Rise of the 3PL Industry

The 1980s created the third-party logistics business that brands hire today. The Motor Carrier Act of 1980 sharply limited the Interstate Commerce Commission's control over trucking rates and market entry, and the Staggers Rail Act did the same for railroads that year. Carriers looking for new revenue bought warehouses and began offering dedicated fleets, warehousing and distribution under multiyear contracts, while manufacturers and retailers outsourced logistics to cut costs and focus on their core business. The term third-party logistics became popular in the 1990s. E-commerce 3PLs, with their pick and pack fees, storage rates and service level agreements, are direct descendants of these contract logistics deals.

• Third-Party Logistics3PLAn outside warehouse that ships your orders
• Fourth-Party Logistics4PLA manager of your whole logistics network
• Service Level AgreementSLAContracted performance targets for a provider

• Penn Central Bankruptcy1970 · The largest US railroad files for bankruptcy
• Qualcomm OmniTRACS1988 · Satellite messaging and tracking come to truck cabs
• Deutsche Post Acquires DHL1998–2002 · The German post buys DHL in steps over four years

• Motor Carrier Act of 19801980 · Deregulated US trucking rates and market entry

1. What is 3PL (third-party logistics)? (TechTarget) techtarget.com
2. Third-party logistics in the United States (NLI Research Institute) nli-research.co.jp