On Time Delivery & Warehouse Ahead of the Curve in Cleveland 3PL Growth
The market for third-party logistics (3PL, or sometimes TPL) in Cleveland and globally is on an upswing, according to recent analysis by researchers at TechNavio.
For those unfamiliar, third-party logistics and supply chain management is when companies use third-party businesses, like On Time Delivery & Warehouse, to outsource elements of distribution and fulfillment services. A wide range of industries benefit from having a third party involved in the logistics process, which helps reduce cycle times and inventories, lower cost and bolster customer service.
The more companies discovering the profitability of hiring a 3PL, the faster the industry and demand grows. Ohio is considered a prime route for 3PL because of its central Midwest location and easy highway access.
At On Time Delivery & Warehouse (OTDW), our Cleveland 3PL is at the forefront of this growth trend, offering business-to-business operations a reliable means to meet rising consumer demand. We’re not just any Cleveland trucking company or warehouse provider. We pride ourselves on fast, efficient distribution and transloading freight operations. Clients trust us to quickly and carefully load, unload, store and ship their materials and ensure customers receive them punctually and in excellent condition.
Industry Demand for 3PL Supply Chain Management
An explosion of e-commerce demands in Ohio, the U.S. and across the world are increasing the need for sustainable, higher-volume warehousing and efficient delivery. TechNavio’s report combs through numerous potential growth prospects on the horizon, identifying several key factors and industries.
One industry fueling national 3PL demand is the packaged food market, which is projected to expand by roughly 4 percent by 2022. The reason is many Americans no longer have time to cook at home and prepackaged food has improved in quality and availability.
Packaged foods are part of the fast-moving consumer goods industry, slated to grow overall by 6 percent over the next five years. (Fast-moving consumer goods are those products that sell quickly at relatively low cos, such as items typically sold in a retail store.)
Delivering Better 3PL With Technology Advances
Autonomous vehicles, particularly in the trucking industry, may eventually serve to streamline 3PL services. The New York Times reported late last year the trucking industry is a hot target for automation. It’s expected large trucks could be systemically automated well in advance of passenger vehicles – a move that would ultimately lower labor expenses and crash-related costs. However, it will probably be several more years before that becomes reality.
Warehouse operations too may be impacted by increased automation. For example, autonomous forklifts reportedly upped warehouse productivity by 10 percent in a single year at one major Northeast Ohio grocery chain.
As a top 3PL in Northeast Ohio, On Time Delivery & Warehouse offers integrated warehousing and transportation services, scaled and customized to your needs. We’re also rolling out 3PL software to help clients track inventory remotely and optimize their supply chain management. That’s in addition to product coding, repackaging, transloading and cross-docking. We know your third-party logistics provider must keep pace and adapt to shifting strategies that help you gain a competitive edge in your market. We take that responsibility seriously.
Other Factors Driving Third-Party Logistics and Transportation
Consumer expectations are higher than ever. Many clients have grown accustomed to same-day or next-day service. This trend isn’t fading, particularly with the rapid spread of mobile technologies keeping everyone constantly appraised of product movement. Our 3PL is committed to rising to those challenges.
Other factors TechNavio identified as pushing logistics companies’ growth over the next several years include:
- Increasing globalization and liberalization of trade between countries, resulting in higher volumes of import and export transactions;
- Technological advances in packaging techniques, which can keep goods in top condition for longer stretches;
- Rapid unveiling of advanced 3PL software technology.
Cleveland 3PL On Time Delivery & Warehouse recognizes you are trusting us with your most valuable assets, including your brand image. We maintain strong relationships and delivery partners, and we’re dedicated to prompt, personal service and handling every item as if it was our own.
If you have questions about Cleveland 3PL services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.
Global 3PL Market in FMCG Industry 2018-2022, December 2017, TechNavio
More Blog Entries:
Around the World with OTD, Dec. 19, 2017, Cleveland 3PL Blog