Best 3PL Providers

Choosing the right third-party logistics providers is essential for enhancing the accuracy and cost-efficiency of your online store’s fulfillment processes, which include warehousing, distribution, and transportation management. With numerous providers available, it can be challenging to know where to begin.

Recognizing the qualities that distinguish leading companies in the 3PL industry is important. This knowledge will assist you in selecting a provider that best meets your needs. The following sections will examine some of the foremost fulfillment providers. We will discuss their services and other key factors to help you identify your business’s most suitable 3PL partner.

Key Qualities of Top Third-Party Logistics Providers

Choosing the right 3PL provider is essential for businesses looking to streamline their supply chains and ensure reliable, cost-effective delivery of goods. Here are the critical attributes to look for in the best 3PL providers:

• Comprehensive Service Offerings

Top 3PLs provide a full range of logistics services, including transportation, warehousing, distribution, and additional value-added solutions. This end-to-end approach reduces the need to work with multiple providers, simplifying operations. For example, companies like DHL Supply Chain and UPS offer integrated solutions covering every aspect of supply chain management.

• Technological Expertise

Advanced technology is a defining feature of leading 3PLs. These providers use real-time tracking, automated inventory management, and route optimization to improve efficiency and visibility. Companies such as XPO Logistics leverage proprietary platforms to provide actionable insights, helping clients manage transportation and logistics more effectively.

• Customer-Focused Approach

Strong customer service is a hallmark of top 3PLs. Providers like C.H. Robinson and Ryder prioritize understanding clients’ goals and delivering tailored solutions. Clear communication, responsiveness, and adaptability to unique requirements set these companies apart.

• Extensive Network Reach

Scaling your business requires a 3PL with strategically located warehouses, both domestically and internationally. This lets you position inventory closer to your customers, reducing shipping times and costs. When evaluating 3PLs, consider their warehouse locations and whether they align with your growth plans for the next 1–3 years. A strong 3PL will help you determine the best locations for storing inventory to optimize delivery speeds.

• Scalability and Flexibility

Businesses grow and face seasonal changes, and top 3PLs can adapt accordingly. Flexible logistics providers can scale their services up or down based on demand, keeping costs manageable while maintaining efficiency.

• Integrations and APIs

A 3PL should support seamless integrations with major ecommerce platforms like BigCommerce, Shopify, and WooCommerce, as well as marketplaces like eBay and Amazon. Tech-savvy providers also offer open APIs, enabling you to build custom solutions tailored to your needs. This ensures smooth data flow between your systems and the 3PL’s network, simplifying operations and enhancing efficiency.

• Industry Expertise

Specialization in specific industries is a significant advantage. 3PLs with in-depth knowledge of particular sectors can address unique challenges and tailor their strategies to meet industry-specific needs, improving overall supply chain performance.

• Financial Stability

Financially strong 3PLs ensure consistent service quality and have the resources to invest in advanced technologies and infrastructure. Partnering with a stable provider minimizes risks and ensures long-term reliability.

• Regulatory Compliance

Compliance with industry standards and regulations is non-negotiable for 3PL providers. Leading companies stay updated on legal requirements to ensure smooth operations and reduce risks related to compliance issues.

• Intuitive Software

The software provided by the 3PL should offer real-time updates on orders, inventory, and shipping costs, making outsourcing more manageable. Look for advanced features like detailed order management, inventory tracking, and robust analytics, all presented in an easy-to-use interface. A strong software platform ensures transparency and better control over your fulfillment process.

15 Major Players in Third-Party Logistics

This list of the largest U.S. 3PL providers is ranked solely according to their Gross Logistics Revenue.

1. Amazon

(Gross Logistics Revenue: $140 billion)

Amazon, founded in 1994 by Jeff Bezos, has grown to become a major player in e-commerce. It offers a wide range of products and services, such as cloud computing, streaming, and artificial intelligence.

A key component of Amazon’s business is its 3PL services, mainly through its Fulfillment by Amazon (FBA) program. With FBA, sellers can store their products in Amazon’s warehouses, and Amazon handles the storage, picking, packing, and shipping directly to customers. This setup simplifies logistics for sellers, giving them access to Amazon’s vast distribution network.

