STUDY: 3PL CONTRACTS POST DOUBLE-DIGIT GROWTH IN 1999
3rd celebration contract logistics products and services grew 16.5 % in 1999,
consistent with Armstrong & Pals Inc., a logistics control consulting company.
Armstrong mentioned its effects had been according to an research of 38 trade leaders
accounting for a couple of part of U.S. revenues.
The marketing consultant expects general progress to proceed within the 15 to twenty %
vary for the following 3 or 4 years.
“Many Fortune 500 corporations have no longer outsourced transportation,
warehouse and stock control purposes that don’t seem to be portions in their core
competencies,” Armstrong mentioned. “As well as, many small and midsize corporations
are the suitable measurement too have their built-in provide chains controlled via a unmarried,
contract logistics corporate.”
E-commerce achievement will enlarge the jobs of conventional 3PLs and merger
and acquisition actions will proceed to switch the 3PL panorama, the marketing consultant mentioned.
Home control and devoted contract carriage grew 18 % whilst
warehouse-based built-in products and services grew 16 %. Non-asset-based
global transportation control grew at 11 %, because the Asian
financial difficulties eased.
U.S.-based 3PLs earned $46 billion in overall income, the marketing consultant mentioned. New
profitability used to be 5 % and internet 3PL revenues had been $25 billion, Armstrong mentioned.
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