Top 25 Third-Party Logistics Providers Extend Their Global Reach

3/29/2015
Top25ThirdPartyLogisticsProvidersExtendTheirGlobalReach
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Anelitegroupofjust253PLsincreasinglydominatelogisticsoutsourcingaroundtheworld,andthatisjusthowtheircustomerslikeit.
Thisclosedclubpromisestobecomeevenmoreexclusiveintheyearsaheadasacquisitionsconcentratethepoweramongfewerbut
larger3PLs.
Withinternationaltrademushroomingandsupplychainsexpandingaroundtheworld,thirdpartylogisticsprovidershavetakenonanincreasinglyimportantrole
formultinationalmanufacturersandretailers.Manufacturersneedabsolutelyreliablesourcesofsupply.Retailersneedflexiblelinkstosupplierswithlowcost
production.Thesesuppliersareofteninremoteregions.Atthesametime,retailersneedrapiddeliverychannelsforaneverexpandingdistributionnetworkof
consumers.Simultaneously,burgeoningprosperityandintensifyingcompetitionfornewmarketsisputtingmoreandmorepressureonsupplychainmanagersto
getthejobdoneandfindcompetitiveadvantage.
DIGITALISSUES
Increasingly,thelinchpinforsuccessfulworldwidesupplychainsisacoregroupofglobal3PLsthatcanprovidetheexpertise,reach,reliabilityandflexibilitythat
multinationalcorporationsneed.Theseglobal3PLsprovidetransportation,consolidation,forwardingandcustomsbrokerage,warehousing,fulfillment,distribution
andvirtuallyanylogisticsandtraderelatedservicesthattheirinternationalcustomersneed.
About1003PLsnowcontrolalmostathirdofanestimated$270bnthatisspentonoutsourcedvalueaddedlogisticsserviceseachyeararoundtheworld.Within
thisgroupofglobal3PLs,anelitegroupof25companiesaccountforaboutonethirdofallglobal3PLactivity.Theirannualrevenuesexceed$79.5bn,andin
2004,theserevenueswillgrowbetweensixandeightpercenttwicetheworldGDPrate.
EuropeansRule
Notsurprisingly,thesevenlargestglobal3PLsareallEuropeanbasedcompanies.Thetopsevencompaniesonourlisttogetherearnedmorethan$42bnlast
year,whichismorethanalloftheother3PLsintheTop25combined.U.K.basedExelholdsthetopspotonthelistwithrevenuesof$8.3bn.Thenumbertwo
andthreespotsgotoSwissbasedKuehne&NagelandGermanbasedSchenker,respectively.Thesetwocompanies,alongwithPanalpinaandDHL'sDanzasAir
&Oceanoperations,havebeenleadingforwardersandtransportationmanagement3PLsinEuropefordecades.
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History,empireandexportshelpedcreatethelargeEuropean3PLs.Toillustratethis,wecancomparerevenuesofthemajorplayersintheirhomecountries.
LessthanonethirdofExel'srevenueisderivedfrombusinessconductedinitsBritishIsleshomebase.Kuehne&Nagelderives45percentofitsturnoverin
Europebutlessthan5percentofitiswithinSwitzerland.Bycomparison,80percentofUPS'sbusinessisconductedintheUnitedStates.
Europeancountries,whichhavealwayshadsignificantlymorecrossbordertraffic,havereliedmoreonoutsourcingthanAmericans,especiallysinceWorldWar
II.OutsourcingratesinEuropeareestimatedbycountrytobe26to60percentbyPeterKlausinhis"DieTop100DerLogistik."3PLmarketpenetrationrates
wereestimatedat12percentfor2003byArmstrong&Associates.GermanandJapanese3PLsgrewrapidlyduringtheindustrialgrowthoftheircountries'
exportingeconomiesafterWorldWarII.
Theimportanceoffreightforwardingtosupplychainmanagementisalsoakeyvariableinchoosingthelargestglobalplayers.First,therevenuesused
throughoutthisarticleareturnover(grossrevenue).Theserevenuesincludedpurchasedtransportation,amajorexpenseformostofthe3PLsonourlist.
Second,globalsupplychainsrelyheavilyonfreightforwardingactivitiesfortheirconstruction.Mostofthekeyeventsinanyinternationalsupplychainare
controlledbythefreightforwarder.Theservicesthatglobal3PLsprovidefrequentlyinclude:
AirFreightForwarding(doortodoor)
OceanFreightForwarding(doortodoor)
TransportationNetworkPlanningandOptimization
TransportExecution/FreightBillPayment
CarrierManagement
MergeinTransit
SecuritySystemsandControl
IncotermControlshiftingfromExworks(EXW)todelivereddutypaid(DDP)
LettersofCredit/NegotiableBillsofLading
CargoInsurance
Consolidation/Deconsolidation/NVOCCOperations
SystemwideTrack&Trace/InternetSupplyChainVisibility
CustomsBrokerageandLicensingImports/Export/AMS/CPAT
DutyDrawback
ValueAddedWarehousing,InventoryControlandSupplierManagement
OverthelastfewyearsnearlyeverycompanyinEuropehasbeenabletotakesomeadvantageofthefreemovementofgoodsacrossborders.Thisshifthas
beengoodforthelargeEuropean3PLs,butculturaldifferencesstillpreventcentralizationofoperationsatU.S.levels.Most3PLoperationsinEuropestillhaveto
bedesignedonacountrybycountrybasistobeeffective.
U.S,Asian3PLstoExpand
OnlythreeofthecompaniesontheTop25listareAsianbased,whichreflectssloweradoptionofthirdpartylogisticsinthatpartoftheworld.Japanespecially
hasbeenanenigma.MostmajorJapanesecompaniesarestillhesitanttooutsourcemorethanbasictransportationto3PLs.TheslowdownintheJapanese
economyandpaceofchangefortraditionalbusinesspracticesreflectsintheconservatismofJapanese3PLs.CompanieslikeYamato,NipponExpressand
KintetsuareleadersinJapanandwithJapanesecompaniesallovertheworld,buttheyhavebeenslowtoexpanddramaticallyintononJapaneseconnected
westernmarkets.NYK'snewdirectionisanexceptiontotherule.However,thesecompaniesarenowmakingaggressiveeffortsclosertohome,inChina.
SingaporebasedSembCorpLogistics,ontheotherhand,hastakenaprogressiveapproachtobecomingtoglobalplayer.SembCorpowns20percentofKuehne
&Nagel,anditisexpandingrapidlyinIndiaandChina.
Leadingtheglobal3PLexpansionareUPS,FedExandDHL.Thesemultibilliondollarenterprisesalreadyservicemostoftheworldonpackageshipmentsandare
expandingtheirofferingstogivesimilarresultsforlessthancontainerloadandcontainerloadshipments.UPSSCSandDHL/Danzasaretiedtocorporate
parentswithlargefreecashflowstofuelexpansion.
IntheU.S.,fortheninthconsecutiveyear,growthinthe3PLservicesmarketexceededoveralleconomicgrowth.Total3PLturnoverincreasedby8.2percentto
$76.9bn.NetrevenuesforFY2003grewby6.1percentto$32.9bnfollowing7percentgrowthforFY2002.Netincomeincreasedto3.9percentofnetrevenue
from3percentinFY2002and1.7percentinFY2001.
