1、2021 Third-Party Logistics Warehouse Benchmark Report2 | 3PL Central Benchmark Report19Space Limitations15Labor Shortage33About 3PL Central09Growth Opportunities31Methodology05The 3PL Warehouse Landscape30Conclusion04Key Findings27Success Measurements03Foreword22Technology IntegrationTABLE OF CONTEN

2、TSFOREWORDIn August 2021, 3PL Central distributed an online survey to logistics professionals who own or operate third-party logistics (3PL) warehouses. The aggregated responses to this survey comprise the information found in the following report. As the first and only report 100% focused on the th

3、ird-party logistics warehouse industry, 3PL Centrals Benchmark Report aggregates data from more than 200 3PL warehouses and provides insight on more than 30 industry-specific topics. This information builds on data collected in 2020 and provides year-over-year changes or trends where applicable. The

4、 Benchmark Report examines best practices, trends, current issues, and opportunities facing 3PL warehouses.4 | 3PL Central Benchmark ReportKEY FINDINGSGROWTH OPPORTUNITIES3PLs have an optimistic outlook for 2022viewing opportunities to win new customers, diversify operations, and harness continued e

5、commerce growth, all while improving profitability.1SPACE LIMITATIONSWarehouse space constraints continued to challenge 3PLs with many struggling to find new warehouse space or manage already-at-capacity existing footprints.3TECHNOLOGY INTEGRATIONTechnology adoption quickens as 3PL warehouses look t

6、o automate and optimize their operations to address labor shortages and build scalability for their organizations. 4 SUCCESS MEASUREMENTSHeightened focus on success metrics and key performance indicators (KPIs) has influenced core parts of the business, including billing, invoicing, and profitabilit

7、y.5LABOR SHORTAGELabor shortages compounded by the increased need for workers has resulted in significantly higher costs and has impacted the ability to attract and retain new warehouse workers.2THE 3PL LANDSCAPE6 | 3PL Central Benchmark ReportTHE 3PL WAREHOUSE LANDSCAPE On average, 3PL warehouses s

8、erve 3.5 industriesup from 3.3 industries last yearshowing that some are expanding and diversifying their offerings to service more industries. The largest industry concentrations include bulk goods, retail, and dry storage. Pharmaceuticals and nutraceuticals showed the most growth with nearly a 65%

9、 increase year over year. 20202021*Multiple selections allowedHazMat15%Other14%13%Cold Storage16%18%Bottled Goods/Wine and Spirits17%27%Pharmaceuticals/Nutraceuticals17%28%Commodities/Raw Materials37%35%Apparel33%39%Dry Storage62%55%Retail65%60%Bulk Goods56%62%10%7 | 3PL Central Benchmark ReportFULF

10、ILLMENT TYPEWhile B2B (72%) remained the largest fulfillment type, it decreased 14% from 2020, demonstrating a continuing shift to ecommerce (68%) and B2C fulfillment (56%). Fulfillment by Amazon (FBA) (43%), drop shipping (42%), and omnichannel (22%) rounded out the fulfillment types. On average, 3

11、PLs offered three different fulfillment types. Note: Omnichannel fulfillment denotes supporting orders from the many different purchasing channels available to consumers (e.g., online, in-store pickup, marketplaces, shopping carts, etc.) through platforms, like a 3PLs warehouse management system (WM

12、S), that seamlessly interact with different applications, shopping carts, marketplaces, or other order management software to manage multiple supply chain processes.22%OmnichannelDrop Shipping42%43%Fulfillment by Amazon56%B2C68%Ecommerce72%B2B*Multiple selections allowed8 | 3PL Central Benchmark Rep

13、ortSERVICES Inventory storage and management (91%) and order pick, pack, and ship (89%) were the primary services for most 3PLs with kitting and assembly (60%), returns management (54%), and repackaging and refurbishment (48%) following closely behind. Of note, freight forwarding (37%) decreased 19%

14、 from 2020. While only 12% offered fourth-party logistics (4PL) management, many 3PLs who have extended into 4PL territory have leveraged this model to combat warehouse capacity constraints and to extend regional footprints. These 4PL networks have given 3PLs the ability to extend a more robust serv

15、ice to customers that allows for faster time to consumer and lower overall shipping fees for the brand and the consumer.BEST PRACTICE: Diversifying services or industries that a 3PL serves can create new opportunities for growth and profitability. An overwhelming 89% of 3PLs view diversification as

16、an important step to future growth and profitability plans. Call center8%12%4PL management37%Freight forwarding54%Returns management48%Repackaging and/or refurbishment60%Kitting and light assembly89%Order Pick, Pack, and Ship91%Inventory storage and management*Multiple selections allowedSERVICESGROW

