The logistics landscape evolves at a breakneck speed, and companies have already faced multiple changes in 2025. Despite so many uncertainties, we're still seeing multiple trends unfold that businesses must be aware of as they build resiliency into their supply chains.
In this guide to order fulfillment in 2025, we'll cover some of the leading fulfillment industry news that's developed so far. We'll also look at the tactics that logistics leaders are employing to meet the future head on.
7 2025 Fulfillment Industry News and Trends
2025 is shaping up to present some unique challenges to merchants everywhere. And with each challenge comes new opportunities. The leading fulfillment industry news and trends are largely dedicated to meeting these challenges while improving their fulfillment operability. All while adapting to rapid changes in market conditions.
As we'll see, the use of third-party logistics (3PL) providers is a major component of each of these strategies. 3PL providers possess the technology, infrastructure, and know-how to help companies navigate the complexities of today's shipping landscape.
Here's a look at the biggest 3PL fulfillment trends, and how 3PLs are a part of them.
1. The Rise of AI
AI is revolutionizing nearly every industry, and order fulfillment is no exception. Companies are leveraging AI for many of their operations, including:
- Predictive analytics, to better anticipate market fluctuations.
- Demand forecasting, to optimize inventory levels and shift production to alternative goods.
- Route optimization, to speed up delivery and minimize transportation costs.
- Warehouse layout optimization, to make the most of their warehousing space.
AI can't replace the critical thinking and creativity of human workers. But it can identify trends and opportunities for improvement that humans would otherwise miss. As many as 72% of organizations implemented AI in 2024 — up from 55% in 2023. So as 2025 progresses, look for companies to leverage AI to develop smarter fulfillment operations.
Many 3PL partners offer software with built-in AI functionalities. For example, Quickbox's 3PL fulfillment solution offers predictive analytics and demand forecasting capabilities that give companies a clearer picture of their supply chain health.
This includes identifying market trends based on historical data, anticipating shifts in consumer demands, and right-sizing your inventory to endure shocks in your supply chain with our deep-dive analytics functionalities. Also, it helps create a fulfillment network that can adapt to today's changing times.
2. Robotics Implementation
If AI is changing the way companies think through their warehousing processes, robotics is changing the way they work through them. Robots are superior to human workers at performing repetitive, time-consuming, or dangerous tasks. And they offer multiple benefits for warehousing and fulfillment processes. A few of them are:
- Greater accuracy. Whether it's subscription packages or custom kits consisting of multiple components, some orders can be quite complex. Robots can pick inventory items with greater accuracy than humans, resulting in fewer errors — and ultimately, greater customer satisfaction.
- Continuous operation. Unlike humans, robots never take a day off. Their continuous operability makes warehouses more productive and improves their efficiency, giving you a competitive edge.
- Better safety. Warehouses can be dangerous places, with some tasks resulting in employee injuries or accidents. Robots commit fewer handling errors and can take the strain off human workers, resulting in fewer injuries.
- Lower costs. While they do require some upfront investment, savings in labor costs and productivity enhancements both make robots more cost-effective than hiring human employees. Especially when labor shortages make human employees scarce.
The logistics industry is already a leader in robotics implementation, using drones, robots, and autonomous vehicles for nearly every warehousing process. As of 2022, the International Federation of Robotics (IFR) estimated that more professional service robots were used for the transportation and cargo sectors than any other industry. But their high startup costs can make them difficult for SMBs to implement in their operations.
3PL partners like already have many robotics solutions in place, making the technology much more accessible to 3PL customers. Look for more startups and SMBs to leverage 3PLs for their robotics capabilties in 2025, so that they can reap the benefits of cutting-edge technology too.
3. Increased Automation
Automation is the convergence of AI and robotics to complete workflows without human intervention. And it is essential for order fulfillment. It can take the form both of AI-powered software or hardware, but its overall goal is the same. By reducing human involvement, automation aims to reduce costs and free up human workers for more revenue-generating activities.
Some examples of automation in order fulfillment include:
- Automated Storage and Retrieval Systems (AS/RS) which fetch and replenish inventory automatically.
