Third-Party Logistics and Ecommerce

In this white paper, we describe how 3PL providers can use supply chain technology to address the challenges of ecommerce.

The Rise of Ecommerce

Prior to the online retail boom of 2005–2010 – spearheaded by ecommerce giant Amazon – only 22 percent of people shopped online.

Now, it’s expected that ecommerce will generate a staggering $4.5 trillion in sales by 2021.

Further, Statista predicts that by 2023 the United States alone will house 300 million online shoppers – which is 91 percent of the total population.

And by 2040, 95 percent of all retail purchases will likely be made online.

The Amazon effect has changed behavior and created a new kind of consumer who values speed and convenience.

Amazon, for instance, offers one-click buying and one-stop shopping, lower prices on average, a catalog of over 12 million products to choose from, special deals with membership, and lightning-fast shipping.

To consumers, anything less feels like an unnecessary compromise.

Table of Contents

  • What challenges are 3PLs facing?
  • Technology helps 3PLs meet demand
  • Voice
  • Robotics and automation
  • Process and profitability modeling
  • How 3PLs can solve the complexity

Third-party logistics providers find themselves faced with an increasingly complex landscape that is continuously evolving.

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