Quest for Quality -THIRD-PARTY LOGISTICS: Shifting in the polls
-- Logistics Management, 8/1/2008
According to the reporting of our intrepid John Paul Quinn in LM’s annual 3PL Market Report this past June, the overall market is still posting impressive revenue numbers despite a bit of a slowdown in the U.S.
While global 3PL gross revenues continue to surge ahead, posting a record $487 billion for 2007, the U.S. sector posted its second straight year of single-digit numbers after nearly a decade of averaging 14 percent annual growth.
According to a recent report issued by Armstrong & Associates, a market-leading research firm, volume rose only 7.4 percent to $122 billion from last year’s $113.6 billion, and the consultants anticipate this slowdown drift will continue for the immediate future, wrote Quinn.
Quinn added that during the coming year it will be interesting to watch these revenue numbers as shippers begin to reassess overseas strategies as the geographic fundamentals of sourcing begin to shift. Even so, it needs to be repeated that the U.S. 3PL industry’s growth pattern, despite its deceleration, is still more than triple that of the gross domestic product—numbers that any market would love to take to the bank.
And while 3PL revenues continue to surge on the growing reliance on the international marketplace, we’re happy to report that the overall scores in the 3PL category jumped up as well. Four of the five key attributes that shipper’s vote on in this category saw a subtle increase in 2008, led by Carrier Selection/Negotiation, which improved by 1.42 points over 2007. It’s also important to note that shippers voted in 10 providers in 2008 that did not make the cut last year, marking a notable shifting of allegiance over the past year.
In fact, Unyson Logistics, a company that did not make the list in 2007, led the way this year by posting an impressive overall weighted score of 38.31. Unyson put up top scores in the Carrier Selection/Negotiation (9.00) and Logistics Information Systems (7.14) key 3PL attribute categories. Taking the lead this year in Order Fulfillment was Ozburn-Hessey Logistics with an impressive 8.75. Placing first in the Transportation/Distribution category was last year’s overall winner Expeditors International of Washington with a 9.15. Rounding out our list of category leaders is Cardinal Logistics which posted a 5.14 score in the only category that saw its overall weighted score drop a bit over last year’s numbers.
In 2008, shippers welcomed Penske Logistics (35.92), Averitt Express Supply Chain Solutions (35.56), Crowley Logistics (35.49), Hellmann Worldwide Logistics (35.09), Caterpillar Logistics Services (35.01), Jacobson Companies (34.99), Landair (34.91), Saddle Creek Corp. (34.53), Lynden Logistics (34.00), and UTi International (33.87) up to the podium this year after missing the cut in 2007.
| Third-Party Logistics Companies | ||||||
| Carrier Selection/Negotiation | Order Fulfillment | Transportation Distribution | Inventory Management | Logistics Information Systems | Weighted Score | |
| 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 - 2008 Quest for Quality - Third Party Services - Reed Business Information - June 2008 |
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| Unyson Logistics | 9.00 | 8.70 | 8.75 | 4.73 | 7.14 | 38.31 |
| Expeditors Int’l of Washington | 8.69 | 8.50 | 9.15 | 4.70 | 7.10 | 38.14 |
| Ozburn-Hessey Logistics | 8.75 | 8.75 | 8.50 | 4.90 | 5.97 | 36.86 |
| ADP Logistics (A. Duie Pyle) | 8.81 | 8.10 | 8.69 | 4.50 | 6.53 | 36.63 |
| Cardinal Logistics | 8.44 | 8.01 | 8.36 | 5.14 | 6.48 | 36.44 |
| FedEx Supply Chain Services | 8.00 | 8.11 | 8.55 | 4.76 | 6.77 | 36.19 |
| Penske Logistics | 8.75 | 7.76 | 8.83 | 4.33 | 6.26 | 35.92 |
| Landstar Logistics | 8.55 | 7.90 | 8.56 | 4.63 | 6.28 | 35.91 |
| Averitt Express Supply Chain Solutions | 8.40 | 7.76 | 8.48 | 4.47 | 6.45 | 35.56 |
| Crowley Logistics | 8.17 | 7.57 | 9.07 | 4.43 | 6.25 | 35.49 |
| Hellmann Worldwide Logistics | 7.88 | 7.50 | 9.10 | 4.40 | 6.21 | 35.09 |
| Caterpillar Logistics Services | 8.17 | 8.25 | 7.39 | 4.60 | 6.60 | 35.01 |
| Jacobson Companies | 7.93 | 8.04 | 8.75 | 4.50 | 5.76 | 34.99 |
| Landair | 8.27 | 7.80 | 8.46 | 4.00 | 6.38 | 34.91 |
| Saddle Creek Corp. | 8.31 | 7.80 | 7.44 | 4.50 | 6.48 | 34.53 |
| C.H. Robinson Worldwide | 7.94 | 7.46 | 8.39 | 4.26 | 6.00 | 34.05 |
| Lynden Logistics | 8.17 | 7.01 | 8.08 | 4.33 | 6.41 | 34.00 |
| UTi InternationalLogistics | 7.93 | 7.36 | 8.35 | 4.00 | 6.23 | 33.87 |
| AVERAGE | 7.86 | 7.53 | 8.02 | 4.37 | 6.08 | 33.85 |
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I work for Caterpillar Logistics.
Ours is a company with a great vision. With emphasis on customer satisfaction and use of cutting edge technology we aim to be world class logistics service providers.
We will be in the top 5 3pl providers very soon.
Pritam Hombal - 2008-12-11 09:11:00 EST -
I work for Ozburn Hessey Logistics, and I can tell you the management at this company are always striving for top notch preformance from its people from top to bottom. Our Moto is "GOOD TO GREAT IN 2008" And they put their money where their mouth is. This is an honest goal, and we expect to make it!!!
James R. Greenwell - 2008-26-8 15:10:00 EDT
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