Changing Consumer Demand
The digital shift in consumer behavior has led to the rise of a true omni channel fulfillment landscape, with customers placing orders online, over the phone, through mobile apps and online marketplace.
Consumers want easy delivery experience from the time they make their purchase to when it arrives with them. These expectations have meant that many smaller retail and ecommerce businesses have been unable to meet increasing demands.
To help combat this and keep up with the digitally-empowered customer, ecommerce businesses are outsourcing their fulfillment to third-party logistics providers. 3PLs are able to store, package and ship their online orders faster and more efficiently, filling the gaps in the ecommerce supply chain.
COVID – 19 Pandemic
Pandemic marked a dramatic shift in consumer behaviors and industry disruption across supply chain.
Industry disruption signaled a reliance on larger 3PL operators that were able to adapt and keep up with demand and capacity.
Expanding Ecommerce & Globalization
Ecommerce is no longer linear, with omni channel shopping and supply chains, as well as expanding international marketplaces. The rise in globalization and increasing trade activities has changed the fulfillment landscape and been a key driver in the growth of the 3PL market.
To achieve success in today’s ecommerce environment businesses are investing in a solid underlying technology and finding the right 3PL partners with state-of-the-art 3PL warehouse management systems to handle their products and orders.