Inbound Logistics | July 2022

SALES: DURING YOUR LAST MEASUREMENT PERIOD, WERE SALES UP OR DOWN? BY HOW MUCH? SALES / CUSTOMER BASE / PROFITS

CUSTOMER BASE: DURING YOUR LAST MEASUREMENT PERIOD, DID YOUR CUSTOMER BASE GROW OR SHRINK? BY HOW MUCH?

47% UP 20%

30% UP 5%

23% UP 10%

DOWN 5% DOWN 10% OR MORE NO CHANGE

DOWN 5%

1% 1%

1%

9% NO CHANGE

21% UP 10%

4%

10% UP 5%

20% UP 20%

17% UP 15%

16% UP 15%

0% DOWN 10% OR MORE

PROFITS: DURING YOUR LAST MEASUREMENT PERIOD, WERE PROFITS UP OR DOWN? BY HOW MUCH?

When the world throws major challenges at shippers, that gives 3PLs a chance to shine. That’s the story today, as the 3PLs in our survey demonstrate. Ninety-four percent of them reported increased sales in their last measurement period, even better than the 88% who conveyed that good news in 2021. Ninety percent saw their customer bases grow, and 90% said they’re enjoying greater profits than our survey showed one year ago. Those gains look even more impressive when we drill into the specifics of 3PLs’ growth. Sixty-three percent of 3PLs saw sales increase by 15% or more, and another 21% reported sales up by 10%. Profits didn’t quite keep pace with revenues, but a healthy 57% of 3PLs said their profits were up by at least 15%, and another 18% reported a 10% gain. 3PLs did not gain customers at the same rate as profits— only 37% reported increases of 15% or more on that measure. But only 1% of 3PLs lost customers in their most recent measurement period, and that by only 5%. When leaders at 3PLs look across the landscape of technologies with potential to transform supply chains, artificial intelligence and machine learning emerge as the most likely disruptors, cited by 68%. And although we don’t yet see fleets of driverless trucks hauling goods across the interstate highway network, more than half of respondents ranked autonomous vehicles among the most impactful technologies. Some of those 3PLs may already be using this technology on a smaller scale, in the form of autonomous robots in the warehouse. Beyond those two forms of digital innovation, no other technology received a majority vote. But a solid 39% of 3PL respondents said the Internet of Things/Industrial Internet of Things (IoT/IIoT) will influence the supply chain, and 35% look to blockchain technology to bring important changes. Notably, very few respondents—only 6%—cite 3D printing as a potential disruptor. Clearly, leaders at 3PLs foresee that we will continue to transport goods as needed, not simply print up components or finished products on the spot.

40% UP 20%

18% UP 10%

8% NO CHANGE 2% DOWN 5%

15% UP 5%

17% UP 15%

0% DOWN 10% OR MORE

Artificial intelligence/machine learning 68% Autonomous vehicles 52% Internet of Things/Industrial Internet of Things 39% Blockchain 35% Wearable technology 22% Drones 20% 3D printing 6% MOST IMPACTFUL TECHNOLOGIES

94 Inbound Logistics • July 2022

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