17、TH OPPORTUNITIES10 | 3PL Central Benchmark ReportORDER VOLUME GROWTH With the COVID-19 pandemic, a rapid increase in ecommerce drove 2020 order volumes. Much of this carried over into 2021 and even intensified, as shown by year-over-year changes in order volume growth. In 2021, nearly 85% of 3PLs ex

18、perienced volume growth, while those offering omnichannel fulfillment marked the highest percentage with nearly 92% seeing order volume growth. For the remainder of this report, “high-growth 3PLs” will denote the 49% of companies who experienced more than 25% order volume growth. Of note, order volu

19、me increases did not always equate to profitability growth. In fact, 13% of the participants indicating medium order volume growth (1024%) indicated they had no or negative profitability growth.20202021*Multiple selections allowedNo, our volume declined more than 10%6%3%No, our volume declined up to

20、 10%6%3%Our volume is flat10%9%Yes, 0%9%15%6%Yes, 10%24%31%30%Yes, 25%49%21%26%Yes, more than 50%12%23%BEST PRACTICE: As order volumes increase, monitor and optimize customer-level profitability. With many 3PLs running on slim margins, times of high demand can offer the opportunity to adjust pricing

21、 levels and ensure you have the right customers for your business. 11 | 3PL Central Benchmark ReportGROWTH DRIVERSThis year marked a year of tremendous opportunity for most 3PL warehouses, with 71% indicating new customer acquisition and 48% indicating ecommerce ordering as primary drivers of their

22、growth. Diversifying fulfillment types and new customer acquisitions showed the largest increases from 2020, while fulfillment of essential goods showed the largest decrease from 2020. Supply chain irregularities, ability to handle vessel offloads, and existing customer volume growth were among othe

23、r notable growth drivers.*Multiple selections allowedNew customer acquisitionDiversifying fulfillment typesIncreased ecommerce orderingFulfillment of essential goods (COVID-related increases)Partnering with other 3PLs for product storage and regional fulfillmentOther10%9%37%48%33%71%12 | 3PL Central

24、 Benchmark ReportNEW BUSINESS CHANNELSWith new customer acquisition central to 3PL warehouse growth, understanding the channels that direct new business for 3PLs can offer additional insight into growth drivers. Customer experience and loyalty is critical for 3PLs, with 76% of new business coming fr

25、om referrals. The company website (67%) and inbound calls and emails (55%) followed closely behind as new business drivers. With so much demand for 3PL services, less than a third of companies relied on outbound selling or paid advertisements. BEST PRACTICE: Consider implementing a customer referral

26、 program so that loyal customers can benefit from recommending new customers to your business.76%ReferralsThrough a 4PL network15%Outbound calling30%Events21%Paid advertisements28%Company website67%Inbound calls or emails55%*Multiple selections allowed13 | 3PL Central Benchmark ReportIMPROVED PROFIT

27、ABILITYFeedback from last years report indicated that 3PLs wanted to understand profitability growth amongst their peers. Many 3PLs used 2021 as an opportunity to shore up or improve profitabilitycapitalizing on scarcity of warehouse space and workers. When asked if their profitability improved duri

28、ng the past year, 79% indicated yes, with 33% indicating “high” profitability growth of more than 25%. Thirty percent (30%) indicated medium profitability growth of 1024%. Participant responses suggest that those who experienced high order volume growth were five times more likely to experience medi

29、um to high profitability improvements.BIGGEST OPPORTUNITIESSimilar to this past year, 73% of 3PLs view acquiring new customers as the single largest opportunity in 2022. Growth related to ecommerce (52%), automating warehouse processes (47%), and adding warehouses in new locations (45%) round out th

30、e top four biggest opportunities in the coming year. Expanding existing warehouse space and adding new software or technology were notable additions in this category. Although much optimism still exists, some participants believe ecommerce gains may have peaked, with growth related to ecommerce decr

31、easing from 65% in 2020 to 52% in 2021.*Three selections allowedOther6%Creating a 4PL network7%Automating processes in the warehouse47%Adding warehouses in new locations45%Acquiring new customers73%Growth related to ecommerce52%Diversifying services37%BIGGEST OPPORTUNITIES13%20%30%16%5%4%2%Our profi

32、tability is the same as previous yearsNo, our profitabiltiy declined up to 10%Yes, 0%9%Yes, more than 50%Yes, 25%49%Yes, 10%-24%No, our profitabiltiy declined more than 10%IMPROVED PROFITABILITY14 | 3PL Central Benchmark ReportTOP 3 CHALLENGESWhile 2022 appears ripe with opportunity, 3PLs agree on t

33、he top three most pressing business challenges: operational efficiency (52%), managing costs (51%), and finding and retaining workers (48%). Following close behind, technology implementation and integration (42%) dropped slightly from last years top three to this years fourth largest challenge. *Thr

