SERVICES As expected, inventory storage and management (96%) and order pick, pack, and ship (93%) remain the most common services offered by 3PL warehouses. Returns saw the largest increase year-over-year, with 59% of respondents supporting returns in 2022 versus 54% in 2021. Other services remained flat in 2022, aside from fourth-party logistics (4PL) management which decreased from 12% in 2021 to 9% in 2022. The decrease in 4PL management shows a surprising change considering the warehouse space constraints that continue to plague the industry, with more than 20% of warehouses reporting keeping their warehouses above 100% capacity. To combat space constraints and costs to open new warehouses, some 3PLs have extended into 4PL territory by partnering with other 3PLs in different complementary geographies. These 4PL networks have given 3PLs the ability to extend a more robust *Multiple selections allowed. service to customers that allows for faster time-to-consumer and lower overall shipping costs. New technology products like Extensiv Network What is a 4PL? Manager have made it easier for 3PLs to make this leap. Fourth-party logistics providers (4PLs) are an additional degree of separation away from the end consumer as 3PLs. However, their relationship to 3PLs ultimately defines 4PLs; 4PLs consist of integrated networks of 3PLs used to coordinate largescale logistics for a retailer, brand, or manufacturer. The 4PL owns the retailer-logistics relationship rather than the individual 3PLs.
Third-Party Logistics | Advanced version Page 8 Page 10