This is part one in a two-part series. Read part two here.
There’s no question that 3PLs are an essential part of our economy. And while 3rd party logistics, or 3PL, companies are an uncelebrated part of the business chain, but an essential one.
Even though shippers and warehousers are largely unknown to the public, the industry as a whole is valued around $154 billion and growing at two to three times the rate of the gross domestic product (GDP).
What makes them such an important driving force is an even more interesting question, though. Since the Internet has made it possible to buy anything you might have ever imagined from anybody, anywhere, an equally large and far-reaching network had to emerge to get these products from the furthest reaches of the planet to your front door.
3PLs have helped to drive our economy in many ways, including:
Improving pick, pack and ship techniques. Pick, pack and ship is the key to moving orders across the country in days without errors. As companies like Amazon continue to improve the process by kitting, designing custom picking robots and involving warehouse workers in streamlining efforts, more small businesses are turning their fulfillment over to these 3PLs. 3PLs are also engaging more high tech industries to make their processes faster.
Speeding up package delivery. The faster you get your package, the happier you are and the more likely you are to order again, right? Today, fast package delivery is making a huge dent in the old attitude of wanting a product in hand right now. When you can have your product in less than 24 hours, there’s every reason to wait — especially if it means substantial discounts over the big box stores. People and their packages are being connected at break-neck speed, encouraging them to spend more on shipped products.
Driving purchasing technology innovation. You probably don’t give two thoughts to ordering through Amazon or paying with PayPal or Google Wallet these days — but even five years ago those were new and crazy concepts. Many of the newest purchasing options we have were once limited to online purchases through 3PLs — and as they built the trust of the masses, these great hassle-free options moved to the mainstream.
Although they’re largely unseen in everyday life, the sheer impact 3PLs have had on our national economy has been tremendous. They’re making inroads into other countries, too, and making big waves all over. Find out more about what 3PLs are doing to affect the global economy in part two of this two-part blog.
Source: http://www.ttnews.com/articles/basetemplate.aspx?storyid=37941&page=1
This is part one in a two-part series. Read part two here.
