Quest for Quality 2022: Third Party Logistics (3PL)
Third Party Logistics (3PLs) providing world-class service through highly-uncertain conditions
As global correspondent Karen Thuermer has been reporting in LM, third-party logistics (3PL) providers continue to face a host of critical and pressing issues that challenge their skills at managing a client’s supply chain. And while many 3PL provider financials for 2021 were staggering, the state of the market in 2022 depends on the pace of global recovery—which currently seems to be slowing.
“Global 3PLs tell us that they’re still facing the same long list of issues that shippers are facing,” says Thuermer. “While many set revenue records in 2021, ongoing capacity constraints, delays, port congestion, labor and equipment shortages, and continued disruption due the Russia-Ukraine war and local travel restrictions due to the pandemic are still hurdles in the way of progress.”
When you add in sky-rocketing fuel costs and rising rates, the picture isn’t getting any brighter. And unfortunately, nearly everyone in the industry concurs that these issues are unlikely to be resolved in the near term.
“However, the good news is that the tough times are finding 3PLs and shippers continuing to work together to find creative ways to overcome challenges and keep goods moving,” adds Thuermer. “When things finally settle down, if ever, that improved openness and communication between all of the parties that make supply chains work will be the silver lining to this tumultuous period of time.”
One piece of news that’s crystal clear is that, according to Logistics Management readers, the 22 3PLs winning Quest for Quality gold in 2022 were not only equal to the task over the course of a bumpy 2021, but were able to stand out above the crowd by maintaining world-class services levels during these highly-
uncertain conditions.
In fact, scores across the entire 3PL category this year were impressive. In the 3PL Transportation Management division, Ryder Systems (57.19), Pilot Freight Services (57.11) and Mode Transportation (57.08) all pulled in with notable overall weighted scores. In 3PL Value-Added, Maersk Logistics posted a 62.13 overall weighted score, one of the highest numbers reported in our 2022 survey. Strong marks across all of the winners this year is good news for shippers looking to put these providers to work around the globe.
Third-Party Logistics Companies
Transportation Management (Bold indicates leader in attribute category)
| Carrier selection/ negotiation |
Order Fulfillment | Transportation distribution |
Inventory management |
Logistics information systems |
Weighted score |
|
| Ryder Systems, Inc. | 11.93 | 11.21 | 12.95 | 9.53 | 11.57 | 57.19 |
| Pilot Freight Services | 11.49 | 11.10 | 12.47 | 10.48 | 11.57 | 57.11 |
| Mode Transportation | 11.85 | 11.00 | 13.18 | 9.53 | 11.52 | 57.08 |
| Penske Logistics | 11.21 | 11.20 | 13.18 | 8.57 | 10.48 | 54.63 |
| Redwood Logistics | 11.49 | 10.67 | 12.40 | 8.89 | 11.17 | 54.62 |
| FedEx Supply Chain | 10.28 | 10.33 | 12.16 | 8.66 | 10.96 | 52.39 |
| J.B. Hunt Transport Services | 10.47 | 10.29 | 11.04 | 9.25 | 10.18 | 51.23 |
| Hub Group | 9.48 | 9.60 | 10.23 | 9.14 | 10.89 | 49.35 |
| Kuehne + Nagel | 9.48 | 10.00 | 10.23 | 9.53 | 10.06 | 49.29 |
| DHL Supply Chain | 9.34 | 8.67 | 10.85 | 7.62 | 10.13 | 46.60 |
| CH. Robinson Worldwide | 8.91 | 9.14 | 10.33 | 7.35 | 9.67 | 45.40 |
| APL Logistics | 8.62 | 8.80 | 12.09 | 7.62 | 7.54 | 44.67 |
| AVERAGE | 9.12 | 8.55 | 9.97 | 7.52 | 9.05 | 44.21 |
Source: Logistics Management, Peerless Research Group (PRG)
Third-Party Logistics Companies
Value Add (Bold indicates leader in attribute category)
| Carrier selection/ negotiation |
Order Fulfillment | Transportation distribution |
Inventory management |
Logistics information systems |
Weighted score |
|
| Maersk Logistics | 13.02 | 12.48 | 13.44 | 10.89 | 12.30 | 62.13 |
| Averitt Express Supply Chain Solutions | 13.02 | 9.36 | 13.44 | 9.90 | 9.57 | 55.29 |
| UPS Supply Chain Solutions | 10.13 | 10.40 | 11.52 | 10.30 | 11.62 | 53.96 |
| Expeditors | 11.57 | 9.71 | 11.95 | 9.24 | 10.93 | 53.40 |
| Pilot Freight Services | 10.85 | 10.40 | 11.20 | 9.90 | 10.25 | 52.60 |
| DHL Supply Chain | 11.16 | 11.20 | 12.06 | 7.92 | 10.25 | 52.59 |
| NFI | 10.42 | 10.82 | 11.65 | 9.50 | 9.84 | 52.22 |
| FedEx Supply Chain | 10.54 | 10.88 | 11.52 | 7.92 | 10.81 | 51.67 |
| Yuen Logistics | 8.68 | 8.32 | 11.20 | 7.92 | 12.30 | 48.42 |
| CEVA Logistics | 9.92 | 10.10 | 10.88 | 8.49 | 8.79 | 48.17 |
| AVERAGE | 9.77 | 9.38 | 10.70 | 8.50 | 9.72 | 48.06 |
Source: Logistics Management, Peerless Research Group (PRG)
2022 Quest for Quality Winners Categories
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