Inbound Logistics | July 2025

3PLLINE [ INSIGHT ]

by Carl Wasinger CEO & Founder, Smart Warehousing carl.wasinger@smartwarehousing.com | 913-709-1871

Why Brands Are Breaking Up with Their Multi-3PL Model

In 2025, companies are simplifying their supply chain by moving away from managing multiple third-party logistics (3PL) providers toward partnering with a single, end-to-end provider. This trend aims to solve the challenges that come from a split logistics operation, like inventory fragmentation and varied pricing structures.

Forming a long-term partnership with a solution-based 3PL can allow brands to implement modern logistics strategies that improve exibility, like omnichannel inventory management and strategic placement of inventory across a warehouse network. A third-party logistics provider plays a huge part in their client’s ability to ex and scale. It comes down to the 3PL’s ability to perform and execute, despite the logistics sector’s fast pace and constant disruption. A STRATEGIC PARTNER’S MODERN ROLE The traditional role of a 3PL has been to provide a single aspect of logistics to their clients, but the industry is changing. Today the best 3PLs are end-to-end logistics strategists. They are strategic partners—an extension of their clients—working to provide comprehensive solutions. Brands that continue to treat fulllment, transportation, and other elements of logistics as separate puzzle pieces risk missing the opportunity to see the full picture. The future belongs to brands that fully leverage a solution- based 3PL to cut costs, improve service levels, and mitigate risk—streamlining logistics from dock to front door. n

For brands looking to optimize their supply chain logistics, the trend of consolidating 3PL networks has brought to light some related actionable insights. Evaluate current 3PL model. Brands should look at their current 3PL relationships and identify challenges with the highest impact on their operations. Often, these challenges are related to managing multiple 3PL relationships, either directly or indirectly. Indirect issues might include fragmented data or inconsistencies with service levels. Invest in integrated technology. A robust, centralized source of data is becoming increasingly important in modern logistics strategies. Systems that integrate end-to-end logistics data can provide visibility and actionable insights into a brand’s operation. Plan for flexibility. Brands that can shift operations in response to external factors, like spikes in demand or changes in consumer preferences, will have an advantage over competitors in their space.

In the past, businesses have relied on 3PLs specialized in one area of logistics to manage different links of their supply chains. Specialization can certainly provide benets, but this multi-vendor strategy often leads to dispersed data and more administrative work. In addition to operational benets, the trend of moving to a single, comprehensive partner is transforming the 3PL-client relationship. In the past, relationships between 3PLs and the brands they serve have been primarily transactional. The industry is increasingly seeing these relationships shift toward long-term, strategic partnerships, resulting in better collaboration and mutual growth. GAINING A BETTER UNDERSTANDING This type of relationship allows a 3PL to gain a more thorough understanding of the brand’s operations. Alignment strengthens, communication deepens, and problem-solving becomes much more efcient.

62 Inbound Logistics • July 2025