3PL Services Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location, scale, and the type of business play a vital factor in analyzing the rate benchmarking of 3PL services market. In our research, we have analyzed the rates of 3PL services in the U.S region. With the rise of the e-commerce market, there is an increased demand for integrated logistics service providers. For instance, for a small e-commerce business, onboarding a 3PL service partner will cost around USD 500 - 800 depending on the service type. Services include integration of the online store with the 3PL’s warehouse management software, creating inventory for the business, and staff training to handle orders. Onboarding charges further increase depending on the complexity of the businesses. If a business opts for a flat-rate-per-month pricing model for account management, prices can range between USD 75 - 300 per month or USD 40 - 70 per hour.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Senior Procurement Officer (or, Senior Buyer) for 3PL services at DHL, FedEx, Nippon Express receive a 10% - 15% higher base salary compared to the salary received by Senior Buyers working in companies such as UPS and DB Schenker. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the 3PL Services market over the last two years:

In April 2023, FedEx announced that it would integrate its different delivery companies into a single unit as a part of its cost savings program, a target of reducing USD 4 billion in permanent costs by the end of FY 2025. The integrated unit, FedEx Ground combined with FedEx Express, is projected to handle all units from June 2024.

In March 2022, DHL announced the acquisition of Hillebrand Group, which specializes in ocean freight forwarding services. The acquisition aims to use Hillebrand’s customer-facing digital tools and strengthen DHL’s Ocean freight services in the bulk liquids market.

In May 2021, C.H. Robinson announced the acquisition of Combinex Holding B.V. to expand and strengthen its transportation business in the Western European region. C.H. Robinson will utilize Combinex’s haul capabilities to expand its fleet business segment in the short-medium haul market.