3PL Market at $200 Billion in 2008

General Motors, Procter & Gamble, Wal-Mart, PepsiCo and Ford Motor each use 30 or more 3PLs.

In a recent report issued by Armstrong & Associates, 77% of domestic Fortune 500 companies use 3PLs for logistics and supply chain functions. The research, based on Armstrong's database of 3,936 3PL customer relationships, found that General Motors, Procter & Gamble, Wal-Mart, PepsiCo and Ford Motor each use 30 or more 3PLs.

The report also puts 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 bilion in 3PL spend.

The average customer is utilizing each 3PL for three distinct services; 18.5% are strategic with the 3PLs performing supply chain management and/or lead logistics provider services and the remaining 81.5% can be classified as tactical relationships.

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