Third-Party Logistics (3PL) Procurement Intelligence 2030 : Third-Party Logistics (3PL) Category To Is Expected To Expand At A CAGR Of 10.7%

 3PL Services Procurement Intelligence

In this 3PL Services procurement intelligence report, we have estimated the pricing of the key cost components. Asset depreciation, fuel, accident insurance, and maintenance form the largest cost component of car rental businesses. Together, they account for more than 80% of the total cost. The cost also depends on the type of vehicle such as sedans, SUVs, or compact cars. For instance, a lifecycle analysis of a typical fleet sedan with an annual mileage of 20,000, an interest rate of 2.8%, and a depreciation rate of 2.25% shows that the cost per mile bottoms out at 48 months, with a value of USD 0.329. This is the optimal time to cycle the vehicles as the cost per mile will start to increase after this point.  

Further, the application such as local usage, airport transport, or outstation use also determines the price of the car rental service. When examining airport rental locations, the results were generally consistent with the overall averages, with only minor variations. In the United States, Orlando International Airport, Charlotte Douglas International Airport, and Dallas/Fort Worth International Airport had the lowest average rental car prices, with weekly rental prices of less than USD 600. Chicago O'Hare International Airport had the highest average price of USD 743 for a weekly rental.

Order your copy of the 3PL Services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - 3PL services

  • Years in Service - 15%
  • Geographical Service Presence - 35%
  • Employee Strength - 12%
  • Revenue Generated - 12%
  • Key Industries Served - 18%
  • Certifications - 8%

Functional Capabilities - 3PL services

  • Service Offerings
  • End-to-end service - 10%
  • Warehousing - 10%
  • Transportation - 10%
  • Distribution - 10%
  • Shipping - 10%
  • Integrated software and logistics - 10%
  • Others - 10%

Transportation Method

  • Road/Rai - l10%
  • Sea - 10%
  • Air - 10%

Rate Benchmarking

In this 3PL services procurement intelligence report, we have estimated the pricing of the key cost components. Transportation forms the largest cost component of 3PL services. Together with warehousing, they account for 60 - 70% of the total cost. In 3PL services, transportation costs include – modes by road, air, sea, and rail. Similarly, inventory carrying costs include insurance, freight, services, storage, and admin. Warehousing accounts for 31% of the total cost and includes the cost of order picking, storage, shipping and receiving, and others. The average cost of 3PL services can vary each month depending on the business size, type of business, number of orders, location, and many other factors. For instance, pick and pack services cost can range between USD 0.20 per pick to USD 7 per pick depending on the product. Fulfillment cost may include warehousing receiving, storing, and managing inventory, custom or standard packaging, kitting if applicable, label printing, and others which further increases the costs of services.  

Supplier Newsletter

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. 

List of Key Suppliers

  • Sixt SE
  • Localiza
  • Avis Budget Group
  • Europcar
  • Enterprise Holdings Inc.
  • The Hertz Corporation
  • Toyota Rent-a-Car
  • Alamo Rent-a-Car LLC
  • Carzonrent India Pvt Ltd
  • ANI Technologies Pvt. Ltd 

Browse through Grand View Research’s collection of procurement intelligence studies: 

3PL Services Procurement Intelligence Report Scope 

  • 3PL Services Category Growth Rate : CAGR of 6.95% from 2023 to 2030 
  • Pricing Growth Outlook : 3 - 7% (annual) 
  • Pricing Models : Cost plus pricing, tier-based pricing 
  • Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
  • Supplier Selection Criteria : Vehicle type, booking options, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others 
  • Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to): 

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

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