Summary
This Modern Materials Handling article reports on the improvement within vertical markets of market revenues. Data presented by Armstrong & Associates reflects optimism that 2010 will be positive.
Analysis
2009 data on 3PL gross revenues for the first half of 2009 decreased by -12%.
Those 3PL's that reported revenue increases have taken a strategic position adding core value services. These services include transportation and warehousing. The warehousing sector seems to provide a considerable strategic boost for both the provider and the contracting party. Additional warehouse services have been expanded to include a variety of nontraditional values such as kitting, repacking, relabeling and returns.
From an industry point of view many providers and the firms they serve have taken advantage of the downturn to implement other strategic alliances including the integration of warehouse and transportation management systems. Thus providing 3Pls with a better opportunity to allocate resources more productively. Those firms that have engaged in better planning and greater involvement with their 3PL's have an increased opportunity to concentrate on their core business functions.
While the economic recovery is still in its infancy, and there are many economic factors that can disrupt a recovery, the 3PL's and their clients who have engaged in proactive strategic partnering will be able to recognize stronger revenue and remain agile enough to take advantage of opportunities both nationally and internationally.
