|
GM, Wal-Mart Use Most
3PLs
STOUGHTON, WI – General Motors and Wal-Mart
each use over 30 third-party logistics service providers according to a recent
report by Armstrong & Associates. The report, based on Armstrong & Associates’
analysis of its proprietary database, indicates that over 80% of Fortune 100
companies use 3PLs for logistics and supply chain functions. The report also
indicates that the domestic Fortune 500 spend $62 billion a year with 3PLs. The
largest expenditures by vertical are for retailing ($15.8 billion), technology
($14.2 billion) and automotive ($11.3 billion).
According to the report, the primary 3PL
services were lead by transportation management, which increased 38%. Major
increases were also made in warehousing, value-added services and international
3PL services. Armstrong & Associates’ report is based on over 6,500 services
provided through first quarter 2004. The number of services increased 14% from
the previous year.
In commenting on the report, Richard Armstrong,
president of Armstrong & Associates, said “The greatest penetration of
automotive accounts is by TNT and Exel. Retailing relationships are lead by
Genco, USF Logistics and TBG/Exel. UPS and Menlo are the leaders for Fortune’s
technology sector.”
|
Buyers of 3PL Services |
# of 3PLs Used |
|
General Motors |
37 |
|
Wal-Mart Stores |
33 |
|
Ford Motor, Hewlett-Packard |
27 |
|
Procter & Gamble |
20 |
|
General Electric |
17 |
|
Georgia-Pacific, IBM |
16 |
|
DuPont, Home Depot |
14 |
|
Altria Group, PepsiCo, Sears Roebuck |
13 |
|
Coca-Cola, Sara Lee, Target, Xerox |
12 |
|
General Mills |
11 |
|
Delphi, Safeway |
10 |
|
Colgate-Palmolive, Deere, Kroger, Lucent Technologies, Pfizer |
9 |
|
Dow Chemical, Exxon Mobil, Honeywell, International Paper,
Kmart, Weyerhaeuser |
8 |
The complete report is available from
Armstrong & Associates.
About Armstrong & Associates:
Armstrong & Associates, Inc. is a supply chain
management consulting firm specializing in market research, mergers and
acquisitions and outsourcing. Armstrong & Associates publishes Who’s Who In
Logistics? Armstrong’s Guide to Global Supply Chain Management. Recent research
papers include: Warehousing in the United States, Global Logistics Services
Providers II, Warehouse Prices and Practices in North America – Contract and
Public Benchmarks and 3PLS – A Comparative Financial Analysis of U.S. Results
for FY 2003.
For more information, contact:
Richard
Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.
Source:
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Fax: (608) 873-5509
Website: www.3PLogistics.com |
