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The third-party logistics industry is booming, with more and more businesses turning to a 3PL logistics company. This blog provides insight on what trends to watch for in the 3PL industry.

Trend #1: The Evolving Amazon Effect

WhatIs.com explains ‘the Amazon Effect’ as the continuing change and transformation of the retail market, as the increased demand and growth of e-commerce occur. The name acknowledges Amazon’s early domination in online sales –which has been behind much of these changes.

After hundreds of years of having a brick-and-mortar location from which to buy a specific product, along comes the Internet. Today, the buyer’s journey is still changing. Technology advances and innovations have evolved. Instead of running errands according to a strict schedule, buyers can access any product or service they need simply by reaching their smartphone.

Trend #2: Greater Demand for Technology (WMS) from Third Party Logistics

The increase of eCommerce and fast-acting globalization are the key drivers behind the growth in 3PLs. Catering to the current product demand, many companies outsource their logistic activities to third-party suppliers. VALUE-ADDED 3PL logistics need to differentiate themselves by providing more advanced services. Technology provides visibility and enables clients to have data available. Leveraging data analytics, reporting, and dashboards with business intelligence helps ensure shippers can make decisions faster and even adapt their inventory and other relevant factors to their advantage.

The old option of simply being the lowest-cost service provider is no longer as effective as it had been years ago.

Trend #3: Last-Mile Delivery as Brand Differentiator

Last-mile delivery has become more critical due to the growth of online orders. Price and product as key differentiators have been dethroned by final mile operations.

This is the step in logistics where customer satisfaction takes place. Last-mile delivery is when the package finally arrives at the buyer’s door, thus generating the positive reviews clients want.

Trend #4 Warehouse Automation 

Warehouse automation will grow over the following years. The use of automated robotic arms, automated guided vehicles, and drones will boost productivity and efficiency.

Freeway Logistics’ commitment to technological innovation over the last 17 years has allowed the company to continuously grow and serve its customers in new and better ways. Adopting new technology is in Freeway’s Logistic DNA.

The Takeaway

3PL is one of the fastest-growing industries in the world. This is due to the rise of e-commerce, which is also a driving force for reliable, cost-effective, and delivery solutions. Freeway Logistics is at the forefront.

For more information about how we can support your growing business, or request a quote, contact us at hello@freewaylogistics.com or by phone at 787-795-2539 or 832-767-5835.