Matt Perrigo, director of business development at ODW Logistics, discusses the latest developments in the mid-market third-party logistics world.

Retail consolidation is one of the most exciting developments in mid-market 3PL services, says Perrigo. Operating jointly from a retail consolidation facility allows players that previously weren’t in the major-name category to tap into serving big-box retailers and their suppliers.

“They can really grow their business and meet the demands that [large retailers] set on shippers,” Perrigo says. “It’s changing for those in the middle market, and it really does make the playing field much more equal as they get that name recognition out there.”

Success turns on more than consolidation, in Perrigo’s view. Mid-market 3PL executives must have a clear strategy and a solid understanding of the data points needed to drive that strategy. “They need a clean, concise message to present. Price, obviously, is at the forefront for many people, but that's not all. They must understand the constraints around retail compliance and delivering.”

While there’s much talk about investment in artificial intelligence and automation, Perrigo says in the 3PL space it’s a clear and firm understanding of those data points that will bring the valued return on investment. “In the 3PL world, we have more experience around knowing what got the high turns,” he says. “We look at your business through experience, and know how to push the right technology to help meet your goals and your customer's goals.”

Ultimately, a 3PL should take a consultative attitude if it is to meet a customer’s needs and demands. Of course, the provider needs the ability to scale up so it can grow strategically with the client. That’s true whether the relationship is about transportation management, supply chain optimization, warehousing or retail consolidation.