What's Happening?
The logistics industry is witnessing a shift towards hybrid 3PL models, as the percentage of pure-play asset-based 3PLs decreases. The Inbound Logistics 3PL Perspectives survey indicates that hybrid models, combining asset-based and non-asset-based approaches, are increasingly necessary to meet market demands. The survey also highlights a decline in 3PLs serving wholesale businesses, while ecommerce activity continues to grow. Technology investments are identified as crucial for profitability growth, despite flat sales.
Why It's Important?
The emergence of hybrid 3PL models reflects the need for flexibility and adaptability in the logistics sector, driven by changing consumer expectations and competitive pressures from ecommerce giants like Amazon and Walmart. These models offer opportunities for enhanced efficiency and service delivery, positioning 3PLs to better compete in a dynamic market. The focus on technology investments underscores the importance of innovation in maintaining competitiveness and profitability.
