Global 3PLs expand 6.5% in 2008

Global - The global Fortune 500 third-party logistics (3PLs) market grew 6.5% year-on-year in 2008, according to a recent survey.

The report, "Trends in 3PL/Customer Relationships - 2009", from Armstrong & Associates, a supply chain market research firm, was conducted using a database of 3,936 3PL customer relationships.

Results from the report indicated that a 6.5% growth was achieved in the Global Fortune 500 3PL market, at US$199.7 billion in 2008, from US$187.4 billion in 2007.

The survey also found that 77% of domestic Fortune 500 companies use 3PL providers for logistics and supply chain functions, with the average customer using each 3PL for three distinct services. Of the 3,936 3PL customer relationships tracked by Armstrong, 728 or 18.5 % are strategic with the 3PLs performing supply chain management and/or lead logistics provider services, the report said. "The remaining 81.5 % can be classified as tactical relationships."

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