Food Logistics Magazine Interviews Our President & CEO!

3PLs Positioned on the Front Lines of Customer Satisfaction

William "Brad" Thayer, president and CEO of DSW Distribution Centers, Inc., discusses the State  of the 3PL Market.

Marina Mayer - Food Logistics
Jun 12, 2026

The 3PL market is expected to increase from $219 billion in 2025 to $228 billion in 2026, reflecting a maturing cycle of shippers rebalancing service portfolios toward third-party logistics providers, according to Mordor Intelligence. 
What’s more, many of today’s 3PLs, like DSW Distribution Centers Inc., are positioned at the front lines to provide operational expertise, service and strong organizational culture.

Marina Mayer, editor-in-chief of Food Logistics and Supply & Demand Chain Executive and co-founder of the Women in Supply Chain Forum™, chatted with William "Brad" Thayer, president and CEO of DSW Distribution Centers, Inc., to discuss the State  of the 3PL Market, including new technologies, challenges impacting the industry, opportunities for growth and what’s in store over the coming months.

Food Logistics: Describe a company accomplishment achieved in the last 12 months.

William "Brad" Thayer: Over the past 12 months, DSW has successfully renewed several long-term, multi-year contracts, strengthening win-win partnerships and securing reserved multi-temperature storage space in a high-demand market. In addition, we made significant investments in advanced cybersecurity platforms to safeguard our systems and customer data from the growing global threats of malware and ransomware.

Food Logistics: What new technology/solutions has your company introduced in the last 12 months?

Thayer: DSW introduced enhanced cybersecurity solutions designed to protect our warehouse management system (WMS) and proprietary business platforms. These investments ensure operational continuity, data integrity, and the highest level of protection for our customers’ sensitive supply chain information.

Food Logistics: What kinds of technologies/solutions has your company invested in and why?

Thayer: To safeguard our WMS and proprietary business systems, DSW has invested in enterprise-grade cybersecurity platforms comparable to those used in defense and healthcare sectors. These solutions provide robust protection against evolving cyber threats, ensuring business continuity and reinforcing customer trust in our infrastructure.

Food Logistics: The Federal Motor Carrier Safety Administration (FMCSA) finalized a rule impacting non-domiciled commercial driver's licenses (CDLs). The rule limits eligibility to H-2A, H-2B, and E-2 non-immigrant status holders who undergo enhanced interagency vetting. EADs are no longer accepted as proof of eligibility. And, states must query the Systematic Alien Verification for Entitlements (SAVE) system to confirm every applicant’s lawful immigration status. How does this rule impact your company and the future of 3PLs? What does this mean for 3PLs trying to hire and retain workforce? 

Thayer: DSW partners with reputable third-party vetting organizations to ensure that all full-time and temporary employees meet federal and state employment eligibility requirements. While the FMCSA rule may tighten the available labor pool for transportation providers, our commitment to rigorous compliance and a strong culture of internal promotion based on merit positions us well to maintain a stable and qualified workforce.

Food Logistics: Warehousing costs are on the rise due to space shortages and demand for faster fulfillment. What is your company doing to overcome this challenge?

Thayer: To address rising warehousing costs and increasing demand, DSW has expanded its e-commerce fulfillment capabilities through targeted investments in automation equipment and advanced software. Additionally, we have increased our cold storage capacity to support the growing need for temperature-controlled supply chain services, enabling customers to scale efficiently in a competitive market.

Food Logistics: What are some other threats or disruptions impacting cold chain 3PLs? And, why?

Thayer: In California, regulatory complexity has intensified over the past decade, significantly increasing the cost of doing business. Environmental regulations affecting refrigeration systems, along with compliance requirements from agencies such as the California Air Resources Board (CARB) and the South Coast Air Quality Management District (SCAQMD), have placed additional administrative and financial burdens on 3PLs. These rules often require facilities to monitor and report on trucking and refrigeration equipment that they do not own or control, creating compliance challenges across the industry.

Food Logistics: What are some areas for opportunity and growth in the cold chain 3PL market?

Thayer: DSW is exploring the use of artificial intelligence to streamline data processing for customers that are startups or smaller organizations not yet ready for full EDI or API integration. We are also evaluating AI-enabled drone technology for cycle counting and inventory control, which has the potential to enhance accuracy, efficiency, and real-time visibility within the warehouse.

Food Logistics: What separates winning 3PLs vs. losing ones?

Thayer: Winning 3PLs differentiate themselves through operational expertise, service excellence, and a strong organizational culture. DSW specializes in multi-temperature environments and value-added services supported by an experienced, customer-service-driven team. We view our employees as our most-valuable asset, offering competitive compensation, generous benefits, profit-sharing, and retirement programs. This people-first culture drives productivity, innovation, dedication, and long-term customer partnerships

Food Logistics: From your vantage point, what is the State of 3PLs?

Thayer: 3PLs provide a significant strategic advantage for shippers by enhancing scalability, efficiency, and service levels across the supply chain. Positioned on the front lines of customer satisfaction, 3PLs enable brands to grow and succeed in increasingly complex markets. As more companies recognize these benefits, the overall state of the 3PL industry remains strong and poised for continued expansion.

Food Logistics: What are some things not addressed above that may be pertinent to our Food Logistics readers?

Thayer: A growing concern for California-based 3PLs is the rise of litigation related to the Private Attorneys General Act (PAGA) and wage-and-hour claims. Over the past decade, these cases have increased significantly, creating substantial financial and administrative burdens for businesses of all sizes. Because PAGA actions are brought on behalf of the State of California, companies must incur significant legal expenses to defend themselves, regardless of the merits of the claims. Addressing this issue is essential to preserving jobs and maintaining a healthy business environment in the state.

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About DSW Distribution Centers Inc.
 
Founded in 1973, DSW Distribution Centers, Inc. is a family-owned third-party logistics (3PL) company providing multi-temperature warehousing, distribution, and value-added supply chain services throughout Southern California. Serving the food, pharmaceutical, alcoholic beverage, organic, and consumer packaged goods sectors, DSW is known for its exceptional GFSI-SQF Level 2 food safety certification scores, extensive regulatory licensing, and industry-leading operational and cybersecurity standards.