Amazon also offers extensive transportation management, last-mile delivery solutions, and return handling through Amazon Logistics, which is essential for efficient delivery and customer satisfaction.

Further, Amazon’s Multi-Channel Fulfillment (MCF) provides 3PL services that help businesses fulfill orders from various sales channels beyond Amazon, such as their websites. MCF enables sellers to benefit from Amazon’s fulfillment network for orders not made on Amazon’s platform, enhancing their flexibility and ability to scale.

2. C.H. Robinson

(Gross Logistics Revenue: $16.74 billion)

C.H. Robinson, founded in 1905, started as a modest produce brokerage in North Dakota and has become a leading global 3PL provider. The company delivers various services, including transportation management, freight forwarding, customs brokerage, and warehousing.

As a non-asset-based provider, C.H. Robinson leverages a vast network of over 450,000 contract carriers and its technology platform, Navisphere, to enhance supply chain efficiency. This method allows the company to offer scalable solutions customized for businesses of different sizes.

To grow further, C.H. Robinson focuses on increasing its international presence through strategic acquisitions and investments in technology. This strategy helps the company maintain its specialization in goods transportation while offering integrated supply chain solutions.

3. J.B. Hunt Transport Services

(Gross Logistics Revenue: $12.51 billion)

J.B. Hunt Transport Services, founded in 1961 by Johnnie Bryan Hunt, began as a small-scale rice hull transport business and has since evolved into one of North America’s leading transportation and logistics companies. The company provides various services, including intermodal transport, dedicated contract services, truckload, and final-mile delivery.

At the heart of J.B. Hunt’s operations is its Integrated Capacity Solutions (ICS) division, which offers third-party logistics services like transportation management, freight brokerage, and comprehensive supply chain solutions. This asset-light division utilizes a large network of carriers and cutting-edge technology to streamline supply chains for companies of all sizes.

J.B. Hunt excels due to its varied service options and adeptness at multiple shipping methods. The integration of services such as dedicated contracts, intermodal, and final mile delivery enables J.B. Hunt to provide adaptable and scalable logistics solutions that meet the specific needs of its customers.

The company has grown through strategic acquisitions and substantial technological investments, including developing the J.B. Hunt 360° platform. This platform has improved cargo visibility and shipping efficiency, smoothed the logistics process, and enhanced the overall customer experience.

4. United Parcel Service (UPS)

(Gross Logistics Revenue: $11.46 billion)

UPS, founded in 1907, has become a premier global entity in package delivery and supply chain management, with operations in over 200 countries and territories.

UPS’s robust ground and air transport network, supported by advanced technology, facilitates efficient logistics solutions. UPS delivers an array of 3PL services through its Supply Chain Solutions division, including transportation management, warehousing, distribution, and freight forwarding.

Furthermore, UPS offers services such as customs brokerage, contract logistics, supply chain design and optimization, and returns management. These capabilities enable UPS to provide comprehensive end-to-end logistics solutions, making it a top provider in North America and worldwide.

5. GXO Logistics

(Gross Logistics Revenue: $9.77 billion)

GXO Logistics, launched in 2021 as an offshoot of XPO Logistics, has quickly become a top global contract logistics provider. The company focuses on sophisticated warehouse management, reverse logistics, and cutting-edge supply chain solutions.

GXO offers comprehensive 3PL services that include e-commerce fulfillment, omnichannel retail support, and advanced automation in its warehouses. The company employs artificial intelligence, robotics, and machine learning to refine operations and boost efficiency.

Dedicated to providing customized, high-value services, GXO continually adapts to changing market conditions, establishing itself as a formidable player in the 3PL sector. Its commitment to leveraging technology drives its efforts to innovate and enhance logistics.

6. Kuehne + Nagel

(Gross Logistics Revenue: $9.61 billion)

Kuehne + Nagel, founded in 1890 and based in Schindellegi, Switzerland, is a leading global logistics provider. The company has a robust network across over 100 countries and delivers various 3PL services to various industries.

