Emerging Trends in the 3pl Third Party Logistics Industry

Âdesire 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 Globalfive years, 3PLs (third party logistics providers) will
takes over.handle more than 57% of the sector's supply chain
In 2006, the total revenue for the 3PL industry wasrequirements. This provides tremendous growth
$110.6 billion, representing a total industry growth rateopportunities for Go Global.
of 11.9%. Datamonitor projects that by 2010, theGo Global is also slowly expanding into the African
total 3PL market will exceed $140 billion.markets as the infrastructure and problems with
Global trade management is also part of the focus atgovernmental corruption improves. Foreign Direct
Go Global Logistics. In 2005, the global tradeInvestment in Africa has been steadily rising, a sign
management segment expanded to $222 million, andthat it will soon be a viable target market for Go
is expected to swell to $405 million by 2010, aGlobal Logistics. In 2006, FDI increased 26.5% to
cumulative annual growth rate of 12.8%.$38.8 billion. If this trend continues to develop, Africa
The Go Global Marketplace is cornering this portion ofmay be the next China of international trade, and Go
the market, encouraging small and mid-sizedGlobal hopes to be there to ride the wave.
businesses to participate in global trade, under the- Sowinski, Laura. "What Supply Chain Execs are
consultation of Go Global. By using the marketplaceBuying, Where They're Skimping." World Trade. Sep.
to manage our customer's transactions, Go Global is2006.
able to provide FREE transaction management,- Commercial Motor. "Significant Potential for
shipment tracking, trade negotiations, and our "biddingThird-party Logistics." Reed Business Information. 15
war" reverse auction function, adding value for ourMar. 2007.
clients and strengthening our comparative advantage- Panitchpakdi, Supachai. "Investment in Africa: The
over the competition.Challenges Ahead." International Trade Forum. Issue 1
Many companies entered international markets2007.
precipitously and are only now beginning to addressÂ
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" or "logistics," the
information necessary for budget and cash-flowresults yielded are generally unrelated to the services
planning as well as effective management. Go Globalbusinesses are seeking. Go Global plans to capitalize
Logistics offers every tool your company needs toon this by establishing a strong online presence with
have an efficient and transparent supply chain touser-friendly information geared towards businesses
make your importing and exporting as easy and errornew to international trade.
free as possible.By providing innovative features that are valuable to
One of the most counterintuitive aspects of theour customers like the Go Global Online Marketplace,
freight forwarding and third party logistics industry iswe attract a wide range of businesses seeking to or
the lack of a central location for international tradealready engaged in international trade. The Go Global
information and services. The industry is extremelyMarketplace is redefining the market by creating a
· Us Census. "Annual Trade Highlights."centralized online marketplace allowing importers and
January 2007.exporters across the globe to connect and trade in a
· Hoffman, William. "3PLs Reach Recordsecure and efficient platform.
Revenue." Traffic World. 23 Apr. 2007.By providing low cost, scalable, online services with
· Datamonitor. "Global Air Freight &the same level of visibility available from the largest
Logistics." Apr. 2007.3PLs, Go Global is redefining the world of international
· Sowinski, Laura. "What Supply Chaintrade and supply chain services and continues to
Execs are Buying, Where They're Skimping." Worldempower small and mid-sized businesses to compete
Trade. Sep. 2006.fragmented and operates behindon the global stage.
the scenes. For this reason, many businesses with a