3rd Party Warehouse Companies

Aug 01 2022

A Better 3rd Party Warehouse Company

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Third-party logistics are the center of the supply chain for industries in inventory management. Given the growth of e-commerce and the Omnichannel fulfillment network, many firms now see the need to specialize in logistical operations. As a result, 3rd party warehouse companies have now become directly responsible for some tasks organizations previously handled themselves.

3PLs manage a range of delivery functions on behalf of sellers, covering DTC and B2B logistics operations. Such duties include transportation, warehousing, and supply chain management.

They apply technology and a professional workforce in their distribution centers. Some 3rd party warehouse companies specialize in particular product categories, use technologies that interact with different distribution channels, and even offer benefits that optimize an organization's supply chain.

What Are 3PL Companies?

A 3PL company is a contracted firm that manages another company's supply chain and logistical functions. Clients outsource them for third-party delivery and warehousing requirements of their inventory and fulfillment services. A business may take the orders and delegate all other responsibilities to a 3PL provider. The largest 3PL companies allow the outsourcing business to concentrate solely on their organization's selling aspect while handling all other duties. Along with managing their inventory, top 3PL companies also stock, store, and deliver other businesses' goods. They are labelled as hybrid 3PL if they process and hold their orders and those of other customers. A 3PL provides services such as:

  • 3PL fulfillment services
  • 3PL warehousing
  • Management of returns
  • Customs clearance and brokerage
  • Management of returns
  • Transportation administration
  • Logistics technologies
  • negotiating freight rates
  • Auditing and collecting payments on freight bills
  • inventory management
  • Shipping forwarding

Logistics Companies in the USA

The United States is considered the world's largest economy mainly due to its geography, resources, and technological advancements. As a result, it also has one of the biggest consumer marketplaces in the world.

The modern logistics sector, which makes up a significant portion of the economy, is also part of the main factors contributing to its success. The role of a third-party logistics company in the country is to ensure that goods get to customers as quickly as possible.

Most of the biggest transportation management firms in the world are based in the US. They assist companies in connecting with both local and foreign clients for supply chain solutions.

If you're searching for the best 3rd party logistics companies near me that can help you keep up with demand, consider variables like shipment speed, transit systems, cost, and customer service.

When searching for 3PL companies near me, do a quick research online and check for third-party logistics examples you can use. Some third-party logistics companies near me include DHL, FedEx, and USPS.

Top 10 Logistics Companies in the World

Numerous top 3PL warehouse companies undertake fulfillment and distribution services for different businesses worldwide. The global top 10 3PL companies in 2022 are the supporting backbone of a rapidly expanding economy.

They assist companies in attracting more customers by enhancing their user experience. As a result, logistics companies continue to be an essential part of the growth of businesses.

Today, investors may launch their business from any part of the globe and use any of the top 100 logistics companies to deliver goods to their customers on time. The top logistics companies are classified from various parameters, including corporate income, facilities, number of warehouses, and overall sizes. Here are the top 10 logistics companies in the world in 2022.

FedEx

Founded in 1971, FedEx is a well-known logistics company with a robust supply chain network. It also falls among the top 10 logistics companies in the USA, providing services like Express freight and international shipping in e-commerce, healthcare, and aerospace industries.

DHL

DHL has steadily advanced beyond complete digitization and outstanding productivity. It provides management, consulting, and logistics services in the manufacturing, healthcare, engineering, and public sectors. That's why it's no surprise to be in the top 10 3PL companies list.

XPO

XPO Logistics is a reputable logistics firm with a vast network of 756 stations and 42,000 employees worldwide. In 2021, it was ranked sixth in the top 50 logistics companies in the USA, with gross revenue of USD 8,907 million. The company offers line-haul, last-mile, and freight transportation services. It serves the industries of manufacturing, healthcare, energy, engineering, and the public sector.

Nippon

With over 21,000 employees globally, Nippon has a massive supply chain network spanning 48 countries. It provides cross-border services, shipping, and contract logistics. The company serves small and medium-sized businesses in the healthcare, automobile, aerospace, and pharmaceutical industries.

UPS

UPS has about 540,000 workers working in 220 countries, providing cutting-edge supply solutions. It offers cross-border, shipping, and contract logistics services in the healthcare and high-growth industries.

