The marketplace for third-party logistics
is arguably the largest market in the world. Any physical good that
comes into or goes out of the United States requires extensive
logistics planning and management and must be cleared by U.S. Customs.
Because of the complexities of these processes, most businesses choose
to hire a 3PL provider to manage the transportation, clearance,
warehousing, and distribution of their shipments.
Market Statistics
In 2006, imports to the United States
exceeded $2.2 trillion (a 10.5% increase over 2005) and exports
exceeded $1.4 trillion (an increase of 12.8%). Each of these
goods required a number of shipping and warehousing services and must
receive US Customs clearance… this is where Go Global takes over.
In 2006, the total revenue for the 3PL
industry was $110.6 billion, representing a total industry growth rate
of 11.9%. Datamonitor projects that by 2010, the total 3PL market
will exceed $140 billion.
Global trade management is also part of the
focus at Go Global Logistics. In 2005, the global trade management
segment expanded to $222 million, and is expected to swell to $405
million by 2010, a cumulative annual growth rate of 12.8%.
The Go Global Marketplace is cornering this
portion of the market, encouraging small- and mid-sized businesses to
participate in global trade, under the consultation of Go Global. By
using the marketplace to manage our customers’ transactions, Go Global
is able to provide FREE transaction management, shipment tracking,
trade negotiations, and our “bidding war” reverse auction function,
adding value for our clients and strengthening our comparative
advantage over the competition.
Many companies entered international markets
precipitously and are only now beginning to address the lack of
visibility across their supply chains. Only the largest 3PL (third
party logistics) providers offer the newest technologies like online
tracking, and 90% of enterprises report that their global supply chain
technology is inadequate to provide the timely information necessary for
budget and cash-flow planning as well as effective
management. Go Global Logistics offers every tool your
company needs to have an efficient and transparent supply chain to make
your importing and exporting as easy and error free as possible.
One of the most counterintuitive aspects of
the freight forwarding and third party logistics industry is the lack
of a central location for international trade information and services.
The industry is extremely
- Us Census. “Annual Trade Highlights.”http://www.census.gov. January 2007.
- Hoffman, William. “3PLs Reach Record Revenue.” Traffic World. 23 Apr. 2007.
- Datamonitor. “Global Air Freight & Logistics.” http://www.datamonitor.com. Apr. 2007.
- Sowinski, Laura. “What Supply Chain Execs are Buying, Where They’re Skimping.” World Trade. Sep. 2006.
fragmented and operates behind the scenes.
For this reason, many businesses with a desire to enter international
markets have no idea where to begin.
Furthermore, those companies that do provide
complete 3PL services are very large and have been focusing on
maintaining a small number of larger accounts. Many small- and
mid-sized businesses who were fortunate enough to find a reliable 3PL
provider find themselves being squeezed out and not having their
contracts renewed. The smaller third party logistics providers do not
offer the newer supply chain technologies, and are characterized by
“old school” business practices.
Go Global is involved in many of the fastest
growing markets in the world such as Asia and Western Europe where the
market is expected to grow 33% over the next five years. It is
projected that after five years, 3PLs (third party logistics providers)
will handle more than 57% of the sector’s supply chain
requirements. This provides tremendous growth opportunities for
Go Global.
Go Global is also slowly expanding into the
African markets as the infrastructure and problems with governmental
corruption improves. Foreign Direct Investment in Africa has been
steadily rising, a sign that it will soon be a viable target market for
Go Global Logistics. In 2006, FDI increased 26.5% to $38.8
billion. If this trend continues to develop, Africa may be the
next China of international trade, and Go Global hopes to be there to
ride the wave.
- Sowinski, Laura. “What Supply Chain Execs are Buying, Where They’re Skimping.” World Trade. Sep. 2006.
- Commercial Motor. “Significant Potential for Third-party Logistics.” Reed Business Information. 15 Mar. 2007.
- Panitchpakdi, Supachai. “Investment in Africa: The Challenges Ahead.” International Trade Forum. Issue 1/2007.
Redefining the Market
Most small- and mid-sized businesses search for 3PL providers on the
internet, where 3PL advertising coverage is abysmal. Upon performing an
online search for “customs broker” “3PL” or “logistics,” the results
yielded are generally unrelated to the services businesses are seeking.
Go Global plans to capitalize on this by establishing a strong online
presence with user-friendly information geared towards businesses new
to international trade.
By providing innovative features that are valuable to our customers like
the Go Global Online Marketplace, we attract a wide range of
businesses seeking to or already engaged in international trade. The Go
Global Marketplace is redefining the market by creating a centralized
online marketplace allowing importers and exporters across the globe to
connect and trade in a secure and efficient platform.
By providing low cost, scalable, online services with the same level of
visibility available from the largest 3PLs, Go Global is redefining the
world of international trade and supply chain services and continues
to empower small- and mid-sized businesses to compete on the global
stage.