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1、2024 Third-Party Logistics Warehouse Benchmark Report4Key Findings3Foreword5The 3PL Landscape10Warehouse Operations19Billing&Invoicing3124Technology Adoption36Conclusion37Methodology38About ExtensivTable of ContentsLooking Ahead to 2025In August 2024,Extensiv conducted an online survey targeting log

2、istics professionals who own or operate third-party logistics(3PL)warehouses.The aggregated responses from this survey form the basis of the following report.As the first and only report exclusively focused on the 3PL warehouse industry,Extensivs Benchmark Report compiles data from over 200 third-pa

3、rty logistics warehouses and provides insights on more than 30 industry-specific topics.This report builds on data collected from 2020 to 2023,offering year-over-year changes and trends where applicable.The Benchmark Report explores best practices,trends,current issues,and opportunities facing 3PL w

4、arehouses.Foreword1ADAPTING TO CHALLENGESThe 3PL industry is navigating through tough times with slowing growth in order volumes and profitability,but businesses are showing resilience and adaptability.3PLs operating at larger scales seem to be best suited for navigating todays market volatility.2AI

5、EXPLORATIONArtificial intelligence(AI)is gaining traction with significant interest in its applications for optimizing various aspects of warehouse operations,though the industry is still exploring the best use cases.3FULFILLMENT STRATEGIESThere is a clear trend towards adding warehouses to obtain g

6、eographic disbursementincluding a growing interest in fourth-party logistics(4PL)networksas a means to drive efficiency,reduce risk,and strategically position inventory to better serve customers.4LABOR MANAGEMENTWhile hiring remains cautious,there is a focus on optimizing labor productivity through

7、management tools and efficiency measures rather than solely relying on automation or robotics.5BILLING AUTOMATIONAutomating billing processes is crucial for maintaining cash flow and financial stability.Efficient billing systems help reduce errors,speed up invoicing,and improve profitability.Key Fin

8、dings2024 Third-Party Logistics Warehouse Benchmark Report4The 3PL LandscapeFrom a profitability perspective,3PLs that serviced retail,dry storage,and“other”industries reported being some of the most profitable businesses with over 20%of all 3PLs in each of these verticals achieving high profitabili

9、ty growth(greater than 25%).At the top of this list,23%of all businesses serving“other”verticals were highly profitable,with the top response being“electronics.”Despite thin margins,nutraceuticals/pharmaceuticals was the vertical most likely to be profitable,with 95%of these 3PLs reporting non-negat

10、ive profitability change in 2024.Based on the 2024 data,3PLs served 3.9 industries on average,with retail,bulk goods,and dry storage remaining the most common sectors.Overall,most categories showed an increase from 2023 to 2024,indicating recovery or growth in nearly all sectors.The only categories

11、with a decrease were commodities/raw materials,hazardous materials,and“other.”Consumer-driven categories such as cosmetics and bottled goods/wine&spirits continued their upward trajectory,while apparel,one of the fastest-growing industries in 2023,remained relatively flat in 2024.The 3PL Landscape6I

12、ndustries Served59%*Multiple selections were allowed13%48%40%33%28%18%16%21%51%52%18%RetailDry StorageBulk GoodsApparelCosmetics or Beauty SuppliesCommodities/Raw MaterialsMedical Supplies/DevicesBottles Goods/Wine and SpiritsOther Pharmaceuticals/NutraceuticalsHazmatCold StorageFurthermore,3PLs con

13、tinued to diversify their services with more organizations offering B2C and ecommerce fulfillment,the latter rebounding after a post-pandemic contraction.Approximately 22%of respondents performing ecommerce fulfillment and Fulfillment by Amazon(FBA)Prep experienced high profitability growth in 2024

14、compared to an average of 17%across all other fulfillment types.78%70%66%44%42%30%B2BECOMMERCEB2CDROPSHIPPINGFULFILLMENT BY AMAZON PREPOMNICHANNELFULFILLMENT TYPEThe 3PL Landscape7*Multiple selections were allowedIn addition to expanding service offerings,there is also a trend in expanding warehouse

15、 footprints and facility counts.From 2020 to 2023,the percentage of organizations operating only one warehouse hovered in the mid-thirties,but this decreased noticeably this year to 31%.Meanwhile,the percentage of organizations with 2 to 5 warehouses has continued its upward trajectory,increasing an

16、 average of 2%each year through 2024,now up to 51%.This suggests that businesses are expanding their logistics networks to improve efficiency and reduce risks while many single warehouse operations are either closing their doors permanently or selling their businesses to larger entities expanding in

