Logistics managers want a third-party logistics (3PL) company on their team that can put a steady, knowledgeable hand on the controls of their distribution operations. An excellent 3PL offers "coordination with carriers on complaints, demonstration of continuous-improvement culture, and a sense of urgency for correcting carriers' performance failures," wrote one operations manager.

Readers also told us they looked for 3PLs that brought specific expertise to the table. A quality leader in third-party logistics should "bring knowledge of an industry and [have] an ability to review the requirements to make suggestions on how to improve efficiencies while reducing costs," commented a logistics manager.

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Many participants said that a quality 3PL is responsive to customers' concerns and needs. Excellent customer service typifies a top-notch distribution provider, said one reader, who added, "I want what I want, when I want it."

This year, our readers paid homage to 17 contract distribution firms for outstanding service. Three of those companies—FedEx Supply Chain Services, UPS Supply Chain Solutions, and Con-Way Logistics—also won accolades last year. Joining them in the MVP ranks were P&O Nedlloyd Logistics, Lynden Logistics, UTi Integrated Logistics, Kane is Able, Americold Logistics, Total Logistic Control (TLC), NYK Logistics, Averitt Express Supply Chain Solutions, Expeditors International of Washington, Kuehne & Nagel Logistics, Caterpillar Logistics Services, Penske Logistics, TNT Logistics, and Pacer Global Logistics.

It should be noted that 3PLs are rated on different criteria than are other providers in our survey. In this category, service providers are evaluated on carrier selection and negotiation, order fulfillment, transportation and distribution, inventory management, and logistics information systems.

Third-party logistics companies have improved their performance in some areas, as the ratings for two categories increased compared to last year. The score for order fulfillment advanced from 7.35 to 7.94, while inventory management posted a gain, rising from 5.11 to 5.75. Scores for three other categories, on the other hand, declined. The rating for carrier selection and negotiation slipped from 7.68 to 7.65, the score for transportation and distribution dropped from 8.22 to 7.55, and the rating for logistics information systems fell from 5.90 to 5.67.

Despite those numbers, the overall weighted score for 3PLs rose from 34.26 to 34.55.