3PLs investing in WMS integration applied sciences, survey exhibits

Third celebration logistics suppliers (3PLs) have grown their revenues in 2022 at the same time as they put money into new applied sciences to deal with stormy financial circumstances and a questionable forecast for subsequent yr, based on a survey from Extensiv, an omnichannel software program vendor previously generally known as 3PL Central.

Ninety-one p.c of 3PLs grew their order volumes in 2022, up from 85% the yr prior. And 81% claimed larger earnings this yr, a slight improve from 79% final yr, Extensiv stated in its “Third-Social gathering Logistics Warehouse Benchmark Report.”

They’ve additionally accelerated operations on the DC flooring, with 60% of 3PLs fulfilling orders lower than 90 minutes after receipt, up from 53% final yr. And almost a 3rd fulfill orders in lower than half-hour, up from 22% final yr.

A few of that success got here from an elevated specialization in area of interest sectors, the examine discovered. Extra 3PLs specialised in particular industries in 2022, with 3PL warehouses serving a mean of two.9 industries — down from 3.5 industries final yr.

Regardless of these robust outcomes, 3PL are cautious of fixing circumstances, highlighted by a rising labor scarcity. Extensiv discovered that 48% cited discovering and retaining staff as a high enterprise problem, and 79% stated that their labor prices elevated in 2022.

To deal with these challenges, 3PLs are investing in new know-how. Many companies are enhancing connectivity via new integrations between their warehouse administration programs (WMS) and EDI (51%), buying carts (48%), and marketplaces (25%). And looking out into subsequent yr, respondents plan on implementing new functionalities like billing and invoicing (32%) and cell barcode scanning (27%) in pursuit of enhancements like buying new clients, e-commerce progress, and automating processes. 

“3PLs spent vital time integrating buying carts and marketplaces to optimize their companies in 2022, and connectivity is a theme that may proceed into 2023,” Rachel Trindade, chief advertising officer at Extensiv, stated in a launch. “We discovered it attention-grabbing that 3PLs typically stay optimistic as they proceed in an unsure financial surroundings. Fifty-three p.c of 3PLs are involved about managing prices subsequent yr and 25% are involved about inflation. They plan to face financial headwinds by discovering higher efficiencies.”