How 3PL Services Are Contributing to Job Creation in the Toronto Area

Since COVID-19 sent shockwaves through our society, few industries have adapted and changed as much as the logistics industry. For over a century, warehousing was predominantly managed in-house or outsourced to a dedicated storage center, but this all changed with the surge in e-commerce and heightened demand for efficient, flexible supply chains, that was brought on by the pandemic.

In response, businesses increasingly outsourced logistical operations to third-party logistics providers (3PLs) to better adapt to changing market conditions and customer expectations. To meet the growing demand for 3PL services, more and more of these facilities started popping up in large cities, such as Toronto, and created thousands of new job opportunities for those in the city.

What is a 3PL?

Managing a warehouse, fulfillment center, and delivery fleet is not easy. With continuous advancements in technology, businesses often struggle to keep up with supply chain demands and their complexities. That's where 3PLs come into play.

Third-party logistics (3PL) is a business model where companies outsource elements of their supply chain operations to specialized providers. For example, a manufacturer might employ a 3PL service to handle the storage, transportation, or distribution of its products.

Starting with storage, a 3PL service oversees managing warehouse space for optimal product storage. They handle inventory tracking and streamline picking processes to improve efficiency and accuracy.

As for transportation, 3PL providers implement technology-driven solutions, including supply chain analytics for effective route planning, fleet management, and real-time tracking of shipments.

Most 3PL providers also offer value-added services ranging from order cross-docking, temperature-controlled storage, and reverse logistic services.

How Has 3PL Grown in Popularity Across Canada?

As you can see, a 3PL warehouse involves many different tasks, and these roles need to be filled by paid employees to keep operations on track.

According to Statista, the demand for 3PL services skyrocketed in 2020 and has remained at heightened levels since 2020. They also suggest that Canada's Third Party Logistics (3PL) market is anticipated to reach US$262.80bn in 2028, showcasing the potential growth of the 3PL market.

What Jobs Did 3PL Warehousing Create?

3PL services have greatly contributed to job creation in Toronto since the pandemic, and they provide jobs across various skill levels within our society. These come in forms ranging from entry-level cargo handlers and packers to high-level managerial positions involving strategic logistical planning.

Firstly, warehouses require many entry-level staffers to serve as Warehouse Associates. They handle physical tasks such as packing, loading, unloading, and general warehouse maintenance.

A more specialized position would be the Inventory Specialist, who is tasked with tracking inventory levels, orders, sales, and deliveries. They monitor stocks using computer systems and physically count inventories while managing transportation documentation.

At the high end are Logistics Coordinators or Managers who oversee the entire logistical operation, ensuring efficiency in transportation routes and services. Their responsibilities include budgeting, communicating with partners and stakeholders, implementing policies for safe operations, and training employees on SOPs.

3PL Is Here to Stay and Support the Canadian Economy

The benefits of 3PL extend far beyond businesses, as it contributes largely to the economy as well. With more and more demand for Toronto 3PL services to bolster supply chains, more money will flow into the city, and more jobs will open up.

We believe the direct employment opportunities provided by 3PL companies significantly bolster the labor market, while indirectly they help other sectors flourish by ensuring smooth logistics operations.

As global trade continues to evolve, the demand for comprehensive logistic solutions like the ones offered by 3PL services will only increase. Future technological innovations will undoubtedly introduce more efficient methods of operations but also create demand for a technologically adept workforce.

Therefore, supporting and developing the third-party logistics industry in Toronto can play a pivotal part in job creation and should be acknowledged as a significant facet fueling Toronto's bustling economy.

As market leaders in e-commerce order fulfillment, co-packing, transportation, and 3PL warehousing services within Toronto, we leverage our specialized expertise in the distribution industry. Our clientele spans across a multitude of industries, boasting some of the globe’s most renowned companies.