As an industry being most often characterized as mature, third-party logistics (3PL) suppliers are searching for ways to set themselves apart from competitors. This is according to Adrian Gonzalez, director of ARC Advisory Group's Logistics Executive Group and author of a study exploring 3PL challenges.

Gonzalez explains that logistics providers are searching for a means of managed growth, as opposed to rapid capital gain—a priority just five years ago. "Consolidation and increased competition has forced a shift to profitable growth from just growth," he says.

With fears of becoming a commodity, logistics providers are tailoring their services for vertical industries, "and going in deep." Gonzalez comments that providers such as UPS and FedEx are heavily capitalized and are thus able to cater to a variety of industries. Smaller, niche 3PLs have chosen to accommodate industries with very specific demands. "Many 3PLs are applying their industry expertise and technology to tailor their services."

Service providers are also ramping up their tech offerings for clients. "If you don't have adequate IT systems, you will not be successful in today's market," Gonzalez asserts. Suppliers "need to provide an IT infrastructure that looks beyond WMS and TMS."