report, 2020 - 2025

  • Published Date: Sep, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-P-10501
  • Format: Electronic (PDF)
  • Historical Data: 2018-2019
  • Number of Pages: 60

Category Overview

“Growing adoption of Transportation Management System (TMS) is aiding to the growth of the third-party logistics market”

The global third-party logistics market is expected to witness sustainable growth (CAGR of 8%) from 2020 to 2025 as manufacturers and end-use industries in emerging countries lack the internal control required for addressing logistics challenges. Moreover, the rapid adoption of logistics software and IT applications, to increase distribution coverage, is expected to boost the demand for 3PL services globally.

Global Third-party Logistics Market Size

3PL suppliers are also positioning themselves for growth by collaborating with freight payment and audit companies to more efficiently handle time-consuming tasks such as back-office freight payment processing. Third-party logistics suppliers are collaborating with regional players to benefit from their knowledge of the local market, and maintain high-profit margins, low overhead costs, and their overall competitiveness. Furthermore, the advent of automation in logistics services is helping providers realize savings in processing and transportation costs.

Supplier Intelligence

“The global 3PL market is highly fragmented and competitive, with many large corporations striking strategic partnerships with mid-sized or small-sized companies to leverage their regional logistics capabilities.”

The third-party logistics market features a highly fragmented competitive landscape and entrance of several small players. An increase in mergers and acquisitions, coupled with diffused customer concentration, has enabled the suppliers to secure add-on offerings to realize growth in new geographies.

Global Third-party Logistics Market Competitive Landscape

However, the rate of acquisitions and mergers is expected to slow down in the near future, as the industry needs a substantial amount of time to adapt to the large number of acquisitions that took place in the last five years and focus on organic growth.

Pricing and Cost Intelligence

“Though cost transparency is lower, cost plus pricing model is offered by the suppliers to maximize profits with less management complexities.”

Transportation and warehousing are two of the biggest cost components (~70%) of a third-party logistics service. In the fields of warehousing and transportation, several cost components determine the overall cost of the service.

Global Third-party Logistics Market Cost Structure

The third-party logistics market procurement intelligence report provides a detailed analysis of the cost structure of the service along with the prevalent pricing models that prominent suppliers opt for.

Sourcing Intelligence

“The Chinese government has lowered transportation costs for export and import enterprises temporarily as part of the efforts to ensure that work is resumed as soon as possible and the foreign trade sector remains afloat amid the outbreak of the COVID-19 pandemic.”

The Asia Pacific regional market holds the highest share of the global 3PL market, owing to China’s position as the leading sourcing destination due to its low-cost transportation and warehousing services.

Global Third-party Logistics Market Cost Share-Warehousing & Transportation

However, quality concerns have been raised about China’s warehousing services in recent years, compelling customers to shift their supply chain to other equally cost-effective destinations such as India. India offers huge potential for growth owing to the increasing investments in its retail and manufacturing sectors. Factors such as the promising future growth prospects of India’s retail industry and an increasing share of organized retail in it are expected to drive the third-party logistics market in India over the next ten years.

From a sourcing perspective, the majority of suppliers opt for a full-service outsourcing engagement model as it reduces the complexities associated with in-house logistics.

Global Third-party Logistics Market-Engagement Model

Suppliers widely prefer approved provider operating models to reduce risks and improve the potential for value creation. As such, suppliers are expected to move from offering generic services to proprietary services in the future. The report also provides details regarding quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis.

Frequently Asked Questions About This Report

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Add-on Services

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

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