17、to corporate networks.Staying competitive as a 3PL is proving to require geographic diversification through warehouse expansion or growing a diversified network through strong partnerships.Warehouse Ownership12 to 56 to 10MORE THAN 1010%20%30%40%50%60%NUMBER OF WAREHOUSES2020202120222023202431%51%11

18、%7%The 3PL Landscape8High-performing warehouses continued to see a rebound effect on their total customer counts.During the early pandemic years,many 3PLs tried to maintain a sweet spot of 26-50 customers,consistently ranking as the most reported tier through 2022.The economic turmoil beginning in 2

19、023 saw this segment drop 9%year-over-year to 19%with most 3PLs reporting lower customer counts across the board,signaling difficult times for brands and online sellers.As of 2024,26%of 3PLs reported servicing 26-50 customers,making this once again the largest cohort.It is worth noting that 3PLs who

20、 reported less than 26 customers were a staggering 2.1 times more likely to report low to no profitability growth.These numbers highlight the importance of a manageable but well-diversified customer base and the widening gap between high-and low-performing warehouses coupled with new customer acquis

21、ition strategies.The 3PL Landscape93PL CustomersWe asked a new question in this years survey to understand the minimum order volume required for new business accounts within the warehouse,which serves as a surrogate for size and scale requirements for new clients to be considered.The data on minimum

22、 monthly order volume for 2024 shows a diverse range of order sizes among organizations.Interestingly,respondents experiencing high profitability growth were 1.8 times more likely to have minimum order volumes below 250,yet those that experienced flat or positive year-over-year order volume growth w

23、ere 1.9 times more likely to have minimum order volumes between 1,000-4,999.NUMBER OF CUSTOMERS2020202120222023202415%25%26%15%10%15%24%27%16%9%15%25%28%12%7%16%30%19%14%8%15%25%26%15%8%LESS THAN 1010-2526-5051-100101-200MONTHLY MINIMUM ORDER VOLUME0-249250-499500-9991,000-4,9995,000-9,99910,000+18%

24、15%12%24%8%23%9%9%14%13%MORE THAN 200 13%13%Warehouse OperationsOrder VolumesWhen reviewing respondent data regarding business performance,it becomes clear that the 3PL industry continues to experience difficult times with both order volume growth and profitability extending their downward trend in

25、recent years.This year represented the worst year for order volume growth since we started the benchmark survey.While 70%of respondents grew order volume year over yearwith 57%growing it 10%or fasterthese numbers are down considerably compared to 2023(76%and 60%,respectively)and are far from the hig

26、hs of 2022 where 90%of respondents grew volume and an impressive 80%grew volume by more than 10%.One of the most telling statistics regarding order volume is that over 1.6 times as many(18%vs.11%)companies saw order volume decline from the previous year.Warehouse Operations1130%11%WAREHOUSE ORDER VO

27、LUME CHANGE25%20%15%10%5%0%Grew,more than 50%Grew,25-49%Grew,10-24%Grew,0-9%Our volume is flatDeclined up to 10%Declined by to 10%+19%27%13%12%9%9%20202021202220232024For 3PLs reporting overall order volume declines,uncertain economic fluctuations were the leading cause(57%),followed closely by cust

28、omer order volume declines(48%)and lost customers(43%).While the economy has been resilient in many sectors,loss of consumer wallet share to experiences,services,and other household necessities has taken a toll on retail order volumes,which is directly impacting the hardest hit 3PLs.Businesses that

29、experienced negative profitability growth were 20%more likely to attribute their order volume decline to economic fluctuations than those with medium to no profitability growth.Though many aspects of the ongoing economic conditions may be out of 3PLs control,the loss of customers is an area that war

30、ehouses should be focused on most.Customer acquisition costs are increasing,and premium customers are a hot commodity in the industryincreasingly being courted away from traditional 3PLs by larger,more corporatized fulfillment networks for ease of onboarding and cost savings.3PLs with existing custo

31、mers should be working hard on retention and looking to provide more value-added services,brand-focused software within a unified fulfillment platform,and providing sophisticated fulfillment strategies such as 4PL networks to help place products closer to the point of consumption and reduce the cost

32、 to serve customers.Warehouse Operations12REASON FOR ORDER VOLUME DECLINEEconomicfluctuations57%Customer order volumes declinedLost cusomersInflationOtherNot sure48%43%33%14%7%*Multiple selections were allowedThe decreased performance in order volume has translated into poorer financial performance

33、as well.Whereas 81%of respondents improved their profitability in 2022 and 73%did last year,only 69%reported progress on profitability in 2024.While those numbers are telling,when you look at the number of businesses that boosted profitability significantly,the decline in performance is even more ev

