Shipping Trends

Top 9 Trends to Look out for Third-Party Logistics in 2023

The Indian eCommerce sector has witnessed substantial growth over the period owing to factors such as the growing number of internet users, increasing rate of internet penetration, and growing use of smartphones among the people of India. As the market for online business is expanding, brands are now looking for an efficient third-party logistics service provider to cater to their order deliveries. The businesses are inclining towards the logistics service provider who can facilitate them with expertise in order fulfillment, last-mile delivery, inventory management, packaging, and returns, as these operations allow eCommerce businesses to carry out their tasks and provide a unique shopping experience to their customers.

Online businesses are requesting new logistical capabilities and top-notch solutions to manage their supply chain processes effectively, reduce logistics costs, and tackle more challenging tasks, thus driving the emergence of recent trends in third-party logistics services.

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Key Third-party Logistics Trends to Look for in 2023

Third-party Logistics Trends

The third-party logistics industry in India has experienced a paradigm shift in the past two decades, and this change will continue to impact how third-party logistics service providers operate moving ahead. Below are nine key trends that brands must look out for while investing in third-party logistics service providers:

Increased Adoption of Technology

In 2023, brands can expect greater technology adoption in the Indian third-party logistics industry. This includes using automation, big data analytics, and artificial intelligence to streamline processes and increase efficiency. 

Additionally, third-party logistics companies are increasing their investments in more intelligent IT and software solutions such as inventory management systems, blockchain, and cloud computing to increase productivity and profit. With the help of these technological advancements, 3PLs can reduce their expenses, streamline their deliveries, and boost operational productivity.

Greater Focus on Sustainability

As consumers become more environmentally conscious, there will be a greater focus on sustainability in the logistics industry in the coming years. This could include the use of electric or hybrid vehicles, as well as the adoption of more eco-friendly packaging materials. Moreover, third-party logistics companies can work with their clients to create an impact by reducing their carbon footprints. The companies can achieve this with the help of electric vehicles, sustainable packaging materials, and increasing fill rate per transport unit to ship more products per fuel tank.

Expansion into Tier 2 and Tier 3 Cities

As the Indian economy continues to grow, expanding e-commerce and other businesses into smaller Tier 2 and 3 cities is inevitable. This will lead to an increased demand for logistics services in these areas. Resulting in more focus and investment from third-party logistics companies in these areas.

Enhancement of Last Mile Delivery

Last-mile delivery has played a crucial role in the third-party logistics sector over the years and continues to be one of the key trends in the sector. Given that it determines the outcome of the consumer experience, last-mile delivery has developed into a vital aspect of eCommerce. Using technological innovations, experienced labor, and trained employees, 3PLs can substantially improve delivery operations and speed up the process before last-mile delivery operations, eventually leading to a speedier delivery operation.

Focus on Customer Experience

As competition in the third-party logistics industry increases, there will be a greater focus on providing excellent customer service and a seamless experience in 2023. 3PLs can implement real-time tracking, personalized delivery options, swift customer support, and flexible delivery time to achieve this.

Increasing Use of Data Analytics

Data analytics will play an increasingly important role in the third-party logistics industry as companies look to make data-driven decisions about everything from route optimization to warehouse management. By leveraging advanced analytics tools, logistics providers can make more informed decisions that help them reduce costs, improve efficiency, and better serve their customers.

Growing Demand for Supply Chain Visibility

Companies increasingly demand greater visibility into their supply chains in a globalized and highly connected world. This includes real-time tracking of shipments, as well as more comprehensive data on the performance of logistics partners. In 2023, Indian third-party logistics providers shall increase their investment in technologies and systems that help them provide this visibility to their customers.

Improvement of Customer Service

As competition in the third-party logistics industry heats up, companies must differentiate themselves by providing exceptional customer service. This may include offering a more comprehensive range of delivery options, such as same-day or next-day delivery, and providing more proactive and personalized communication with customers throughout the delivery process.

Growing Demand for Cold Chain Logistics

As India’s food and pharmaceutical industries continue to grow, so will the demand for specialized cold-chain logistics solutions. These solutions are designed to maintain the temperature-controlled environment necessary for transporting and storing perishable goods. They may involve the use of advanced temperature-controlled packaging and transportation systems.


The Indian third-party logistics industry is set to undergo significant changes in the coming years, with technology, sustainability, and customer experience being key areas to watch. Moreover, the growing demand for fast customer deliveries has further pushed third-party logistics service providers to develop solutions that cater to this demand. All-in-all, the third-party logistics sector in India has grown substantially in recent years and will continue to exhibit the same or better performance in the future.

To know more about the role of third party logistics in the growth of your business, connect with us.


What’s ahead for logistics and supply chains in 2023?

Logistics companies, especially third party logistics companies are implementing the latest technologies to stay ahead of the competition and deliver better post purchase experience to the end customers.

What do carriers and shippers need to know in 2023?

The competition is expected to rise exponentially in coming years due to the growing trend of online shopping in India. Therefore carriers and shippers need to ensure that they provide top-notch service to their customers.

What are the latest trends in the last mile delivery industry?

Last mile delivery service providers are to experience a massive surge in same-day and next day delivery services as the customers want to get their orders as quickly as possible.

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