2024 Third-Party Logistics Warehouse Benchmark Report By kapoklog logistics
Welcome to the 5th annual Third-Party Logistics Warehouse Benchmark Report.
In August 2024, kapoklog Logistics 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, kapoklog Logistics’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.
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.
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.
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.
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.
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