Kansas City is known for many things: passionate sports fans, great barbecue, jazz music, and (strangely) for having over 200 water fountains. Behind the scenes, Kansas City has also quickly become a hub for rapid industrial development. This has spiked the need for third-party logistics (3PL) and fulfillment services around the KC metro area. With the need for more efficient supply-chain management, most companies are turning to outsourced logistics partners to help with their warehousing and fulfillment needs.
Besides being centrally located, what else has caused Kansas City to quickly become one of the most sought-after locations for warehousing and fulfillment? Let’s take a look.
The Rapid Growth of Third-Party Logistics Providers
Why Demand for 3PLs is Growing in Kansas City
In addition to national trends, the growth of 3PLs in Kansas City is further fueled by the city’s strong economy, strategic location, and industrial growth can be attributed to the increase of businesses looking to partner with Kansas City 3PL providers in recent years.
Strategic Location
With Kansas City’s central location in the United States, it provides the ability to reach a major part of the U.S. population in 3 days through standard ground shipping for e-commerce fulfillment needs. In addition to this, Kansas City is considered a major transportation hub, providing many transportation methods in and out of the area by air and land.
Large Rail Center: Kansas City provides the second-largest rail hub in the entire United States—behind only Chicago. A large component of this is the Kansas City Terminal Railway (KCTR) with over 95 miles of track spanning across Missouri and Kansas. This allows for the efficient transfer of freight in and out of the city.
The Intersection of Four Major Interstates: The Kansas City area has an intersection of four major highways in the U.S. (I-29, I-35, I-49, and I-70). This combined with the lower traffic congestion of the highways provides ground shipments to flow in and out of the KC metro area quickly, allowing for more reliable and consistent shipping times.
Kansas City International Airport (MCI): For any air shipments, the Kansas City International Airport (MCI) boasts one of the best airports in the U.S. for air cargo. MCI ranks low for delays compared to other surrounding state airports due to the uncongested air and ground space in addition to favorable weather conditions leading to fewer cancellations and helping companies ensure their air freight will arrive smoothly and efficiently. Speaking of the airport, it boasts a brand-new single terminal, offering travelers a world-class experience in the middle of the country.
Industrial Growth
Many industries in the Kansas City region have experienced big growth in the past decade including e-commerce, food and beverage, and automotive industries. As business continues to boom around the metro, there is an increase in demand for services that support them, such as cold and refrigerated storage and other warehousing needs. This has led to warehouse occupancy rates of nearly 90% in KC, with new construction barely able to keep up with storage demand.
3PL Needs In Kansas City
For companies looking for a Kansas City 3PL, it is important to understand your needs. The most common 3PL needs in the Kansas City area reflect common services provided by most logistics providers such as
3PL Warehousing: For most companies, their first need when looking for a 3PL is warehousing and distribution. This is essential so companies can keep their inventory safe and accounted for.
Order Fulfillment: E-commerce businesses typically seek help from a 3PL for their order fulfillment services. Quick and efficient processes allow businesses to keep up with demand.
Refrigerated and Temperature-Controlled Storage: With the food and beverage industry making a large presence in Kansas City, more 3PLs are looking to provide temperature-controlled storage for their products.
Custom Packaging & Kitting: Companies can leverage custom packaging and kitting services from 3PLs to increase brand awareness.
