CartonCloud Logistics Index: How 3PLs will combat rising costs in 2024

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The latest CCLI report highlighted in 2024 logistics operators will look internally to navigate increasing operational costs and maximize growth opportunities. Rising costs have been felt by the majority of the sector (a huge 75% of respondents had been impacted by rising operational costs in 2023), with small to medium-sized businesses hit the hardest.

Over the past three years, CartonCloud has tracked industry sentiment and optimism through the CartonCloud Logistics Index survey and reports. The surveys capture data and insights directly from logistics professionals worldwide to track changes over time and provide actionable data for businesses to use in planning for the future.

🤔 Explore the latest industry trends and insights, with data from hundreds of logistics industry professionals here;

During this time, our industry has moved from fast-paced adaptation during and after the global pandemic into a demand drop with fears of recession looming and a supply chain realignment to prioritize nearshoring to seek stability. All the while, oil and electricity costs have risen, driving up operational costs across the board for businesses and consumers.

Late last year, we gathered insights from hundreds of logistics professionals, to gauge the current sentiment in the industry, identify the biggest concerns, and highlight upcoming opportunities.

Download your FREE copy of the full CCLI Report here:

CCLI Q3 2023 Highlights and 2024 Logistics Industry Forecast

📈 Logistics operators will focus on coping with rising operational costs for 2024

The most recent CCLI survey highlighted just how the combination of rising warehouse rental rates alongside fuel and energy price hikes have combined to create a significant sting felt across the logistics industry.

The majority of logistics businesses (75%) had experienced rising operational costs.
Small businesses were hit the hardest, with over 80% of small businesses (1-50 employees) being impacted by rising costs in 2023.

🤖 2024 will see a focus on automation to combat rising costs

The Q3 2023 CCLI report found companies are looking to optimize and streamline their internal processes in 2024, trimming the fat where possible and ensuring each dollar is counted— and technology affording automation is key.

In Q3 2023, the top technology features used in overcoming fluctuating economic conditions were to automate orders, rates, and invoicing— removing manual tasks for greater ROI.
In 2024, we expect to see companies dive deeper into data and administrative automation in order to reduce overheads and keep rates low.

In addition, we may see an increase in streamlined services under one umbrella, as a result of high optimism for growth recorded in operators offering combined services. Businesses may also look to offer both warehouse and transportation services, due to the sector’s high growth optimism; with the highest outlook for the coming months held by those with combined warehouse and transportation services.

⚖️ 3PL providers look to internal optimization for growth in 2024

This is especially true for small to medium-sized businesses (SMBs), who recorded the lowest outlook for the economy, growth, and hiring potential this quarter of any business size.

Companies are looking to tech to automate time-consuming and inefficient administrative tasks to prepare for economic instability. This year, technology and automation are key.

This focus on internal automation and process streamlining starkly contrasts the growth focus tactics of previous years when industry demand was booming following the post-pandemic spike in e-commerce and purchasing.

Previous year’s CCLI reports had shown companies were looking to optimize internal operations through upgrades to fleet and warehouse technology, removing paper-based processes, and offering greater professional development to staff.

With invoicing, order, and billable rate automation front of mind, this suggests warehouse management systems and transport management systems with finance and administration automation will be keenly sought after by members across each sector.

Find out more

👉 Download the full report at the CartonCloud Logistics Index Archive.

📈 Are you ready to set your 3PL up for growth?

You can see our powerful Warehouse Management System and Transport Management System in action and explore our range of features designed to automate your data and simplify your operations, letting you do more with less. Contact our team to book your FREE Demo tour and see how CartonCloud can revolutionize your operations.