Individualcompanyresultsvariedwithselectcompaniespostingstrongresults.ThelargestU.S.based3PLisUPSSupplyChainSolutions(SCS),whichhas
reached$4.1bninturnover.UPSSCSwasprofitableinallfourquartersofFY2003.StandardUPSoperatingefficienciesareapparentlytakinghold.Valueadded
transportationmanagerC.H.Robinsoncontinuedtoimproveitsbestinclassresultsbyincreasingnetrevenueby12.6percentto$545m.Itsnetaftertaxincome
marginincreasedto20.9percent.Turnoverwas$3.6bn.Netincomewas$114m.
Internationaltransportationmanager,ExpeditorsInternational,maintaineditsexcellentoperations.Netrevenueswereup10.1percent.Profitabilitycontinuedat
highlevelswithnetaftertaxincomemarginsof16.2percent.
Amongvalueaddedwarehousedistributionproviders(VAWD),ExelandUPSSCScontinuetobethemajorplayersandbothhadgoodgrowthandimproved
profitability.AmongmidsizedVAWD3PLs,suchasKenco,Genco,JacobsonandDSC,revenuegrowthexceeded10percent.
Thesemidsized,privatelyheldVAWD3PLsareoftenverycompetitiveandaregainingbusinessquickly.Theyallalsoincreasedtheirprofitability.These
companiesareimprovingtheircorewarehousingofferings,addingmorevalueaddedoptions,expandingtheirtransportationofferingsandimprovingintegrated
solutions.Theyarenotyetamongtheglobalplayers.
Thetrendoverallisformoreintegrated,technicalandvelocitydrivensolutionsforall3PLs.Webbasedinventorytrackingandeventmanagementare
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necessities.InrecentresearchdonebyArmstrong&AssociatesontheVAWDsegment,themostrequestedvalueaddedserviceswerereverselogistics,
vendor/inventorymanagementandcustomization/subassembly.Withregardtotransportationvalueadds,themajorrequirementsareforinternational
transportation/customsbrokerageassistance,expandedIT/visibilityanddomestictransportationnetworkmanagement.Thesevalueaddedpreferencesreflect
theglobaltrendstooverseasoutsourcing,longersupplychainsandbetterinformationcontrol.
Theranksoftheseglobalplayerswillcontinuetoconcentrateinthenearfuture.Threeimportanttrendsaredrivingthispathtofewerandlargerglobal3PLs:
1.Theworld'slargestmanufacturersandretailershavesolidlyadoptedthelogisticsoutsourcingconcept,andtheyprefertodobusinesswithotherlarger
companies,includingtheir3PLs.
2.Whilemoreandmoremanufacturing,sourcingandothersupplychainactivitiesarehappeninginplaceslikeChina,India,LatinAmericaandotheremerging
markets,requiredlogisticscapabilitiesoftendonotyetexistintheseregions.TheGlobal1000companiesoperatinginthesemarketswantgloballogistics
providersthatcanexpandoperationswherevertheyareneededandmovefromregiontoregionasmanufacturingsourceschange.
3.Toquicklygrowinsize,capabilityandgeographicreach,global3PLsmustexpandbyacquisition.Thebig3Plsthatintendtobeamongthehandfuloftruly
globalplayersareundergreatpressuretoeatorbeeatenbytheircompetition.
BiggerisBetter
Globalcorporationsincreasinglywantsinglepointsofcontactfortheiroutsourcedlogistics.Forexample,afewyearsago,GeneralMotorsformedVector,a
logisticsmanagementcompanythatitjointlyownswithCNFInc.,theparentofConWayTransportation,MenloWorldwideanditssubsidiary,MenloLogistics.This
socalled4PLrunsmuchofGM'ssupplychainintheU.S.,buttheactuallogisticsoperationshavebeensubcontractedtoother3PLs,includingTNTNorthAmerica,
Penskeandseveralothers.Thelogisticssubcontractorsaredoingtheinboundmaterialsmanagement,dedicatedcontractcarriage,crossdockingandother
logisticstasks,butVectorisGM'sonepointofcontact.
WeareseeingthistrendplayoutastheGlobal1000corporationssendouttheirrequestsforproposalforlogisticsservices.Oftenonlytheverytopplayersare
beingaskedtobid,andthebarforwhatconstitutesatopplayerkeepsrising.Thesmallerplayersmaybegreatcompanies,buttheyendupperformingpartsof
thetotallogisticscontractassubcontractors.Largecorporationsareoftenlookingforlarger3PLswithfinancialstabilityandwidegeographiccoverage.
Thistrendwillincreaseasmorecompaniesbecomevirtualmanufacturersproducingnothingthemselves.Cisco,forexample,outsourcesitsproductionoperations
exceptformarketing,salesandhighlevelmanagement.VirtualcompaniesuseworldclasscontractmanufacturerslikeSolectronandFlextronics,buttheyalso
needthebestlogisticscapabilitiestomanagetheirextendedsupplychains.Increasingly,thatmeansusing3PLs.
Intheautomotiveindustry,large3PLsdominatethemarketbecausetheycanofferacombinationofassetandnonassetcapabilities.Penske,RyderandTNTall
haveacombinationofsupplychainmanagement,transportationexecutionmanagementandplanningcapabilities,aswellascrossdockingandVAWD
capabilities.Automotivelogistics3PLsoftenprovideassetsfordedicatedcontractcarriagemilkrunsfromsupplierstoplantsandvalueaddedserviceson
componentsjustbeforetheyaredeliveredtotheproductionline.Thefinancialmuscletoaffordthesecapabilitiesonlyexistsatahandfulof3PLs.
ExpandingCoverage
Boomingworldtradehasfosteredlongerandmorecomplexsupplychains,whichinturnhascreatedapressingneedforbetterlogisticsinallcornersofthe
world.InChina,whereafewhundredfactoriesmanufacturealargeportionoftheworld'sgarments,consumerelectronicsandotherproducts,thelogistics
infrastructurecanbequiteprimitive,especiallyasonemovesinland.Themajorretailersandmanufacturersoutsourcingtothesefactoriesareusingtheir
relationshipswithlarge3PLstocontrolhowtheiroverseasvendorsperformtheirlogistics.Afewlarge3PLsunderthecontroloftheU.S.orEuropeanbuyers
handlethelogisticsfromthefactoriestotheultimatedestination.Sincethesebuyersarelikelytochangetheirsuppliersascostsavingsdictate,the3PLsmustbe
abletomanagethelogisticsflowsfromanyorigintoanydestination.Theactuallogisticsoperationsneededcurrentlycenteronfairlysimpleoperationssuchas
transportation,consolidationandforwarding,butinformationtechnologyandlogisticsplanningrequirementsaregrowingrapidlymorecomplex.
GrowingprosperityinSoutheastAsiaisalsobuildingthrivingconsumermarkets.Large3PLsinEurope,theU.S.andJapanwanttorampuptheiractivitiesinthis
regiontopositionthemselvesforthiscomingwave.BothU.S.andEuropeanoperatorsarelookingforlocalacquisitionstoacceleratetheircapabilities.Atleast
onemajorU.S.3PLwillannounceacquisitionsinAsialaterthisyear.
