According to the Council of Supply Chain Management Professionals (CSCMP) “State of Logistics Report,” it’s never been a better time for the Supply Chain & 3PLs.
The State of the 3PL Industry
The report contained industry insights that help members of the CSCMP do their jobs better and prepare for changes that will affect the entire industry. Knowing the place that logistics and supply chain management hold within the larger economy is key – and this year’s report showed massive growth.
In 2014, U.S. business logistics costs rose to $1.45 trillion, which represented a 3.1 percent increase from the year prior. This is great news overall, however, in comparison to the gross domestic product (GDP), the logistics industry shrank from 8.4 to 8.3 of the GDP.
Growth Overall Helps Everyone Related to 3PL
Even with this “shrinking,” 2014 saw the best year for the supply chain and logistics industry in some time. The transportation sector alone grew by 3.6 percent in 2014, which was the result of stronger shipment volumes. Overall, new job creation was consistent, real net income and household net worth was strong and inflation was low-to-moderate throughout last year, which gave consumers additional buying power. These increases translated into more ordering and more shipments.
With increases in consuming spending, freight shipments climbed as retailers were more frequently replenishing their inventories. Companies are using their supply chains to positively affect and further drive competition, innovation and business in general. Logistics providers – and good 3PLs – are in higher demand than ever.