2011 Q4Q Winners: 3PL


By ·


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!

Latest Whitepaper
Managing Global Transportation: How NVOCCs can operate more profitably
Global transportation isn’t getting any easier to manage. With new rules and regulations to learn, new compliance requirements to adhere to, and new customers and business partners to onboard, navigating the complexities of the global market can be difficult for any company. To fully leverage their global supply chains, firms need a robust, global transportation management system that helps them navigate this ever-changing environment.
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo