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The 2016 3PL CEO Survey: Threats, Disruptions, and Opportunities

The 3PL faces unprecedented challenges from e-commerce, Amazon and new technologies. But opportunities abound for those 3PLs that turn them into a competitive advantage.

By ·

Threats, disruptions and opportunities. This might sound slightly counter-intuitive, but it is an accurate description of the results of the 2016 survey of the CEOs of 14 of the largest third-party logistics (3PL) companies serving the North American marketplace, representing $19.8 billion in North American 3PL revenues during 2015.

This is the 23rd iteration of this annual study, and this year, we are taking a little different tack. Along with surveying CEOs on economic topics, which we will publish separately on scmr.com, we also looked into the dynamics driving changes in the marketplace; the threats they may present to the 3PL industry as well as the opportunities they present to those 3PLs that can turn potential disruptions into a competitive advantage. Those topics included recent shipper reactions to the 2014-2015 labor problems at West Coast ports, changes in the e-commerce marketplace and their impact on 3PLs, Amazon’s continued expansion into logistics services, major technology changes affecting the 3PL industry and the growing use of data analytics by 3PLs.

E-commerce marketplace dynamics

E-commerce is an increasingly important revenue source for the 3PLs that participated in our 2016 survey, accounting for an average of 14.04% of their North American revenue base in 2015. That business grew by an average of 18.46% during that year. Given the growth potential of that market, these companies have substantially increased their resource commitments to developing and servicing e-commerce accounts.

This complete article is available to subscribers only. Log in now for full access or start your PLUS+ subscription for instant access.

 

By ·

Threats, disruptions and opportunities. This might sound slightly counter-intuitive, but it is an accurate description of the results of the 2016 survey of the CEOs of 14 of the largest third-party logistics (3PL) companies serving the North American marketplace, representing $19.8 billion in North American 3PL revenues during 2015.

This is the 23rd iteration of this annual study, and this year, we are taking a little different tack. Along with surveying CEOs on economic topics, which we will publish separately on scmr.com, we also looked into the dynamics driving changes in the marketplace; the threats they may present to the 3PL industry as well as the opportunities they present to those 3PLs that can turn potential disruptions into a competitive advantage. Those topics included recent shipper reactions to the 2014-2015 labor problems at West Coast ports, changes in the e-commerce marketplace and their impact on 3PLs, Amazon’s continued expansion into logistics services, major technology changes affecting the 3PL industry and the growing use of data analytics by 3PLs.

E-commerce marketplace dynamics

E-commerce is an increasingly important revenue source for the 3PLs that participated in our 2016 survey, accounting for an average of 14.04% of their North American revenue base in 2015. That business grew by an average of 18.46% during that year. Given the growth potential of that market, these companies have substantially increased their resource commitments to developing and servicing e-commerce accounts.

 

 


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From the December 2017
This is a comprehensive guide to services, products and educational opportunities targeted specifically to supply chain professionals. As with years past, we’re also featuring several articles we trust will offer food for thought in your supply chain throughout the coming year.
Transportation Trends: The last mile, history repeating
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