Theglobalizationof3PLswillspreadaroundtheworld,althoughmoreslowlyinmanyareaswhere3PLshavegainedlimitedmarketentry.Themodern
outsourcedlogisticsmodel,wheremanufacturersandtheir3PLshavebecomebusinesspartnerswithsharedauthorityandresponsibilityoverentiresupply
chains,hasyettobeadoptedinmanyregions.ThismodelisthenormintheU.S.,WesternEurope,Australia,Singapore,HongKongandsomepartsofMexico
andBrazil.Outsideoftheseareas3PLsarestilltreatedfunctionally:The3PLishiredtoperformonetasksuchaswarehousing.
Inmanydevelopingnations,theproblemisalackofinfrastructure.Forexample,inmuchofLatinAmerica,warehousesarerudimentary.Theyoftenlackdocks,
materialhandlingequipment,andhavenoITsystemstomanageinventoryorprovideinformationsharingwithcarriersorcustomers.Eveninhighlyadvanced
partsoftheworldsuchasJapan,3PLsstillprimarilyperformfunctionalroles.
Aslargecorporationsexpandtheirbusinessesandtheirprocessestoallregionsoftheworld,theneedforbetterlogisticscontinuestotransform3PLsandforces
themtobecomesupplychainpartners.Inmostcases,thistransformationisaccompaniedbyacquisition.
ExpandingtheFootprint
Theacquisitionwaveisbuildingmomentumagain.ThecenterofactivityisinthedevelopedeconomiesofWesternEuropeandtheU.S.UPSSCS,Penske,Menlo
andC.H.RobinsonhaveestablishedfootholdsinEurope,mainlybyacquiringwellestablishedcompaniesinthisregion.TheseU.S.companiesarenowwell
positionedtogrowtheirEuropeanbusinessonanevenfootingwiththebiglocalcompetitors.
Ontheotherhand,European3PLscontinuetoaddtotheircapabilitiesintheU.S.,whichremainsthelargestandmostattractivemarket.LastyearDeutschePost,
throughitsDHLsubsidiary,acquiredAirbornetoexpanditsexpressbusiness.Inthenearfuture,weexpectDeutschePostoritscompetitor,Schenker,toaddto
capabilitiesintheU.S.withacquisitionsinwarehousing,distributionandtransportation.
WearealsolikelytoseeotherEuropeanplayers,andperhapssomeAsianbased3PLsacquiremidsizedU.S.3PLsthathavelongbeenstrongplayersinthe
VAWDsector.RecentexamplesincludethepurchasesofUSCObytheSwissbasedKuehne&NagelandStandardWarehousebyUTI.CompanieslikeKenco,
basedinChattanooga,andChicagobasedDSCreceiveinquiriescontinually.These3PLs,manyofwhicharefamilyownedorcloselyheld,arereluctanttosell
becausebusinessisgoodandtheownersenjoywhatthey'redoing.
TheattractivenessoftheU.S.marketisnottheonlyreasonforeigncompaniesareinterestedinU.S.based3PLs.European3PLsarecomingtotheU.S.tomake
surethattheyarestrongenoughtocompeteagainstUPS,FedExandotherU.S.basedlogisticsprovidersthatareaggressivelyenteringtheirhomemarkets.Itis
marketpositioningonaglobalscale.
Regardlessofwhereaglobal3PLisbased,itisgoingtohavetomakeacquisitionsinforeignmarketstofilloutitsofferings,bothintermsofcapabilitiesand
geographiccoverage.Iftheeconomycontinuestorecoverworldwide,theacquisitionpressurewillbeintense.
EvolvingPaymentModels
Ofcourse,the3PLindustrycanonlygrowifitisprofitableenoughtoattractinvestmentcapital.Attimesthegrowthofsegmentsofthisindustryhasbeen
hamperedbyinabilitytomakemoney.IntheVAWDsegment,largecustomershavetraditionallywantedtopayoncostplusopenbookarrangements.Margins
werekeptlow.Inaddition,undergainsharingarrangements3PLshaveoftenbeenunabletocollecttheirfullshares.Inthetransportationmanagementsector
thosewhooperateontransactionalfreightbillmodelshavehadaparticularlydifficulttimemakingmoney.
Ontheotherhand,3PLsthattakefullresponsibilityforalltransportationservicesdomuchbetter.Thesetransportationoriented3PLscanleveragethevolume
andfreightflowsofmultiplecustomerstoobtainbetterratesthananyonecustomercouldnegotiate.Agoodportionofthesesavingsgoestothe3PL'sbottom
line.Goodexamplesoftransportationoriented3PLsthatunderstandhowtomakemoneyareC.H.Robinson,ExpeditorsandLandstar.Theseprofitable
companiescontrolthetransportationspend.Theyarenotinterestedinhavingaccountswheretheysimplyprovidetransportationmanagementandclerical
functionsonacostplusbasis.
Conclusion
Therewillbewinnersandlosersintheglobal3PLrace.TheshakeoutthatiscomingparallelswhathappenedintheU.S.duringthe1980saftertransportation
deregulation.Then,asmallgroupofcarriersgrewrapidlybyoutperformingthecompetition.Theywonmarketshare.Otherprimarilyhighercostcompanies
eitherwentoutofbusiness,orretreatedtosmall,defensibleniches.Intoday's3PLmarket,therewillbeasmallgroupofbigoperatorswithglobalreachand
internationalskillsthatwilldominateworldwidelogistics.Theywillhavetogrowfastenoughtoservicethelargestcustomersandtoavoidbeingcommoditizedby
thosecustomers.Attheotherendofthemarket,therewillalsobenicheplayersthatwilloftenendupworkingfortheglobal3PLs.Therewillbelimitedroomfor
midsizedgeneralists.
Onlytimewilltellwhothewinnersandloserswillbe.Fornow,wepresentacomprehensiveanalysisofthe253PLsthatareleadingintheglobalrace.This
selectionhasbeenmadeonturnover,currentcoverage,breadthofskillsandparentcompanygravitas.
Top253PLs
1. ExelplcBerkshire,UK,London:EXL
ExelAmericasWesterville,OH,8002721052,BriceEdwards,CEO
www.exel.com
3PLRevenue:8.3bnParentRevenue:8.3bn
Coverage:Global(Servicetoover95%ofWorldGDP)
3PLAssets:74,000employees300warehouses5923tractors,
7544trailers
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InformationSystems:VerygoodTMSi2,RedPrairie,GLog
WMSIrista,Topex,Insight,RedPrairie
Services:Warehousinganddistribution(contractlogistics),airand
oceanfreightforwarding,supplychainconsulting,customs
brokerage,transportationmanagement,returnsmanagement,
homedelivery
IndustryFocus:Consumergoods,retail,computersand
electronics,automotive,chemical,healthcare.
KeyCustomers:AdolphCoorsCo.,AppleComputer,BP,Compaq,
Daewoo,FordMotorCo.,HewlettPackard,HomeDepot,Honda,
Intel,InternationalPaper,Kodak,Maxtor,MillerBrewing,Mitsubishi
Corp.,Motorola,Nissan,OwensCorning,PepsiAmericas,PPG,
Procter&Gamble,SCJohnson,Shell,Sony,SunMicrosystems,
UnileverBestfoods,WalMart,Xerox
Armstrong&Associates'Evaluation:Exelistheworld'slargest
3PL.ItwasmadefromtwoBritishcompaniesmeanttobemerged
together.Exel'scontractlogisticsandMSASfreightforwardinghave
complementedeachotherwell.Crosssellingandsupplychain
opportunitiesareabundant.Exelhasahostofsolidoperationswith
variedfunctionalityaroundtheglobe.Coverageisprovidedforall
majorverticals.Revenuesareevenlydividedbetween
transportationmanagementandcontractlogisticsoperations.MSAS
continuesasoneofthelargestairfreightforwarders.CEOJohn
Allenhaspromisedtoimprovemargins.Thiswillbeanongoing
challengebecausetwothirdsofExel'scontractlogisticsoperations
areopenbook.Aspartoftheeffort,Exelisemphasizingsupply
chain/leadlogisticsproviderserviceswithmorevalueaddsand
bettermargins.
