Key Asia Pacific Logistics Report Available

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Key Asia Pacific Logistics Report Available

STOUGHTON, WI – A major report on Asia Pacific logistics has been released by Armstrong & Associates and TI. The report is a detailed analysis by market and country.

Sector analysis, logistics providers, freight transport and country profiles allow close examination of Asian logistics. Among the companies covered are DHL, Exel, OOCL, Nippon, UPS, FedEx, TNT, Schenker and Sembcorp. Financial detail, current customers and IT capabilities are a few of the areas covered for each 3PL.

Richard Armstrong, president of Armstrong & Associates states, “This report is an excellent source for those looking to find 3PLs in Asia. In preparing it, our partners at Transport Intelligence did a great job covering background and industry specifics. Asia Pacific Logistics – 2004, coupled with our Who’s Who In Logistics, offer the information coverage necessary for global supply chain managers.”

Asia Pacific Logistics and Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management are available from Armstrong & Associates.

About Armstrong & Associates: In business since 1980, Armstrong & Associates, Inc. has become a recognized leader in supply chain management consulting and market research. Armstrong’s Who’s Who guides are distributed worldwide and are the resource for shippers selecting third-party logistics providers, e-commerce fulfillment providers and web-based logistics solutions. Through its consulting expertise, Armstrong & Associates has fostered profitable growth for many supply-chain participants from small trucking companies to Fortune 500 shippers.

For more information contact:

Richard Armstrong
Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
Phone: 800-525-3915
Email: dick@3plogstics.com www.3plogistics.com

Warehouse Pricing Study Establishes Benchmarks for U.S.

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FOR IMMEDIATE RELEASE

Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 (800) 525-3915

Warehouse Pricing Study Establishes Benchmarks for U.S.

STOUGHTON, WI – A recently completed study of 3PL warehouse prices has for the first time established benchmarks for the United States. The study covers both contract and public warehousing.

Regional price differences are reported. Major metropolitan area prices are reported for principal U.S. logistics locations. The report tracks profitability by region in terms of operating margins, EBITDA and EBIT.

Lengths of contracts reviewed in the study were from 1-7 years. The study found that most contracts have 3 and 5 year terms.

In the report, components of standard warehouse pricing models are given. The major variables are space utilization, labor, administrative costs and margins.

Expected operating margins and profitability measures are compared to actual results for 3PLs in the study. These relationships are reviewed in detail and in reference to the “Negotiation Zone.” Statistical analyses were performed showing the effects on profitability of open book relationships and leasing vs. ownership.

“We undertook this study because we had a Japanese consulting client who wanted to know what and how 3PLs and commercial warehouses were charging for their services in the U.S.,” said Richard Armstrong, president of Armstrong & Associates, a supply chain management consultancy. “There was not a good source available and the only way to get the information was to put out an RFP. Our report is the first public explanation of what the real prices are in warehousing.”

The analysis emphasizes the growth of contract warehousing at the expense of public warehousing. The results indicate however, that profitability is not inherent in either of the models but owes more to company cultures and practices.

The complete study with appendices 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. Recent research papers include Warehousing in the United States and Global Logistics Services Providers II. In addition, Armstrong & Associates maintains databases of warehousemen, freight forwarders and third-party logistics and distributing companies.

For more information, contact: Richard Armstrong (800) 525-3915 or email Dick@3PLogistics.com.

Source: Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 Phone: (608) 873-8929 Fax: (608) 873-5509 Website: www.3PLogistics.com

Top 30 Freight Brokers Identified by Armstrong & Associates; TIA

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FOR IMMEDIATE RELEASE

Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 (800) 525-3915

Top 30 Freight Brokers Identified by Armstrong & Associates; TIA

STOUGHTON, WI – A list of the 30 largest freight brokers in North America has been developed by Armstrong & Associates, Inc. with the assistance of the Transportation Intermediaries Association. The list includes nationally known logistics companies like C.H. Robinson, Hub, Exel Transportation and Landstar Logistics as well as several less well known but very capable transportation managers.

