3PL Market in Japan 2017-2021
About Third-Party Logistics
The term 3PL refers to third-party logistics that essentially involves a vendor catering to the logistics and distribution management of outsourced products and services of different companies. Shippers (customers, who transport goods using 3PL services) outsource some or all the supply chain management (SCM) functions of their logistics services to the 3PL provider. The 3PL provider is responsible for handling customer logistics requirements while performing different functions like transportation, location tracking, and sometimes product-consolidation activities.
Technavio’s analysts forecast the third-party logistics market in Japan to grow at a CAGR of 3.53% during the period 2017-2021.Covered in this report
The report covers the present scenario and the growth prospects of the third-party logistics market in Japan for 2017-2021. To calculate the market size, the report considers the 3PL services provided by the vendors in Japan.Technavio's report, Third-Party Logistics Market in Japan 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Third-Party Logistics Market in Japan 2017-2021
Technavio recognizes the following companies as the key players in the third-party logistics market in Japan: Global Logistic Properties (GLP), Kintetsu World Express (KWE), Sagawa Express, Yamato, and Hitachi Transport System.
Other Prominent Vendors in the market are: Alps Logistics, JFE Logistics, Mitsui-Soko, Nichirei Logistics, NIPPON EXPRESS, Sakata Warehouse, Sankyu, and Toll Holdings.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is technological advances by 3PL providers in Japan. 3PL providers in Japan have been proactive in incorporating IT and mobile solutions to add value and improve the quality of its services. They are increasingly investing in IT and applying cutting-edge technologies to its processes, which merge well with the streamlining of processes. With advances in technology, the IT gap has been plugged to a considerable extent. This has resulted in the increased visibility of 3PL processes.”
According to the report, one of the major drivers for this market is affordable prices through 3PL services. Construction of logistics facilities is a capital-intensive process, and a huge amount of funding is required to build large infrastructure. Therefore, most of the companies outsource their logistics and supply chain operations to 3PL players. Over 90% of the businesses in Japan outsource operations to 3PL players, as the companies do not have enough capital to invest in huge warehouse facilities and do not find the need to spend high amounts on logistics facilities.
Further, the report states that one of the major factors hindering the growth of this market is lack of innovation in logistics facilities. Most of the companies in Japan have in-house logistics, which was equipped to meet the demand from customers. However, with growing online retailing, the number of goods in the warehouse is stocking up, and the availability of space is getting limited. Apart from the unavailability of space, the warehouse facilities are not technologically equipped to meet the growing demand from customers.
Global Logistic Properties (GLP), Kintetsu World Express (KWE), Sagawa Express, Yamato, Hitachi Transport System, Alps Logistics, JFE Logistics, Mitsui-Soko, Nichirei Logistics, NIPPON EXPRESS, Sakata Warehouse, Sankyu, Toll Holdings.