STOUGHTON, Wis., Sept. 1 /PRNewswire/ -- General Motors and Wal-Mart each
use over 30 third-party logistics service providers according to a recent
report by Armstrong & Associates. The report, based on Armstrong &
Associates' analysis of its proprietary database, indicates that over 80% of
Fortune 100 companies use 3PLs for logistics and supply chain functions. The
report also indicates that the domestic Fortune 500 spend $62 billion a year
with 3PLs. The largest expenditures by vertical are for retailing ($15.8
billion), technology ($14.2 billion) and automotive ($11.3 billion).
According to the report, the primary 3PL services were lead by
transportation management, which increased 38%. Major increases were also
made in warehousing, value-added services and international 3PL services.
Armstrong & Associates' report is based on over 6,500 services provided
through first quarter 2004. The number of services increased 14% from the
previous year.
In commenting on the report, Richard Armstrong, president of Armstrong &
Associates, said, "The greatest penetration of automotive accounts is by TNT
and Exel. Retailing relationships are lead by Genco, USF Logistics and
TBG/Exel. UPS and Menlo are the leaders for Fortune's technology sector."
Buyers of 3PL Services
Company # of 3PLs Used
General Motors 37
Wal-Mart Stores 33
Ford Motor, Hewlett-Packard 27
Procter & Gamble 20
General Electric 17
Georgia-Pacific, IBM 16
DuPont, Home Depot 14
Altria Group, PepsiCo, Sears Roebuck 13
Coca-Cola, Sara Lee, Target, Xerox 12
General Mills 11
Delphi, Safeway 10
Colgate-Palmolive, Deere, Kroger, Lucent 9
Technologies, Pfizer
Dow Chemical, Exxon Mobil, Honeywell, 8
International Paper, Kmart, Weyerhaeuser
The complete report is available from Armstrong & Associates.
About Armstrong & Associates: Armstrong & Associates, Inc. is a supply
chain management consulting firm specializing in market research, mergers and
acquisitions and outsourcing. Armstrong & Associates publishes Who's Who In
Logistics? Armstrong's Guide to Global Supply Chain Management. Recent
research papers include Warehousing in the United States, Global Logistics
Services Providers II, Warehouse Prices and Practices in North America --
Contract and Public Benchmarks and 3PLS -- A Comparative Financial Analysis of
U.S. Results for FY 2003.
SOURCE Armstrong & Associates, Inc.
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Related links:
http://www.3PLogistics.com
CONTACT:
Richard Armstrong of Armstrong & Associates,
Inc., 1-800-525-3915, Dick@3PLogistics.com
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