“This list is designed to provide visibility to an important part of the transportation industry that is easily overlooked,” said Richard Armstrong, President of Armstrong & Associates. “Most of these companies started as freight brokers and have developed into quality 3PLs. It’s time someone made it easier for transportation consumers to identify the members of the group.”

The list is contained in a short white paper titled Freight Brokers in North America, prepared by Armstrong & Associates. It is available by calling Armstrong & Associates at 800-525-3915 or it can be ordered online at Guides & Research.

About Armstrong & Associates:

Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing.

For more information, contact: Richard Armstrong (800) 525-3915 or e-mail Dick@3PLogistics.com.

About TIA:

TIA is a professional and educational organization of the third-party logistics industry. It represents transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the U.S. member of the International Federation of Freight Forwarder Associations (FIATA).

For more information, contact: Robert Voltman (703) 317-2140 or e-mail Voltman@tianet.org.

Source: Armstrong & Associates, Inc. 100 Business Park Circle, Suite 202 Stoughton, WI 53589 Fax: (608) 873-5509 Website: www.3PLogistics.com

U.S. 3PL Market Grows 7%: Outpaces Economy

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FOR IMMEDIATE RELEASE

Armstrong & Associates, Inc.
100 Business Park Circle, Suite 202
Stoughton, WI 53589
(800) 525-3915

U.S. 3PL Market Grows 7%: Outpaces Economy

STOUGHTON, WI – For the eighth consecutive year, U.S. growth in third-party, contract logistics has exceeded growth in the U.S. economy. Results for 2002 show increases in turnover, net revenues and net income. Turnover increased by 6.9% and net revenues by 7%. Net income increased from 1.7% in 2001 to 3% in 2002.

Results for individual companies varied widely. Our estimate for FedEx Services indicates a 40% shrinkage in contract logistics in FY 2002. At the same time, UPS Supply Chain Solutions divisions increased significantly. UPS Logistics was up 39% in net revenue, while UPS/Fritz increased by 28%. The FedEx and UPS contract logistics results reflect the strategic plans of the two companies. UPS, in a partial re-branding, is giving more emphasis to non-package operations. FedEx continues to devalue operations that do not put shipments exclusively into its trucks and airplanes.

The most profitable 3PLs continue to be transportation managers. C.H. Robinson, Expeditors and Landstar Logistics all had double-digit, after-tax net margins. All three of these companies had significant net revenue growth again this year. While turnover increased for the U.S. domestic transportation segment lead by Robinson and Landstar, net revenues for the segment were flat because 3PLs with leasing and IMC parent companies had reduced revenues.

The value-added warehousing 3PLs represented by Exel, CAT Logistics and UPS Logistics showed solid growth of 10.4% in net revenues. This segment grew by 11.5% in 2001. Most significantly, VAWD 3PLs improved their net income margins by from .7% to 1.7% in 2002. This segment has been plagued by under pricing of its value-added services. Tibbett & Britten has eliminated some unprofitable business. Exel and other majors are taking steps to improve profitability.

The freight forwarding 3PL segment net revenue grew at 5.7% following 6% growth in 2001. Net profitability margins improved from 2.8% in FY 2001 to 4.8% in 2002. This improvement is due to a narrowing of losses at Emery, the addition of UTi Worldwide and a realistic assessment of the net revenues of DHL Danzas in North America. Deutsche Post World net, the parent of DHL Danzas claims to use a “net revenue” model but allows purchased transportation to be incorporated in “net revenue.” As a result, we continue to fine tune our DHL Danzas estimates..

Dedicated contract carriage net revenue increased by 5.7% in 2002 after a flat 2001. Leasing company related dedicated carriers continued to lose market share. Cardinal, J.B. Hunt, Schneider, Swift and Werner all had double-digit growth. These dedicated operations spring from truckload carrier backgrounds and have the sustained advantage of relying on their parent company trucking networks to reduce backhaul miles and costs.