34、ident.This year,only 47%of 3PLs improved profitability by more than 10%.While this is down only slightly from 49%last year,this represents a 22%decrease since the happier times in 2022.Warehouse Operations1330%5%WAREHOUSE PROFITABILITY CHANGE20%10%0%Grew,more than 50%Grew,25-49%Grew,10-24%Grew,0-9%O

35、ur volume is flatDeclined up to 10%Declined more to 10%14%28%22%17%11%3%2021202220232024ProfitabilityWarehouse Operations14Warehouse CapacityNot surprisingly,the data showed that warehouses running at extremely high capacity(north of 100%)are 2.8 times more likely to experience high profitability gr

36、owth.While it is prudent to be cautious about taking on more warehouse space in this uncertain environment,astute 3PL operators realize that running a warehouse over capacity is not a sustainable strategy in the long run.Businesses that had moderate order volume growth(between 10-24%)were 69%more li

37、kely to keep their warehouses between 80-89%capacity.This was also the most common capacity level sustained by 3PLs overall as well as broken down by fulfillment type;the percentage of warehouses operating between 80-89%capacity was essentially level across fulfillment types,ranging from 38-40%in ea

38、ch fulfillment category.38%25%10%9%14%100%+90%-99%80%-89%70%-79%60%-69%Below 60%Fulfillment&ShippingCHART 10 YOY One of the most revealing trends in the data was the need for speed as it relates to fulfillment times.Continuing a trend that has been happening since we began the survey,this year marke

39、d the fastest shipping times of any survey.This year,only about 30%of warehouses reported taking more than 90 minutes to fulfill and ship orders.While this metric has improved every yeargoing from 48%in 2021 to 41%in 2022 to 37%in 2023the 2024 data marks the largest year-over-year percentage improve

40、ment,showing that customers are demanding faster and faster turnaround times on orders.SAME CHART AS ABOVE This foretells an interesting dilemma for warehouse operators.While it will always be critical to ship orders quickly,considering fulfillment time is not usually less than 1 hour,optimizing war

41、ehouse efficiency will become increasingly less important and impactful for delivery times than warehouse location.This includes fulfilling and shipping orders from multiple geographically distributed warehouses.Warehouse Operations15One of the most revealing trends in the data was the need for spee

42、d as it relates to fulfillment times.Continuing a trend that has been happening since we began the survey,this year marked the fastest shipping times of any survey.This year,only about 30%of warehouses reported taking more than 90 minutes to fulfill and ship orders.While this metric has improved eve

43、ry yeargoing from 48%in 2021 to 41%in 2022 to 37%in 2023the 2024 data marks the largest year-over-year percentage improvement,showing that customers are demanding faster and faster turnaround times on orders.This foretells an interesting dilemma for warehouse operators.While it will always be critic

44、al to ship orders quickly,considering fulfillment time is not usually less than 1 hour,optimizing warehouse efficiency will become increasingly less important and impactful for delivery times than warehouse location.This includes fulfilling and shipping orders from multiple geographically distribute

45、d warehouses.Fulfillment&ShippingLess than 30 minutes30-60 minutes60-90 minutes90 minutes-3 hours3 hours-1 day1 or more days2020202120222023202424%25%9%23%5%22%17%14%23%9%29%24%7%16%9%29%25%9%17%7%29%27%14%17%4%14%15%15%13%9%0%25%50%75%100%AVERAGE TIME TO FULFILL AN ORDERWarehouse Operations16Labor

46、MarketIn a sign of cautious optimism,most businesses expect they will be adding workers over the next year.However,the percentage that expect to add workers is the lowest in the past four years,dropping to 57%in 2024.It is worth noting that while 64%of respondents expected to increase their workforc

47、e in the time since last years survey,the Bureau of Labor Statistics reports that the overall number of people employed in the warehousing industry decreased from 1,798,000 in August 2023 to 1,782,800 in July 2024,indicating how difficult the warehousing industry has been recently.0.00.20.40.60.8EXP

48、ECTED STAFFING CHANGE NEXT YEAR57%IncreaseStay the sameDecrease36%7%20202021202220232024This sluggish hiring environment has unsurprisingly translated into fewer companies seeing their labor costs increase year over year.Only 60%of companies reported labor costs increasing this year,marking the firs

49、t time this metric has been under 70%.However,despite this shift,the data for labor as a percentage of total business costs is consistent with previous years.Warehouse Operations17LABOR COSTS CHANGEIncreasedStayed the sameDecreased2020202120222023202458%29%13%73%16%11%79%15%6%70%20%10%60%24%16%The r

