Iron Mountain Continues its Third-Party Logistics Expansion
North America & UK Site Visits

January 2023

By

Jamison Mize

Key Personnel:

Steven James, Head of Consumer and W&L, North America
Brett Spector, Sr. Director of Strategic Partnerships, Head of W&L Sales NA
Phil Shepley, VP and Head of Commercial and W&L for UKI, South Africa
Jim Lekovich, Senior Product Marketing Manager
Sian Curtis, Director of W&L Operations, Europe
Kate Jones, Commercial Director, W&L Europe
Maria Torrent-March, Senior Director, W&L Strategy
Liam Grennan, W&L Implementation and Onboarding Manager
Surinder Kalsey, Product Owner
Nick Ford, Finance Director
Matt Scully, Warehouse Supervisor
Richard Ziegelhofer, Senior Director of W&L Operations, North America

Iron Mountain Overview

In 2022, Iron Mountain generated a gross revenue of $5.1 billion and its net revenue grew to $556 million (an increase of 23.7% from 2021). Its estimated 2023 gross revenue is $5.55 billion with an adjusted Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) of $1.96 billion. In terms of total gross revenue, Iron Mountain would place in the top 30 of Global Third- Party Logistics Providers (3PLs) according to Armstrong &Associates.

About 90% of Iron Mountain’s revenue comes from its traditional Records and Information Management storage and fulfillment business. About 60% of this revenue comes from their storage rental whereas 40% comes from various services such as Document Scanning and Asset Lifecycle Management.

The remaining 10% comes from its Data Center business which allows over 1,300 customers to build tailored and sustainable data solutions to support long-term growth and digital transformation needs. Iron Mountain Data Centers (IMDC) operate across three continents with over four million ft2 (371,000 m2).

Iron Mountain’s global staff of approximately 26,000 manages operations in 60 countries serving over 225,000 organizations including 95% of the Fortune 1000. Its storage footprint includes approximately 1,400 facilities globally with over 97 million square feet of secure storage space. All in, this would place Iron Mountain in the top seven of Global Warehousing 3PLs.

Iron Mountain Warehousing and Logistics Overview

In 2016, Iron Mountain began offering defined 3PL services through its Warehousing and Logistics division. It invested in pallet racking and a quick onboarding process within existing record storage facilities while focusing on providing secure warehousing, fulfillment, value-added services, and transportation management services to clients primarily in North America and the UK. Iron Mountain’s 3PL business model focuses on multi-client warehousing serving multiple customers within a single facility. It works to provide flexible operations and support which can adapt as customers  scale their business.

In 2022, Iron Mountain Warehousing and Logistics grew its portfolio of pallet racked facilities expanding to 15 facilities in North America and over eight facilities in the UK. This strategic decision was brought forward to capitalize on the 31% increase of global 3PL revenues in 2021 based on Armstrong & Associates estimates.

At the end of 2023, Iron Mountain has grown to 20 facilities in the US, 10 in the UK, and has added facilities in other European countries including Germany, Sweden, Ireland, and the Netherlands.

Iron Mountain’s Warehousing and Logistics Operating Network

Iron Mountain’s Warehousing and Logistics Operating Network presents a robust solution tailored to maneuver today’s ever-shifting supply chain dynamics with confidence. In response to industry disruptions and evolving consumer expectations, Iron Mountain offers on-demand storage and fulfillment services designed to flexibly adapt to businesses of all sizes.

Leveraging strategically positioned warehouses powered by a proprietary cloud-based warehouse management system (WMS), Iron Mountain enables companies to address seasonal storage needs, ensure rapid fulfillment and 1–2 day delivery by optimizing proximity to customers, and establish agile distribution networks without the constraints of fixed locations or lengthy contracts.

Their comprehensive suite of services includes support for product distribution, seasonal requirements, overflow storage, disruption response, and various short- or long term storage needs. Moreover, its expertise extends to fulfillment services tailored to evolving customer expectations in the e-commerce landscape, providing scalable programs to ensure precise and prompt deliveries.

Additionally, Iron Mountain offers value-added services including packaging, labeling, disposal, destruction, and specialized transportation solutions, catering to the unique needs of its diverse customer base.

Iron Mountain Value-Added Services

To further compete with top E-Commerce Value-Added Warehousing 3PLs such as Amazon, UPS Supply Chain Solutions, and DHL Supply Chain, Iron Mountain’s Value-Added Services encompass a range of essential solutions beyond standard logistics, enhancing efficiency and reliability throughout the supply chain.

