The logistics industry is constantly evolving to stay competitive within a crowded marketplace of companies. Consumer shopping trends like e-commerce scaled the significance of final mile deliveries; stagnant sales orders and a gluttony of capacity within the U.S. truck market affect gross profit margins; and new technologies provided by transportation service providers are helping shippers become more efficient, productive, and profitable. Optimizing supply chains through digitization and advanced data analytics are productive measures designed to give shippers more transparency and control over their logistics operations. This article takes a look at the digital supply chain, showing logistics managers the advantages of partnering with a single source logistics provider to manage their supply chains.

Shipping managers know how important reliable transloading and warehouse services are to maintaining the integrity of their supply chains. These facilities are critical infrastructures that shippers and transportation service providers use every day to help connect global manufacturers to their customers. We already wrote about the different kinds of 3PL warehouse and distribution services available for shippers. We described some of the value-added services that shippers should look for when partnering with a transportation provider that owns its facilities.

Shippers are moving into Q2 2023 of the logistics calendar with a bit of uncertainty. On the one hand, a recent FreightWaves report shows that the U.S. imported almost 7% more containerized freight in March than the month before. On the other hand, shippers find it problematic that their inventory levels are still relatively high due to stagnant domestic sales fueled by ongoing economic inflation. The ratcheting of belts by U.S. consumers means it's less likely they will have the extra purchasing power to buy nonessential items. The increased container freight from last March was not equally distributed among North American ports. In fact, East Coast shipping terminals actually experienced a loss of container volume in U.S. ports like Charleston and Savannah. These ports are strategically important for a number of reasons. The drop in volume in the short term is most likely temporary when considering the long-term investment that has poured into East Coast ports in the past few years. Last month, we wrote about the concerns of a market slowdown on the horizon and how the long-term forecast looked pretty good for places like the Port of Savannah. 

Third party logistics providers (3PLs) play a crucial role in managing the operations and arranging the transportation for tens of thousands of shippers,freight forwarders, and major manufacturers found globally. According to a recent market report published last week, in 2022, the total 3PL market in the United States was estimated at over $230 billion; that same study forecasts the freight business to reach a market size of $488 billion by 2030. These numbers are staggering and indicate just how important  transportation service providers are in connecting global consumers to the essential and non-essential goods that we all desire on an everyday basis. But not all 3PLs are the same, of course. Most freight brokerages are simply a rate and a truck, and fingers crossed they actually have a truck in hand that doesn’t have a ton of freightguards and a poor service record.

In the midst of peak shipping season, global shippers are busy preparing themselves for the onslaught of holiday orders needed to supply the vast North American consumer landscape. And what they cannot fit in their stores, shippers turn to 3PLs with warehouse and distribution services to provide replenishment when it’s needed most. Some of the most dependable transportation providers out there are ones that have their own brick-and-mortar warehouse facilities, and can provide the middle-mile distribution to ensure supply chains run smoothly no matter what the shipping season might be. This article is intended to inform readers about the variety of extra services that some 3PLs provide shippers on a regular basis. 

Warehouse management, transportation fulfillment, 3PL service, and drayage outsourcing represent critical areas within the supply chain network that require constant innovation. With the use of innovative technology, the newest examples of on-demand services and tools, the modern supply chain network can be more prepared than ever to handle the functions of the current market. Traditional third-party fulfillment solutions have long been a part of the supply chain and shipping service market. However, their role in warehouse operations, transportation, and drayage services continues to grow in scope and influence.  According to Supply & Demand Chain Executive, 3PL service and drayage providers can help logistics managers with on-demand warehousing and inventory management and a host of other domestic and global shipping services.