2. Kuehne&NagelInternationalSchindellegi,Switzerland,SWX:
KNIN
Kuehne&NagelLogistics,Inc.DanDeSoto,ManagingDirector,
2014135500
www.kuehnenagel.com
Coverage:Global(Servicetoover85%ofWorldGDP)
3PLAssets:19,000employees50warehouses
InformationSystems:VerygoodTMSCIEL4000,KNRoad,i2
WMSEXCEED
Services:Oceanandairfreightforwarding,valueadded
warehousinganddistribution,transportationmanagement,customs
brokerage,supplychainmanagement
IndustryFocus:Automotive,industrial,healthcare,hightech,
retail/consumerproducts
KeyCustomers:Dupont,Nortel,Siemens,Memorex,Harman,
Dana
Armstrong&Associates'Evaluation:Kuehne&Nagelisawell
run,transparentSwisscompanywithconsistentlygoodfinancial
results.Itistheworld'slargestoceanfreightforwarder,handling
over900,000TEUsperyear.Itisalsooneofthetopfiveairfreight
carriers.Kuehne&NagelhasISO9001certificationforallofits
companylocations.Recentacquisitionsweredesignedtobroaden
contractlogisticscapabilities.TheseacquisitionsgiveKuehne&
NagelmuchbetterNorthAmericanandAsiancoverage,although
theyhaveyettoaddtoprofits.Primarycontractlogisticsemphasis
isonpharmaceuticalsandhightech.
3. SchenkerAssen,Germany(U.S.)Freeport,NY,5163773000
PatrickMoebel,CEO
www.schenkerusa.com
Coverage:Europe,Asia,SouthAmerica,Africa,NorthAmerica
InformationSystems:GoodTMSSWORD,Procars,ILSWMS
HTS,SAP,SoLiNET
Services:Airandoceanfreightforwarding,customsbrokerage,
warehousinganddistribution,transportationmanagement
IndustryFocus:Automotive,computersandelectronics,consumer
goods,healthcare
KeyCustomers:BMW,DaimlerChrysler,Subaru,IBM,Intel,
Procter&Gamble
Armstrong&Associates'Evaluation:SchenkerisaGerman
industrygiantwithlogisticsmanagementcapabilities.Schenkeris
partofStinnesLogistics,alargeGermanconglomerate(over
$11bninsales)involvedinoiltrading,rawmaterials,steeland
otheroperations.TheGermanRailwaypurchasedStinnes/Schenker
in2002.Schenkerisakeytransportationanddistributioncompany
inEuropebutnotamajorplayerintheUnitedStates.Inthefallof
1998,SchenkerredesigneditsoperationstocreateSchenker
Logistics.SchenkerLogisticshasmovedslowlyinmaking
acquisitionsintheUnitedStateswhereoperationscontinuetobe
limited.Thecorporatepreferenceistobuildsharednetworks
globally.MostrecentpurchaseshavebeenmadeinScandinavia,
FranceandPoland,strengtheningoverallEuropeanoperations.
4. DHLDanzasAir&OceanBasel,Switzerland,DeutschePostWorld
Net
(U.S.)Newark,NJ,9736391989,HansToggweiler,President&
CEO
www.us.danzas.com
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Coverage:Global(Serviceto99%ofWorldGDP)
3PLAssets:13,000employees
InformationSystems:GoodTMSLOGIS,proprietaryWMS
ELIS
transportationmanagement,warehousinganddistribution,supply
chainconsulting
IndustryFocus:Electronics,automotive,consumerproducts,
chemicals,industrial
KeyCustomers:Caterpillar,JohnDeere,Gatorade,Rodenstock
Lens,Bell&Howell,ColeVision,Xerox,SatisVacuum,IBM
Armstrong&Associates'Evaluation:Logisticsactivitiesaccount
for15%oftherevenuesofDeutschePostWorldNet.DHLdoestwo
billiondollarsinrevenuefromcontractlogistics,primarilyin
Europe.OperationsintheU.S.aremainlyinfreightforwardingbut
areexpandingwiththeacquisitionofAirborneLogistics.Airborne's
strengthisvalueaddedwarehousinganddistributionforhighvalue
productsandparts.Asianpresenceistheresultofdecadesof
experienceandpositioningbyDHL,DanzasandAEIbefore
acquisition.DHLDanzasisastrongbrandinAsiaandnumberone
inseveralmarkets.
5. P&ONedlloydRotterdam,NetherlandsEuronext:Nedlloyd(Royal
P&ONedlloydN.V.)
P&ONedlloydLtd.EastRutherford,NJ,2018966200,MichaelJ.
White,CEO
www.ponl.com
Coverage:Europe,Asia,UnitedStates
3PLAssets:10,000employees166Vessels,1,000containers,
2,000trucks,6,700trailers
InformationSystems:GoodTMSLOGNET
Services:Warehousinganddistribution,oceanshipping,supply
chainconsulting,customsbrokerage,portservices
IndustryFocus/KeyCustomers:Retail,fastmovingconsumer
goods,industrial,chemicals
Armstrong&Associates'Evaluation:P&ONedlloydisamajor
containerlinethatoperatesmixedtransportationandlogistics
operationsinEurope.Itslogisticsoperationsareprimarilyan
extensionofitscontainerbusiness.U.S.operationsarecenteredon
retailconsolidationdeconsolidationbusiness,particularlyinvolving
garmentonhangers.P&ONedlloyd'slogisticsdivision,Gilbert,has
beenamajorplayerinthisbusinessfordecades.P&ONedlloyd
returnedtoprofitabilitylastyear.
6. TPG/TNTHoolddorp,Netherlands,TPGNV
TNTLogisticsNorthAmericaJacksonville,FL,888LOGISTX,
DavidKulik,CEO
www.tntlogistics.us
Coverage:Europe,Americas,Asia
InformationSystems:VerygoodTMSVector21,ReplyWMS
J.D.Edwards,MA,LIS,Reply,MARC
Services:Manufacturingsupportandsubassembly,transportation
management,supplychainconsulting,dedicatedcontractcarriage,
warehousinganddistribution,returnsmanagement
IndustryFocus:Automotive,electronics,rail,tire,consumer
goods,utilities,heavymachinery
KeyCustomers:AndersenCorp.,BMW,Compaq,CSX,
DaimlerChrysler,Fiat,Ford,GeneralMotors,Goodyear,Home
Depot,CSX,Sears,Honda,NACCOMaterialsHandlingGroup
Armstrong&Associates'Evaluation:TNTistheworld'slargest
automotivelogistics3PL.Itisamasterofvalueaddedwarehousing
andmanufacturingsupport.ExpansionofitsservicesinAsiaand
standardizationofoperatingprocedures,includingIT,areonthe
frontburner.Logisticsandexpressdivisionsarebeingtrainedto
workasone.ExpectTNTtoacquireafreightforwarderto
complementitsexpress/logisticsofferingandkeepitcompetitive
withUPS,FedExandDHL.ParentTPGgenerateslargefreecash
flows.