Container unloading and palletizing services streamline the arrival process, efficiently handling goods and organizing them onto pallets for easy storage or onward transportation. Its packaging expertise ensures items are appropriately secured for transit, minimizing the risk of damage and maximizing protection during handling and shipping. Moreover, Iron Mountain’s labeling services offer accurate identification and tracking of products, facilitating smooth inventory management and traceability.

Iron Mountain’s disposal and destruction services prioritize security and compliance, ensuring proper disposal of sensitive or outdated materials in adherence to regulatory standards. Additionally, Iron Mountain’s kitting services assemble customized product sets, creating tailored packages ready for sale or distribution.

Our estimates show Amazon’s U.S. E-Commerce 3PL market share has grown from 50% of the segment’s revenues in 2017 to 60% in 2020. Iron Mountain’s Fulfillment by Amazon (FBA) prep services are designed to prepare items for Amazon’s platform, meeting its specific packaging and labeling requirements.

Furthermore, Iron Mountain’s Asset Lifecycle Management (ALM) solutions offer a comprehensive approach to managing assets throughout their lifecycle, from acquisition to disposition, including inventory management, maintenance, and secure disposal, ensuring optimal value and compliance at every stage.

Iron Mountain’s U.S.-based (ALM) business division was established with the 2022 acquisition of ITRenew Inc. Its Kansas City, Kansas warehouse operation spans 300,000 square feet with 180 employees operating on a single shift at a controlled temperature of around 70 degrees.

The operation specializes in the handling and disposing of lithium batteries, adhering to rigorous certifications such as R2 (Sustainable Electronics Reuse & Recycling Standards V3), ISO 9001:2015, ISO 45001:2018, ISO 14001:2015, ISO/IEC 27001:2013, and possesses a State of Kansas permit for waste processing and reclamation. ALM is currently using WITS for its Warehouse Management System (WMS).

All ALM projects are governed by detailed Statements of Work (SOWs), specifying job numbers while ensuring client confidentiality, completion deadlines, and recycling or remarketing instructions. Security measures include surveillance cameras, badge access on all doors, metal detectors at the warehouse entry, special badge-only areas, pre-employment screenings, a safety and security hotline, and equipped with forklifts and high-powered technology shredders.

These reverse logistics value-added services reflect Iron Mountain’s commitment to providing specialized solutions to meet its customers’ diverse logistical and operational needs.

Iron Mountain Transportation Services

Iron Mountain Warehousing and Logistics offers an array of comprehensive services designed to streamline and enhance logistical operations. Its delivery and pickup services ensure swift and secure transportation of goods, providing efficient movement between locations.

Iron Mountain’s final-mile solutions focus on the critical last leg of delivery, optimizing routes to ensure timely and precise deliveries.

Additionally, its specialized transportation solutions cater to unique requirements, offering tailored approaches for delicate, oversized, or specialized goods.

Iron Mountain Warehousing and Logistics Industry Solutions

Iron Mountain strategically operates dedicated warehouse and fulfillment centers across North America and Europe supporting local and nationwide e-commerce fulfilment needs. It has built the network to have warehouses strategically located in key markets.

We estimate the Global Third-party Logistics market was $1.5 trillion in 2022 and is expected to grow at a Compound Annual Growth Rate of 6.4% from 2023-2026E. Acknowledging the vulnerabilities exposed by the COVID-19 pandemic within supply chains, Iron Mountain’s Warehousing and Logistics operations prioritize adaptability. This involves swiftly reallocating resources to meet fluctuating demands, proactively preparing for seasonal spikes, and effectively managing unforeseen disruptions. Iron Mountain facilitates quick onboarding, tech-driven integration, and adaptable contract terms, allowing businesses to efficiently navigate changing demands with shorter-term warehousing agreements.

Iron Mountain emergency healthcare solution involves secure storage and efficient distribution of critical supplies across North America and Europe. This service aims to assist healthcare organizations during emergencies by providing swift access to essential medical supplies, equipment, nonhazardous test kits, medications, and first-responder gear.

Furthermore, in response to the trend of reshoring and localizing manufacturing, Iron Mountain offers support by supplementing product distribution networks with local warehousing, labor, and transportation resources. Through flexible service agreements, Iron Mountain aids organizations in supporting evolving manufacturing strategies, without the limitations of fixed infrastructure costs, fostering an agile response to changing industry landscapes.

Summary

Since 2016, Iron Mountain’s third-party logistics services have expanded globally, with over 30 facilities across the US, UK, and Europe. It leverages cloud-based warehouse management systems
to provide flexible storage, fulfillment, and value-added services. Iron Mountain’s suite of offerings includes container handling, packaging, labeling, disposal, destruction, specialized transportation, and comprehensive asset lifecycle management, reflecting Iron Mountain’s dedication to tailored and secure logistical solutions meeting varied customer needs across diverse industries.