Third party logistics, also known as 3PL, is an outsourcing system wherein storage and transportation services are outsourced to a specialist company. Outsourcing these services allows companies to cut costs and focus on their core competency. Inventory management, delivery, packaging, and cross-docking services are now usually bundled with 3PL services, making the 3PL platform even more cost-effective. The global 3PL market is driven primarily by the rising preference to outsource all non-essential tasks in the corporate sector. This boosts the profit margin of the vendor significantly and the trend is expected to remain influential in the forecast period.
The global 3PL market is also driven by the increasing demand from the ecommerce sector thanks to the latter's steady growth in recent years. This is another major driver for the global 3PL market, particularly in developing countries, where the ecommerce sector stands to grow handsomely in the coming years.