Brazil 3PL Market: Government’s Push on Infrastructure Development Stokes Growth

Published Date : Mar 29, 2017

ALBANY, New York, March 29, 2017 - has recently added a report, titled, “3PL Market in Brazil 2016-2020,” to its offering. The report throws light on the different aspects of the market for 3PL, short for third-party logistics, to understand its prospects going forward. 

A third party logistics company deals with shippers to manage another entity’s logistics department. 3PL primarily entails outsourcing activities associated with logistics and distribution. 3PL service providers manage the supply chain keeping in mind the requirements of customers. They provide strategic and operational value to many shippers across the globe. Companies across different industries are increasing opting for services of 3PL to focus better on their core competencies and make optimal use of available resources. 

The 3PL market in the South American country of Brazil is slated to witness sluggish growth in the coming years, predicts the report. The market, currently, is highly fragmented on account the presence of a large number of players that include big multinational, regional, and local vendors. Interestingly, it’s not the well-entrenched global giants but their smaller local counterparts that have intensified the competition in the market with outstanding services.   

The smaller and local 3PL companies operating in the market compete primarily on the basis of cost even though they lag the big names in terms of quality, features, and variety of offerings. A noticeable trend in the Brazil 3PL market is vendors increasingly investing in developing new technologies to up their operational efficiencies. Deep-pocketed international players will likely adopt the acquisition route to bolster their positions in the near future. 

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Driving the 3PL market in Brazil is the steady realization among producers, retailers, and wholesalers about the importance of supply chain management and logistics in helping to gain a competitive advantage. The market also received an impetus from the Logistics Investment Program launched by the government in August 2012 to build, upgrade, and maintain road, waterway, railway, port, and airport infrastructure. Other factors stoking the market are rapid progress in the ecommerce sector and rebound in the manufacturing sector. 

Some of the factors hobbling the 3PL market in Brazil are a dearth of proper transportation infrastructure and increase in cargo theft. A few of the noticeable trends in the market are use of multimodal logistics, uptake of eco-friendly vehicles for shipping, and use of new and better technologies. 

To present a detailed picture of the current competitive scenario in the Brazil 3PL market, the report studies the top five players in the market, namely CEVA Holdings, DB SCHENKER, Deutsche Post DHL, Kuehne+Nagel, and Nippon Express. It furnishes information on their unique selling points, their various logistics solutions, their revenues, market shares, and possible trajectory in the foreseeable future.   

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