7. PanalpinaBasel,Switzerland(U.S.)FosterCity,CA,650653
6600,DavidBeatson,RegionalCEO
www.panalpina.com
Coverage:Europe,Asia,Americas,Africa
InformationSystems:GoodEmphasisisoninternetnativeSCM
Services:Airandoceanfreightforwarding,transportation
management,warehousinganddistribution,oilandgasservices
IndustryFocus:Automotive,computersandelectronics,oiland
gas,consumergoods,beverages,apparel,healthcare
KeyCustomers:Chevron,Delphi,HewlettPackard,IBM,Philips
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Electronics,RobertBosch,ShellChemical,SunMicrosystems
Armstrong&Associates'Evaluation:Panalpinaisahighly
respectedfreightforwarder.Airfreightoperationsareitsmain
product,butitisacompetentoceanforwarder.Panalpinahasgood
3PLskillsandprojectlogistics.Panalpinaisfiscallyconservative
andprofitable.Financialactivityistransparent.Qualityofcoverage
isuniform.PrimaryownershipofPanalpinaisbytheErnstGoehner
foundation.ThisrelationshipcomplicatesPanalpina'sacquisition
attractiveness.
8. UPSSupplyChainSolutionsAtlanta,GA,NYSE:UPS,(United
ParcelService)
BobStoffel,President,JosephPyne,SeniorVicePresident,866
8225336
www.UPSSCS.com
2425trailers
InformationSystems:ExcellentTMSi2,RoadnetWMS
operatesallmajorsystems
transportationmanagement,warehousinganddistribution,supply
chainconsulting,dedicatedcontractcarriage,tradefinanceand
insurance,equipmentleasing,mailservices
IndustryFocus:Computersandelectronics,telecommunications,
healthcare,automotive,retail,consumergoods
KeyCustomers:Alcatel,Birkenstock,Cisco,Daimler/Chrysler,
Dell,Fabricut,GeneralMotors,Honeywell,LucentTechnologies,
Nike,Siemens,Therasense
Armstrong&Associates'Evaluation:UPSSCShasbecomethe
largestNorthAmericanbased3PL.Ithaditsfirstprofitableyearin
2003andisnowanintegralpartofthetotalUPSglobaloffering.
UPSSCSisimprovingoperationsinallareas.Revenuesareevenly
dividedbetweenU.S.andinternationaloperations.Havinga
financialandoperationalpowerhouseasaparentisatremendous
plus.UPShasgeneratedover$2billioninfreecashfloweachof
thelasttwoyears.UPSSCSislikelytomakeasignificantpurchase
ifitcanmaketherightdeal.UPSSCS,likeitsparent,has
importantmidmarketstrength.
9. NipponExpressTokyo,Japan,Tokyo:9062
NipponExpressU.S.A.,Inc.NewYork,NY,2127586100
TadaakiHashimoto,President&CEO
www.nipponexpress.com
3PLRevenue:4bn*ParentRevenue:13bn
Coverage:Global(exceptAfrica)
3PLAssets:15,000logisticsemployees1,450servicecentersand
warehouses
InformationSystems:GoodTMSNEWINSWMSNEWINS,
Rewards
Services:Airandoceanfreightforwarding,warehousingand
distribution,transportationmanagement,supplychainconsulting,
customsbrokerage
IndustryFocus:Automotive,healthcare,computersand
electronics,industrial
KeyCustomers:AppleComputer,BaxterHealthcare,
DaimlerChrysler,Honda,IBM,Mitsubishi,Toyota
Armstrong&Associates'Evaluation:NipponExpressisalarge,
capablefreightforwarderwithsolidproceduresandsystemsfor
handlingglobaltransportation.NipponprovidesFedEx'spickupand
deliveryinJapanwhereitisamajortransportationoperator.
Revenuesandemployeesshownareworldwidenumbers.47,000
employeesareinJapan.Nipponisnowmovingaggressivelyin
China.However,likemanycompaniesinJapan,ithasbeenslowed
bytheweaknessofJapan'seconomyoverthelastfewyearsand
itsinabilitytodevelopabroader,lessJapanesecentricidentity.
10. C.H.RobinsonWorldwideEdenPrairie,MNNasdaq:CHRW
JohnWiehoff,CEO,9529378500
www.chrobinson.com
Coverage:NorthAmerica,Europe,Brazil
3PLAssets:4,100employees100warehousesandcrossdock
affiliates
InformationSystems:VeryGoodTMSExpressWMSHigh
Jump
Services:Freightbrokerage,airandoceanfreightforwarding,
transportationmanagement,warehousing,printlogistics
IndustryFocus:Technology,foodandbeverage,retail,paper
productsandprintedmaterials,agriculture,consumergoods
KeyCustomers:AOL,WalMart,InternationalPaper,BestBuy,
DanaCorp,Clorox,AnheuserBusch
Armstrong&Associates'Evaluation:CHRLhasaflexible,flat
organization,andmostoperatingdecisionsaremadeonalocal
level.Ithasbeenaveryprofitableoperationforalongtime.CHRL
hasatalentedtopmanagementteam.Robinson'scorebusinessis
asamultifaceted3PLandfreightbrokerprovidingNorthAmerican
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3/29/2015
truckingandintermodalservices.Nearly60%ofrevenuesarefood
andbeveragerelated.Itdesignsunique,efficientconsumer
responseandsupplychainmanagementprocesses.CHRL's
softwarehasbeenredesignedtoemphasizeadetailedorder
managementsystemlinkedtotransportationexecution.Robinson's
LTLtransportationwebsiteapproachprovidesasignificant
consolidationandcostsavingmethodology.About12,000
shipmentsperdayarehandledthroughRobinson'swebsite.Mostof
Robinson'swarehousespaceisleasedorinvolvestheuseof
subcontractors.
11. MenloWorldwideRedwoodCity,CA
JohnWilliford,President&CEONYSE:CNF,6505964000
www.menloworldwide.com
3PLRevenue:3.1bParentRevenue:5.6bn
Coverage:Americas,Asia,Europe
900trailers
InformationSystems:ExcellentTMSTTMS,LMSWMSWMS
(Proviamodified)
Services:Transportationmanagement,warehousingand
distribution,airfreightforwarding,customsbrokerage,supplychain
consulting,returnsmanagementandexpedited
IndustryFocus:Computersandelectronics,chemicals,retail,
beverage
KeyCustomers:IBM,HewlettPackard,NCR,Nike,Electrolux,Dow
Chemical,AT&T,Sears,StanleyWorks,Dr.Pepper/SevenUp,
HALOBrandedProducts,RicohFamilyGroup,Takata,Nortel
Networks
Armstrong&Associates'Evaluation:Menloisoneoftheleading
U.S.basedlogisticscompanies.Ithassolidinboundsupplychain
managementandgoodfinishedgoodsdistributionmanagement.Its
LMSsolutionmakesitagoodtransportationandsupplychain
manager.InterfacestoSAPhavebeenmadeatHPandother
companies.AfirmtoeholdhasbeenestablishedinEuropean
logistics.MenloWorldwide(Emery)Logistics'freightforwarding
companyaddsahostofcustomersandforwarding,particularlyof
airfreight.Itcontinuestooperateinthered,however,negatively
affectingoverallCNFresults.VectorSCM,itssuccessfuljoint
venturewithGMandleadlogisticsIT,nowhasrevenuesof$18m
peryear.