The company specializes in sea and air freight forwarding, helping clients move goods internationally. Their services cover everything from selecting carriers and optimizing routes to handling customs clearances. This ensures that deliveries are both timely and efficient. Additionally, Kuehne + Nagel manages several warehousing facilities equipped to cater to the unique needs of different industries. These facilities support inventory management, order fulfillment, and distribution, helping clients streamline their supply chains.

The company also provides road logistics in North America, offering both full truckload (FTL) and less-than-truckload (LTL) shipping options. These services are flexible and designed to adjust to changing market conditions, manage volume fluctuations, and maximize route efficiency for cost-effectiveness.

Furthermore, as a fourth-party logistics (4PL) provider, Kuehne + Nagel handles complete supply chain management. This service includes managing suppliers and inventory, providing aftermarket services, and integrating supply chain technologies. Clients benefit from having a single point of contact for all their logistics needs, simplifying their operations and enhancing efficiency.

7. Expeditors International

(Gross Logistics Revenue: $9.3 billion)

Expeditors International of Washington, Inc., founded in 1979 and based in Bellevue, Washington, is a prominent global logistics company. The company provides various 3PL services to the retail, healthcare, technology, and automotive industries.

Expeditors offer comprehensive air, ocean, and ground freight services, enabling efficient global goods movement. The company’s extensive network and industry knowledge allow it to deliver reliable and cost-effective transportation solutions. Understanding global and local regulations, Expeditors also provides customs brokerage services to ensure that cross-border shipments comply with all regulations.

Additionally, Expeditors operates a series of warehousing facilities that support services such as inventory management, order fulfillment, and distribution. The company also offers integrated supply chain solutions that include order, delivery, and risk management.

Expeditors have invested in developing proprietary technology systems to enhance its logistics services. Its unified global information technology platform ensures real-time visibility and connectivity, allowing for detailed reporting and more effective logistics operations management.

8. Ryder Supply Chain Solutions

(Gross Logistics Revenue: $7.7 billion)

Founded in 1933, Ryder System, Inc. has grown into a premier commercial fleet management and supply chain solutions provider. Ryder operates as both an asset-based and non-asset-based provider, allowing it to customize its services to meet each client’s specific needs. The company has broadened its scope through strategic acquisitions, emphasizing e-commerce fulfillment and last-mile delivery services to serve modern business demands better.

Ryder has also introduced RyderShare, a platform designed to enhance visibility and collaboration across the supply chain, reflecting its dedication to leveraging technology for operational improvement. Furthermore, Ryder is committed to sustainability, actively integrating alternative fuel vehicles into its fleet and adopting environmentally friendly practices to reduce its ecological footprint.

9. Total Quality Logistics (TQL)

(Gross Logistics Revenue: $6.86 billion)

TQL, established in 1997 by Ken Oaks in Cincinnati, Ohio, has evolved into one of North America’s leading freight brokerage and third-party logistics companies. TQL connects customers with shipping needs to carriers with the necessary capacity, providing efficient transportation solutions across multiple industries.

The company manages full truckload shipments that utilize the complete truck capacity for direct and prompt deliveries, while its less-than-truckload service consolidates smaller shipments from various customers into a single truckload to optimize costs and efficiency. Additionally, TQL handles intermodal transport, combining rail and truck transportation for long-distance freight efficiency, and offers drayage services for short hauls, especially in and around port and rail terminals.

TQL also provides global shipping solutions through its air and ocean freight services and caters to specialized needs with services such as drop trailer programs, handling of oversized or overweight shipments, partial loads, warehousing, customs brokerage, and cross-border services to Canada and Mexico, including hazardous materials handling.

Technology is crucial at TQL, particularly through its TQL TRAX platform. This platform enhances the logistics experience by offering real-time load tracking, quote requests, load tendering, and invoice management, thus improving transparency and operational efficiency for both customers and carriers. By 2024, TQL had expanded its operations to include over 60 offices across 26 states and employed more than 9,000 individuals. The company’s recognition as a Fortune 100 Best Company to Work For multiple times highlights its dedication to fostering a positive workplace culture.

