“Make hay while the sun shines,” so the saying goes. If you’re a third-party logistics (3PL) company, the sun is out in full force! Let’s look the top 4 strategies used by fast-growing 3PL fulfillment companies to take advantage of a strong market right now.
3PL market size in the U.S.
The U.S. has the fastest-growing 3PL market, having exceeded USD $1 trillion in 2019. Now since the pandemic, that figure is estimated to grow 9% compounded annually between 2020 and 2026.
This explosive growth is attributed to the rising trend of globalization. In response to global supply chain disruptions, many companies decided to outsource their logistics to 3PL companies (often domestic) who may be less impacted and more reliable through the use of intelligent 3PL WMS (warehouse management software).
Great news for 3PL companies
Rapid market growth means rapid growth for you! Now let’s see if your 3rd party logistics warehouse can handle it. Better yet, can your competitors handle it—or is now your time to use their operational weaknesses to your advantage?
With so much competition, how can you differentiate your 3PL business to capitalize on massive growth opportunities?
3PL warehouses add value and speed growth
Through our extensive work and research with customers, we’ve found the most successful 3PL companies all share these as their top 4 focus areas that have added value for clients and grown their business quickly:
- Scalability: modern, flexible technology attracts more clients
- Quality Customer Service: clients pay more for security, speed & convenience
- Sense of Control: ability to offer fast solutions to unexpected logistics challenges
- Make it Easy: use integrations to speed onboarding, cut costs & enable desirable services like seamless order tracking & billing
Example: integrated billing and warehouse management pay off for ESM
Watch Video: How ESM Fulfillment is using automated 3PL billing to fuel growth
Offering a variety of billing options will increase your market appeal for multiple business types—this is especially true with the rise of omnichannel businesses. Today we’re seeing many third-party logistics companies operating under multiple business types. Some of your clients may prefer billing on a percentage-based system rather than per item, for example. Giving them both 3PL billing options is a huge advantage.
It’s grow time with 3PL warehouse solutions
Want to find out a faster way to get these strategies going for your clients, so you can capitalize on growth opportunities now? Grab our ebook for 3PLs.