2009 Quest for Quality Awards: THIRD-PARTY LOGISTICS: Kings of networking
By Logistics Management Staff -- Logistics Management, 8/1/2009
There’s a hint of the James Dean saga in the script now being written about the third-party logistics (3PL) market.
There was a time when it appeared that 3PLs were poised to experience exponential growth year after year with no signs of stopping. In fact, in mid-2008 we reported that the global 3PL sector had just posted a record $487 billion in gross revenues, and the U.S. sector had just tallied its second straight year of single-digit growth after nearly a decade of averaging 14 percent annual growth.
Now, that rocket ride to stardom has been temporarily halted, and 3PL executives are now heard reading lines like “we’re experiencing solid measured growth” or “we’re managing through the current economic challenges.” According to Dick Armstrong and his research team at 3PL consultancy Armstrong & Associates, more than $498 billion was generated in 2008 in the global 3PL market, and much of that revenue will continue to be reinvested in 2009 in new solutions and competitive tools.
However, Armstrong admits that 2009 will be the first recorded negative year for 3PL gross revenue growth since he began tracking it in 1996. But unlike Dean, whose life was taken in a tragic auto accident, the 3PL market is still very much perched under the bright lights and ready for its next break-through role.
And when that does happen, it would be pretty safe to assume that the list of this year’s Quest for Quality winners will be ready to take center stage. In 2009, shippers have given 11 third-party logistics stars rave reviews and an invitation to walk the red carpet. This year, many of the award-winning providers are nearly household names.
Leading the pack for the second year in a row is Unyson Logistics (Hub Group), scoring a very impressive 42.15 weighted average and one of the best averages overall this year in any mode or service category. In fact, Unyson came in 6.03 points ahead of FedEx Supply Chain Services (36.12), by far this year’s biggest margin of victory. This large margin also found Unyson winning all five of the 3PL attribute categories, scoring 10.00 in Carrier Selection/Negotiation, 9.25 in Order Fulfillment, 9.36 in Transportation Distribution, 5.66 in Inventory Management, and 7.87 in Logistics Information Systems.
Taking this dominating performance out of the picture, we find Expeditors International of Washington taking second spot in Carrier Selection/Negotiation (8.33); FedEx Supply Chain Services scoring very well in Order Fulfillment (8.03), Transportation Distribution (8.52), and Logistics Information Systems (6.94); and Exel posting a second-best Inventory Management (4.84).
It is also good to see some faces return to our red carpet after missing the cut last year. In 2009 shippers welcomed back Exel (34.66), Ryder (34.07), UPS Supply Chain Solutions (34.03), CRST Logistics (33.35), Maersk Logistics (33.18), and NYK Logistics (33.12).
| All scores are weighted. Weighted scores are determined by multiplying the average raw scores by the average importance of each attribute (1= least important; 5= most important). To find the attributed weights for this category, see the introduction to the Quest for Quality report. Logistics Management - 2009 Quest for Quality - Third Party Services - Reed Business Information - June 2009 |
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| Carrier Selection/Negotiation | Order Fulfillment | Transportation/Distribution | Inventory Management | Logistics Information Systems | Weighted Score | |
| Unyson Logistics (Hub Group) | 10.00 | 9.25 | 9.36 | 5.66 | 7.87 | 42.15 |
| FedEx Supply Chain Services | 7.91 | 8.03 | 8.52 | 4.72 | 6.94 | 36.12 |
| Expeditors Int’l of Washington | 8.33 | 7.97 | 8.30 | 4.69 | 6.43 | 35.72 |
| Exel | 7.91 | 7.92 | 7.73 | 4.84 | 6.26 | 34.66 |
| Averitt Express Supply Chain Solutions | 7.82 | 8.01 | 7.92 | 4.20 | 6.25 | 34.20 |
| Ryder | 7.66 | 7.78 | 8.10 | 4.59 | 5.95 | 34.07 |
| Landstar Global Logistics | 7.97 | 7.36 | 7.73 | 4.61 | 6.37 | 34.03 |
| UPS Supply Chain Solutions | 7.60 | 7.74 | 7.81 | 4.52 | 6.36 | 34.03 |
| CRST Logistics | 8.00 | 7.43 | 7.39 | 4.52 | 6.02 | 33.35 |
| Maersk Logistics/Damco | 7.68 | 7.33 | 7.35 | 4.45 | 6.37 | 33.18 |
| NYK Logistics | 7.88 | 7.32 | 7.70 | 4.30 | 5.94 | 33.12 |
| AVERAGE | 7.76 | 7.35 | 7.50 | 4.42 | 6.09 | 33.12 |
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Hi, could you consider adding another evaluation indicator, solution design? As we know, 3PLs often be asked to provide solution design service to their customers. Supply chain consulting capability is becoming a more and more important competitive factor for 3PLs.
Austin Lian - 2009-12-8 23:03:00 EDT -
Hi, could you consider adding another evaluation indicator, solution design? As we know, 3PLs often be asked to provide solution design service to their customers. Supply chain consulting capability is becoming a more and more important competitive factor for 3PLs.
Austin Lian - 2009-12-8 23:03:00 EDT
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