The latest trends in third-party logistics providers

Armstrong & Associates, Inc. has released an expanded update to its best-selling report covering the various trends between third-party logistics providers (3PLs) and the customers they serve. “Co-managing the turbulence: Trends in 3PL/Customer relationships” features an analysis of over 8,400 current 3PL customer relationships in 44 countries, totaling nearly 22,000 services, the report identifies and details key trends in outsourced 3PL customer relationships. Armstrong & Associates has been tracking and analyzing customer relationships in the 3PL market for over a decade with ever-increasing detail.

The global 3PL market reached $1.47 trillion in 2022. This is up 14.5% over 2021 revenues and has nearly doubled since 2016. Globally, the three largest industry verticals are technological, automotive and retailing. Combined, they represent nearly 57% of global 3PL revenue.

Revenue growth trends for nine major customer industry subsegments are provided in the report for the Global Fortune 500, and by major region, including North America, Central/South America, Asia Pacific, and Europe from 2016 to current day. In addition, 3PL service and industry trends for these four major regions are examined with a deep-dive into 3PL relationships in six countries: China, France, Germany, Hong Kong, Japan, and Mexico. Detailed information is provided on leading 3PLs serving customers in the automotive, retailing, technological, and food and groceries industries as well.

The report also details the type and number of 3PL services customers tend to use. On average, 3PLs provide 2.60 services per customer relationship—often a combination of transportation management, warehouse management, and/or value-added services. This number has steadily decreased from the 2008 average of 2.98 and reflects an increase in 3PL use among mid-sized and small customers, which tend to have less complex supply chain service needs.

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