12. NYKLogisticsTokyo,JapanTokyo:9101(U.S.)Secaucus,NJ
SaburoYamagata,CEO&President
www.nyklogistics.com
3PLRevenue:3bnParentRevenue:10.4bn
Coverage:Japan,China,SoutheastAsia,Americas,Europe
3PLAssets:11,000employees50warehouses350vehicles
(Europe)
InformationSystems:GoodTMSViaView(ProviaCargo
InformationSystem)WMSProvia,SCMvisibility
Services:Freightforwarding,customsbrokerage,intermodal
transportation,valueaddedwarehousing
IndustryFocus:Foodandbeverage,retail,consumergoods,
automotive,hightech
KeyCustomers:Cadbury,ClarkShoes,Casio,Johnson&Johnson,
Isuzu,JohnsonControls,Spontex,UKPaper,Hitachi,Sony,
Yamaha,TESCO
Armstrong&Associates'Evaluation:NYKLogisticsisanew
company(2001)puttogetherbyaddingNewWave(consumerand
retail),UCI(manufacturingandretail)andGST(intermodal)to
existingwarehousingandairfreightbasedoperations.Valueadded
contractwarehousinganddistributionisstronginEurope.North
Americanemphasishasbeenontransportationmanagement,
intermodalandexportimport.NYKLogisticsemphasisisdifferent
thanotheroceanlinerbased3PLs.NYKhasmoreautomotiveand
industrialbusinessinadditiontoitsretailemphasis.Rollon/rolloff
automotiveoperations,JITandpartsdistributionarepartof
standardoperations.
13. ExpeditorsInternationalofWashingtonSeattle,WANasdaq:
EXPD
PeterRose,CEO&Chairman,2066743400
www.expeditors.com
Coverage:Asia,Americas,Europe
InformationSystems:GoodTMSTradeflow,SNEP,Exp.0
Services:Airfreightforwarding,customsbrokerage,transportation
management,warehousinganddistribution,supplychainconsulting
IndustryFocus:Automotive,electronics,retail,chemicals,
healthcare
KeyCustomers:AceHardware,Costco,Ford,GeneralMotors,
Motorola,Toyota,Trane
Armstrong&Associates'Evaluation:Expeditorsisavery
profitablefreightforwarderwithastrongbaseinChinaandAsia.It
isrunbythemostentertaininglogisticsCEO,PeterRose,whois
candidandsatirical.Asevidencethathehashisheadscrewedon
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straight,Roseneverlostsightasafreightforwarderonturning
goodmarginsonpurchasedtransportation.Operationalqualityis
highlyvaluedandRosehassurroundedhimselfwithagoodteam.
Expeditorsistiedintoanorganicgrowthstrategythatmaynotbe
sustainableoverthelonghaul,butworkswellnow.
14. PenskeLogisticsReading,PA
VinceHartnett,President,6107758285
www.penskelogistics.com
3PLRevenue:2.5bn*ParentRevenue:3.6bn
Coverage:NorthAmerica,Europe,Brazil
6723trailers
InformationSystems:VeryGoodTMSLMS,i2,proprietary
WMSEXE,RTSystems,MARC,proprietary
Services:Dedicatedcontractcarriage,transportationmanagement,
supplychainconsulting,warehousinganddistribution,equipment
leasing
IndustryFocus:Automotive,retail,food,appliances,utilities
KeyCustomers:WhirlpoolCorp.,MissionFoods,FordMotorCo.,
Iams,Carrefour,InternationalTruckandEngine,Panasonic,Amcor
Sunclipse
Armstrong&Associates'Evaluation:PenskeLogistics'strongest
operationsarerelatedtotheautomotiveindustry.Theseoperations
constituteabout50%ofPenskeLogistics'business.Penskeoften
functionsasaleadlogisticsprovider.Dedicatedcontractcarriageis
astrengthasisitstransportationroutingcenter.Penskeisabeta
testsitefornewi2innovations.Penskehasdonewellat
implementingbusinessexpansionplans.Penske'ssuccesseswith
SaturnandFordshowthemuscleofitsmarketingandautomotive
logisticsabilities.Penske'sEuropeanoperationsinclude11supply
chaincustomers,warehousing,crossdockingandtrucking.The
operationisheadquarteredinRoosendaal.Brazilianoperations
involveeightcustomersinSaoPauloandVitoria.Penske'sEurope
TMScenterisbasedinMaastricht.Penskewilladdsignificantnew
operationsinAsiathisyear.79%ofPenskeisownedbyGECapital.
15. EagleGlobalLogisticsHouston,TXNasdaq:EAGL,
JimCrane,President&CEO,8008884949
www.eaglegl.com
Coverage:Asia,UnitedStates,Europe
3PLAssets:8,000employees87warehouses,400service
centers
InformationSystems:GoodTMSproprietaryWMS
proprietary
Services:Airandoceanfreightforwarding,transportation
management,warehousinganddistribution,customsbrokerage,
expedited,projectmanagement
IndustryFocus:Automotive,aerospace,tradeshows,
telecommunications,computersandelectronics,pharmaceuticals,
printedmaterials,oilandgas,apparelandentertainment
equipment
KeyCustomers:Amdahl,NeimanMarcus,VisteonCorp.,U.S.
MilitaryTrafficManagementCommand
Armstrong&Associates'Evaluation:Eaglehasreturnedto
profitabilityaftertakingthreeyearstoabsorbCircleInternational's
internationalfreightforwardingoperations.Duringthesameperiod,
EaglehasadjustedtothechangingU.S.marketbyputtingmore
timedefinitefreightontrucks.MajorverticalsforEagleare
manufacturing/telecom,hightech,aerospaceandfashion/retail.
16. BAXGlobalIrvine,CANYSE:BCO(TheBrink'sCompany)
JosephL.Carnes,President,4047682003
www.baxglobal.com
3PLRevenue:2bnParentRevenue:4bn
Coverage:Asia,NorthAmerica,UnitedKingdom
3PLAssets:10,000employees48warehouses35aircraft
InformationSystems:VerygoodTMSCAPS,i2WMSEXE,
Ultramain
Services:Airfreightforwarding,transportationmanagement,
warehousinganddistribution,supplychainconsulting,freight
paymentandauditing,customsbrokerage
IndustryFocus:Computersandelectronics,automotive,
aerospace,airlines,healthcare,retail
KeyCustomers:NEC,GEMedicalSystems,Epson,Boeing,Airbus,
Bombardier,Microsoft,PhilipsConsumerElectronics,Subaru
Armstrong&Associates'Evaluation:BAXisaheavyairfreight,
timedefiniteproviderthatcontinuestoplacemoreofitsemphasis
onlogistics.Customersindicateapreferenceforthetimedefinite
approachandarelittleconcernedaboutwhatkindofvehicletheir
shipmentsmoveon.BAXhasreducedthenumberofitsaircraftto
20.BAXLogisticsoperatescrossdockandothertransportation
valueaddedwarehousingtobuttresstransportationmanagement.
BAX'schangeofdirectionhasreturnedthecompanytoprofitability
whileincreasingrevenues.
