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The rise of the 3PW

By Dragan, Chris
Publication: Transportation & Distribution
Date: Saturday, June 1 2002
HEADNOTE

logistics

HEADNOTE

Firms are more likely to outsource warehousing today more than ever.

In recent times, increasing numbers

of third-party logistics providers (3PLs) and third-party fulfillment companies (3PFs) have affected logistics. Could the third-party warehousing (3PW) firms be on the way?

In the 1970s, most firms did their own warehousing; third-- party warehouses were mostly small businesses. In the 1990s, warehouse outsourcing became much more common. Third-party warehousing became big business, and today, the outsourcing trend is bigger than ever.

According to one estimate, spending on outsourced warehousing is growing about 23% each year. Spending reached $20 billion in 2000.

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A recent University of Tennessee study of Fortune 500 companies says 63% outsource logistics services (including warehousing and transportation), the highest percentage among functions outsourced. In terms of outsourcing logistics services by industry, the computer industry leads with 80%, while 68% of retailers outsource logistics services.

In addition, make sure to read these articles:

  • Manfredi Motor Transit Forms New Corporation; Distribution Technologies, Inc. Charged with...
  • Business Editors CLEVELAND--(BUSINESS WIRE)--June 7, 2001 To better facilitate the development of a broader range of integrated logistics services, Manfredi Motor Transit Company has formed ......
  • DSC Logistics Mourns James A. McIlrath, Founder.
  • CHICAGO -- It is with great sadness that DSC Logistics announced the death of James A. McIlrath on July 27, due to complications from heart ......
  • American Vanguard Expands Management Team with Hiring of Mark H. Blincoe as Chief...
  • NEWPORT BEACH, Calif. -- American Vanguard Corporation (AMEX: AVD), today announced that it expanded the Company's management team with the hiring of Mark H. Blincoe ......
  • PayPoint Closes Deal to Process Transactions forKlickback.com, a Leading Internet-Based...
  • LOS ANGELES--(BUSINESS WIRE)--Aug. 18, 1999-- PayPoint Electronic Payment Systems has just signed a three-year deal to process credit transactions for Klickback.com(TM) Inc., a leading Internet ......
  • BP Divests Pay Point
  • First Data poised to expand e-commerce operations in c-store and petroleum industry.
  • Calendar
  • Mar: 13-15: Logistics and Operations in the Supply Chain, Knoxville, Tenn. http://supplychain.jtk.edu/TC513 Mar. 19-22: International Warehouse Logistics Association (IWLA) 2006, Las Vegas. www.iwla.com Mar. 27-29: ......
  • Calendar
  • Mar: 13-15: Logistics and Operations in the Supply Chain, Knoxville, Tenn. http://supplychain.jtk.edu/TC513 ...
  • OSHA, warehouse group alliance highlight forklift safety
  • OSHA and the International Warehouse Logistics Association have renewed their alliance for another two years to further improve worker safety and health in the areas ......
  • Calendar
  • Mar. 20-22: International Transportation Management Conference, Houston. www.itm-events.coni Mar. 20-23: International Warehouse Logistics Association (IWLA 2005) Convention, Orlando. www.iwla.com Mar. 20-23: Education for Transportation Professionals, ......
  • BP Chooses PayPoint
  • Tech firm to serve as payment processor for 15,000 U.S. c-stores.
  • From the warehouse to the jailhouse
  • I'm OK, you're illegal ...
  • Michigan service tax repealed
  • Joel Anderson is a happy man. The Michigan “inventory tax” is dead. Modern reported last month that Anderson, CEO of the International Warehouse Logistics Association ......
  • IWLA Organizes Conference On Information Technology.
  • Overwhelmed by information? The International Warehouse Logistics Association (IWLA) is hosting its Annual Information Technology Conference Aug. 23-24, 2001, in Rosemont, Illinois. The conference offers ......
  • Calendar
  • Feb. 20-22: Global Supply Chain Summit, La Quinta, Calif www.globalsjpplvcliainsummit.com Feb. 22-25: MexCon 2005, San Diego, www.iifusa.com/mexcon Feb. 23-25: Supply Chain Performance Conference, Orlando www.managementweb.org ......
  • Highway spending bill on track for passage this year
  • WASHINGTON, D.C.—Prospects appear brighter for passage of a bill appropriating money to construct, expand, and repave the nation's roadways. Last year, differences between the White ......