Third-party logistics organisations may be plagued by “significant operational gaps,” due to a lack of digital adoption. New research from TEG found that just one-third of 3PL companies are using eSourcing technology. The report found that more than 80% were only conducting “limited supplier audits,” according to the report.
A growing number of UK organisations are turning to 3PL companies as they seek to unlock an array of benefits, from increasing visibility into costs and access to 3PLs’ more extensive infrastructure, to scalability, flexibility, and new technology solutions. 3PL providers bring specialised knowledge, tools, resources, experience, and software to organisations which may be facing supply chain pressures. However, TEG’s report argues that these 3PL companies aren’t adequately embracing the necessary digital technologies to meet the operational demands of an increasingly challenging sector.
Mounting challenges, widening gaps
Road freight operators face mounting challenges in 2025, from driver shortages and new emissions regulations to the cost of transitioning to greener fleets and fluctuating fuel prices from the US’ burgeoning trade war. The TEG whitepaper outlines how 3PL companies can address these gaps through enhanced carrier management processes to boost supply chain efficiency and sustainability.
“As road freight operators deal with rising costs, tightening regulations, and sustainability demands, 3PLs are searching for new solutions to old challenges. As the foundation for building resilient, efficient, and future-ready supply chains, optimising operations across technology, compliance and sustainability is key,” said Lyall Cresswell, Founder & CEO of TEG. “Making these solutions an essential part of day-to-day operations isn’t just an opportunity, it’s becoming a necessity. The time to adapt is now.”
Opportunities for development in 2025
TEG’s report identifies four key areas where 3PL companies can develop their operations to plug widening gaps.
- Technology adoption potential. Only 33% of 3PLs currently use eSourcing technology when procuring carriers, indicating a significant opportunity for digital transformation.
- Compliance enhancement. 83% of 3PLs audit less than 10% of their sub-contractors annually, highlighting opportunities to strengthen carrier validation processes.
- Sustainability development. Two-thirds (67%) of 3PLs identify sustainability as a pressing procurement challenge as new emissions regulations reshape carrier requirements.
- Skills development. 83% of personnel responsible for carrier procurement receive no formal training, hindering strategic carrier selection and relationship management.
The whitepaper provides a detailed roadmap for 3PLs to enhance their procurement practices. Steps detailed include implementing strategic sourcing, automating tactical procurement, and strengthening supplier auditing processes.
