Promising Outlook for Logistics Outsourcing
As shippers become more dissatisfied and their expectations of technology increase, 3PL companies are rising to meet their demands. They have begun by implementing technologies such as augmented reality and drone delivery. With the emerging markets in mind, and the demand for improvements in customer satisfaction, the 3PL industry has a lot of room to grow into.
The industry is in a position where stakeholders are faced with a pressing need to re-evaluate how they’re doing business. Consecutive years of increased customer dissatisfaction with logistics outsourcing has caused many companies to be skeptical. However, the industry is not at a total loss. The amount of outlay for inventory and logistics is coming down and levels of contract renewal are still healthy. Added to this, the emergence of new technologies such as 3D printing, augmented reality and drone delivery is providing many opportunities.
The next few years will be crucial for how 3PL will be shaped in the future. The industry is the midst of a subtle revolution, making these exciting times to be part of a business that provides logistics outsourcing. More and more companies are adding new technologies to their operation in order to provide a significantly enhanced service. However, there are challenges ahead, as you would find in any developing industry, but for those companies who are prepared to adjust to the changes in the market, there will be many opportunities.
Following a less than spectacular year in 2014, there is new buoyancy in the logistics and outsourcing market. Many 3PL companies are talking up their prospects for the coming year, and this is due to a belief that the wider economy will upturn significantly during this period. US economic growth is predicted to grow 3.5% during 2015, and a growth rate of 2.5% forecast for each year from 2016 until 2019. This is great news for the 3PL industry as economic growth leads directly to more shipments. There will also be a growth in opportunities in foreign markets in Asia and Europe and new & emerging markets in South America, China and India to name a few.
Companies will need to do everything to get on board with emerging technologies and provide their customers with the level of service they require, or risk missing out on a great opportunity to grow their business. The telling factor for many will be how well they can integrate them into their business.