Inside the New Reality of Global Logistics

Disruption has forced third-party logistics providers to rethink how they manage risk, technology, and customer expectations
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This article has been written and paid for by Extensiv. The content is not WIRED editorial content. The content does not necessarily reflect the views of WIRED, its affiliates, or owner, and does not reflect any endorsement direct or indirect of Extensiv or Business Reporter, its affiliates, or other clients.

Precision and predictability have long been the foundations of the logistics industry. Yet, the past several years have tested these fundamentals more than any time in recent memory. Global supply chain upheavals during the pandemic, shifting fulfillment expectations, and today’s macroeconomic instability have combined to disrupt how third-party logistics (3PL) providers operate.

Still, many 3PLs have weathered the storm, with some coming out stronger. Their success likely stems from agility, strategic use of technology, and a sharp focus on supporting customers through uncertain times.

The Challenge of Unrelenting Disruption

In the last five years, 3PLs have faced challenge after challenge. Covid-19 disrupted production, port activity, labor availability, and delivery networks. Inventory strategies flipped almost overnight from lean “just-in-time” to cautious “just-in-case.”

But today, even small merchants expect two-day—or same-day—delivery capabilities from their logistics partners. Inflation, fluctuating fuel prices, unpredictable consumer behavior, and geopolitical trade uncertainty make planning and forecasting even more complex.

These pressures could have paralyzed the sector. Instead, they sparked a wave of transformation.

Adapting Operations for a Volatile Market

Resilience doesn’t mean avoiding disruption—it means responding quickly and using challenges as a springboard for growth. Leading 3PLs are doing this by focusing on three areas.

Flexible Technology Foundations

Rigid legacy systems cannot always keep up with the speed and complexity of today’s logistics environment. Most forward-looking 3PLs are adopting cloud-based warehouse management systems, order orchestration tools, and real-time visibility platforms.

By centralizing inventory across multiple sites, they can more easily reroute orders, balance workloads, and optimize shipping costs—even when supply chains are under pressure. This flexibility can turn disruption into an advantage.

Expanded Fulfillment Networks

The pandemic underscored that depending on a single facility or port is too risky. More 3PLs now run, or partner within, distributed fulfillment networks, allowing them to spread risk and move goods closer to end-customers.

Diversification reduces vulnerability to regional disruptions such as strikes, severe weather, or port shutdowns, while enabling faster delivery speeds that meet modern expectations.

Proactive Customer Engagement

In times of uncertainty, silence can damage relationships. Resilient 3PLs are often not waiting for customers to ask questions about delays—they proactively share updates, resetting expectations, and offering alternatives.

This open communication elevates them from service providers to strategic advisors, guiding clients through broader supply chain challenges.

What 3PLs Learned From a Tumultuous Few Years

The pandemic forced many 3PLs to pivot quickly from B2B distribution to direct-to-consumer fulfillment as e-commerce surged. Those already equipped for omnichannel success thrived, while others scrambled to adapt.

Similarly, the industry has been forced to rethink service models. Competing solely on speed is not sustainable; instead, many 3PLs are carving out niches by combining strong service-level agreements with value-added offerings such as returns management, custom packaging, and data insights.

The same principles apply today in an unpredictable economy: Diversify operations, embrace digital tools, and strengthen customer relationships.

Preparing People and Systems for What Comes Next

The future of logistics will likely continue to be shaped by volatility, whether from economic swings, shifting trade policies, sustainability requirements, or evolving consumer behavior. That uncertainty may also open the door to new kinds of innovation.

Third-party logistics providers that keep investing in flexible systems, scaling their networks, and deepening partnerships will likely not only survive but could lead the industry into its next phase of innovation.

Companies like Extensiv are seeing this this adaptability play out every day across its 3PL networks, as logistics providers find new ways to operate amid constant disruption. The company says its focus is on equipping 3PLs with the tools and insights they need to thrive, no matter what disruption comes next.

For 3PLs, the path forward should be clear: embrace resilience powered by technology, agility, and unwavering dedication to customer success.

Extensiv’s mission is to enable 3PLs and warehouses to succeed in an environment where disruption has become the norm. While upheaval is unavoidable, the real differentiator lies in how logistics providers respond. Extensiv is committed to providing the technology, insights, and agility providers need to strengthen resilience and consistently deliver greater speed, efficiency, and value to their customers. For more information, visit Extensiv's website

By Aaron Stead, CEO, Extensiv