50、esponses also indicate that it is getting meaningfully easier to find qualified workers.This year,only 31%cited finding qualified workers as their biggest challenge related to staffing,continuing the decline from its peak in 2021 at 48%.However,businesses at both ends of the profitability spectrumth

51、ose with the highest profitability growth and those with declining profitabilityshare this struggle and are 1.4 times more likely than 3PLs in other profitability tiers to name this as their largest staffing challenge.Additionally,although the change has not been as dramatic,employee turnover is cit

52、ed less frequently as a leading problemexcept for warehouses performing omnichannel fulfillment,which were 1.7 times more likely to name this as their biggest warehouse staffing challengewhich is expected in an environment where warehouse jobs are harder to come by.Warehouse Operations180%10%20%30%4

53、0%BIGGEST WAREHOUSE STAFFING CHALLENGE31%Finding qualified workers2020202120222023202450%29%14%11%6%3%3%3%Worker efficiency and productivityCost of qualified workersTurnoverFinding temporary workers for peak seasonCompleting with Amazon warehouses for workersAbsenteeismTime to productivity for new e

54、mployeesBilling&InvoicingBilling&Invoicing20Billing AutomationCash flow is king for 3PLs in 2024,and more and more warehouses are looking to automate their billing processes to ensure they are billing quickly and accurately.This year,just over a quarter(26%)of respondents utilized their warehouse ma

55、nagement system for this task.The data indicates that 3PLs leveraging invoicing functions in their WMS were 2.2 times more likely to see medium or better profitability growth.Clearly,these businesseswho can take advantage of a unified technology stack that enables them to automate their accounting f

56、unctionsare better able to bill their higher volume customers quickly.Interestingly,manual invoicing was used by 20%of respondents and would be an area of opportunity for any business not automating their financials today.With the proportion of 3PLs using billing automation increasing at the profita

57、ble end of the spectrum,the data suggests that using accounting solutions integrated within a fulfillment technology stack or native billing tools within a WMS for invoicing can lead to better profitability,likely due to increased efficiency,fewer errors,and faster billing cycles.CUSTOMER INVOICE PR

58、OCESSThrough accounting softwareThrough our WMSManuallyWMS integrates and feeds into accounting(e.g.,QuickBooks)or ERP systemOther29%7%19%20%26%Time CommitmentsUnexpectedly,the time spent billing customers increased in 2024 with 24%of 3PLs reporting they spent less than 8 hours per month on billing,

59、down from 27%in 2023.On the other end of the spectrum,a smaller group(6%)spent over 80 hours per month on billing and invoicing,which is consistent with previous years.Those who spent less than 16 hours on billing and invoicing were 2.8 times more likely to see high profitability growth.When jumping

60、 up to 24-40 hours spent on billing and invoicing,respondents were 1.9 times more likely to experience medium order volume growth.What is perhaps more compelling is that none of the 3PLs that spent more than 80 hours per month on billing achieved high profitability.Efficient billing processes seem c

61、rucial for profitability,as less time spent on billing correlates with higher profitability.Automated systems can help streamline these processes,allowing businesses to focus on growth and customer service.23%25%18%17%10%7%27%27%15%15%9%7%24%22%17%17%15%6%2022TIME SPENT ON BILLING AND INVOICING MONT

62、HLY20232024100%75%50%25%0%80+hours40-80 hours24-40 hours16-24 hours8-16 hoursLess than 8 hoursBilling&Invoicing21Billing&Invoicing22Billing can be complex,and 3PLs face several significant and distinctive challenges.Uncaptured charges were the biggest issue related to customer billing for 56%of resp

63、ondents,and those involved in B2B fulfillment were 1.5 times more likely to cite this as their biggest challenge.3PLs using manual methods for capturing chargesespecially those still reliant on pen and paperare no doubt missing billable events because of unreliable recording or lost documents,making

64、 a strong case for digital charge capture and automation.Billing ChallengesComplex customer setups were the second most common response,but those with high order volume growth were 74%more likely to choose this as their biggest challenge,likely driven by demanding customers,special projects,and shee

65、r volume of chargeable events.Interestingly,respondents on either end of the profitability spectrummeaning experiencing either high or negative profitability changewere 25%more likely to cite complex customer setup as their top billing challenge.These challenges highlight the need for robust and fle

66、xible billing systems to handle diverse customer requirements and ensure accuracy.Automated systems can help mitigate these issues by ensuring all charges are accurately captured and billed,reducing revenue leakage and improving cash flow.16%3%6%9%18%22%26%40%47%56%Uncaptured chargesComplex per cust

