3PL Market at $200 Billion in 2008

April 1, 2009
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.

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

The Manufacturer's Guide to Transforming the Service Experience.

Sept. 11, 2023
Learn how a unified data platform can make your service experiences more efficient while reducing costs. Turn your service center into a profit center and map your service transformatio...

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.

Voice your opinion!

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