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17. RyderMiami,FLNYSE:R
GregorySwientonPresident&CEO,3055003726
www.ryder.com
Coverage:NorthAmerica
3PLAssets:16,500employees184warehouses48,800tractors,
44,800trailers
InformationSystems:GoodTMSDedicatedSystems,i2,JIT,
CapstarWMSV3,PkMS
Services:Supplychainconsulting,transportationmanagement,
warehousinganddistribution,dedicatedcontractcarriage,airand
oceanfreightforwarding,equipmentleasing,returnsmanagement,
freightpaymentandauditing,insurance
IndustryFocus:Automotive,aerospace,industrial,
telecommunications,computersandelectronics,foodand
beverage,pharmaceuticals,buildingmaterials,utilities,consumer
productsandretail,newspaperdistribution
KeyCustomers:GeneralMotors,PhilipsConsumerElectronics,
DaimlerChrysler,AppliedMaterials,CadburrySchweppes,Visteon
Corp.
Armstrong&Associates'Evaluation:Ryderhasthemost
recognizedbrandnameinNorthAmericanlogistics.Fortwo
decadesRyderhasbeenoneofthelargestU.S.providersof
dedicatedcontractcarriage,oftenconvertingleasingcustomersto
expandedservice.Ryder'sdedicatedoperationsaverage15trucks
eachanditisaparticularlygoodchoiceforsmall,standalone
replacements.Inrecentyears,Ryderhasexpandeditsinbound
supplychainmanagementanddistributionmanagement
capabilities.GregSwienton'steamhasforcedRyderSCSintothe
black.Ryder'sestablishedpositionacrossmanyverticalsinNorth
Americamakesitanattractivetakeovercandidate.
18. SchneiderLogisticsGreenBay,WI
TomEscott,President,8005259358
www.schneiderlogistics.com
3PLRevenue:1.9bn*ParentRevenue:2.4bn
Coverage:NorthAmerica,Europe
3PLAssets:1,400employees8,750tractors,17,450trailers
InformationSystems:ExcellentTMSSUMIT
Services:Transportationmanagement,supplychainconsulting,
dedicatedcontractcarriage,freightpaymentandauditing
IndustryFocus:Consumerproductsandretail,automotive,heavy
equipment,computersandelectronics,foodandbeverage,
chemicals,healthcare,paper
KeyCustomers:AnheuserBusch,BaxterHealthcare,CHNCorp.,
DaimlerChrysler,DowChemical,FortJames,GeneralMotors,
GuardianGlass,Honda,KimberlyClark,Kroger,Nabisco,Ocean
Spray,3M,ThomsonMultimedia,TRW,WorldKitchen
Armstrong&Associates'Evaluation:SchneiderLogistics(SLI)is
apremierautomotivelogisticstransportationmanagement
company.Ithasbuiltamulticlientnetworkforautomotiveparts
distribution.Inthe1990s,SchneiderdevelopedtheSUMITsuiteof
transportationmanagement,logisticsandsupplychainexecution
applications.SUMIToptimizesconsolidation,carrierselectionand
routingandisoneofthebestinthe3PLindustry.SLIhasalarge
networkofcarriersinallmodesoftransportation.Schneiderisone
ofthelargestcustomersforFedExExpress.About85%ofthis
businessisfromGMSPOwhichisa$40millionaccount.90%of
Schneider'sfreightbillpaymentisautomatic.Includingitsfreight
billpaymentservice,SLIhas$7billioninfreightbillpayments
annually.
19. UTiWorldwideRanchoDominguez,CANasdaq:UTIW
RogerMacFarlane,CEO,3106043311
www.go2uti.com
Coverage:Japan,China,SoutheastAsia,Americas,Europe
3PLAssets:10,000employees84warehousesandlogistics
centers350tractors,900trailers
InformationSystems:GoodTMSeMpowerWMSeMpower
warehousinganddistribution
IndustryFocus:Chemicals,healthandbeautyproducts,apparel,
automotive,computersandelectronics
KeyCustomers:DowCorning,GeneralMotors,JohnsonControls,
OwensCorning,SaraLee,BristolMeyersSquib
Armstrong&Associates'Evaluation:UTiisawellrun,
aggressiveforwarderfoundedbythreeSouthAfricansin1995.The
triowereexecutivesataleadingcompetitorandhadtoleaveto
fulfilltheirvisions.However,PeterThorrington,theverycapable
COO,isintheprocessofretiring.Hemaybehardtoreplace.UTi
continuestohavedoubledigitgrowthwhilemaintaining
profitability.UTi'spurchaseofStandardCorporation,avalueadded
warehousingoperation,hasbeenasuccesswhilesimilarmovesby
otherforwardershavefailed.
20. CaterpillarLogisticsMorton,ILNYSE:CAT,(CaterpillarInc.)
8/11
3/29/2015
StevenWunning,CEO,8002402126
www.catlogistics.com
3PLRevenue:1bn*ParentRevenue:22bn
Coverage:160countries
InformationSystems:ExcellentTMSCATTIS,i2WMSCLSS,
SAPHybridSolutions,FacilityLogistics
Services:Warehousinganddistribution,transportation
management,logisticsconsulting
IndustryFocus:Automotive,industrial,aerospace,manufacturing,
technology,consumergoods,defense,energy
KeyCustomers:FordMotorCo.,Hyundai,SaabUSA,Delphi,
UnitedStatesNavy
Armstrong&Associates'Evaluation:CatLogisticshasheavy
U.S.andEuropeanoperationswithagrowingpresenceinSouth
AmericaandAsia,distributingtomorethan160countriesfrom
over50facilities.Itsscopereflectstheparent'sglobalreachand
dealernetwork.BusinessissplitequallybetweenNorthAmerica
andtherestoftheworld.Warehousingandmanufacturingsupply
chainsoftwarearecompletelyintegrated.Visibilityisverygood.
Demandandsupplyforecastingandmaterialplanningisbasedon
proprietaryprobabilitymodels.Forecastingforlowturnoveritems
isparticularlygood.Cat'swarehouseoperationsarelowtechwith
anemphasisonwellcontrolledoperatingprocedures.Caterpillar's
transportationdepartmentwasmergedintoCatLogisticsin2001,
bringingwithititstransportationmanagementcapability.Itlimits
newcustomerstothosewithhighvaluedurablegoods.Cat
Logisticsusesacombinationofbrokersandforwardersforselected
customsfunctions.Amajorinitiativeinvolvesautomotivelogistics
forChina.
21. APLLogisticsOakland,CA
Singapore:NOL(NeptuneOrientLinesLtd.)
HansHickler,CEO8003314289
www.apllogistics.com
3PLRevenue:990mParentRevenue:5.5bn
Coverage:Asia,NorthAmerica,Europe
3PLAssets:4,500employees155warehouses95tractors,229
trailers
InformationSystems:ExcellentTMSi2,proprietaryWMS
Irista,Manhattan,proprietary
Services:Oceanandairfreightforwarding,warehousingand
distribution,transportationmanagement,dedicatedcontract
carriage,customsbrokerage
IndustryFocus:Automotive,retail,consumergoods,electronics
andgovernment
KeyCustomers:Panasonic,TurtleWax,ThomsonMultimedia,
ColgatePalmolive,GeneralMotors,Toto,Nike,BaxterHealthcare,
PhilipsElectronics,Procter&Gamble,DaimlerChrysler,Ingersoll
Rand
Armstrong&Associates'Evaluation:APLLogistics'strengths
havebeenitsAsianbaseandtheretailvertical.ItsSingapore
parent(NOL)hasbeenprofitableovertheyearsandpatientwith
APLLogistics'effortstoovercomeitsunprofitableGATXacquisition.
