Move Over, Amazon: The Retailers Turning Into 3PLs
Feb. 27, 2023
In an attempt to circumvent supply chain disruptions, some big-box retailers are selling logistics services, giving them a new target market and turning them into 3PL service providers.
The e-commerce boom resulting from the pandemic has led to huge shifts in consumer behavior and a greater focus on supply chain and logistics. Never before have consumers sat at home fuming about their Amazon two-day prime deliveries, which they pay for, showing up in a week. I've certainly dealt with it and continue to deal with it. It's a gamble still on when items will actually be delivered, so I've resorted to just going to the store instead. This is probably better anyways because then I won't add a bunch of unnecessary things which I do not need to my Amazon cart.
To combat these frustrations from customers and the rising costs the retailers are facing, retailers are starting to heavily invest in their own supply chain strategies. According to Datex Corporation, retailer-owned third-party logistics (3PL) services have emerged as a way for larger retailers to offer logistics and supply chain services to smaller companies that cannot make these investments themselves. This has led to the transformation of supply chains into shared networks that can better mitigate potential disruptions. As a result, retailers with 3PL services are generating new revenue streams while helping other retailers move products more efficiently.
Take a look at the gallery above to see which big-box retailers are turning the way of Amazon and taking supply chain solutions into their own hands.
3PLs continue to face challenging issues when it comes to managing a client’s supply chain—switching around the order for this year's ranking of top 3PLs.
3PLs no doubt worked hard to exceed customer expectations by working smarter and better leveraging their knowledge, assets, people, and technology in a tumultuous year.