Furthermore, TQL is committed to corporate social responsibility and actively participates in charitable activities and community support programs. Through its Moves That Matter program, TQL covers the transportation costs for donated freight, underscoring its dedication to community involvement and support.

10. DSV (America)

(Gross Logistics Revenue: $6 billion)

Founded in 1976 and headquartered in Denmark, DSV is a leading global transport and logistics company. In North America, DSV provides a broad spectrum of 3PL services, including air and sea freight, road transport, and warehousing solutions.

DSV’s air and sea freight services facilitate the international movement of goods by optimizing routes, selecting carriers, and handling customs clearances to ensure timely and efficient deliveries. DSV handles both FTL and LTL shipments across North America in road transport. The company benefits from a network of over 125 offices across the U.S., Canada, and Mexico, which provides strong local market knowledge and a wide-ranging support network.

DSV also operates numerous warehousing facilities that offer storage solutions tailored to specific industry needs. These facilities support inventory management, order fulfillment, and distribution, helping clients streamline their supply chains. Additionally, DSV facilitates cross-border transportation between the U.S., Mexico, and Canada, providing expertise in customs clearance and regulatory compliance to ensure smooth operations.

Technology is a cornerstone of DSV’s operations. The company has developed proprietary technology systems, including a global information technology platform offering real-time visibility, detailed reporting, and connectivity, helping clients manage their logistics and supply chains effectively.

11. Transportation Insight

(Gross Logistics Revenue: $5.27 billion)

Transportation Insight, founded in 2000 and based in Atlanta, Georgia, offers a wide array of logistics services, such as transportation management, freight brokerage, and supply chain consulting, to diverse industries, including retail, manufacturing, and distribution.

The company’s transportation management services focus on strategic carrier sourcing, custom reporting and analysis, and parcel and freight billing auditing. These offerings help clients optimize transportation networks, reduce freight costs, and ensure timely deliveries. Transportation Insight also provides multimodal freight brokerage services, facilitating the movement of goods using various transport modes like truckload, LTL, and intermodal options. This flexibility allows clients to select the most efficient and cost-effective shipping solutions.

Regarding supply chain consulting, Transportation Insight specializes in optimizing complex supply chains. Their expertise in network design, process improvement, and technology integration aids clients in enhancing operational efficiency and cutting costs. The company’s proprietary Beon Digital Logistics Platform is a single access point to a vast network of over 15,000 shippers and 80,000 carriers. This platform offers real-time visibility, data analytics, and streamlined communication, significantly enhancing supply chain transparency and decision-making.

Further expanding its capabilities, Transportation Insight has grown through strategic acquisitions, including the Nolan Transportation Group (NTG) and BirdDog Logistics, broadening its service offerings and market reach.

12. Uber Freight

(Gross Logistics Revenue: $5.24 billion)

Launched in 2017 as a division of Uber Technologies, Uber Freight is a digital freight brokerage platform that connects shippers with carriers to transport goods efficiently. The platform uses Uber’s technological expertise to enhance logistics operations with real-time load matching, transparent pricing, and continuous visibility throughout the shipping process.

Uber Freight provides a suite of services to accommodate various logistics needs. These include FTL and LTL shipping, offering instant quotes and easy booking for different freight sizes and requirements. For businesses looking for more comprehensive solutions, Uber Freight’s managed transportation services cover transportation planning, carrier procurement, and execution across various transport modes. Additionally, the platform has branched out into international freight services, providing ocean and air freight options to support global supply chains.

At the core of Uber Freight’s operations is its advanced digital platform, which features efficient real-time load matching through sophisticated algorithms that help reduce empty miles and maximize capacity utilization. The platform ensures transparent pricing, provides clear cost information upfront to shippers and carriers, streamlines negotiations, and builds trust. It also offers enhanced shipment visibility, enabling all stakeholders to track and receive shipment updates in real-time.

Since its establishment, Uber Freight has grown to serve regions across North America and Europe, becoming a key player in the logistics industry. The platform works with a broad network of carriers and shippers, from small businesses to large enterprises, facilitating efficient freight movement.