APLhasgoodcoverageinChinaandthroughoutSoutheastAsia.Its
AsiaNorthAmericasupplychainoperationsaresolidandwell
staffed.Consolidation/deconsolidationoperationsaregood.Value
addedwarehousingisgettinglessemphasis.
22. WilsonLogisticsGroupGoteborg,Sweden
(U.S.)WilsonLogisticsU.S.,Inc.,Clark,NJ
AndreasSchaefer,CEO,7326690505
www.wilsonlog.com
3PLRevenue:860mParentRevenue:860m
Coverage:Europe,Asia,NorthAmerica
InformationSystems:GoodTMSWilshipperWMSWildoc,
Wiltrack
Services:Warehousinganddistribution,airandoceanfreight
forwarding,customsbrokerage,transportationmanagement,
supplychainconsulting
IndustryFocus:Automotive,medicalequipment,sportinggoods,
electroniccomponentsandtelecommunicationsequipment
KeyCustomers:VolvoTrucksNorthAmerica,Lego,Electrolux,
PirelliCables,RoyalCaribbeanCruiseLines,UnitedNationsWorld
FoodProgram
Armstrong&Associates'Evaluation:Wilsonisanaggressive
Swedishcompanywithanicemixofcontractlogisticsandfreight
forwardingskills.RecentexpansionshavebeeninIndia,China,
GermanyandMalaysia.Ithandlessomeperishables.Wilson
maintainsitsownsoftwaresolutions,whichmayhavelimitsfor
verylargeglobalclients.Wilson'ssize,mixofofferingsand
geographicalrangemakeitanattractivetakeovertarget.
23. FedExSupplyChainServicesHudson,OHNYSE:FDX,(FedEx
Corp.)
DouglasWitt,President&CEO,8002227657
9/11
3/29/2015
www.fedex.com
3PLRevenue:603mParentRevenue:22.5bn
3PLAssets:2,000employees35warehouses298tractors,1094
trailers
InformationSystems:ExcellentTMSOptum:SCE
Transportationi2WMSEXCEED4000
Services:Domesticandinternationaltransportationmanagement,
customsbrokerageandfreightforwarding,supplychainconsulting,
warehousinganddistributionservices
IndustryFocus:Apparel,automotive,healthcare,computersand
electronics,industrial,retail
KeyCustomers:PhilipsSemiconductor,FordMotorCo.,DirecTV,
Mitsubishi,HewlettPackard,GMPowerTrain,DaimlerChrysler
Armstrong&Associates'Evaluation:FedExSupplyChain
Servicesfollowsitsparent'semphasisontransportationand
supplychainsolutions.Preferenceintransportationisgivento
otherFedExcompanies(FedExExpress,Ground,CustomCritical
andLTLcarriers).SistercompanyFedExTradeNetworksisa
qualityinternationaltransportationmanager.The3PLrevenue
shownaboveisforFedExSCSandrelatednonexpenses,non
packagebusinesses.
24. MaerskLogisticsCopenhagen,Denmark
Copenhagen:MaerskA/MaerskB(A.P.MollerMaerskA/S)
MaerskLogisticsUSAInc.Madison,NJ,
TonyChiarello,President,9735745000
www.maersklogistics.com
3PLRevenue:350m*ParentRevenue:25bn
Coverage:Asia,Europe,NorthAmerica
InformationSystems:ExcellentTMSproprietaryWMS
proprietary
Services:Oceanandairfreightforwarding,warehousingand
distribution,customsbrokerage,supplychainconsulting
IndustryFocus:Consumerproducts,retail,sportinggoods,
apparelandgarments,cosmeticsandpersonalcare,electronics
KeyCustomers:Adidas,FederatedStores,FootstarInc.,Hudson's
BayCo.,Ikea,LizClaiborne,Nike,Reebok,TargetCorp.,Home
Depot,WalMart
Armstrong&Associates'Evaluation:Maerskistheworld's
leadingcontainerline.Itisfinanciallystrong,aggressiveand
successful.ItslogisticsarmhasemphasizedlowmarginAsianretail
trafficformostofitshistory.Itdoesnotreportitsfinancialresults
separately.Marginsarethencomparedtoitsparent.55%ofits
businessiswarehousinganddistribution21%ofrevenueisfrom
forwardingandconsolidation.Supplychainmanagement,airfreight
forwardingandcustomsbrokerageaccountfortherestof
revenues.Revenuesare55%AsiatoNorthAmerica,30%Asiato
Europeand15%betweenEuropeandNorthAmerica.
25. SembCorpLogisticsSingaporeSingaporeStockExchange
SembCorpLogistics(USA)Inc.Inglewood,CA,K.K.Chan,Sr.
VicePresident,Americas,3102153725
www.semblog.com
3PLRevenue:275mParentRevenue:275m
Coverage:Asia
InformationSystems:GoodTMSRoutePro,MaxloadOMS
ELIMS
Services:Warehousinganddistribution,airandoceanshipping,
supplychainmanagement,dangerousgoodsmanagement,
offshorelogistics
IndustryFocus:Automotive,consumergoods,computersand
electronics,healthcare,oil,foodandgroceries
KeyCustomers:AbbottLabs,AppleComputer,Bridgestone,
Firestone,GilletteCo.,Exxon,ColgatePalmolive,Nestle,Pepsi
Armstrong&Associates'Evaluation:SembCorpisoneofAsia's
largestandbestrun3PLs.Itissolidlyprofitableandowns20%of
Swiss3PLKuehne&Nagel.SembCorpisexpandingrapidlyinIndia
andChina.Itisprofitableinbothcountries.SembCorphaslimited
itsU.S.operationsindeferencetoKuehne&NagelandUSCO(now
Kuehne&NagelLogistics).
*Most2003Revenuenumbersarederivedfrompublicrecordsor
companyselfreporting.Wherenosuchinformationwasavailable
(companieswith*),thesenumbersarebasedonArmstrong&
Associates'ownresearch.Wherecompaniesreporttheirrevenuein
Euros,aconversionrateof$1.25perEurohasbeenused.
ClickhereforaPDFoftheTop253PLsrankedbyrevenue.
WantmoreinformationaboutGlobalandRegional3PLs?ContactDickArmstrongat8005253915ordick@3PLogistics.com .
AboutArmstrong&Associates:Armstrong&AssociatesInc.isasupplychainmanagementconsultingfirmspecializinginmarketresearch,mergersand
acquisitionsandoutsourcing.Armstrong&AssociatespublishesWho'sWhoInLogistics?Armstrong'sGuidetoGlobalSupplyChainManagement.Recentresearch
http://www.supplychainbrain.com/content/sponsoredchannels/kencologisticservicesthirdpartylogistics/singlearticlepage/article/top25thirdparty
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papersincludeWarehousingintheUnitedStatesandGlobalLogisticsServicesProvidersII.Inaddition,Armstrong&Associatesmaintainsdatabasesof
warehousemen,freightforwardersandthirdpartylogisticsanddistributingcompanies.Armstrong&Associates,Inc.,100BusinessParkCircle,Suite202,
Stoughton,WI53589Ph:6088738929Fax:6088735509Web:www.3PLogistics.com .
>moreKencoLogisticServices(ThirdPartyLogistics)articles
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