--- title: "The trouble in paradise for 3PL and their fleet" id: "725" type: "post" slug: "the-trouble-in-paradise-for-3pl-and-their-fleet" published_at: "2019-03-24T07:20:11+00:00" modified_at: "2025-09-02T11:40:42+00:00" url: "https://locus.sh/blogs/the-trouble-in-paradise-for-3pl-and-their-fleet/" markdown_url: "https://locus.sh/blogs/the-trouble-in-paradise-for-3pl-and-their-fleet.md" excerpt: "Key Takeaways What happens when your best friend turns into your biggest foe? Shock, Anguish, and Sadness. Just a few of the images that come to the mind. That’s the situation that the 3PL companies are dealing with right now...." taxonomy_category: - "CEP and 3PL" - "Fleet Optimization" taxonomy_post_tag: - "Fleet Management" - "Fleet Utilization" - "Logistics Operations" - "Logistics Optimization" - "Supply Chain Optimization" - "Vehicle and Rider Allocation" --- #### [CEP and 3PL](https://locus.sh/blogs/category/third-party-logistics-distributors/) , [Fleet Optimization](https://locus.sh/blogs/category/fleet-optimization/) # The trouble in paradise for 3PL and their fleet [Team Locus](/author/team-locus/) Mar 24, 2019 5 mins read ## Key Takeaways - Rising consumer expectations in e-commerce have created cost pressures, with 64% of customers unwilling to pay extra for two-day shipping while demanding faster deliveries. - Managing reverse logistics has become a critical challenge, as 85% of customers won’t shop again with companies that have inconvenient return processes. - Transportation costs and fleet availability are major pain points, with 40% of 3PLs reporting increased rates and 29% facing asset availability issues. - Locus’s AI-powered route optimization and vehicle allocation engine helps 3PLs optimize fleet utilization while managing demand variability and reducing logistics costs. *What happens when your best friend turns into your biggest foe?* Image source: Giphy #### Shock, Anguish, and Sadness. Just a few of the images that come to the mind. That’s the situation that the 3PL companies are dealing with right now. Trucks, Ships, and Boxes; their most intimate homies have rebelled against them. Image credits: Gyfcat Believe it or not, managing fleet is one of the biggest challenges for 3PL companies. Cutting transportation costs is the topmost concern for 3PL providers according to this Capgemini [study](https://medium.com/r/?url=https%3A%2F%2Fwww.kornferry.com%2Fmedia%2Fsidebar_downloads%2F2016_3PL_Study.pdf) . Rising consumer expectations due to the growth of the omnichannel and e-commerce industry have reduced the willingness to pay for quicker deliveries, with about 64 percent of consumers unwilling to pay anything extra for less than two-day shipping. The evolution of the omnichannel and e-commerce industry has also added to the pressure of better [last-mile deliveries](https://locus.sh/use-cases/last-mile-delivery-routing/) . Ad-hoc online sales and sudden seasonal spikes in demand mean that shippers might struggle to process all the orders in a timely fashion. This can lead to an increase in overtime, a sudden hurry to hire temporary employees, and a lack of branded delivery supplies. According to a recent [study](https://medium.com/r/?url=https%3A%2F%2Fwww.apsfulfillment.com%2Fpress%2Fdetails-challenges-facing-third-party-logistics-market%2F) , 40% of firms have reported increased rates, 29% say assets aren’t available to move shipments when needed, and 30% have to outsource their work with larger third-party logistics to increase capacity. With 3PL companies not able to make the best use of their own fleet, the bond between vehicles and shipping companies is on shaky ground. Reverse logistics is another pain point for today’s 3PL players. The process of moving goods from their final destination for handling exchanges, returns, refunds, or proper disposal is proving too much to handle for 3PL organizations and their fleets. Increasing return requests need extra man hours and additional shipping supplies which is acting as a major deterrent in the relationship between fleets and their 3PL counterparts. The impact of an online retail customer’s return experience can be summed up as below. 85% of customers WILL NOT shop with you again if the return process is not convenient 95% of customers WILL shop with you again if the returns process is convenient. ?—?Harris Interactive study Image source: Giphy **So, now that we have listed the issues in the relationship, what can 3PL companies do to befriend their fleet again? Here are a few suggestions from our side:** ## 1. Find a friendlier ‘route’ Image credits: RelativelyIntersting Having to move back and forth for deliveries can throw off the best of fleets. Additionally, they also cause inefficiency and additional costs in the supply chain. Having an automated route planner that generates optimal routes while considering multiple [real-life constraints](https://locus.sh/blogs/graceful-scaling-of-queue-workers/) and distribution models can go a long way in patching up the relationship between the fleet and 3PL companies. ## 2. ‘Clubbing’ together: Image credits: reaction gif As discussed above, reverse logistics has become a major apple of discord between organizations and fleet operations. A little ‘clubbing’ together of forward and [reverse logistics](https://locus.sh/use-cases/reverse-logistics/) based on properties such as preferred delivery time slots, priority orders, location preference, and order specifications (weight, size, etc.) can help in burying the hatchet between the old friends. ## 3. Mixing it up: Image credits: Buzzfeed A pinch of owned vehicles, a dash of rented ones. [Optimal fleet mix](https://locus.sh/products/trackiq/) requires respecting business as well as local