67、omer setupLack of automationLack of billing system flexibilty (if applicable)Reconciliation of carrier invoices/changesProblems with invoice accuracyDifficulty tracking invoice statusBilling 4PL customers(accurate capture of charges from partner)Lack of payment optionsNot applicableBIGGEST BILLING C

68、HALLENGES*Multiple selections were allowedFulfillment&ShippingCHART 10 YOY One of the most revealing trends in the data was the need for speed as it relates to fulfillment times.Continuing a trend that has been happening since we began the survey,this year marked the fastest shipping times of any su

69、rvey.This year,only about 30%of warehouses reported taking more than 90 minutes to fulfill and ship orders.While this metric has improved every yeargoing from 48%in 2021 to 41%in 2022 to 37%in 2023the 2024 data marks the largest year-over-year percentage improvement,showing that customers are demand

70、ing faster and faster turnaround times on orders.SAME CHART AS ABOVE This foretells an interesting dilemma for warehouse operators.While it will always be critical to ship orders quickly,considering fulfillment time is not usually less than 1 hour,optimizing warehouse efficiency will become increasi

71、ngly less important and impactful for delivery times than warehouse location.This includes fulfilling and shipping orders from multiple geographically distributed warehouses.Billing&Invoicing23Its taking longer to get paid in 2024.Payment times vary,but only 14%of respondents reported receiving paym

72、ents in less than 15 days,down from 22%in 2023.The largest cohort(39%)received payments within 30-45 days,a slight increase from 36%last year.This is likely a lingering effect of the post-pandemic contraction in ecommerce;as brands sales slow,their ability to pay on time may be compromised,leading u

73、s to believe that industry diversification is a great way to normalize cash flow over time.Efficient payment receipt is crucial for maintaining working capital and financial stability.The trend towards longer payment times can strain cash flow,emphasizing the importance of efficient billing processe

74、s and clear communication with customers about payment expectations.The data also supports the idea that businesses looking to improve cash flow should invest in automated systems for data collection,invoicing,and payments.These systems enhance operational efficiency and accuracy,support better fina

75、ncial performance and growth,and provide a robust foundation for sustainable business success.Receiving Payments2022TIME FROM INVOICE TO PAYMENT20232024100%75%50%25%0%More than 60 days45-60 hours30-45 hours15-30 hoursLess than 15 days22%34%31%10%3%36%10%3%29%22%39%10%2%35%14%Technology AdoptionSyste

76、ms ImplementedRobust warehouse management systems continue to play a crucial role for modern business operations,helping companies manage their inventory,streamline processes,and boost efficiency.An overwhelming majority of respondents(86%)indicated their WMS was a critical component of their techno

77、logy stack,which has continued to hold steady since the first Third-Party Logistics Warehouse Benchmark Report in 2020.The remaining 3PLs who had yet to adopt a WMS indicated that their top reasons for not investing in this technology include it being too expensive,too time-consuming to implement,or

78、 that their current inventory tracking systems work just fine.Mobile barcode scanning was also popular,coming in second with 58%of businesses having implemented it,up from 51%last year.The number of respondents indicating they have implemented an order management system(OMS)saw the most significant

79、year-over-year decline to 35%from 51%in 2023,but respondents that experienced high profitability growth were 57%more likely to have implemented an OMS.Warehouse management system(WMS)Mobile barcode scanningEDIOrder management system(OMS)Labor management/time managementShopping cart/marketplace integ

80、rationsERP/accounting integrationsDock schedulingYard managementRoboticsOther86%58%45%35%32%Transportation management systems(TMS)31%30%23%18%9%5%4%*Multiple selections were allowedTechnology Adoption2528%24%21%14%11%Technology Adoption26Warehouse Management SystemsAlmost all 3PLs that implemented a

81、 WMS(87%)stated the need for real-time inventory tracking and management as their top value proposition,followed by the need for more operational efficiency(75%).Some of the largest categorical changes from last year were the need to automate billing(54%vs.47%),data reporting(67%vs.60%),and cost cut

82、ting(28%vs.21%).These numbers indicate that businesses are maturing in their use of WMS technology and are looking to get the most out of what their software can offer.Accurate inventory control and WMS mastery has proven to positively impact order volume.An impressive 70%of businesses saw their ord

83、er volumes grow after implementing a warehouse management system,with 21%seeing order volume growth above 50%.In total,59%of responding 3PLs experienced order volume growth of greater than 10%in 2024 vs.only 44%experiencing the same growth in 2023.Considering all the data,it is evident that using a

84、WMS to establish an accurate source of truth for warehouse operations is foundational to building a growing business.ORDER VOLUME CHANGE WITH A WMSGrew by more than 50%Grew by 26-50%Grew by 11-25%Grew by 1-10%Stayed the sameDeclined0%25%50%75%100%Real-time inventory tracking and management2020202120

