Data Projects that E-Commerce Is Driving the Third-Party Logistics Market Forward
NEW YORK, July 3, 2018 /PRNewswire/ --
FinancialBuzz.com News Commentary
According to data compiled by Global Market Insights Inc., the Third Party Logistics (3PL) Market is expected to exceed USD 1,100 Billion by 2024. The market is expected to see significant growth as manufacturers focus more on their core businesses while subcontracting processes in which other companies are more proficient. The industry already has seen strong growth over the years, due to the massive expansion of e-commerce, which is also set to drive the 3PL market even further. Companies heavily involved in e-commerce sales rely on 3PL for services such as delivery, inventory management, freight forwarding and individualized shipping time. Xspand Products Lab Inc. (NASDAQ: XSPL), Manhattan Associates Inc. (NASDAQ: MANH), Protolabs Inc. (NYSE: PRLB), BEST Inc. (NYSE: BSTI), SPS Commerce Inc. (NASDAQ: SPSC)
Data provided by KBV Research, shows that the increasing business across the industry has prompted many companies to incorporate some sort of 3PL service. In return, companies boost their business efficiency and outreach, allowing them to provide better services to consumers. "The 3PL phenomenon took root over half a century ago, and since the mid-nineties the sector has expanded dramatically" said Harvey Booth, Analyst at 3P Logistics. "There is a trend toward large 3PLs and mega-3PLs, with significant consolidation occurring in the industry. Today, nearly 25 3PLs have revenue exceeding one billion dollars. The motivation seems to be to achieve scale economies and create a one-stop shop for all 3PL needs."
Xspand Products Lab Inc. (NASDAQ: XSPL) yesterday announced breaking news that, "it has signed a member purchase agreement to acquire 100% of the common membership interests of their previously announced strategic partner, Edison Nation, LLC ("Edison Nation"), for total consideration of USD 850,000 and 990,000 shares of common stock and assumption of debt. The acquisition is expected to close by the end of July 2018.
Edison Nation operates an open innovation marketplace for consumer and medical product ideas and intellectual property. They have received over 100,000 idea submissions from innovators, including independent inventors, corporate and governmental agencies, universities and hospitals and their respective communities and employees, and their successfully licensed products have sold in excess of USD 250 Million at retail.
Edison Nation provides corporate partners with complete, fully managed, turn-key open innovation solutions to accept, review and acquire ideas on a confidential basis from their employees, customers and our community members. Partners engage Edison Nation to find them new products to acquire and Edison Nation aggregates ideas for them from inventors around the world. Edison Nation has managed over 300 innovation campaigns in their marketplace for clients, who include many of the largest manufacturers and retailers in the world such as Amazon, Bed Bath and Beyond, HSN, Rite Aid, P&G, Jarden and more.
In connection with the acquisition, Louis Foreman, the founder, CEO and majority shareholder of Edison Nation, will join Xspand as an Independent Director, effective upon closing.
"Today, innovation is alive and well, but the needs of our community have grown," said Louis Foreman, CEO of Edison Nation. "With the advent of crowdfunding and e-commerce, the way new products are brought to market has changed. Innovators now need the ability to not only share their ideas but also introduce them to consumers quickly and effectively. Our acquisition by Xspand Products Lab meets these needs by unleashing services and resources to not only develop products, but also to manufacture and distribute them. For 10 years, Edison Nation has been the trusted marketplace for innovators to share their ideas, this is not going to change, it's only going to get bigger."
"We are very pleased to welcome the Edison Nation community to the Xspand family," said Chris Ferguson, Chief Executive Officer of Xspand Products Lab. "The acquisition of Edison Nation provides not only an experienced team and wholesale selection of micro-brands for us to leverage, but more importantly, provides a platform that I believe will drive future growth for years to come. The ability to efficiently aggregate innovation, combined with Xspand's de-risked product development model, will enable innovators to rapidly address opportunities in the most efficient manner possible."
"We look forward to working with the Edison Nation community to bring their ideas and inventions to life. Together, I am confident that we will be a driving force behind the next wave of internationally recognized products, which we believe may lead to significant value creation both for innovators and our shareholders," concluded Ferguson."
