A new white paper on 3PL carrier procurement in 2025, published by Transport Exchange Group, highlights the key challenges facing third party logistics providers in the UK. The research, based on independent third-party interviews with representatives from leading 3PLs, assesses procurement maturity and identifies areas for improvement.
The study found that no participating 3PL achieved “World Class” or “Exceeds Expectations” procurement maturity levels. The highest level attained was “Meets Expectations”, indicating significant gaps in procurement strategy and execution.
Among the most pressing concerns highlighted were:
- Lack of supplier auditing and due diligence, exposing companies to compliance risks.
- Over-reliance on tactical sourcing, leading to inefficiencies and missed cost-saving opportunities.
- Limited progress on sustainability initiatives, with carbon accounting inconsistencies and a lack of strategic environmental goals.
- Disintegrated procurement systems, resulting in operational silos and hindered decision-making.
- Training deficiencies, with 83% of procurement personnel receiving no formal instruction.
Barriers to strategic procurement
The whitepaper notes that many 3PLs still prioritise short-term, tactical procurement over structured, long-term sourcing strategies. A failure to consolidate supplier contracts was found to weaken negotiating positions, leading to fragmented procurement efforts and increased costs.
The report also highlights poor integration between procurement and business systems, limiting real-time insights and responsiveness. While some larger 3PLs demonstrated relatively stronger procurement maturity, no company reached optimal efficiency levels.
Recommendations for 3PLs
To address these issues, TEG’s whitepaper outlines a roadmap for improving procurement maturity, including:
- Enhancing supplier auditing and due diligence to mitigate compliance risks.
- Implementing strategic procurement frameworks to reduce reliance on ad-hoc sourcing.
- Investing in automation to streamline procurement processes and reduce errors.
- Developing sustainability-focused strategies, aligning with regulatory and customer expectations.
- Integrating procurement systems to improve visibility and decision-making.
The whitepaper concludes that the logistics sector is open to change, but procurement transformation will require structured investment and strategic alignment. Immediate actions recommended include workshops on best practices, procurement maturity assessments, and stakeholder engagement. In the longer term, technology adoption and sustainability roadmaps will be critical for 3PLs looking to improve procurement efficiency and profitability.
“The logistics sector boasts a lengthy history of innovation, resilience, and overcoming challenges. While today’s carrier procurement practices showcase room for improvement, there is optimism that the industry is primed for transformation,” reads the document.