85、222023202487%More operational efficiencyGreater order accuracyWarehouse reporting,dashboards,and analyticsAutomate billingCut costsBoost labor productivity75%71%67%54%50%28%REASONS FOR WMS ADOPTION*Multiple selections were allowed32%31%24%7%6%Technology Adoption27Digital AutomationA byproduct of man

86、y warehouse management systems is access to larger scale warehouse automation,translating to significant time savings.Overall,69%of respondents saved more than 10 labor hours per month after implementing automation technologies with the largest cohort(32%)saving 11-25 hours.Businesses with declining

87、 order volumes were 1.4 times more likely to report saving less than 25 hours per month from warehouse automations.This trend shows that while automation often saves substantial time in the warehouse,it doesnt completely eliminate the need for a skilled human workforce.TIME SAVED USING A WMSMore tha

88、n 100 hours per month51-100 hours per month26-50 hours per month11-25 hours per month0-10 hours per monthTechnology Adoption28Beyond WMS automations,there were a few notable findings about additional system integrations.High order volume growth businesses were 1.8 times more likely to have shopping

89、cart integrations,illustrating the importance of seamless connectivity in driving business success.Correspondingly,56%of respondents that integrated shopping cart connectivity with their WMS or ERP experienced medium to high profitability.It goes without saying that automating the flow of any data a

90、cross systems inherently reduces costs and errors,but these integrations stand out for how much they streamline B2C and ecommerce fulfillment so that 3PLs can better serve their customers.2024 also marked a year of continued emphasis on data-based decision making as 27%of 3PLs integrating reporting

91、and data analytics with their WMS or ERP experienced high profitability.Combining automation and data reporting can create the perfect opportunity for both real-time decision making and long-term forecasting that can help lower the overall cost to serve in every capacity.Systems Integrations53%EDISh

92、opping cart connectivity(e.g.,Spotify)Label generation platformsOrder management systems(OMS)Financial reporting tools(e.g.,QuickBooks)AccountingMarketplaces(e.g.,Amazon)Transportation management systemsERP system(e.g.,Microsoft Dynamics)Reporting&data analytics(e.g.,Tableau)Dock SchedulingNone of t

93、he above52%35%32%26%22%22%21%16%14%6%13%*Multiple selections were allowedSYSTEMS INTEGRATEDTechnology Adoption29Future PlansBusinesses planning to implement AI and/or mobile barcode scanning were 40%more likely to experience high profitability and 70%less likely to see negative profitability change

94、in 2024.AI was the top functionality chosen by respondents experiencing high order volume growth while mobile barcode scanning was the most popular among those experiencing negative order volume growth.Its easy to rationalize this difference given the rapid evolution of warehousing and logistics tec

95、hnologies.High performing businesses are looking to cross into a new horizon of efficiency while lower performing warehouses are looking to stabilize and strengthen their operations with tried-and-true technology.It is important to note that barcode scanning and AI have a strong connection:collectin

96、g relevant data in real time is important for training AI and machine learning(ML)models to make informed decisions,which is prohibitively difficult without digital methods like barcode scanning.Thus,it is a fair assumption that those 3PLs planning to invest in AI now implemented barcode scanning in

97、 previous years.Looking ahead,businesses are planning to implement new functionalities to further enhance their operations.Though billing and invoicing software tops the list with 35%planning to implement this functionality,it fell slightly in popularity from 39%in 2023.However,the rest of the top f

98、ive categoriesreporting and analytics,labor management or productivity tools,artificial intelligence(AI),and rate shoppingall increased since last year.Given the easing of some of the labor-related challenges,respondents are less focused on adding robotics to their operations.In the 2024 survey,only

99、 6%of respondents listed robotics as something they plan to implement in the coming year,the lowest percentage recorded for this option since the introduction of this survey.Instead,companies are turning their attention to measuring the efficiency of their workers,with 25%citing implementing labor m

100、anagement and productivity tools as a top priority for the year aheadthe same percentage as those looking to invest in AI.25%50%75%100%Billing and invoicing2020202120222023202435%Reporting and analyticsLabor managementor productivity toolsArtificial intelligence(AI)Rate shoppingDock schedulingMobile

101、 barcode scanningFUNCTIONALITY PLANNING TO IMPLEMENT NEXT YEARWarehouse managementsystem(WMS)ERP or new accounting softwareRoboticsNone of the aboveOther27%25%25%22%20%12%12%9%6%4%20%0%*Multiple selections were allowedTechnology Adoption30Artificial IntelligenceThe rise of artificial intelligence as