In a significant development, Uber Freight partnered with autonomous trucking company Waabi in September 2024. This collaboration introduced an industry-first autonomous truck deployment solution.

13. DHL Supply Chain (North America)

(Gross Logistics Revenue: $5.02 billion)

DHL Supply Chain, part of Deutsche Post DHL Group, is a premier provider of contract logistics services in North America. The company delivers various 3PL solutions across various sectors, including automotive, consumer goods, retail, technology, and life sciences. These solutions encompass warehousing, transportation management, and a variety of value-added services such as packaging, kitting, assembly, and returns management, all designed to enhance supply chain efficiency and meet diverse customer needs.

The company operates a vast network of warehousing and distribution facilities, offering specialized storage, inventory management, and order fulfillment services tailored to the specific requirements of different industries. Its transportation management services optimize the movement of goods through effective carrier selection, route optimization, and freight consolidation, aiming to enhance efficiency and cost-effectiveness.

DHL Supply Chain is also at the forefront of integrating advanced technologies into its operations. This includes the deployment of collaborative robotics, autonomous guided vehicles, and smart wearables to streamline processes and minimize errors. Furthermore, the company leverages data analytics to improve operational efficiencies and enhance customer experiences.

Recent developments at DHL Supply Chain include a significant leadership transition. Patrick Kelleher will become the new CEO for North America starting July 1, 2024, succeeding Scott Sureddin, who retired after 20 years of service. In December 2023, the company’s facility in Memphis, TN, was distinguished as a Global Lighthouse by the World Economic Forum for its exceptional use of advanced Fourth Industrial Revolution technologies to boost operational performance and sustainability.

14. Lineage Logistics

(Gross Logistics Revenue: $5 billion)

Founded in 2012 and based in Novi, Michigan, Lineage Logistics is a leading global temperature-controlled warehousing and logistics provider. The company manages over 450 facilities in 18 countries, catering to various industries such as food and beverage, retail, and pharmaceuticals. Lineage offers a comprehensive suite of services to optimize the cold chain, including cold storage warehousing to maintain product integrity, end-to-end transportation solutions encompassing drayage and transportation management, and port-centric warehousing near major ports to enhance import and export processes. The company also employs advanced automation technologies to increase operational efficiency and accuracy in its warehouses.

Innovation is at the core of Lineage’s operations, highlighted by its use of data science and analytics to optimize supply chain operations and reduce waste, as well as its implementation of automated storage and retrieval systems to improve efficiency and precision. Over the years, Lineage has significantly expanded its global presence through strategic acquisitions, such as purchasing VersaCold Logistics to boost its presence in Canada in April 2022, acquiring Mandai Link Logistics to enter the Singapore market in May 2022, and strengthening its European network by acquiring Grupo Fuentes in August 2023.

Lineage is committed to environmental responsibility, enhancing energy efficiency across its facilities and investing in renewable energy sources to reduce its carbon footprint. In a notable recent development, Lineage completed its initial public offering (IPO) on the Nasdaq in July 2024, raising approximately $4.5 billion and valuing the company at over $18 billion. This marks a significant milestone in Lineage’s history, reflecting its growth and prominence in logistics.

15. GEODIS (North America)

(Gross Logistics Revenue: $4.3 billion)

GEODIS, headquartered in France, is a prominent global logistics provider with substantial operations in North America, based in Brentwood, Tennessee. The company offers a wide array of third-party logistics services, including contract logistics, freight forwarding, supply chain optimization, and transportation management.

GEODIS operates over 150 warehouse facilities across the United States in its contract logistics sector, offering more than 50 million square feet of warehousing space. These facilities are tailored to meet the needs of retail, e-commerce, and manufacturing industries, providing inventory management, order fulfillment, and distribution services. For freight forwarding, GEODIS offers extensive air and ocean freight services, including route optimization, carrier selection, and customs clearance, ensuring efficient and timely international goods movement.

