A Consideration on the Current Issues and Future Outlook of 3PL Business

Abstract

The 3PL (Third Party Logistics) market, in which shipper companies outsource logistics operations to logistics operators, has been rapidly developed and established in the 2000s on the back of deregulation. However, 3PL is moving from the early stage to the mature stage, and in recent years new business models such as LLP (Lead Logistics Provider) and contract logistics have emerged, and a new phase has entered. This paper comprehensively introduces and discusses the current situation and prospects of 3PL business. M & A by major companies is becoming active with the improvement of transportation-related KPIs (Key Performance Indicators) such as loading rate, actual vehicle rate, actual operation rate, and operation efficiency. Therefore, in this paper, the current status and prospects of 3PL business, and at the same time, the study examines to simulate the merits of improving the operation efficiency and consider the results.