3PL gap is closing at the top

In a world that is becoming increasingly commoditized, brand recognition is particularly important to the third-party logistics (3PL) industry, observes Armstrong & Associates.

Logistics in the News

Report: Amazon to roll out offerings to take market share from FedEx and UPS
Emerge names Crawford as president
December truck tonnage finishes a strong year in 2018, reports ATA
Despite sluggish December, IANA reports 2018 intermodal volumes post annual gains
FedEx Express announces plans to acquire Israel-based Flying Cargo Group
More Logistics News

Logistics Resource

New White Paper focuses on the ABC’s of Anti-Dumping/Countervailing Duties
While the U.S. government has always prioritized protection of U.S. companies against imports that are sold at below market prices, or unfairly subsidized, the Trump administration clearly intends to raise the bar with regard to trade policy enforcement.
All Resources
By ·

In a world that is becoming increasingly commoditized, brand recognition is particularly important to the third-party logistics (3PL) industry, observes Armstrong & Associates. The prominent consultancy also notes that a business that relies on reputation, quality, solutions, and scalability must never lose touch with its shippers as it grows its top line of revenue. 

Since 2002, Armstrong & Associates has surveyed 3PL managers and shippers to identify the most recognizable brands in third-party logistics. 

Armstrong & Associates Chairman Richard Armstrong announced the release of the 2018 Top 20 3PL brand recognition report last month at the company’s 3PL Value Creation North America Summit.

As reported in Logistics Management, DHL Supply Chain & Global Forwarding once again topped the list. 

“But when it comes to brand strength, the gap between the top three is closing. XPO Logistics and C.H. Robinson are quickly catching up,” said Armstrong. 

XPO’s 2015 merger with Menlo has helped boost its brand strength. In 2013, Menlo placed seventh on the list, while XPO didn’t break the top 20. Meanwhile, C.H. Robinson’s brand strength has climbed steadily over the last decade.

“The 3PL market has seen excellent growth in the last two years,” Armstrong added, noting that macroeconomic trends, combined with intensifying supply chain complexity, means demand for 3PLs is increasing. 

The market grew 10.5% in 2017 to $184.3 billion, and it’s on track to exceed $200 billion in revenue in 2019. Conditions are ideal for winning new business, even as 3PL competition increases. 

Readers seeking data on the most common sales processes and contract lengths will profit by studying this report next year before making any long term plans.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

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
Intelligent Vision-based Sortation & Tracking Systems
Download this new "Making the Case" guide to learn how using intelligent, vision-based readers and sensors can capture the information you need to help address both external customer service expectations, and internal marching orders for efficiency.
Download Today!
From the January 2019 Logistics Management Magazine Issue
Seaports on West, East, and Gulf coasts are all poised to compete on one major imperative: investment in transformational technologies.
2019 Rate Outlook: Pressure Builds
Lift Trucks join the connected enterprise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2019 Rate Outlook: Will this be the year rates skyrocket?
Join Logistics Management's Patrick Burnson as he hosts a panel of fuel, trade and logistics experts who share their insights on rate patterns across all major transport modes to help shippers prepare their freight transportation budget for the coming year.
Register Today!
EDITORS' PICKS
2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...
2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...

The Logistics News that Shaped 2018
Every year at this time, group news editor Jeff Berman combs through the mountain of news that was...
Land O’Lakes lock in Texas-based capacity
Faced with the challenge of securing capacity in specific lanes, the iconic company broke with...