E-commerce Growth Fuels 3PL Automation
The unrelenting growth of e-commerce is fundamentally changing the third party logistics (3PL) landscape in the United States. From 2016–2018, the 3PL industry experienced a 21.6 percent increase in gross revenue, much of which can be attributed to the omnichannel fulfillment sector. To stay competitive and meet increasing consumer expectations for on-time and accurate deliveries, more e-commerce retailers are outsourcing mission-critical components of their distribution and fulfillment operations to 3PL partners.
But while many 3PLs are discovering new opportunities in the e-commerce sector, they’re also inheriting many of the same market challenges and being held to higher standards by their retail customers. To attract and secure these long-term, e-commerce contracts, 3PLs must have the fulfillment infrastructures and warehouse automation technologies in place to achieve their customers’ desired performance metrics. These technologies include:
- Labor management software and robotics
- Industrial internet of things (IIoT) connectivity, software and sortation
- Order picking and consolidation
Our infographic demonstrates how 3PLs can succeed in this competitive market by adopting a new approach to fulfillment and accelerating their transitions to automation and digital technologies.