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.”
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.
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Fax: (608) 873-5509