3PL Market Segment Grew to $199 Billion in 2008

Jan. 29, 2009
Technological vertical industry 3PL customers spent over $45 billion

Seventy-seven percent of Domestic Fortune 500 companies use 3PLs for logistics and supply chain functions according to a new report issued by Armstrong & Associates.

According to the report, "Trends in 3PL/Customer Relationships - 2009", General Motors, Procter & Gamble, Wal-Mart, PepsiCo and Ford Motor each use 30 or more 3PLs.

The report also measured the Global Fortune 500 3PL market at $187.4 billion for 2007 with growth to $199.7 billion in 2008. Within the Global 500, "Technological" vertical industry 3PL customers spent over $45 billion with 3PLs in 2007 and 2008. "Electronics, Electrical Equipment" companies led all Technological vertical sub segments with over $18 billion in 3PL spend.

The average customer is utilizing each 3PL for three distinct services. Of the total 3,936 3PL/Customer relationships, 728 or 18.5% are strategic with the 3PLs performing supply chain management and/or lead logistics provider services. The remaining 81.5% can be classified as tactical relationships. The most important services by vertical industry are also highlighted.

The complete report is available www.3PLogistics.com.

Popular Sponsored Recommendations

Reimagine Supplier Collaboration to Build the Supply Chain of Tomorrow

May 22, 2023
To realize success, organizations must create a supply chain management approach that can continuously absorb change—and turn it into a competitive advantage.

The Benefits of Continuous Thermal Monitoring

Oct. 17, 2023
Read this eBook to learn more about collecting and using data intelligently to improve performance.

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!