Third Party Logistics Market Size, Status, Growth | Industry Analysis Report 2020-2027

Third-party logistics (also known as 3PL or TPL) is a system in which a company (the third party) offers inventory management and delivery services to another company.

A 3PL firm transfers products from a local or international manufacturer/supplier to their final destination.

Third-party logistics providers handle inventory management, inventory storage, packaging/warehousing, freight forwarding, customs clearance and declaration, shipping and distribution, and additional services (depending on the contract).

In exchange, the 3PL handles some or all of the company's logistical needs.Third-party logistics is an application of logistics in supply chain management and logistics in which a company uses third-party logistic services to outsource supply, warehousing, and fulfillment services.

The raw materials, equipment, labor, and other resources required after the completion of a product or process are all part of the supply chain.

They include the production facility, its location, the items that are made there, the means by which the products are conveyed to the ultimate consumer's location, and the distribution channels through which the finished products are dispersed.These components make up the supply chain structure, which must function effectively in order for a firm to be successful.

Third-party logistics providers typically specialize in integrated operations of warehousing and transportation services that can be scaled and customized to customer’s needs, based on market conditions to meet the demands and delivery service requirements for their products.

Our Services often extend beyond logistics to include value-added services related to the production or procurement of goods, such as services that integrate parts of the supply chain.

The scope of the global Biopharmaceutical Third Party Logistics (3PL) Market was appreciated at US$ 86.37 billion in 2018.

Growing adoption of automation in manufacturing facilities to reduce operational costs is driving demand for third party logistic services.

Supply Chain Insights Based on supply chain, the biopharmaceutical third party logistics market can be bifurcated into non-cold chain and cold chain.

Others segment includes procurement services, packaging, and custom and duty management.

Others segment is likely to expand at lucrative CAGR over the forecast period owing to rising focus on packaging of drugs in terms of uniformity, shelf life, and purity.

Regional Insights Regional segmentation includes Europe, North America, Asia Pacific, Latin America, and Middle East and Africa.

The global Third Party Logistics (3PL) Market is expected to value at USD 1.24 trillion by 2025.

The 3PL industry is subject to witness a substantial growth due to the recent technological advancement in the various logistics services, rising transportation activities in both developed and developing economies across the globe and increasing shipping demand.

The number of service providers are improving their supply chain capabilities due to numerous growth opportunities available, thereby driving market growth, in the recent years.

Globally, the third party logistics industry is predicted to grow at higher CAGR in the forecast period, providing numerous opportunities for market players to invest for research and development in the 3PL market.

Increasing transportation & infrastructural activates in the Asia Pacific and North America region is anticipated to boost market growth in the upcoming years.

Other application of the third party logistics services include private and local utility sector, healthcare industry, media and entertainment sectors.