3PL Logistics: 10 Statistics That Will Make You Want to Automate Your Warehouses by 2025

Real estate constraints and labour shortages on one side, high performance in a multi-customer context on the other: here are ten key figures to help you better understand the challenges 3PL logistics (third-party logistics providers) face and, most importantly, how automation can help you successfully overcome them!

As consumer requirements grow, companies are increasingly keen to focus on their core business. Consequently, they are outsourcing their logistics operations to experts to remain competitive. As a result, the 3PL logistics market is poised for growth:

• According to industry experts, the 3PL market will grow by around 9% between 2022 and 2031.

This growth context is heightening real estate tensions for 3PLs, which are already significant for the logistics sector. As a result:

• While 1 in 3 warehouses store at more than 80% of capacity, this is more noticeable for 3PLs: 59% of 3PLs operate at more than 90% capacity.
• However, the majority of 3PL warehouses report decreased efficiency once they reach 80-85% space utilisation.
• Warehousing space represents the most significant expense for most 3PLs.

Looking for ways to operate more efficiently in their warehouses, 3PLs are also having to deal with the impact of labour shortages on their logistics performance:

• Indeed, labour shortages have impacted 56% of 3PLs’ supply chain operations in 2022.

Against this backdrop, what are the current challenges facing the profession?
The top 3 challenges facing 3PLs are operational efficiency (52%), cost management (51%) and finding and retaining staff (48%).

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How can automation help 3PL warehouses in addressing upcoming challenges? Here’s a look at some solutions.

The Challenge: Managing High Variability of Stock-Keeping Units (SKUs) in a Multi-Client Warehouse

1,082 bins per hour, 24/7 throughput: one of iForce‘s multi-client 3PL warehouses faced an increase in the rate of replenishment and dispatch of its products. Automation allowed the company to effectively manage its increasing SKU turnover over the past few years.

Founded in 1997, this 3PL company carries out storage and order preparation for e-commerce players and handles product returns. Of its 11 warehouses, three are multi-client. The Exotec solution, accurate to iForce’s DNA of innovation, was integrated into an existing system: an operational 3PL solution!

The Challenge: Anticipate the Future to Attract New Customers

Less than 2 minutes: At CEVA Logistics (CMA CGM group), items reach their picking station in less than 2 minutes, travelling at 4 m/s. This world leader sought a 3PL automated storage solution to bring innovation into its warehouses.

The aim? To anticipate future growth and win new customers through an innovation strategy. The solution needed flexibility to increase storage capacity while meeting sustainable development goals. A challenge successfully met!

The Challenge: Stand Out from the Competition and Prove Your Profitability

Less than six months: Supplyweb’s first results could be seen with 150 e-merchant customers after six months of use. The warehouse’s 3PL logistics solution handles up to 7,000 daily order lines to meet customers’ needs. The storage unit is divided into eight compartments, providing almost 192,000 units.

The company aimed to provide its customers with a more cost-effective solution. Automation has proven to be an added value in the face of competition, delivering reliable results that can be showcased quickly.

• Manage operating systems for multiple clients with different requirements.
• Generate profits based on your performance
• Maximise warehouse space
• Incorporate a sustainable dimension into your messaging and costs (generating energy savings, for example)
• Attract new customers with competitive pricing, innovation, sustainability, reduced complexity, reliability and expertise.

If any of these statements apply to you, find out how you can perform with our automation solutions for 3PLs.

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