Outsourced 3PL Market: Multinational Supply Chain Efficiencies Driving Growth

Outsourced 3PL Market: Multinational Supply Chain Efficiencies Driving Growth

Global manufacturing companies are striving to improve their supply chain efficiencies with improving global trade, diversified geographical operations, and adoption of the outsourcing route. These manufacturing companies require global services, relationships, and technologies that only larger third-party logistics (3PL) firms can provide.

3PL providers have everything to gain from this increasing global phenomenon of outsourcing and globalization. Following a non-asset based model, 3PL providers have more flexibility in a softer demand environment than asset-based carriers as these providers do not need to own planes, ships, fleet of trucks or a substantial fixed cost network.

The 3PL industry is highly fragmented with the global presence of around 4000 3PL providers. Although there are a large number of companies competing in one or more segments of the industry, but the number of firms with a global network that offer a full complement of logistics services is more limited. Increased fragmented market has lately, spurred consolidation. As a result, only those 3PL firms are likely to gain major share of the market that has got broader service offerings, better and innovative technologies and capacity relationships.

The report is a study of the global logistics industry with specific focus on the 3PL segment. It analyzes the global and US logistics industry, the growth of 3PL segment globally and also in the United States. The report assesses the various factors that are driving the growth of the 3PL markets, the opportunities that are there in the Asian market and also the challenges the companies are facing. The report also analyzes the positioning, strategies and customer segments of the top seven global 3PL companies.

1. Logistics Market: Characteristics and Models

1.1 Defining Logistics
1.2 Modes of Freight Movement
1.3 Asset-based versus non-asset based logistics providers

2. Global Logistics Market

2.1 Global Market Size and Growth Drivers
2.2 US Logistics Market
2.2.1 Growth of US logistics market
2.2.2 Trends in the US Expedited Logistics Market

3. Third Party Logistics (3PL) Market

3.1 Defining the 3PL market
3.2 Functions of 3PL providers
3.3 3PL: Global Market Size and Growth
3.4 US 3PL Market

4. 3PL Market Segments

5. Factors Driving Growth in 3PL Market

Growth in economies
Focus on the main business line
Growth in global supply chains

6. Growth Opportunities in the 3PL market

6.1 China
6.2 India

7. Challenges faced by 3PL Providers

Potential for railroad service deterioration
Slow down of the freight-generating sectors of the economy
Increased brokerage competition
Reliance on assets of other carries

8. Competitive Landscape

8.1 C.H. Robinson Worldwide

Company Profile
Customers
Business Strategies

8.2 EGL, Inc.

Company Profile
Customers
Business Strategies

8.3 Expeditors International

Company Profile
Customers
Business Strategies

8.4 Forward Air Cargo

Company Profile
Business Strategies

8.5 Hub Group

Company Profile
Customers
Business Strategies

8.6 Landstar System

Company Profile
Customers
Business Strategies

8.7 Pacer International

Company Profile
Customers
Business Strategies

9. Market Forecast for 3PL Providers

Table and Charts

Figure 2.1: Global logistics market compared to GDP growth: 2006
Figure 2.2: Global logistics market share by country: 2006
Figure 3.1: Global 3PL market by region and % of overall logistics market
Figure 3.2: Global 3PL market share by country: 2006
Figure 3.3: US 3PL market growth: 2001-2006
Figure 3.4: US 3PL market growth by segment: 2006
Figure 4.1: Global 3PL market by segment break-up: 2006
Figure 8.1: Hub Group’s customer segment break-up
Figure 9.1: Global 3PL market forecast: 2007-2010
Table 8.1: 3PL Providers – Competitor matrix