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As third-party logistics providers look to scale and meet the demand for omnichannel retail, a new report from extensive reveals that technology is the tool many rely on to make a difference.
Extensiv’s third annual Third-Party Logistics (3PL) Warehouse Benchmark Report shows that fulfillment providers responding to the continued evolution of commerce are leaning on technology to meet the challenge. As robotics and AI dominate the industry discussion, third-party logistics providers expect their use of robotics to more than double, with an expected increase of 133%.
The top goals for organizations when adopting new technology are increased productivity and operational efficiency, as evidenced by the top three expected tech investments for 2023: billing and billing (32%), mobile barcode scanning (27%), and reporting and analysis (25%). On average, 3PLs plan to implement 1.5 new technologies in their company in the coming year.
Growth is a primary driver of technology adoption, with 60% of respondents sharing that their warehouse management system uses the technology to grow 11% or more. In fact, 38% of third-party logistics providers used their warehouse management system to increase order volumes by more than 25%.
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More use of automation
Automation is another critical pillar of logistics growth. Nearly 53% of 3PLs believe automating processes in their warehouses is a top opportunity for 2023.
Adding more order sources is also another factor in order volume management as the report also showed a dramatic increase in shopping cart integrations at 48% versus 33% last year and marketplace and marketplace integrations are at 25%, a increase from 17% in 2021.
Other key findings:
- Many 3PLs focus on specialization, with warehouses serving 2.9 industries;
- Bottled goods/wine and spirits and pharmaceuticals/nutraceuticals showed the largest year-over-year declines, down 33% and 32% respectively.
- 3PLs outperformed in recent years, with order volumes growing 91% by 2022.
Read the full report from Extensiv.
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