- Autonomous drones and vehicles which follow predetermined paths along the warehouse floor.
- Automatic label printing for faster shipping.
- Conveyor belts that move inventory from point A to point B.
- Pick-and-pack robots that assemble and ship products.
- Radio frequency identification (RFID) tags, which automatically alert software systems to inventory levels, and employees to inventory locations.
- Software that automatically reorders inventory upon reaching certain levels.
Whether it's autonomous drones, AS/RS systems, or RFID tags, many automated warehousing devices rely upon IoT devices to function. These sensors provide critical information on product status, which can be especially important for consumable goods.
As with AI and robotics, 3PL providers like Quickbox come pre-equipped with the IoT devices needed for their warehouses to achieve maximum automation. So expect businesses to tap into the technology with a 3PL partner in 2025.
4. Global Policy Changes
In addition to technological advancements, the order fulfillment industry faces multiple global policy changes that could significantly impact its operations. Such changes prove particularly challenging, as they're largely outside companies' control.
Some geopolitical and regulatory factors are still unfolding, but a few issues companies must account for are:
- Tariffs. As governments impose new tariffs on imports and exports, cost of transporting inventory overseas can vary greatly. This can create supply shortages and result in increased shipping costs, forcing companies to find alternative supply chain routes to avoid the added expense.
- Shifting regional trade agreements (RTA). Traditionally, RTAs were used to reduce tariffs and foster favorable trade conditions between friendly regions or countries. But shifting political alignments have forced some agreements to be re-evaluated or abandoned altogether. In response to changing conditions, companies must deepen their understanding of their current trade agreements, and even forge new ones if necessary.
- Supply chain bottlenecks. Policy changes, natural disasters, and pandemics have all contributed to severe supply chain bottlenecks over the past few years, leading many companies to invest heavily in strategies that would improve their logistics resiliency. "Plus one" models, inventory buffers, and supplier diversification are a few tactics that companies have used to create more agile supply chains.
- Nearshoring and reshoring. The supply chain bottlenecks that some companies have experienced have caused them to consider whether offshoring is still worthwhile at all. Reshoring brings manufacturing back home and nearshoring moves production to neighbors nearby. Both shorten the length of your supply chain.
Since so many of these policy changes are external, the best strategy that companies can take is to brace themselves by strengthening their own operations. One way to do that is to partner with a 3PL provider that already has a comprehensive supply chain network in place.
3PLs like Quickbox not only have the order fulfillment expertise to navigate complex global policy changes. But they also have access to a large carrier network, ensuring that packages reach the consumer on time and under budget.
5. E-commerce Growth
E-commerce is a booming industry worldwide — and it shows no signs of slowing down soon. Global business-to-consumer (B2C) e-commerce total revenue is expected to reach 5.5 trillion USD by 2027, at a compound annual growth rate (CAGR) of 14.4%. Roughly 21% of all retail purchases are completed online. This means that if companies hope to maximize their profits, they must offer a delightful e-commerce experience.
To get the most from their e-commerce channels, companies have employed a number of strategies, including:
- Omnichannel fulfillment. By integrating their online and in-store operations, companies can create a more seamless user experience. Brick-and-mortar locations can improve customer satisfaction by working alongside online stores by keeping some inventory onsite. They can also offer shipping options for products that consumers find online.
- Direct-to-consumer (D2C) fulfillment. While its increase is expected to plateau in the coming years, D2C fulfillment still accounts for 14.9% of all online purchases. Companies that sell their products immediately to their consumers have one more opportunity for revenue generation, improving their profitability and customer satisfaction
- Online personalization. Today's consumers expect companies to tailor not only their offerings, but the entire shopper experience to their preferences. By offering personalized discounts, coupons, and specials, companies can elevate consumer engagement, and product customization improves customer satisfaction.
As businesses expand their e-commerce operations, they'll need a tool that can coordinate their omnichannel fulfillment. Quickbox's iQ Client Portal not only integrates with the leading e-commerce platforms like Shopify, WooCommerce, and Amazon. But it also facilitates your Fulfillment by Amazon (FBA) processes, helping you access the world's largest marketplace.