34、ee selections allowedCustomer communications & requests12%Finding and acquiring warehouse space21%Technology implementation and integration42%Operational efficiency52%Finding and retaining workers48%Growing revenue29%Finding new customers30%Managing costs51%Customer retention15%LABOR SHORTAGE16 | 3P

35、L Central Benchmark ReportLABOR AS A PERCENTAGE OF TOTAL COSTS With finding and retaining workers ranking in the top three challenges for 3PL warehouses, labor emerged as a considerable area of concern this year. Nearly every supply chain publication has highlighted concerns about supply chain disru

36、ption and the worker shortage. Its no surprise that this has impacted the 3PL warehouse industry severely. Fifty-seven percent (57%) of 3PLs cite that labor makes up 40% or more of their total costs, while 18% say it accounts for 60% to 75% of total costs.LABOR COST CHANGESWith even Amazon facing pr

37、ofit pressure from rising labor costs, 3PLs have felt rising labor costs acutely, with 73% of 3PLs saying that labor costs increased for them in the past year. In fact, this number grew from 58% in 2020, demonstrating the pace of rising labor costs accelerating. Its no surprise that 52% of 3PLs say

38、driving operational efficiency represents their number one challenge while they look to optimize processes, reduce manual workloads, and automate workflows to save time in the warehouse. Stayed the same29%17%Decreased13%11%Increased58%73%LABOR COST CHANGESLABOR AS % OF TOTAL COSTSLess than 25%25%39%

39、More than 75%60%75%40%59%5%18%34%36%8%2020202117 | 3PL Central Benchmark ReportBIGGEST LABOR CHALLENGEWith nearly half (49%) of 3PLs growing their order volume by more than 25% in the past year, hiring has had to increase to help fulfill that volume. Despite optimizing and automating warehouses, whe

40、n possible, many still rely on the workforce to meet that demand. Not surprisingly, finding qualified workers (48%) ranks as the primary warehouse labor challenge. The second-largest challengeturnoverincreased from 10% in 2020 to 14% in 2021. BEST PRACTICE: Consider your retention strategies. Compet

41、itive pay and performance incentives can make an impact, but dont just focus on compensation. Provide training programs that allow for upskilling and advancement. Offering a safe and clean environment where team members feel valued also goes a long way. What you do to keep your employees engaged and

42、 happy will also serve to attract new team members and help keep your customers happy as well.14%Turnover11%Time to productivity10%Cost of qualified workers9%Finding temporary workers for peak season6%Competing with Amazon warehouses2%AbsenteeismFinding qualified workers48%18 | 3PL Central Benchmark

43、 ReportWORKFORCE SIZE IN 2022Data suggests participants experiencing medium to high growth are twice as likely to identify finding qualified workers as the biggest challenge related to warehouse staffing. With nearly 73% of 3PLs planning to acquire new customers in 2022, this will boost demand for w

44、orkerswith 74% expecting to expand their workforce in 2022.United States unemployment rates rapidly declined during the past 12 months, with September 2021 coming in at 4.8%. Historically, many economists used to consider full employment at 45% unemployment (although this definition is currently in

45、flux with the Federal Reserve targeting new maximum employment goals as of 2021). Regardless of the terminology, this could signal that the warehouse worker shortage may become more acute in the coming year if unemployment continues to fall. In the coming year, 3PLs will need to heighten focus on hi

46、ring and retention strategies to ensure they can expand their workforce and increase service demand or find new ways to automate and reduce manual processes through technology.74.1%21%4.9%IncreaseStay the sameDecreaseSPACE LIMITATIONS20 | 3PL Central Benchmark ReportSPACE LIMITATIONS Last year, ware

47、house real estate dropped to near all-time low vacancy rates. Compounded with increasing lease and purchase prices, this leaves many 3PLs struggling to find space to expand. Concern about warehouse space limitations has continued. This year, 45% of 3PLs identified adding warehouses in new locations

48、as one of the most significant opportunities in the coming year, while 21% identified finding available warehouse space as one of their biggest challenges. Lets start with understanding the current footprint. Seventeen percent (17%) of 3PL respondents have more than six warehouses, while 45% have tw

49、o to five, and 37% have one warehouse. Forty-seven percent (47%) have less than 100,000 square feet of space, 34% operate between 100,000 and 250,000 sq. ft., and the remaining 19% have more than 250,000 sq. ft. Of note, participants with two to five warehouses experienced medium to high order volum

50、e growthfour times more than participants with more than six warehouses. Participants with five or fewer warehouses were four times more likely to experience medium to high profitability growth compared to participants with more than five warehouses.NUMBER OF WAREHOUSESMore than 1012 to 56 to 1037%4