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Supply Chain Graphic of the Week: The Share of 3PL Revenues from eCommerce

 


But Low Margins and High Service Levels Mean Collaboration with Shippers are Key

 

July 7, 2021

It's no surprise that revenue from ecommerce fulfillment are a growing share of the total at third-party logistics companies.

 

Just how much?

 

As seen in the graphic below, from the recently released State of Logistics report fpr 2021 from CSCMP and Kearney, ecommerce's share at 3PLs grew from 14% in 2017 to an estimated 26% in 2020.

 

 

However, the report notes that "Because ecommerce has razor thin margins and sky-high expectations, reducing operating costs at high service levels requires more 3PL-shipper  collaboration than any other type of distribution."

 

Any reaction to our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback button below.

 

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