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All the integrations you need to easily automate and streamline your online orders from a single platform. 

Get Started for Free
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Welcome to the 5th annual Third-Party Logistics Warehouse Benchmark Report.

In August 2024, Extensiv conducted an online survey targeting logistics professionals who own or operate third-party logistics (3PL) warehouses, the aggregated responses from which form the basis of this report. As the first and only report exclusively focused on the 3PL warehouse industry, Extensiv’s Benchmark Report compiles data from over 200 third-party logistics warehouses and covers more than 30 industry-specific topics. This report builds on data collected from 2020 to 2023, highlighting year-over-year changes and developments where applicable. Download the complete report for insights into best practices, trends, current issues, and opportunities facing 3PL warehouses.

Read some of our key findings from each section of the report below.

The 3PL Landscape

Based on the 2024 data, 3PLs served 3.9 industries on average, with retail, bulk goods, and dry storage remaining the most common sectors. Overall, most categories showed an increase from 2023 to 2024, indicating recovery or growth in nearly all sectors. Consumer-driven categories such as cosmetics and bottled goods/wine & spirits continued their upward trajectory, while apparel, one of the fastest-growing industries in 2023, remained relatively flat in 2024.

   

3PL industries served 2024

Warehouse Operations

This year marked the fastest shipping times recorded, with only about 30% of warehouses taking more than 90 minutes to fulfill and ship orders, down from its peak at 48% in 2021. While this metric has improved every year—going from 48% in 2021 to 41% in 2022 to 37% in 2023—the 2024 data marks the largest year-over-year percentage improvement, showing that customers are demanding faster and faster turnaround times on orders.   

Chart 10 YoY-Average Time to Fulfill an Order

Billing & Invoicing

   

 

3PL customer invoice process 2024

In 2024, more warehouses automated their billing processes to ensure quick and accurate billing, with 26% of respondents using their warehouse management system (WMS) for this task. Data shows that 3PLs leveraging invoicing functions in their WMS are 2.2 times more likely to see medium or better profitability growth automated billing processes—proving how essential efficient, automated billing is for financial stability and maintaining cash flow.

Technology Adoption

Artificial intelligence (AI) is gaining significant traction in warehouse operations, with interest in its optimization applications rising from 16% to 25% in one year. Despite this increased importance, the industry has yet to identify a clear standout for the best use case for this technology that will provide the greatest return on investment (ROI), with responses nearly evenly divided across various potential applications.

  

biggest impact of AI for 3PLs 2024 legendbiggest impact of AI for 3PLs pie chart

 

Looking Ahead to 2025

The industry is facing challenges with slowing growth in order volumes and profitability, but businesses are showing resilience and adaptability—especially larger scale, higher performing 3PLs. Managing costs is the top business challenge, with 49% of respondents selecting it, and high and medium growth 3PLs accounting for approximately 66% of these responses. Conversely, finding new customers is the most common challenge for 3PLs experiencing negative profitability.

  

Chart 27-Top Business Challenges

 

Previous Reports

We update our Third-Party Logistics Warehouse Benchmark Report with new data each year since starting the survey in 2020. Reports from previous years are available for you to read below.

2023 Report

While 2023 still showed significant order volume and profitability growth, this was the first year some 3PLs started to see notable decreases in year over year performance. With a fluctuating economy, a freight recession, and lower than expected ecommerce growth, 3PLs are looking for options to diversify, partner, and better manage overall expenses and cashflow.

The best performing 3PLs demonstrate resiliency, a focus on metrics closest to the point of impact, and defined efforts to drive automation and improvement in their businesses. Leveraging these attributes, these 3PLs will be well positioned to compete for new customers and harness new opportunities in the coming year.

READ THE FULL REPORT

2022 Report

While 2022 brought positive returns for most 3PLs, many 3PLs are approaching 2023 with caution and a focus on managing costs, specialization, and integration. Heading into the new year, the industry will not only need to watch continued labor shortages and warehouse capacity constraints but also keep an eye on how inflation may impact overall operating expenses. Proactive management and automation efforts will drive efficiency in 2023.

Along with caution, there is still much room for optimism. Ecommerce order volumes continue to increase, brands are actively looking for new 3PL partners, and profitability gains made this year create a great foundation for profitable growth in 2023.

READ THE FULL REPORT

2021 Report

2021 marked a unique time for 3PL warehouses—both an exciting and challenging time. Exciting because 3PLs overwhelmingly grew order volumes, profits, and customers. Challenging because most 3PLs were operating at or above warehouse capacity and couldn’t find new space as a result of some of the lowest warehouse vacancy rates in history, unending supply chain backlogs, and a workforce shortage that left many with higher labor costs and fewer people to address the higher volumes.

Despite these challenging dynamics, 3PLs have thrived, innovated, and diversified to support growth and harness the market opportunity. From building out more robust training and talent management programs to optimizing warehouse space, building out 4PL networks, and implementing new technology, this industry has shown that it can and will evolve as new market dynamics arise.

READ THE FULL REPORT

2020 Report

With the expectation of a significantly record-breaking peak season in 2020, 3PLs will face volume demands that will test systems, processes, and teams like never before. To harness the expected continued growth, 3PLs will have to create well-defined workforce and warehouse space strategies to address these two key areas that threaten to limit growth potential.

Overall, the outlook for 3PL warehouses remains positive moving into 2021. By following the strategies implemented by the fastest-growing 3PLs outlined in the report, more 3PLs can expect to reap the benefits of increased demand throughout the supply chain.

READ THE FULL REPORT