From Market Shift To Warehouse Floor: Where Distributors Find Packaging Opportunity

See how four 3PL market shifts show up on the warehouse floor, and where packaging decisions create new opportunities for distributors.

Adapting Packaging Strategies to a Changing 3PL Market

3PLs are winning more work… but servicing that work has come with a host of new challenges. There are four market shifts that explain why: Uneven growth, climbing costs, a demand for customization and changing networks.

These shifts are affecting the everyday operations for 3PLs and open an opportunity for distributors to take advantage of smarter packaging decisions. Where customers struggle, packaging has to adapt. Distributors who stay ahead of all four shifts can help their customers succeed.

Market Shift 1: Uneven Growth

3PLs have continued to see growth, but the issue is it's uneven and less predictable than it used to be. Nearly 75% of shippers say they are increasing their use of 3PLs, but they also expect those providers to move faster when demand changes. Volumes ramp up and slow down with little warning. That variability is one of the biggest challenges in modern 3PL operations. Workflows and labor keep changing as a result, which makes consistency more valuable and harder to maintain.

Customers need flexible solutions that work across changing demand levels. They also need a long-term plan. By taking stock of volume trends in both directions and labor commitments, distributors can help build that plan.

And the plan has to include packaging systems and materials that can scale up or down with the business. With that in place, a 3PL can handle the ups and downs without disrupting operations.

Market Shift 2: Climbing Costs

Cost pressure is increasing across labor, space and operations. That pressure leaves customers with less tolerance for wasted time, materials or unnecessary handling, and more demand for packaging solutions that improve productivity and consistency. On a 3PL floor, that means less room for inefficiency in how orders are packed.

Distributors should be ready to make the case for what they propose, especially when it requires capital investment. Showing customers how an investment can improve productivity, reduce costs and pay for itself will be more effective than simply recommending a new system or piece of equipment.

Packaging assessments can clarify these cost recommendations. These assessments can identify opportunities to simplify workflows, reduce labor, improve throughput and minimize material waste. In many cases, clearly measuring the return on packaging automation or process improvements can give distributors a stronger story for justifying an investment.

Market Shift 3: A Demand For Customization

Promotions, peak-season volume, evolving brand requirements, rightsizing expectations, EPR regulations and labeling rules are all adding new variables to fulfillment operations. As a result, clients expect more customization and flexibility. Shippers increasingly rely on 3PLs for customized and value-added services, and 89% say their 3PLs provide improved service levels. Inside the facility, more customization means more variation in how orders must be packed.

A single 3PL facility may support multiple clients with different products and pack-out requirements. In order to be successful, distributors need to understand not only the 3PL's operation, but also what its clients are trying to accomplish. When packaging aligns with client KPIs and the business plans behind them, it drives what clients can accomplish rather than limiting what they can do.

Some packaging solutions can support more applications and requirements without adding unnecessary complexity, such as:

• Expandable formats, such as gusseted packaging, that accommodate a wider range of products
• Equipment that can run multiple materials or packaging formats
• Solutions that help customers rightsize packaging
• Materials and formats that can support evolving sustainability, EPR and labeling requirements

Each of these gives a 3PL greater flexibility to respond to client needs without building an entirely new packaging process every time.

Market Shift 4: Growing Network

As demand for outsourced fulfillment grows, 3PL networks are changing through expansion, acquisitions, consolidation and new partnerships. Across the market, 93% of shippers use 3PL services, and many are expanding those relationships to access broader geographic coverage and capabilities. One 3PL may acquire another provider to quickly add facilities or customers, while brands may shift more of their fulfillment to outside providers. For example, Stord's 2026 acquisition of Shipwire added 12 locations to its network.

Much of this network activity may happen behind the scenes, which makes it important to stay close to your customers and understand where their businesses are headed. Knowing a customer's future plans lets you sell more consultatively and strategically. Expansion and acquisition can also create new business inside an existing account.

Packaging programs that run the same way across facilities, regions and customer accounts make it easier for a 3PL to bring a new facility online. The new location gets what already works elsewhere, instead of starting over.

Building The Game Plan

Market shifts show up quickly on the floor, as more variation and constant adjustment. By staying ahead of changing volumes, costs, client requirements and growth plans, you can anticipate packaging needs and grow alongside your customers instead of letting them outgrow you.

All four market shifts end up in the same place: how orders get packed. Connect with Pregis to develop your 3PL game plan.

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