Yusen

Yussen has 24,500 employees with over a century of expertise operating in 500 locations spread throughout 45 countries. It provides customs brokerage services, logistics warehouse services, and freight forwarding. The company specializes in the healthcare, electronics, aerospace, and packaged food industries.

JD Logistics

JD is a trucking company providing land transportation, lead logistics, freight forwarding, and contract logistics services. It serves the perishables, fashion, healthcare, aerospace, and automotive industries.

DB Schenker Logistics

The company provides fully tailored services, including packaging, shipping, and delivery. It specializes in land transportation, contract logistics, freight forwarding, and lead logistics.

Ryder Supply Chain

With 90 years of experience, Ryder Supply Chain Solutions offers flexible healthcare, automotive, and food and beverage services. It provides coverage for trucking, truck leasing, warehousing, and delivery.

Schneider Logistics

Schneider Logistics has more than 85 years of experience, specializing in port-drayage, international shipping, and other logistics services. It serves the chemical, healthcare, manufacturing, agricultural, and technology industries.

3PL Companies in the USA

As of 2022, the list of logistics companies in the USA stood at 14,302, recording a 4.2 percent increase from 2021. The IBISWorld 3PL rankings show an increase of companies by an average of 1.4 percent per year between 2017 and 2022. The three States with the most 3PL companies in the US are California, Texas, and Florida, with 2,939, 2,239, and 1,661 companies, respectively.

Most businesses conduct their interactions online. As a result, e-commerce businesses strive to satisfy customers' needs by aiming for quicker shipping solutions. This makes 3PL companies improve their working standards contributing to the rapid growth of the Third-Party Logistics industry in the US. The best 3PL companies for e-commerce in the USA include FedEx, DHL, UPS, Omni Logistics, and ShipBob.

Third Party Logistics Advantages and Disadvantages

Many businesses outsource their shipping, storage, and customer service operations to reach a worldwide audience and quickly adapt to rising demand. This comes at the expense of giving another company complete control over your product and consumer interactions.

Some of the advantages of third-party logistics include:

  • Access to more considerable market opportunities through specialization
  • Reduce expenses by utilizing advanced new technology
  • Accessibility to logistical resources
  • Ability to manage many clients at once

Although it has various benefits, there are also some disadvantages of third-party logistics, which include:

  • Irregularities caused by third-party companies could harm the reputation of your company.
  • You risk losing the infrastructure and talents you wish to build
  • It can be challenging to find a reliable 3PL

3PL Companies for Small Business

3PL companies are not meant for large corporations only. Most start-ups and small businesses have realized that using 3PL companies for outsourcing fulfillment and freight logistics is more productive and cost-effective.

3PL companies enhance small businesses' operations due to their specialization in retail fulfillment and logistics. They supply the necessary resources and save time and effort in planning and resourcing for logistics. Some of the best 3PL companies for small businesses include:

  • ShipBob
  • Red Stag Fulfillment
  • NTG
  • RedHawk Logistics
  • Whitebox

Best 3PL Companies to Work For

Many third-party logistics providers are on the market, making it difficult to determine the best 3PL in the USA. Go for companies with well-established tested procedures that support reliability and efficiency.

The best third-party shipping company that fits you should provide services consistent with your objectives and specializes in your industry. Some 3PL companies work with clients in particular industries or specialize in services that support the needs of specific businesses.

Consider the number and locations of the company's warehouses. Are the warehouses close to you? What is the proximity of these warehouses to your customers?

Fastest Growing 3PL Companies

The third-party logistics industry in supply chain management is rapidly growing with an estimated $8 trillion to $12 trillion annually and a global market value of USD 4.92 Trillion as of 2021. Most organizations use 3PL services to delegate their supply chain operations to more experienced professionals while concentrating on other areas.

More companies are resorting to selling and expanding their enterprises online. As a result, 3PL companies are becoming more aware of the need to offer customized services catered to the specific requirements of businesses. C.H.

Robinson is one of the fastest growing third-party logistics providers, with a Gross Logistics Revenue of USD 15,490 trillion. Others include XPO Logistics, UPS Supply Chain Solutions, Expeditors, and J.B. Hunt (JBI, DCS & ICS).

Choose the Best Logistics Provider for Your Business

Before choosing a 3PL company, Identify your business goals, how much you are willing to spend, and the distance you want to ship your goods. Finding the ideal logistics provider for your company will be easier if you have clear answers to these questions.