Third-Party Logistics Providers Growing 81% Year Over Year, Driven by Ecommerce Fulfillment
Despite Slowness in the Economy, 3PL Warehouses Supporting Ecommerce See Increased Demand Since Stay at Home Orders.
3PL Central, the leader in cloud-based Warehouse Management Systems (WMS) built to meet the unique needs of third-party logistics (3PL) warehouses, shared data today indicating unprecedented growth in order volume from 3PLs supporting ecommerce since the stay at home orders. Analyzing proprietary data from its customer base, 3PL Central has seen an 81% increase in order volume over the same time last year and the highest order volumes per 3PL ever, on par with Black Friday in 2019 and on pace to exceed that volume in the coming week.
On March 19, California issued the first “Stay at Home” order to prevent the spread of COVID-19, limiting business operations except for those providing essential services. Most of the United States followed with similar “Stay at Home” guidance shortly thereafter, driving consumers into confinement and fundamentally changing their buying behavior.
While many companies struggled to adjust to the economic and confinement headwinds, 3PL warehouses fulfilling ecommerce orders have seen a consistent ramp in order volume week over week since the first “Stay at Home” order. Order volume from March 19 through April 20 has increased to 154% of its initial volume. In fact, last week alone, 3PLs processed 16% more orders than the week prior. Since the beginning of the year, order volume processed through the WMS increased to 174% of its initial volume.
With 3PL Warehouse Manager processing in excess of one million orders per week, 3PL Central customers offer a relevant barometer for the growth of the 3PL warehousing market. Out of the top 100 customers, the average growth rate per 3PL exceeds 61%, with more than 80% experiencing growth. Of the total 3PLs using 3PL Warehouse Manager, 45% have experienced growth. Acute areas of growth include those 3PLs fulfilling ecommerce orders for essential goods and nutraceuticals. However, those 3PLs focusing purely on B2B fulfillment of non-essential items have been the hardest hit.
“It’s a tough environment right now, with people facing a tremendous amount of fear and anxiety daily. Our customers play a pivotal role in calming those fears, by making sure people get the essential items they need from the safety of their home,” said Rachel Trindade, chief marketing officer at 3PL Central. “We’re proud that 3PL Warehouse Manager offers the gold standard in pick, pack, and shipping functionality to enable them to scale to meet the rising ecommerce demands.”
To learn more about how 3PL warehouses can improve their processes and scale to address unprecedented ecommerce volume, download the Peak Season Playbook here.
About 3PL Central
3PL Central is the leader in cloud-based warehouse management system (WMS) solutions built to meet the unique needs of the 3PL warehousing community. Serving as the backbone of our customer’s operations, our platform quickly transforms paper-based, error-prone businesses into service leaders who can focus on customer satisfaction, operate more efficiently, and grow faster. Offering a comprehensive warehouse management platform, we make it easy for 3PLs to manage inventory, automate routine tasks, and deliver complete visibility to their customers. As the proven industry leader for over a decade, 3PL Central accurately manages billions of dollars in inventory and processes more than 1 million orders a week from our customers and their customers’ systems.