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 NewsReport: 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 ResourceNew 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.
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.
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 AuthorPatrick 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!
2019 Rate Outlook: Pressure Builds Lift Trucks join the connected enterprise View More From this Issue