Third-party Logistics Industry Category Intelligence
The continuous shift to e-commerce due to pandemic have fueled the need of robotics and automation solution across third-party logistics services for global organizations. However, these automation integrations take months largely because the software that operates them must be manually configured to work with an individual warehouse management system. DHL in collaboration with Blue Yonder is installing robotics solution, programmed with the ability to speak to different systems, removing the need for software configuration at each warehouse. This robotics hub would operate as middleware between the warehouse management system and the fleet management system. It standardizes the data and tasks that flow between the two systems such as, shelf location of a retail product, the quantity of a product to pick, etc.
Similarly, C.H. Robinson integrated 19 transportation management systems (TMS) and enterprise resource planning (ERP) systems into the company’s global multimodal transportation management system, Navisphere. This integration offers access to real-time pricing and capacity assurance and nearly eliminates the time required to get market quotes and book loads, making this a virtually instantaneous process. This integration offers access to real-time pricing and capacity assurance by eliminating the time required to get market quotes and book loads. This automation also provides greater flexibility and efficiencies for shippers at a critical time when they are faced with changing customer buying habits and supply chain disruptions such as COVID-19.
Third-party Logistics Industry Category Intelligence Highlights
Grab your copy, or request for a free sample of the “Third-Party Logistics Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & startegies
Third-Party Logistics Services:
Third-Party Logistics Industry – Pricing and Cost Intelligence:
Grand View Research has identified the following key cost components for availing 3PL Services:
Warehousing and transportation are the major cost components of a 3PL Services, accounting for more than 70% of the total cost of service.
Third-Party Logistics Industry – Supplier Intelligence – Capability based ranking & selection criteria with weightage:
Operational Capabilities –
Functional Capabilities –
List of Key Suppliers in the third-party logistics market
Add-on Services provided by Grand View Research Pipeline:
Should Cost Analysis
In the 3PL Category Intelligence study, we have estimated and forecasted pricing for the key cost components while availing services from 3PL organizations. Transportation is the largest cost component of 3PL service. Road transportation accounted for more than 75% share in overall transportation cost, which is majorly driven by crude oil price fluctuations. Crude oil prices increased from USD 40/barrel in 2016 to USD 70/barrel in 2018 before it was hit by the Covid-19 pandemic, resulting in price dropping to USD 19/barrel in 2020. Due to this, The Organization of Petroleum Exporting Countries were forced to cut the supply of crude oil in 2020. However, crude oil prices have been steadily rising through the start of 2021, and this is expected to continue in 2022, which will result in further hike in crude oil price, eventually increasing transportation costs
Rate Benchmarking
The size of the container is one of the most important aspects while analyzing the rate benchmarking of a 3PL service. In our research, we have analyzed the rates of 20ft and 40ft containers in the U.S. By using rate benchmarking analysis, we found that using a full load 40ft container is 17-18% more cost-efficient than using two full load 20ft containers. On the other side, 20ft containers are suitable for heavy cargo (Minerals, metals, machinery, sugar, paper, cement, steel coils etc.) and 40ft containers are suitable for voluminous cargo (Furniture, steel pipes, paper scrap, cotton, tobacco etc.). Hence, two 20ft containers can carry double the weight of a single 40ft container.
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Salary Benchmarking
Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.
Our research indicates that FedEx operations managers earn 20% higher salaries than operations managers from industry leaders like DHL, Kuehne + Nagel. However, the YoY increment rate in such companies largely depends on KRAs.
Supplier Newsletter
It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
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