GEODIS’ transportation management solutions feature carrier management, utilizing best-in-class technology for optimization and cost reduction, adapting to market conditions, managing volume fluctuations, and optimizing routes for cost savings. The company also provides integrated supply chain solutions that enhance order, delivery, and risk management, using advanced technology and industry expertise to optimize client supply chains, improve visibility, and achieve operational excellence.

Recently, in May 2023, GEODIS expanded its drayage services by acquiring Southern Companies, a leading U.S. provider, enhancing its end-to-end supply chain capabilities. In another development, in September 2024, GEODIS announced plans to hire 3,700 seasonal workers across its U.S. and Canada campuses to bolster operational capabilities and prepare for the upcoming holiday season. These initiatives underline GEODIS’ commitment to strengthening its logistical services and expanding its market presence in North America.

Recent Challenges and Responses in the 3PL Industry

The 3PL sector faced multiple challenges in 2023, such as declining transportation rates, escalating fuel costs, labor shortages, limited warehouse space, increased regulations, intense competition, and frequent supply chain disruptions. Shippers responded by optimizing inventories and reducing logistics costs.

The “State of Logistics Survey 2024” highlights the current primary challenges in the 3PL industry, which include an economic downturn, increased costs, and heightened competition. The rise in costs is linked to growing concerns about the economic environment affecting the 3PL market.

Armstrong & Associates, a top U.S. 3PL consultancy, noted that rising central bank policy rates aimed at curbing inflation are pressuring 3PLs and compressing profit margins. The Transportation Intermediaries Association reported decreased shipments and revenue in Q4 2023 compared to Q3 2023, with gross margin percentages still below the previous year’s.

New entrants in e-commerce fulfillment have intensified price competition, pushing 3PLs to offer more competitive rates. Amazon’s clear fee structure and multi-channel fulfillment options encourage cost estimation and profit potential for sellers. To stay competitive, 3PLs are focusing on innovative pricing strategies and value-added services.

A&A’s ranking showed Amazon leading the top global 3PLs by gross revenue in 2023, significantly ahead of DHL Supply Chain & Global Forwarding and Kuehne + Nagel, marking the first year Amazon was included in the list due to its large warehousing footprint and focus on e-commerce fulfillment.

A survey noted a significant increase in warehouse operational costs since the pandemic, with most respondents reporting higher costs. While costs are still rising, the rate of increase is decelerating as the global economy recovers. The supply and demand imbalance, especially in Western regions with low vacancy rates, is pushing up rental costs.

The industry has adapted to pandemic-related and geopolitical risks by developing more flexible supply chains that source from multiple countries. Increased cross-border trade with Mexico and contracts with transparent costs have helped 3PLs mitigate inflationary pressures.

A&A’s research indicates that international transportation management 3PLs saw rapid declines in demand and rates in air and ocean transport in 2023, with a slight recovery in the latter half of the year. Meanwhile, domestic transportation management 3PLs have shifted focus towards contractual transportation management due to decreased truckload demand.

The rise of e-commerce fulfillment has heightened customer expectations for rapid, multi-channel deliveries. 3PLs are investing in technology and operational efficiency to meet these demands and remain competitive against major players like Amazon and Walmart.

Conclusion

The dynamic landscape of third-party logistics demands a strategic approach to selecting the right 3PL provider. As businesses strive to improve their fulfillment processes and expand their operational capabilities, understanding the key qualities of top providers becomes crucial. These include comprehensive service offerings, technological expertise, customer-focused solutions, extensive network reach, and the ability to scale and adapt services flexibly.

Each of the discussed companies brings unique strengths to the table, from Amazon’s expansive network and technological innovations to specialized services provided by companies like C.H. Robinson and J.B. Hunt. Making an informed choice will involve considering factors such as technological integration, industry expertise, scalability, and financial stability and ensuring that the provider’s capabilities align with your business goals.

By carefully evaluating these aspects, you can identify a 3PL partner that meets your current logistics needs and supports your future growth. The key to success in this choice is a thorough understanding of your requirements and a clear strategy for integrating a 3PL into your operations to enhance overall efficiency, reduce costs, and improve customer satisfaction.

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