5th Annual Analysis of Third-Party Logistics Provider (3PL) Customers Identifies Trends and Market Segments
STOUGHTON, WI – 64% of domestic Fortune 500 companies use 3PLs for logistics and supply chain functions according to the new Armstrong & Associates, Inc. in-depth research report “Trends in 3PL/Customer Relationships”. The report utilizes Armstrong & Associates’ proprietary database of 2,724 customer relationships. The report provides insights into the top outsourcers to 3PLs, service trends and market sizes by industry segment.
According to the report, General Motors, DaimlerChrysler and Wal-Mart each use 30 or more 3PLs. The report also quantifies the global Fortune 500 3PL market at $98.4 billion for 2004. The largest 3PL expenditures by industry vertical are for automotive ($32.1 billion) and technology ($30.9 billion). Additionally, 3PL customers are utilizing 3PLs for an average of three services. The primary 3PL services provided were led by transportation management (22.3%), warehousing (21.0%), value-added services (19.3%) and international 3PL services (8.0%). Armstrong & Associates’ report is based on over 8,000 individual service relationships provided through May of 2005.
In commenting on the report, Richard Armstrong, president of Armstrong & Associates said, “We feel that this analysis of customer relationships for 195 top 3PLs is our best to date and builds upon our reports from the past four years. The greatest penetration of automotive accounts is by Rudolph, Thiel, and TNT. Retailing relationships are led by Exel, Meridian IQ and Genco. DHL, UPS and Menlo are the leaders for Fortune’s technology sector.”
The complete report is available from Armstrong & Associates online at https://www.3plogistics.com/shopsite/index.html.
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 North American Logistics and Supply Chain Management and Who’s Who In International Logistics – Armstrong’s Guide to Global Supply Chain Management. Recent research papers include “Warehouse Practices and Prices in North America” and “Bigger and Better – 3PL Financial Results – 2004”. In addition, Armstrong & Associates maintains databases of warehousemen, freight forwarders and third-party logistics providers, and transportation companies.
For more information, contact:
Richard or Evan Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com or Evan@3PLogistics.com.
Source:
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589 USA
Fax: (608) 873-5509
Website: www.3PLogistics.com