102、 a priority for technology investment is hardly surprising given the media focus on AI across all industries.Last year was the first year we included AI in the survey,and only 16%of respondents were looking to explore it.This year,that number rose sharply to 25%.However,in an indication that the ind

103、ustry is still looking for solutions with proven value,responses were evenly divided as to where AI will be best applied.Responses were almost equally divided across the top five choices,though 3PLs providing omnichannel fulfillment were 45%more likely to choose demand forecasting as the biggest opp

104、ortunity for AI.An increasing number of fulfillment providers are interested in artificial intelligence,but they have yet to coalesce around a single use case with the greatest return on investment(ROI).It is prudent for software providers to rapidly mature and evolve their offerings to prove a posi

105、tive ROI and make clear to warehouse operators how to best utilize this promising new technology.AIs BIGGEST IMPACT AREA FOR 3PLsPick optimizationStorage optimizationBusiness developmentDemand forecasting Labor planningLocation optimizationMarketingWarehouse location Other8%16%16%8%8%13%15%16%Lookin

106、g Ahead to 2025Looking Ahead to 202532Growth DriversThe battle for customers is ubiquitous,and new customer acquisition continues to hold the top spot each year as the primary growth driver for most 3PLs(79%)reporting positive order volume growth in 2024.Speaking of growth,55%of 3PLs reported existi

107、ng customer volume increases to be part of their growth success story in 2024including 29%who attributed their growth to increased ecommerce ordering,up from 22%in 2023.However,increases in existing customer order volumes appear less impactful for 3PL business growth as respondents that experienced

108、high order volume increases were 22%less likely to name this as a source of growth.This category of growth is still significantly trailing the pandemic-fueled ecommerce boom in 2020 and 2021(both years reached 48%)when nearly all industries were primarily focused on adopting an ecommerce model.Oppor

109、tunities for additional ecommerce volume monetization is critical from a growth perspective,making transactional volume a key tool in the belt of competitive 3PLs where fulfillment revenue is minimized in lieu of small parcel revenue shares and per order processing fees.80%79%ORDER VOLUME GROWTH DRI

110、VERS60%40%0%New customeracquisitionIncrease in existing customer volumesIncreased ecommerce orderingDiversifying fulfillment typesPartnering with other warehouses or 3PLsOther55%29%19%12%3%20202021202220232024 20%*Up to 3 selections were allowedLooking Ahead to 2025333PLs are continuing to add forma

111、l sales strategies and capabilities to their businesses beyond the traditional owner-led growth model.This shiftlikely spurred by the introduction and proliferation of digital marketing techniques for optimizing online presenceelevated corporate websites as the top customer acquisition channel in 20

112、24 for the first time in the surveys history.4PL partner networks also proved to be a massively growing trend in customer acquisition with 18%of 3PLs reporting network participation to be part of their successful growth strategy this past year,jumping from a nominal 2%in 2022.With billions of dollar

113、s being invested in the 4PL space,early adopters are finding success with customer acquisition,retention,and growth that is outpacing traditional partner referral growth.Having dedicated,formal 4PL network partners is proving to be a winning combination for quickly enhancing services while maintaini

114、ng customer control.Customer AcquisitionPRIMARY CUSTOMER ACQUISITION CHANNELSCompany website73%ReferralsInbound calls or emailsOutbound callingPaid advertismentsThrough a 4PL network70%60%33%24%18%Events27%*Multiple selections were allowedLooking Ahead to 202534When looking at business challenges,3P

115、Ls that are secure enough to focus on expanding their businesses were more optimistic about the future,gravitating toward more growth-oriented challenges.While managing costs was the most selected business challenge overall at 49%,high and medium growth 3PLs accounted for approximately two-thirds(66

116、%)of these responses.Business ChallengesConversely,finding new customers was the most common challenge for 3PLs experiencing a negative profitability trajectory,accounting for 22%of the votes cast by this cohort.While this is an understandable instinct,warehouses in this scenario should investigate

117、how they can make changes within the business to repair profitability before increasing marketing spend to attract new customers.There continues to be a bifurcation of performance where well-running warehouses continue to grow at the expense of othersa noticeable shift from the height of the pandemi

118、c when we saw explosive growth across the industry.7%Managing costsFinding new customersOperational efficiencyGrowing revenueFinding and retaining workersTechnology implementation and integrationInflationDeclining customer order volumesCustomer retentionCustomer communications&requestFinding and acq

119、uiring warehouse space7%13%14%49%38%37%29%26%23%17%TOP BUSINESS CHALLENGES*Respondents selected top 3 choicesLooking Ahead to 202535With a slowing growth curve year over year,3PLs are considering a wide array of options to add revenue to their businesses.While adding warehouses in new locations has

