STOUGHTON, Wis., Dec. 11 /PRNewswire/ -- A recently completed study of 3PL
warehouse prices has established benchmarks for the United States. The study
covers both contract and public warehousing.
Regional price differences are reported. Major metropolitan area prices
are reported for principal U.S. logistics locations. The report tracks
profitability by region in terms of operating margins, EBITDA and EBIT.
Lengths of contracts reviewed in the study were from 1-7 years. Most
contracts have 3 and 5 year terms.
Expected operating margins and profitability measures are compared to
actual results for 3PLs in the study. These relationships are reviewed in
detail and in reference to the "Negotiation Zone." Statistical analyses were
performed on the effects on profitability of open book relationships and
leasing vs. ownership.
"We undertook this study because we had a Japanese consulting client who
wanted to know what and how 3PLs and commercial warehouses were charging for
their services in the U.S.," said Richard Armstrong, president of Armstrong &
Associates, a supply chain management consultancy. "There was not a good
source available and the only way to get the information was to put out an
RFP."
The complete study with appendices 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. Recent research papers include Warehousing in the United States
and Global Logistics Services Providers II. In addition, Armstrong &
Associates maintains databases of warehousemen, freight forwarders and
third-party logistics and distributing companies.
For more information, contact: Richard Armstrong (800) 525-3915 or e-mail
Dick@3PLogistics.com.
SOURCE Armstrong & Associates, Inc.
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Related links:
http://www.3PLogistics.com
CONTACT:
Richard Armstrong, 1-800-525-3915,
Dick@3PLogistics.com, for Armstrong & Associates, Inc.
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