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ORDER VOLUME GROWTH Although 2022 has brought concerns around inflation, a recession, greater labor constraints, and some global uncertainty, 3PLs fared even better than in past years as it related to order volumes with 91% growing order volumes in 2022. This shows a continued positive trajectory from 2020 and 2021, where order volumes increased for 79% and 85% of 3PLs, respectively. This year showed fewer declines as well, dropping from the high of 12% in 2020 to only 4% in 2022, demonstrating momentum for nearly the entire industry. While an average of 51% of warehouses across fulfillment types saw an increase in order volume above 25%, those 3PLs supporting omnichannel fulfillment saw 13% more growth over other fulfillment types. While the 3PLs with the highest order volume growth also had the highest profitability growth, order volume increases did not always equate to profitability Best Practice: As order volumes increase, monitor and optimize customer-level profitability. growth. In fact, 33% of the participants indicating medium With many 3PLs running on slim margins, times of high demand can offer the opportunity to order volume growth (10–24%) indicated they had low to adjust pricing levels and ensure you have the right customers for your business. It’s also a good time to evaluate slow moving inventory to ensure that precious warehouse space is allocated to negative profitability growth. faster-moving inventory that will generate more revenue than storage alone. 2022 Third-Party Logistics Warehouse Benchmark Report | 11

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