From the 1980s to 2016: The Evolution of Third-Party Logistics

//From the 1980s to 2016: The Evolution of Third-Party Logistics

From the 1980s to 2016: The Evolution of Third-Party Logistics

Today more and more businesses are using third-party logistics companies like Pronto Delivery to manage their supply chain and improve their bottom line. When a business outsources to a 3PL, it allows owners to focus on running the business efficiently instead of dealing with delivery, courier, and warehousing issues.

Third-party logistics companies are relatively new in The United States. Less than 40 years ago, trucking, warehousing, international shipping, and computer technology were completely separate industries and the companies that shipped products managed each of these functions independently, from the shipment origins all the way through to delivery.

3PL Evolution

In the 1980s, the 3PL industry was born from the Motor Carrier Act of 1980. Through this act, the trucking industry was liberalized, and price controls, entry controls, and vendor price settings were significantly reduced. The result of this change was a significant increase in the number of U.S. trucking carriers. In 1980 there were less than 20,000 trucking and delivery providers, and today, in 2016, there are roughly 1.2 million.

Global logistics management started to take form in the 1990s, as companies large and small expanded product reach into rapidly developing global markets. Developing economies in other parts of the world incentivized companies to move manufacturing functions entirely overseas. With this decision, the demand for managing complex, global supply chains exploded. 3PL providers adapted quickly and began offering integrated logistics services both domestically and internationally.

During the technological revolution of the 2000s, the advancements of the Internet opened up the possibility for 3PL providers to offer solutions that seamlessly connected contrasting roles within the supply chain. In order to the meet the needs of global supply chains, 3PLs started integrating inventory management, transportation and logistics, and order management functions with vigorous technology platforms. Supply chain visibility was now a reality and the efficiencies of modern 3PL services continue to expand in order to meet the demands of the ever-changing global marketplace.

3PLs in 2016

According to an Armstrong and Associates report from 2013, 86 domestic Fortune 500 companies use 3PLs for logistics and supply chain functions. Large 3PL companies, like Pronto Delivery, have the capability to influence global partnerships and substructure in order to deliver flexible service options. The fundamental ability of any 3PL company is providing supply chain solutions to companies of all sizes.

As the best 3PL provider in Texas, Pronto Delivery has helped various businesses focus on their own fundamental abilities and growing their business.

Simplify your life and save money with third party logistics today. Call us at 866-691-9107.

By |2018-09-28T05:51:29+00:00April 29th, 2016|Third Party Logistics|Comments Off on From the 1980s to 2016: The Evolution of Third-Party Logistics

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