The result is a centralized hub that orchestrates your entire logistics and warehousing processes — and it's the future of 3PL fulfillment.
6. Last-Mile Delivery
Oftentimes, the biggest shipping challenge isn't in moving inventory across countries or continents, it's in the final leg of the race. Last-mile delivery accounts for 53% of total shipping costs, prompting companies to find innovative solutions to reduce the expense of getting products into their customers' hands. A few solutions are:
- Microfulfillment centers. Strategically located near consumer hubs, microfulfillment centers are relatively small compared to major warehouses, and they possess just enough inventory to fill local orders. The result is a more distributed fulfillment network and a shorter journey to the consumer. And lower shipping costs as a result.
- Crowdsourced delivery. Rather than building their own network of carriers, crowdsourced delivery models rely on drivers in local communities. Companies like Uber and DoorDash have proven crowdsourced delivery to be a success in other markets, and now it's taking hold in order fulfillment.
- Autonomous vehicles. They've been used inside the warehouse as part of many companies's automation efforts. And autonomous vehicles can now be used to transport packages from local fulfillment centers to consumers nearby.
Another key strategy for companies looking to improve their last-mile delivery processes is to leverage a 3PL provider.
3PLs not only have an extensive network of strategically located fulfillment and distribution centers stationed across the country, but they also have partnerships with a wide number of local carriers. If they want to elevate their processes for completing the final stage of delivery, companies will need to use 3PL fulfillment in 2025 to do it.
7. Shipping Rate Increases
We've written more about shipping increases to America's parcel carrier here, but rate hikes, new fulfillment models, and potential employee terminations could all contribute to higher prices and longer delivery times. Some companies are looking to alternative shippers as a result, including 3PL partners with access to a broader network of carriers. 3PLs allow companies to tap into a broader pool of carriers that can transmit packages at a more affordable rate, so look for more merchants to seek out their services in an effort to mitigate shipping rate increases.
Quickbox: The Future of 3PL Fulfillment
Whether it's implementing cutting-edge technology or devising innovative fulfillment models to reach customers faster, the logistics industry continues to evolve to meet ever-increasing demands. Solutions like robotics and automation improve efficiency and reduce costs. And last-mile delivery, real-time tracking, and order fulfillment improve the customer experience.
These trends are helping companies build more agile, resilient supply chains amidst complex global policy changes. Simultaneously, upskilling and sustainability initiatives build a better world for us all.
Quickbox's 3PL solutions remain at the helm of the leading fulfillment industry trends. From Direct-to-Consumer (D2C) and retail fulfillment to custom packaging, kitting, and assembly, we provide the end-to-end fulfillment services that online retailers depend upon to get their products into consumers' hands fast.
Our iQ Client Portal also offers robust data insights and integration with popular e-commerce platforms, giving you the analytics functionalities needed to make the right decisions at the right time.
Change is the only constant in the logistics world today — the only question is how well you adapt. If you'd like to see how Quickbox can help you stay ahead of the curve, contact us to see what we can do.
Sources
- https://www.statista.com/statistics/1545783/ai-adoption-among-organizations-worldwide/#:~:text=In%202024%2C%20artificial%20intelligence%20adoption,percent%20in%20the%20previous%20year.
- https://www.quickbox.com/ecommerce-fulfillment-services-dtc-fulfillment-center-warehouse
- https://ifr.org/ifr-press-releases/news/staff-shortage-boosts-service-robots-sales-up-48?utm_source=CleverReach&utm_medium=email&utm_campaign=PM+WR+SR+2023&utm_content=Mailing_14802261
- https://www.forbes.com/councils/forbestechcouncil/2023/02/21/the-iot-powered-logistics-industry-use-cases-benefits-and-challenges/
- https://www.trade.gov/ecommerce-sales-size-forecast
- https://www.statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/
- https://www.emarketer.com/content/why-d2c-share-of-ecommerce-sales-plateauing
- https://www.quickbox.com/amazon-services
- https://www.inboundlogistics.com/articles/last-mile-delivery/#:~:text=In%20fact%2C%20last%20mile%20delivery,customer%20satisfaction%20and%20repeat%20business.