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November 4, 2022

Top industries in Dallas that use Third Party Logistics (3PL)

The Third Party Logistics (3PL) Market Size has increased steadily over the last five years by a pace of over 5% per year. GlobeNewswire predicts over 8% growth in the next five years, driven by increases in trading and a growing e-Commerce industry. 

With consumer demand for selection and speedy delivery driving some industries to need more goods available at the ready, it’s no wonder there’s growth in demand for warehousing and logistics. Businesses needing better inventory management and same-day or one-day delivery can benefit from a 3PL partnership. 

According to the Dallas Regional Chamber, over 200 companies have moved their corporate headquarters to the region since 2010. This business boom in the Dallas region is fueled by rapid growth in certain industry sectors, namely transportation, construction, food service, health services, retail and technology. 3PL solutions are critical to these industries, providing stability and agility to global businesses. Changing consumer demand, supply chain disruptions and shipping delays can cripple a growing business. 3PL providers offer solutions to help companies through these challenges. 

Armstrong’s transportation, warehousing and logistics expertise can offer specific services to help Dallas’ rapidly growing business sectors.

Construction

Price fluctuations and major interruptions in the supply of certain critical items have upended the construction sector. Delivering a project on time and on budget heavily depends on a builder’s ability to secure the supplies needed at the right time. Construction businesses can benefit from extra warehousing to store long-lead items and gain an edge over the competition by allowing builders ready access to hard-to-find or long-lead items. 

Construction firms can also benefit by procuring supplies at the time of price estimating, locking in the total expenditure on a particular project and safeguarding against price hikes. Customers can rest easy knowing they are protected from supply chain disruptions and price fluctuations. 3PL partners assist by storing supplies, maintaining inventory records and offering on-demand delivery to job sites, eliminating costly project delays and supply chain headaches. 

A 3PL partnership can also help construction firms improve the visibility of their supply chain by helping firms anticipate pinch points and eliminate vulnerabilities. 

Food Service

The food service industry can benefit most from a 3PL partner during construction or expansion – receiving shipments and storing them securely until ready to install them on-site. 3PL partners providing a full-service end-to-end solution can accept delivery on equipment, deliver it to the facility and unpack and install it. This frees up the internal team to focus on procuring equipment when it is available and most cost-effective to do so. 

3PL partners can also assist in storing excess equipment and supplies, like dry goods, catering equipment and cold storage – items you don’t need to access daily but need to have at the ready. Large chains can also buy equipment in bulk and store it until needed, offering a cost-effective solution to securing access to long-lead or hard-to-find items.

Technology

Dallas is known for its computer and technology manufacturing and telecommunications industries. By partnering with 3PL companies, electronics manufacturers can compete in more competitive consumer markets with fewer overhead expenses and increased operational efficiency. A 3PL streamlines warehousing and distribution processes so clients in the electronics industry can accelerate their responses to fluctuating consumer demand.

3PL providers also offer less-than-truckload shipping and pick-and-pack fulfillment to quickly get small electronics orders to customers. Some 3PL partners bring added value to the electronics supply chain by providing extra services such as kitting, boosting customer satisfaction.

3PL solutions can help tech manufacturers scale up while decreasing long-term fixed overhead costs.

Retail

Retailers can leverage 3PL partnerships to reduce their vulnerability to supply chain disruptions. Moving from just-in-time to just-in-case inventory management and locating operations closer to customers can help retailers gain an edge over the competition and strengthen the flexibility and resilience of their business. 

Consumer expectations for faster and faster deliveries have accompanied the rapid growth in the e-commerce sector. McKinsey found that almost half of omnichannel consumers will shop elsewhere if delivery times are too long. Local retailers can speed up deliveries by leveraging the coast-to-coast networks of 3PL providers, who can quickly move goods through their owned distribution centers across the country. Many 3PL companies also have lengthy databases of vetted carriers, allowing them to move retail goods from region to region as needed. A 3PL can also handle the SKU complexity of an omnichannel retailer, using decades of inventory-management experience to keep the warehouse organized.

The e-commerce industry also benefits from a 3PL’s ability to improve the visibility of the supply chain. A 3PL can provide regular reporting through leading technology, showing retailers the preventative measures they can take to ensure they stay on top of the competition.

As the Dallas region grows, the need for 3PL services will grow with it. Companies that leverage the expertise of providers like Armstrong can gain an advantage over their competitors by becoming more resilient, flexible and efficient with their operations. 

When you need transportation, warehousing or logistics support, let our team of experts help you. Armstrong offers a full range of supply chain solutions to meet the unique needs of every industry. From FTL, LTL and intermodal shipping to warehousing, fulfillment and distribution, Armstrong’s logistics services ensure that nothing stands in the way of your growth. Get started today by calling 800.288.7396 or requesting a free quote online.

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