AN SWG WEBCAST: What’s ahead for 3PLs

AN SWG WEBCAST: What's ahead for 3PL

This JOC webcast, featuring SWG CEO Steve Walker, will analyze the state of the 3PL market as the first quarter of 2019 comes to a close.

Global third-party logistics providers might feel like they’re in a vice-like grip.

On one side, logistics software providers, are trying to arm shippers with systems that render 3PLs less important, while on the other, some ocean carriers are aiming to recapture the supply chain management ground they ceded to 3PLs over the last decade.

Although much of the focus in 2018 centered on the impact that digital forwarders worldwide might have on legacy companies, that simplifies the challenges 3PLs face, especially those with extensive forwarding operations.

Margin-based buying and selling of capacity probably isn’t a sustainable model in an environment where shippers have detailed insight into freight rates.


Relying on shippers to use obsolete or user-unfriendly systems when easy-to-deploy, affordable, and browser-accessible freight management tools abound likewise isn’t a sound strategy.

And, with large global shippers generally preferring to deal directly with carriers as much as possible, the movement of carriers into services ancillary to port-to-port operations is another cause for concern.

All of these forces are set to compel 3PLs to double down on investment in two key areas: global supply chain visibility and execution and technology at large.

Those two are inextricably linked, and 3PLs focusing on those areas inevitably will move further away from a pure margin-taking model.

19 Mar 2019