He noted Dunavant was different in that it was growing out of a trading company and trading companies do a lot of logistics work as part of their primary business.
Examples of manufacturers that have created 3PL subsidiaries include:
- Caterpillar Logistics, which Armstrong said has top line revenue of about $3.5 billion and runs 119 distribution facilities with 28 million square feet of space. He said about half of what Caterpillar Logistics does is for the parent company.
- Uniroyal’s USCO subsidiary, which was later acquired by Kuehne+ Nagel in 2001 for roughly $300 million.
- Fidelitone, based in Wauconda, Ill., transitioned in the 1970s from making phonograph needles to parts distribution and then to a 3PL business as the music industry changed. Today, Armstrong said Fidelitone has top line revenue of more than $320 million, 500 employees, and 28 warehouses with as much as 1 million square feet of space.
- Technicolor Transportation Management Services, a unit of the Paris-based entertainment technology company, has revenue of about $450 million, Armstrong said. The company handles more than 15 million shipments annually, for example distributing DVDs and games to retailers.
- Celestica, the contract electronics manufacturer, has also developed a sizeable 3PL operation.
- ATC Logistics and Electronics began life as a company that remanufactured automobile and light truck transmissions and grew its 3PL subsidiary to the point where it was purchased in 2010 by GENCO for $512.6 million.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now