Manhattan Associates Inc. (NASDAQ: MANH) is a technology leader in supply chain and omnichannel commerce. The company unites information across the enterprise, converging front-end sales with back-end supply chain execution. The company's software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers. Manhattan Associates announced on May 22nd, 2018 significant improvements to its market leading Warehouse Management Solution (WMS) to help retailers, distributors and logistics companies remaser the art of fulfillment by improving order flexibility, maximizing asset utilization and expanding mobile workflows. Manhattan Associates now has improved its market-leading WMS solution for today's connected commerce world. The updated solutions provide unprecedented order intelligence and optimization, unmatched orchestration of man and machine and unrivaled workforce agility and efficiency. "The need for improved speed, efficiency, visibility and accountability are reverberating throughout the supply chain and are influencing warehouse operations," said Eddie Capel, president and CEO of Manhattan Associates. "Manhattan is proud to enhance our market-leading Warehouse Management solutions with new intelligent optimization, asset orchestration and workforce agility tools that address these changing needs."
Protolabs, Inc. (NYSE: PRLB) is the world's fastest digital manufacturing source for rapid prototyping and on-demand production. ProtoLabs has purchased a new manufacturing facility in Brooklyn Park, Minn. on March 16, 2018, the latest step the digital manufacturing company has taken to expand its prototyping and low-volume production capacity. The Company has also recently invested in additional manufacturing equipment for both its American and European facilities to support business growth. Beyond the new machining facility, Protolabs continues to expand its manufacturing capacity with the addition of new equipment. Over the past 12 months, the Company purchased more than 75 CNC mills and 25 injection molding presses in the United States. Additionally, Protolabs' European operations purchased 25 CNC machines and six injection molding presses that are now in use at the company's facility in Telford, U.K. These investments expand Protolabs' worldwide manufacturing capacity to more than 1,000 presses, mills, lathes, press brakes, laser cutters and 3D printers. "We are excited about the growth we've experienced in machining," said Rob Bodor, Protolabs' Vice President and General Manager, Americas. "Opening an additional facility in Brooklyn Park, along with investing in more machining and injection molding equipment around the world, demonstrates our ability to evolve and increase the services we provide to our customers as we capture share in this dynamic market. We helped over 35,000 product developers last year and this added capacity will provide the scale to continue serving companies from innovative startups to Fortune 100 companies and everyone in between."
BEST Inc. (NYSE: BSTI) is a leading Smart Supply Chain service provider in China. The company's multisided platform combines technology, integrated logistics and supply chain services, last-mile services and value-added services. BEST Inc., China's leading smart supply chain and logistics service provider, announced on May 31st, 2018 that it has launched its international parcel service to the U.S. and Southeast Asia. Through its expanded cross-border solutions, the Hangzhou-based company will allow Chinese online merchants to deliver products to overseas customers faster and with greater convenience. The new service further improves BEST's cross-border service capabilities and provides Chinese merchants a one-stop integrated solution for delivery. "BEST Global has continued to expand its international capabilities with services including marine shipping, air shipping, and international parcel service, and we continue to deepen our ability to serve customers by setting up warehousing services in strategic international locations," said Richard Zhou, senior vice president of BEST Inc. and general manager of BEST Global, in an interview. "We hope through our integrated cross-border logistics and supply chain services, we can ship goods made in China to the world through a more economic, efficient, and stable channel."
SPS Commerce Inc. (NASDAQ: SPSC) perfects the power of trading partner relationships with the industry's most broadly adopted retail cloud services platform. As a leader in cloud-based supply chain management solutions, the company provides proven integrations and comprehensive retail performance analytics to thousands of customers worldwide. SPS Commerce, Inc., a leader in retail cloud services, has unveiled more than 75 online training programs that educate and certify suppliers to deliver a more efficient supply chain. Courses are available for leading retailers, including Ace Hardware, Arhaus, Cabela's, CDW, Chewy.com, David Jones, Dick's Sporting Goods, Grainger, Jet.com, Loblaws, Neiman Marcus, The Iconic, The Vitamin Shoppe, and Walmart, among others. The courses provide detailed information on the latest trading requirements of the retailer delivered through documentation, infographics, webinars, and videos, with optional testing and certification available. SPS Commerce offers a proven customer success methodology, including online courses, for retailers and their vendors to align with supply chain improvement initiatives. Comprised of more than a hundred retail strategists and technology experts, the Customer Success team at SPS supports more than 70,000 customers with the latest industry best practices to optimize their individual experience.
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