• Third-Party Logistics Franchise
  • For franchise information call: 888-752-0441

How Big Is the 3PL Industry?

Third-party logistics is a huge industry with ongoing growth

shutterstock_23526721The American Trucking Association reports a $600 billion annual revenue for freight transportation, and third-party logistics is the fastest-growing segment of freight transportation. Ten years ago, 3PL made up less than 10% of the total market share, and today it makes up more than 25%, according to the Council of Supply Chain Management’s State of Logistics report, which pegged 3PL revenue at $157.2 billion in 2014. Logistics research company Armstrong & Associates expects that number to grow to $195.8 billion — a 24.5% increase — by 2018.

Within the 3PL segment, non-asset based domestic transportation management (DTM) companies, like BlueGrace Logistics, are growing even faster. These companies are B2B consultants who don’t own or manage trucks or warehouses, but who help connect customers with carriers that provide the best solution. Armstrong & Associates notes that DTM gross revenues grew 15.4% in 2014, and net revenues grew 20.5%.

An industry everyone uses

shutterstock_50669116There are reasons why the trucking industry and 3PL play such a strong role in the economy. People rely on trucks to deliver their products. If you bought it, a truck brought it — the old adage is simple, but the mechanics of making that journey happen can be quite complicated. Many moving parts must work in concert for a shipment to make it from point A to point Z — everything from the shipment of raw materials to manufacturers to sending goods to a distributor. And it often involves a few hub warehouses for sorting goods and getting them to the right destination.

Logistics pros navigate that journey like an expert with a GPS device. Businesses who try to handle shipping on their own are often more like a lost traveler asking for directions at gas stations. Will they eventually get to their destination? Probably, but after a lot of extra expense and wasted time.

BlueGrace Logistics is a franchise that clients trust to help them manage their shipping needs in a more efficient and affordable way. When a shipper is too overwhelmed by the onslaught of orders day after day, BlueGrace comes to the rescue. We keep the traffic running smoothly and provide the software tools our shippers need to stay in control.

Providing better service and simplicity

shutterstock_185116367Who doesn’t like lower costs? Our clients find lower shipping costs with us than they would online at a carrier’s website.

But it’s our service that seals the deal. Website inboundlogistics.com found that 80% of shippers prefer better service over lower costs, and we provide a strong, customized transportation management system where clients can create their orders and manage their pricing. A call center at our home office in Tampa is available to answer any questions your customers may have. The value we add tells them that partnering with us was well worth it.

Lower costs and better service make BlueGrace Logistics a natural choice.

Performance is strong

It’s easy to see the demand for 3PL. The top 20% of our franchisees recorded annual revenues of more than $2.8 million and an average gross profit of more than $940,000 in 2014. The franchise with the highest revenue — at $5.5 million — raked in a gross profit of $1.2 million.

 

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