Emerging Trends in the 3pl Third Party Logistics Industry

 desire to enter international markets have no idea
The marketplace for third-party logistics is arguablywhere to begin.
the largest market in the world. Any physical goodFurthermore, those companies that do provide
that comes into or goes out of the United Statescomplete 3PL services are very large and have been
requires extensive logistics planning and managementfocusing on maintaining a small number of larger
and must be cleared by U.S. Customs. Because of theaccounts. Many small and mid-sized businesses who
complexities of these processes, most businesseswere fortunate enough to find a reliable 3PL provider
choose to hire a 3PL provider to manage thefind themselves being squeezed out and not having
transportation, clearance, warehousing, andtheir contracts renewed. The smaller third party
distribution of their shipments.logistics providers do not offer the newer supply
Market Statisticschain technologies, and are characterized by “old
In 2006, imports to the United States exceeded $2.2school” business practices.
trillion (a 10.5% increase over 2005) and exportsGo Global is involved in many of the fastest growing
exceeded $1.4 trillion (an increase of 12.8%). Each ofmarkets in the world such as Asia and Western
these goods required a number of shipping andEurope where the market is expected to grow 33%
warehousing services and must receive US Customsover the next five years. It is projected that after
clearance… this is where Go Global takes over.five years, 3PLs (third party logistics providers) will
In 2006, the total revenue for the 3PL industry washandle more than 57% of the sector’s supply
$110.6 billion, representing a total industry growth ratechain requirements. This provides tremendous growth
of 11.9%. Datamonitor projects that by 2010, theopportunities for Go Global.
total 3PL market will exceed $140 billion.Go Global is also slowly expanding into the African
Global trade management is also part of the focus atmarkets as the infrastructure and problems with
Go Global Logistics. In 2005, the global tradegovernmental corruption improves. Foreign Direct
management segment expanded to $222 million, andInvestment in Africa has been steadily rising, a sign
is expected to swell to $405 million by 2010, athat it will soon be a viable target market for Go
cumulative annual growth rate of 12.8%.Global Logistics. In 2006, FDI increased 26.5% to
The Go Global Marketplace is cornering this portion of$38.8 billion. If this trend continues to develop, Africa
the market, encouraging small and mid-sizedmay be the next China of international trade, and Go
businesses to participate in global trade, under theGlobal hopes to be there to ride the wave.
consultation of Go Global. By using the marketplace- Sowinski, Laura. “What Supply Chain Execs are
to manage our customer’s transactions, GoBuying, Where They’re Skimping.” World
Global is able to provide FREE transactionTrade. Sep. 2006.
management, shipment tracking, trade negotiations,- Commercial Motor. “Significant Potential for
and our “bidding war” reverse auctionThird-party Logistics.” Reed Business Information.
function, adding value for our clients and15 Mar. 2007.
strengthening our comparative advantage over the- Panitchpakdi, Supachai. “Investment in Africa:
competition.The Challenges Ahead.” International Trade
Many companies entered international marketsForum. Issue 1/2007.
precipitously and are only now beginning to address 
the lack of visibility across their supply chains. OnlyRedefining the Market
the largest 3PL (third party logistics) providers offerMost small and mid-sized businesses search for 3PL
the newest technologies like online tracking, and 90%providers on the internet, where 3PL advertising
of enterprises report that their global supply chaincoverage is abysmal. Upon performing an online
technology is inadequate to provide the timelysearch for “customs broker” “3PL”
information necessary for budget and cash-flowor “logistics,” the results yielded are generally
planning as well as effective management. Go Globalunrelated to the services businesses are seeking. Go
Logistics offers every tool your company needs toGlobal plans to capitalize on this by establishing a
have an efficient and transparent supply chain tostrong online presence with user-friendly information
make your importing and exporting as easy and errorgeared towards businesses new to international
free as possible.trade.
One of the most counterintuitive aspects of theBy providing innovative features that are valuable to
freight forwarding and third party logistics industry isour customers like the Go Global Online Marketplace,
the lack of a central location for international tradewe attract a wide range of businesses seeking to or
information and services. The industry is extremelyalready engaged in international trade. The Go Global
· Us Census. “Annual Trade Highlights.”Marketplace is redefining the market by creating a
January 2007.centralized online marketplace allowing importers and
· Hoffman, William. “3PLs Reach Recordexporters across the globe to connect and trade in a
Revenue.” Traffic World. 23 Apr. 2007.secure and efficient platform.
· Datamonitor. “Global Air Freight &By providing low cost, scalable, online services with
Logistics.” Apr. 2007.the same level of visibility available from the largest
· Sowinski, Laura. “What Supply Chain Execs are3PLs, Go Global is redefining the world of international
Buying, Where They’re Skimping.” Worldtrade and supply chain services and continues to
Trade. Sep. 2006.fragmented and operates behindempower small and mid-sized businesses to compete
the scenes. For this reason, many businesses with aon the global stage.