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 Logistics? Armstrong’s Guide to Global Supply Chain Management.”

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

Who’s Who In Logistics Expands to Top 200 3PLs: Rates Major Firms

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Who’s Who In Logistics Expands to Top 200 3PLs: Rates Major Firms

CHICAGO, IL – The leading publication on contract logistics has added key new features. Ratings of 3PL/4PL capabilities, strengths and weaknesses, a quick evaluation matrix and more expert analysis are all part of the new “Who’s Who In Logistics? Armstrong’s Guide to Global Supply Chain Management.” The new quick evaluation matrix includes information on the top 200 logistics companies. The new edition of this comprehensive guide to global contract logistics contains detailed information on new American, European and Asian 3PL/4PLs. Detailed company information includes contacts and personnel, IT capabilities, logistics services offered, major customers and case studies.

The new guide covers the continued consolidation in third-party logistics. Important moves have been made by TPG, Deutsche Post, TNT, Exel, Ryder and other major players to expand their market shares. Leading American 3PLs continue to be targets.

IT systems have grown as key tools in the 4PL/LLP globalization kits. Modern IT capabilities are increasing as a major reason for outsourcing logistics functions. Supply chain management with optimization, order management, warehouse management and internet-based global track and trace are now necessary tools for global managers. The guide rates and explains systems for each 3PL/4PL.

Need industry summary information for the latest year? Key analysis and trends are presented for Armstrong’s core group of 40 key U.S. based 3PLs. These 3PLs handled nearly 60% of U.S. contract logistics business. Summaries of the number of employees, units in dedicated contract carriage and market focus and service by country are given.

“We have attempted to make our guide the leading source of contract logistics information,” said Richard Armstrong, president of Armstrong & Associates. “By significantly expanding the international sections, we have made it much easier for people to find 3PLs and 4PLs who can do the job. When we get the Internet version operating this summer, we will also have a premium tool for those who need day-to-day updates.”

The 10th edition of “Who’s Who In Logistics?” is published in two volumes. The guide has over 500 pages. It sells for $495 (hard copy only) or $995 (hard copy and MS-Access™ database).

About Armstrong & Associates: Armstrong & Associates, Inc. is a supply chain management consulting firm specializing in market research, mergers and acquisitions and outsourcing. Armstrong & Associates also publishes “Who’s Who In eCommerce Fulfillment? Armstrong’s Guide to eFulfillment Services Providers.”

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

UPS Winning the Global Logistics Battle

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UPS Winning the Global Logistics Battle

A new analysis of logistics and transportation companies indicates that UPS is in the strongest financial position to expand globally. The analysis compares UPS with major competitors FedEx, Deutsche Post and TPG. The analysis draws on the comparative financial results of major companies. UPS is beating its competitors significantly on operating margin, net income and other measures. The conclusions of the analysis are presented in a new report, “The Globalization of Logistics Services.” The report is an overview of the major integrators and logistics services providers. Exel, Danzas, AEI, Maersk, Neptune Orient/APL and Kuehne & Nagel are also profiled.

The report includes gross estimates for the logistics spend by continent. The estimates rank North America first, followed by Europe and Asia.

Included with the report is an appendix titled “An Overview of Air Freight and Container Markets.” This appendix summarizes critical data from public sources on freight airline size, market share and use of forwarders. Ocean container statistics include a list of top U.S. importers.

The report can be obtained for a handling charge of $19.95 from Armstrong & Associates, Inc. Call 800-525-3915 or e-mail Armstrong@3PLogistics.com.

____________________________________________________________________________

About Armstrong & Associates: Armstrong & Associates is a logistics management consulting firm specializing in outsourcing projects. Armstrong & Associates also publishes “Who’s Who in Logistics? Armstrong’s Guide to 3PLs & Global Logistics Services.”

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


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