Report details growing usage of 3PLs
Third Party Logistics companies are now used by 77 percent of domestic Fortune 500 companies, according to a new report issued by Armstrong & Associates.
The report also quantifies the global Fortune 500 3PL market at $187.4 billion for 2007 with growth to $199.7 billion in 2008.
The Stoughton, Wis.-based consultant said its report, Trends in 3PL/Customer Relationships – 2009, is based on its proprietary database of 3,936 3PL customer relationships, and provides detailed information on the top outsourcers to 3PLs, service demand and 3PL market size by vertical industry segment from 2005 through 2008.
According to the report, General Motors, Procter & Gamble, Wal- Mart, PepsiCo, and Ford Motor each use 30 or more 3PLs.
Within the Global 500, “technological” vertical industry 3PL customers spent more than $45 billion with 3PLs in 2007 and 2008.
The average customer is utilizing each 3PL for three distinct services. About 81.5 percent can be classified as tactical relationships, while 728 or 18.5 percent are strategic with the 3PLs performing supply chain management and/or lead logistics provider services.
The complete report is available from Armstrong & Associates online.
Report details growing usage of 3PLs