constraints such as traffic, route restrictions, etc. Solutions that give the best combination of captive and market vehicles based on costs will aid in providing amicability to the two parties. ## 4. Transparency in the relationship: Image credit: Tenor Having end-to-end visibility of on-ground resources can provide [predictive alerts on delays](https://locus.sh/features/predictive-alert/) , vehicle breakdowns, idle time etc. to improve both customer experience and efficiency in operations. ## 5. Planning for future: Image credits: Giphy Not just sudden demand spikes, but also the year to year increase in demand and business. Solutions that plan fleet for the current need and potential growth in the future and provide an estimate of vehicle requirements for better contract renegotiation can provide long-term stability to the relationship between the fleet and the company. Apart from providing excellent relationship advice, Locus helps in [optimizing your fleet](https://locus.sh/products/trackiq/) by managing variability in your business. Our AI-based solutions along with our proprietary [vehicle allocation engine](https://locus.sh/blogs/how-the-worlds-best-route-optimization-engine-works/) ensure that you only use the optimal number of vehicles required with the minimum logistics costs. To know more, try Locus. [https://locus.sh/products/trackiq/#request-access](https://locus.sh/products/trackiq/#request-access) This post was authored by: **Sreshtha Das** MEET THE AUTHOR Team Locus Written by the Locus Solutions Team—logistics technology experts helping enterprise fleets scale with confidence and precision. ### Related Tags: [Fleet Management](https://locus.sh/blogs/tagged/fleet-management/) [Fleet Utilization](https://locus.sh/blogs/tagged/fleet-utilization/) [Logistics Operations](https://locus.sh/blogs/tagged/logistics-operations/) [Logistics Optimization](https://locus.sh/blogs/tagged/logistics-optimization/) [Supply Chain Optimization](https://locus.sh/blogs/tagged/supply-chain-optimization/) [Vehicle and Rider Allocation](https://locus.sh/blogs/tagged/vehicle-and-rider-allocation/) [https://locus.sh/blogs/how-can-route-optimization-reduce-costs-and-improve-last-mile-delivery-in-southeast-asia/](https://locus.sh/blogs/how-can-route-optimization-reduce-costs-and-improve-last-mile-delivery-in-southeast-asia/) #### [Last Mile Delivery Optimization](https://locus.sh/blogs/category/last-mile-delivery-optimization/) ## [How Can Route Optimization Reduce Costs And Improve Last-mile Delivery In Southeast Asia](https://locus.sh/blogs/how-can-route-optimization-reduce-costs-and-improve-last-mile-delivery-in-southeast-asia/) [Team Locus](https://locus.sh/blogs/author/team-locus/) Feb 7, 2019 Key Takeaways Hidayat is en-route to deliver the parcel to the customer he has been assigned. The address says: “Selular shop, Mall Kelapa Gading 3, Jakarta Utara”. Hidayat rechecks the address, looking for a street name or a house number. Nothing. Hidayat is confused. His delivery is going to be late. There are a lot […] [Read more](https://locus.sh/blogs/how-can-route-optimization-reduce-costs-and-improve-last-mile-delivery-in-southeast-asia/) [https://locus.sh/blogs/only-the-paranoid-survive/](https://locus.sh/blogs/only-the-paranoid-survive/) #### [Blog](https://locus.sh/blogs/category/blog/) ## [Only The Paranoid Survive](https://locus.sh/blogs/only-the-paranoid-survive/) [Nishith Rastogi, Founder & CEO, Locus](https://locus.sh/blogs/author/nishith-rastogi/) May 13, 2019 Key Takeaways The message from Andrew Grove, founder of Intel, has been my watchword for Locus. Locus was never meant to be a good company, not even a great one. Locus was intended to be perfect, which means that in this drive for perfection, we often forget to rejoice our achievements. Today as we secure […] [Read more](https://locus.sh/blogs/only-the-paranoid-survive/) ## The trouble in paradise for 3PL and their fleet - Share - [Print](javascript:window.print()) - [Download](#) - [Schedule a Demo](https://locus.sh/schedule-demo/) ### Is your team spending more time on fixing logistics plan than running the operation? - Agentic transportation management from order intake to freight settlement - Route optimization built on 250+ real-world constraints - AI-driven dispatch with automatic execution handling 20%Cost Reduction 66%Faster Planning Cycles [Schedule a demo](/schedule-demo/) Insights Worth Your Time #### [General](https://locus.sh/blogs/category/general/) ## [Locus 2026 US Consumer Survey: Generative AI isn’t Just Changing How Consumers Shop, it’s Breaking the Demand Patterns US Retail Was Built On](https://locus.sh/blogs/generative-ai-shopping-effect-retail-fulfillment-operations-locus-q2-2026-consumer-survey/) [Ishan Bhattacharya](https://locus.sh/blogs/author/ishan_locus/) May 29, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [Embedded vs Bolted-On AI: The Architecture Question European Logistics Buyers Are Asking](https://locus.sh/blogs/embedded-vs-bolted-on-ai-european-logistics-platform-architecture-business-benefits/) [Aseem Sinha](https://locus.sh/blogs/author/aseem_locus/) May 21, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [Hybrid Fleet Management: How Owned, 3PL, Gig, ICE, and EV Capacity Actually Operate at Most Enterprises](https://locus.sh/blogs/three-workforce-fleet-reality-owned-3pl-gig-drivers/) [Aseem Sinha](https://locus.sh/blogs/author/aseem_locus/) May 7, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [US Returns Hit $850 Billion in 2025: Why US Retailers Are Restructuring Reverse Logistics in 2026](https://locus.sh/blogs/850-billion-us-returns-ai-routing-reverse-logistics-2026/) [Ishan Bhattacharya](https://locus.sh/blogs/author/ishan_locus/) May 7, 2026