120、decreased in popularity every year since 2021,respondents selecting this as a top opportunity for 2025 were 2.2 times more likely to have experienced high year-over-year order volume growth.Learning from the past few turbulent years and avoiding taking on excess space could be leading the businesses

121、 operating at high capacity to consider alternative ways to grow,including building 4PL networks.Although interest is still lower than for some of the other approaches to growth,interest in fourth-party logistics has doubled since 2022.With more widespread 4PL network participation and growing recog

122、nition of this trend,it is unsurprising that participating in 4PL partnerships to improve competitiveness is one of the top movers in growth opportunities.Artificial intelligence showed the largest jump in interest,comparably boosted by increased industry attention and public awareness,with 23%of 3P

123、Ls reporting that leveraging AI for time savings presents a prime opportunity to improve their business efficiency.Again,rising from nearly nonexistent numbers just a couple of years ago,these two initiatives are quickly taking over the 3PL space.Opportunities0%25%50%75%100%Acquiring new customers20

124、202021202220232024Automating processes in the warehouseGrowth related to ecommerceDiversifying servicesAdding warehouses in new locationsLeveraging AI to save timeCreating a 4PL networkTOP OPPORTUNITIES FOR NEXT YEAROther88%53%47%38%33%24%23%3%*Multiple selections were allowedConclusionAs we wrap up

125、 another years Third-Party Logistics Warehouse Benchmark Report,its clear that rapid technological innovation,strategic multi-warehouse expansion,and a continuous adaptation to market volatility are the strongest driving forces reshaping the logistics landscape in 2024.While these may seem unrelated

126、 at first glance,these are not just isolated trends but are interlinked catalysts fueling the future of the 3PL industry.The accelerating interest in AI stands out as a beacon of progressespecially in an industry that has previously been hesitant to adopt advanced technology.Despite a lack of consen

127、sus on the best use case for artificial intelligence,our report shows that 3PLs intentions for it have matured beyond mere inventory tracking to more sophisticated applications like optimization and forecasting.This development highlights a growing trend in logistics of rethinking how things are don

128、e rather than sticking with conventional strategies.Likewise,the push towards multi-warehouse fulfillment and 4PL networks highlighted throughout this years report reflects a tactical shift in the industry.This is not merely about increasing warehouse capacity;its a calculated response to supply cha

129、in volatility and ongoing economic uncertainties.By diversifying their geographic presence,3PLs can offer more robust solutions to their clients,mitigate risks associated with regional disruptions,and enhance their competitive edge.This strategy,coupled with advancements in technology,enables 3PLs t

130、o offer more tailored and responsive services,aligning with the growing expectation for faster,more flexible delivery options among consumers.Looking ahead to 2025,the convergence of AI advancement and networked fulfillment points to the start of a transformation in logistics,driven by the need to n

131、ot just cope with disruptions and fluctuations but to actively forecast and shape market realities.Adopting these tools and strategies empowers 3PLs to rise above the challenges of an increasingly complex supply chainpaving the way for sustainable growth and resilience while solidifying them as indi

132、spensable partners in their clients success.MethodologyThe survey was conducted between August 7,2024,and August 31,2024.There were 297 respondents who identified as 3PL warehouses from across the United States,Canada,United Kingdom,Australia,and New Zealand.Of the respondent companies,88%were tradi

133、tional 3PL warehouses,and 12%were hybrid public and private warehouses(who also sell and ship their own goods).Note that this year saw a small decrease in hybrid warehouse respondents compared to 2023.Of the respondents,32%identified as executives or owners,followed by 26%who held roles in warehouse

134、 or logistics management and 18%in operations.The remainder spanned other parts of the business.RESPONDENTSFORMATThe survey questions included multiple-choice,multiple-selection,and open text.Due to rounding or multiple-selection questions,the figures may not add up to 100 percent.About ExtensivAbou

135、t ExtensivExtensiv is a visionary technology leader focused on creating the future of omnichannel fulfillment.We partner with warehouse professionals and entrepreneurial brands to transform their fulfillment operations in the radically changing world of commerce and consumer expectations.Through our

136、 unrivaled network of more than 1,500 connected 3PLs and a suite of integrated,cloud-native warehouse management(WMS),order management(OMS),and inventory management(IMS)software,we enable modern merchants and brands to fulfill demand anywhere with superior flexibility and scale without painful platform migrations as they grow.More than 25,000 logistics professionals and thousands of brands trust Extensiv every day to drive commerce at the pace that modern consumers expect.