Subscribe to our free, weekly email newsletter!


2011 Q4Q Winners: 3PL


August 01, 2011


Source: Logistics Management, Peerless Media Research Group

Back on the rise
According to our reporting over the past eight months, the third-party logistics (3PL) industry is surging again after seeing flat growth in the heart of the Great Recession.

However, those closest to the 3PL market agree that this growth trend could reach a plateau in the coming years due to a number of looming economic uncertainties, not the least of which is the price of oil—which could, in fact, send global trade numbers tumbling and increase domestic and cross-border moves.

But, for the time being, the 3PL market is enjoying a resurgence. According to Armstrong & Associates’ most recent market analysis, revenues and profitability increased over the course of 2010 in all four of 3PL segments it covers. Gross revenue increases ranged from 12.9 percent to 30.1 percent and were up 19.4 percent overall from 2009, while overall net income increased 23.4 percent in 2010 over 2009 levels.

In fact, Armstrong analysts say that 2009 was the only negative growth year since the firm began tracking the results in 1995. While the latest numbers are very encouraging, the market needs to keep in mind that 2009 was a bad a year for just about every player in logistics and transportation services.

Improved global trade has certainly had a lot to do with the improved numbers, yet market analysts also contend that domestic and cross-border activity is a key driver to current 3PL growth—and could become an even bigger part of the 3PL services market as more U.S.-based multinationals consider shifting sourcing strategies closer to home.

And while shippers are considering new global and domestic networks, we can be sure that the 3PLs making the grade on our list below will most certainly be part of the strategy. This year, the readers of Logistics Management have voted 16 3PLs into the 2011 Quest for Quality winners’ circle.

Leading our list of providers this year is first-time winner Network Global Logistics with an impressive weighted average of 45.19. Network also took top spot in four of the five attribute categories, scoring 8.94 in Carrier Selection/ Negotiation, 9.72 in Order Fulfillment, 9.31 in Transportation/Distribution, and 8.48 in Inventory Management. C.H. Robinson posted a 8.82 in Information Systems to lead the pack in this increasingly important category.

It’s interesting to note that only six out of this year’s 16 are repeat winners from our 2010 results. Making the cut after missing last year are Network Global, C.H. Robinson, Yusen Logistics (41.78), Expeditors (40.67), DHL Solutions (39.80), Landstar (39.56), Menlo Worldwide (39.30), Kuehne + Nagel Logistics (38.78), YRC (38.18), and CEVA Logistics (37.28).

Repeating this year are second best weighted average scorer Transplace (34.21), FedEx Supply Chain Services (42.08), APL Logistics (40.75), Unyson Logistics (39.86), Exel (37.34), and Ryder Supply Chain Solutions (36.71). This year marks the third year in a row for Ryder, FedEx, and Exel.


2011 Quest for Quality Winners Categories

NATIONAL LTL | REGIONAL LTL | TRUCKLOAD | RAIL/INTERMODAL
OCEAN CARRIERS | 3PL | AIR CARRIERS | FREIGHT FORWARDERS


home page

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

A mixed bag may be the most appropriate way to characterize the current state of manufacturing based on the most recent edition of the April edition of the Manufacturing Report on Business issued by the Institute for Supply Management today.

The Department of Transportation’s Federal Railroad Administration and Pipeline and Hazardous Materials Safety Administration (FRA) issued its long-awaited Final Rulemaking for “Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Trains.”

U.S. carloads were down 1.6 percent at 278,294 carloads, and intermodal volume was up 5.6 percent at 279,0123 containers and trailers.

Even though the immediate prospects of a long-term federal surface transportation authorization remain dim, various media reports suggest that at least short-term help could be on the way.

For anyone not sold on the ongoing impacts of e-commerce on logistics and supply chain operations, comments by some influential industry executives at the recent National Shippers Strategic Transportation Council (NASSTRAC) Conference and Transportation Expo definitely would help change that train of thought.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA