CHRW John Wiehoff, CEO 952-683-3800

C.H. Robinson Worldwide Eden Prairie, MN NASDAQ: CHRW John Wiehoff, CEO 952-683-3800 www.chrobinson.com

3PL Turnover: $10.3b

Service Area: Tier 1 – Global Supply Chain Manager – Major Markets

3PL Assets: 8,353 employees 100 warehousing and cross-dock affiliates

Information Systems: Excellent TMS – Proprietary

Services: Freight brokerage, transportation management, intermodal, air and ocean freight forwarding, NVOCC, customs brokerage, warehousing, print logistics, produce sourcing, technology, supply chain consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Elements, Food/Groceries, Industrial, Retailing Key Customers: Amalgamated Sugar, Coca-Cola Refreshments, ConAgra Foods, Dole Food, Frito-Lay, Ocean Spray Cranberries, Phillips 66, Subway, Tempur-Pedic, UPM-Kymmene

Armstrong & Associates’ Evaluation: C.H. Robinson continues to be the most profitable tier-one 3PL regularly achieving net income margins greater than 20%. C.H. Robinson dominates domestic transportation management in North America. While 76% of Robinson’s net revenues are truck transportation related, it has solid domestic intermodal, international air and ocean, food sourcing and supply chain management. C.H. Robinson's purchase of Phoenix International will double its ocean freight operations to 500,000+ TEUs. It has also been expanding its TMC operations which focus on large transportation network management. The TMC is now serving the Americas, Europe and Asia. Employees are highly incented to take care of customers. C.H. Robinson’s Canadian operations developed quickly and it has become a strong player with eight offices for freight brokerage, six for forwarding and three for produce. European operations have also been successful, profitable and expanding in Poland and the Eastern Bloc. They are a natural fit for Europe’s atomized owner-operator based companies. Asian operations continue to grow. Robinson acquired offices in India and continues to make careful purchases of companies with specializations. It has the cash flow to make more. C.H. Robinson's IT and business processes are tightly coordinated. Reporting capabilities provide good operating and profitability control. Ongoing modifications include much stronger and friendlier carrier/capacity management.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/CHRW_Site_Visits.htm

3PL Turnover: $8.9b Parent: $53.1b

Service Area: Tier 1 – Global Supply Chain Manager (Service to 99% of World GDP)

3PL Assets: 35,000 employees 100 warehouses 1,563 tractors, 4,618 trailers

Information Systems: Excellent TMS – i2 Technologies, Roadnet, TMW WMS – Operates all major systems

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, dedicated contract carriage, equipment leasing, contract logistics, spare/service parts logistics, supply chain consulting, trade finance and insurance, mail services

Vertical Industry Focus/Key Customers: Consumer Goods, Healthcare, Retailing, Technological Key Customers: Abbott Diabetes Care, Adidas, Honeywell Consumer Products Group, IKON Office Solutions, Mizuno USA, Nikon, SmartBargins.com, Sprint, Toshiba

Armstrong & Associates’ Evaluation: UPS is the 800 lb. gorilla of global supply chain services. Revenues for contract logistics were $2 billion in 2011. Net freight forwarding/NVOCC/customs brokerage revenues were $4.5 billion. UPS SCS had a profitable year in 2011. UPS SCS contributes $2 billion+ per year in package business to its big brother. UPS handles about 500,000 TEUs per year as a freight forwarder. Twelve percent of containers are LCL consolidations; 40% are Asia-U.S. Forwarding revenues are 60% air and 40% ocean. UPS has 1,400 employees involved in customs brokerage: 400 in Aiken, SC, 250 in Cleveland, OH, and 750 in Louisville, KY. UPS' DCC was built from the purchases of Rollins and Overnite. More than 95% of its power units are assigned to specific customers. Average length of trip is about 400 miles. Customer operations range from 10 to 100 trucks. UPS has redesigned its supply chain operations to concentrate on high-tech, medical and some retail/consumer goods customers. These operations are highly integrated between value-added and package delivery services. Revenues per employee run $175,000 to $180,000. In March 2012, UPS announced the purchase of Netherlands-based TNT Express, the largest European express carrier (18% market share). The purchase will complete a successful expansion by UPS into Europe and add a host of coverage in Europe, the Middle East, Africa and the Asia-Pacific. The sale price is estimated at $6.8 billion. For UPS SCS, the deal opens significant market opportunities particularly in spare parts and medical logistics.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/UPS_Site_Visits.htm

3PL Turnover: $6.2b

Service Area: Tier 1 – Global Supply Chain Manager – Major Markets

3PL Assets: 13,700 employees 110 warehouses

Information Systems: Good TMS – Proprietary--Tradeflow, exp.o WMS – Proprietary--e.dms

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, contract logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Healthcare, Retailing, Technological Key Customers: Bombardier, Cisco Systems, Dollar General, Gap, General Electric, Hewlett- Packard, Johnson & Johnson, Lands’ End, Merck, Philips, Toyota

Armstrong & Associates’ Evaluation: Expeditors is the largest North American-based freight forwarder. Net revenues have reached $1.9 billion and produce a gross margin of 31%. 2009 was a difficult year but revenues came back in 2010-11 exceeding 2008 levels. Net revenues are 37% airfreight, 40% customs brokerage and 23% ocean freight. U.S. and Asia business account for 80% of revenues. Expeditors is the largest forwarder/NVOCC in the Asia/U.S. lane. It handles over 890,000 TEUs per year globally. Nearly 50% are shipped from Asia to the U.S. Expeditors’ European operations are primarily in airfreight and constitute about 13% of revenues. Expeditors net revenues run 40% high-tech, 33% retail, 10% pharmaceuticals, 10% automotive, 5% furniture and 2% other. Expeditors limits its participation in value-added warehousing and distribution.

3PL Turnover: $4.9b

Service Area: Tier 1 – Global Supply Chain Manager – Freight Forwarding

3PL Assets: 21,077 employees 240 warehouses 1,025 tractors, 2,205 trailers

Information Systems: Very Good TMS – Proprietary--eMpower, i2 Technologies WMS – Proprietary--eMpower, Infor/EXE

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, contract logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Elements, Food/Groceries, Healthcare, Industrial, Retailing, Technological Key Customers: Adidas, Bombardier, Bristol-Myers Squibb, Dow Corning, Estée Lauder, General Motors, Panasonic, Pfizer, Sara Lee, Smurfit-Stone Container, Wal-Mart

Armstrong & Associates’ Evaluation: UTi's net revenues increased nearly 10% last year. UTi’s contract logistics and distribution operations are 54% of net revenues. UTi has strong forwarding operations in Asia with an emphasis on airfreight and a major drug distribution operation in South Africa. It is expanding its contract logistics operations in Asia particularly in India, which it has designated for major market expansion. UTi’s roots are in South Africa and it does very well in British Commonwealth countries. It has a major North American effort underway to expand its domestic transportation management operations.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/UTi_Site_Visits.htm

Kuehne + Nagel Schindellegi, Switzerland SWX: KNIN

In the U.S. Kuehne + Nagel, Inc. Jersey City, NJ John Hextall, President North America 201-413-5500 www.keuhne-nagel.com

3PL Turnover: $4.5b Americas ($22.2b Global)

Service Area: Tier 1 – Global Supply Chain Manager (Service to over 85% of World GDP)

3PL Assets: 63,110 employees 500 warehouses

Information Systems: Very good TMS – CIEL 4000, KN Road, i2 Technologies WMS – CIEL Warehouse, KN Warehouse

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, contract logistics, spare/service parts logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Groceries, Healthcare, Industrial, Retailing, Technological Key Customers: AstraZeneca, BMW, California Innovations, Callaway Golf, Home Depot, Johnson Controls, Merisant, Rheem Manufacturing, Sun Microsystems, TomoTherapy, Xerox

Armstrong & Associates’ Evaluation: Kuehne + Nagel is one of the world's leading logistics companies providing services at more than 1,000 locations in over 100 countries. It has strong market positions in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions. With the addition of the ACR group, contract logistics operations more than doubled in 2006 and are 50% of net revenues. The industry breakdown for its contract logistics operations is: Retail 35%, Healthcare 22%, Technological/Telecom 18%, Chemicals 7%, Automotive 6%, Fulfillment 5%, Misc. 5% and Services 2%. Kuehne + Nagel’s North American logistics network totals 12 million square feet of space across 50 DCs. There are 11 DCs in Canada (located in Toronto, Montreal, Calgary, and Edmonton), 30 single- and multi- client DCs in the U.S., six facilities in Mexico, and four Mexican border locations for transborder/customs services. Americas business for Kuehne + Nagel is 15% of net revenues. Net revenue was $994 million in 2011 for the Americas with over 50% from freight forwarding. Kuehne + Nagel has developed its own land transport management and trucking network for Europe. In 2011, the globally operating Kuehne + Nagel maintained its growth momentum in a challenging market environment and achieved good results. Net earnings were slightly above the previous year and reached CHF 606 million – a new record high. In 2011 and 2012, Kuehne + Nagel has outpaced the volume growth of the market in all its fields of activity. Seafreight and airfreight business units again led the way. In both areas, high internal productivity and strict cost management compensated for the costs of investments made in technology and product development and strengthening of niche segments. Leveraging its forwarding and contract logistics capabilities, Kuehne + Nagel has built good global spare parts logistics and cold chain/pharmaceutical capabilities.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/K+N_Site_Visits.htm

DB Schenker Logistics Essen, Germany www.dbschenker.com

In the U.S. DB Schenker Logistics Americas Freeport, NY Heiner Murmann, President & CEO 516-377-3000 www.dbschenkerusa.com

3PL Turnover: $4.2b Americas ($20.7b Global) Parent: $52.9b

Service Area: Tier 1 – Global Supply Chain Manager

3PL Assets: 62,197 employees 500 warehouses

Information Systems: Good TMS – Oracle--OTM, SAP, Sterling Commerce WMS – Infor/EXE, SAP, RedPrairie, TECSYS

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, land transport including road, rail and short- sea, North American integrated heavy freight transportation, project logistics, contract logistics, spare/service parts logistics, household removals, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Groceries, Industrial, Retailing, Technological Key Customers: BMW, Chanel, Cisco Systems, DuPont, Daimler, Ford Motor, Kraft Foods, Metso, Microsoft, Océ, Procter & Gamble, Siemens, Unilever, Volkswagen, Winners

Armstrong & Associates’ Evaluation: DB Schenker made significant purchases from 2006 to 2008 to double the size of its operations. The purchases include BAX in 2006, Spain-Tir in 2007 and Romtrans in 2008. Romtrans was the largest forwarding company in Romania with $140 million in revenue and 1,500 employees. Operations go as far east as Georgia. Spain-Tir had over 700 trucks and 16 million square feet of warehousing space covering the Iberian Peninsula. BAX added significant North American and Asian capacity. German operations, including Europe’s largest rail freight and trucking operations, are over 70% of total revenues. DB Schenker’s European trucking by land transport has over 24,000 employees/owner-operators and handled 96 million shipments in 2011. Russian and Eastern European operations are substantial. DB Schenker is significantly expanding its contract logistics operations adding over $100 million of new business in 2012. Dave Bouchard leads the Americas effort. Detlef Trefzger heads global contract logistics and is spearheading the expansion. North American contract logistics operations are 42% Consumer Goods, 30% High-Tech, 16% Industrial and 12% Automotive.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/DB_Schenker_Site_Visits.htm

In the U.S. DHL Global Forwarding, North America Exel (DHL Supply Chain - Americas) Miami, FL Westerville, OH Mathieu Floreani, CEO Americas John Gilbert, CEO 786-264-3500 800-272-1052 www.dhl-dgf.com www.exel.com

3PL Turnover: $4.1b Americas ($32.2b Global) Parent: $73.6b

Service Area: Tier 1 – Global Supply Chain Manager (Service to over 99% of World GDP)

3PL Assets: 167,000 employees 2,400 warehouses 45 tractors, 10,500 trailers

Information Systems: Excellent TMS – Oracle--OTM/sci3, RedPrairie, Proprietary WMS – HK Systems, Insight, RedPrairie, Manhattan, Proprietary

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, returns management, home delivery, contract logistics, contract manufacturing/packaging, spare/service parts logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Elements, Food/Groceries, Healthcare, Industrial, Retailing, Technological Key Customers: 7-Eleven, ABB, Agilent Technologies, Bayer Healthcare, Bristol-Myers Squibb, Chrysler, Crate & Barrel, Diageo, Hugo Boss, Procter & Gamble, Syncrude, ThinkGeek

Armstrong & Associates’ Evaluation: DHL Supply Chain (DSC) is by far the world's largest 3PL and contract logistician. Contract logistics revenues were 52% of its gross logistics revenues for 2011. Contract logistics revenues for Exel (DHL Supply Chain - Americas) are $4.1 billion with 456 warehouses and 111 million square feet of space. Exel/DSC has operations of virtually every kind on every continent. Current major initiatives involve further expansion in pharmaceuticals. There are major sustainability and environmental efforts. Brazil and Mexico already have large, high quality operations. DHL Global Forwarding (DGF) grew through the acquisition of highly respected companies like Danzas. DHL and Danzas are strong brands in Europe and Asia. DGF currently has 31 global carrier partners with 81 contracts on a multitude of trade lanes and more than 330 gateway facilities. Its annual volume is 2.7 million TEUs and its LCL is 2 million cubic meters. There are more than 45,000 weekly point pairs for LCL globally. DGF handles 2.2 million shipments annually. DHL's scope allows its customers to more easily adjust vendor supply chains.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/DHL_Site_Visits.htm

3PL Turnover: $3.4b

Service Area: North America

3PL Assets: 10,000 employees 133 warehouses

Information Systems: Excellent TMS – Sterling, Manhattan, MercuryGate, Proprietary--W-Log WMS – Manhattan, Proprietary--D-LogPLUS & R-Log

Services: Transportation management, contract logistics, manufacturing support, reverse logistics, product liquidation, damage research, pharmaceutical services, parcel negotiation and auditing, government logistics, technology, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Grocery, Healthcare, Industrial, Military/Government, Retailing, Technological Key Customers: Alberto-Culver, Becton Dickinson, Best Buy, Briggs & Stratton, Canadian Tire, Carex Healthcare, Defense Logistics Agency, Dell, Hershey, Sears, TomTom, Unilever

Armstrong & Associates’ Evaluation: GENCO is one of the largest value-added 3PLs in North America. It has a series of niche solutions heavily integrated with specialized IT applications. Basic services are contract logistics, reverse logistics, product liquidation (GENCO Marketplace), pharmaceutical services, damage research, transportation logistics including a large parcel negotiation/audit operation, and government logistics and operations support. GENCO dominates the reverse logistics area, which provides about 40% of revenue. There is a heavy emphasis on integrating Six Sigma/Lean Logistics and sustainability initiatives. IT applications include the leading return logistics software program R-Log, voice tasking, RFID, robotics, optical real-time location system, pick/put-to-light, and hydrogen fuel cell powered forklifts all supported by a R&D technology learning center. GENCO is a technological generation ahead of most value-added warehousing and distribution 3PLs. GENCO has a host of “A” level operations in all its value-added specializations. GENCO’s acquisition of ATC strengthened its dominance in reverse logistics. ATC has been one of the best quality and most profitable value- added warehousing and distribution 3PLs. In EMEA, GENCO has operations in Kuwait and the UK and generates about $11 million in gross revenue annually.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/GENCO_Site_Visits.htm

In the U.S. CEVA Logistics Americas Houston, TX Keith Goldsmith, SVP Business Development 281-618-3100 www.cevalogistics.com

3PL Turnover: $2.9b Americas ($9.6b Global)

Service Area: Tier 1 – Global Supply Chain Manager – Freight Forwarding

3PL Assets: 51,791 employees 615 warehouses

Information Systems: Excellent TMS – Proprietary--Matrix, i2 Technologies WMS – RedPrairie, Manhattan

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, dedicated contract carriage, contract logistics, spare/service parts logistics, manufacturing support and subassembly, returns management, technology, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Elements, Industrial, Retailing, Technological Key Customers: Andersen Windows, Daimler, Eaton, Fiat, Ford, General Motors, Hewlett-Packard, Michelin, Mitsubishi Motors, Petro-Canada, Renault, Sears

Armstrong & Associates’ Evaluation: CEVA Logistics is one of the world’s largest logistics companies and has been the world’s largest automotive 3PL. It has a heavy emphasis on manufacturing and is expanding operations in other sectors. CEVA’s industry sectors are Automotive 28%, Consumer/Retail 23%, Technology 22%, Industrial 16%, Energy 6% and Other 5%. CEVA operates in over 170 countries. The CEVA operations we have visited get top marks. CEVA is very good at value-added support activities. Its Matrix software suite reflects its range of logistics capabilities, including materials management. CEVA’s core services include fulfillment centers, high-velocity cross-docks, sub-assembly, sequencing, dedicated contract transportation, and network designs/redesigns. Its revenue is split between Contract Logistics (54%) and Freight Management (46%). The Americas account for 30% of its revenues, Asia Pacific 28%, Northern Europe 24% and Southern Europe, Middle East and Africa account for the rest. Private equity owner, Apollo Management, acquired EGL Eagle Global Logistics which was rebranded as CEVA Freight Management in 2007. EGL added global freight forwarding to match CEVA’s high quality value-added warehousing, materials management and other contract logistics capabilities. In 2008, CEVA introduced its Century Partnership Account Program for 100 of its key customers selected by its Executive Board. These accounts have a global scope and represent more than half of CEVA’s total business. Fiat, CEVA's largest customer, began moving many of its operations outsourced to CEVA back in house in the spring of 2011. Apollo has restructured CEVA's debt burden to give it some breathing room.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/CEVA_Site_Visits.htm

3PL Turnover: $2.8b

Service Area: North America

3PL Assets: 1,430 employees 2,200 tractors, 24,500 trailers

Information Systems: Good TMS – Nulogx (i2), MercuryGate--TRITAN

Services: Transportation management, freight brokerage, intermodal transportation/drayage, supply chain consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Food/Groceries, Healthcare, Industrial, Retailing Key Customers: Abbott Laboratories, Big Lots, CFGroup, General Mills, Home Depot, Invacare, Medline, Nestlé, Oatey, Pfizer, Rexam Plastics, Toys "R" Us, Wyeth

Armstrong & Associates’ Evaluation: Hub Group is the largest intermodal marketing company (IMC) in the United States and one of the largest truck brokers. It uses its network to access containers and trailers owned by leasing companies, railroads and steamship lines. On a daily basis, it controls between 23,000-24,000 containers. Of those, 8,400 are owned and 7,660 are rented from either Norfolk Southern or Union Pacific. Hub recently diverted a significant amount of its TOFC/COFC business from BNSF to the UP. Once complete, the UP will handle 90% of all western U.S. loads for Hub. In April 2011, Hub acquired Mode Transportation. Mode Transportation was formerly known as Exel Transportation Services, an operating unit of Exel - a leading contract logistics provider in the Americas and part of the supply chain division of Deutsche Post DHL. Hub now reports two business segments, Hub and Mode. The Hub segment includes all business other than Mode. Hub’s subsidiary Comtrak Logistics is a transportation company with services that include primarily rail and international drayage for the intermodal sector. Challenge Transportation, an intermodal drayage trucker, and Domestic Transport, an intermodal drayage and truckload services provider, were also acquired in 2011 to expand Comtrak's drayage network and offerings. Approximately 11% of Hub's revenues are from Unyson Logistics, a network management 3PL and cross-dock specialist, while 21% of revenues are from its expanding truck brokerage.

Armstrong & Associates’ Case Study: http://www.3plogistics.com/Unyson_1-2010.htm

3PL Turnover: $2.2b Parent: $6.1b

Service Area: Tier 1 – Global Supply Chain Manager – Major Markets

3PL Assets: 12,387 employees 329 warehouses 56,413 tractors, 45,352 trailers

Information Systems: Very Good TMS – JDA (i2), Oracle--OTM, McLeod, TMW WMS – Servigistics V3, Manhattan, RedPrairie, Accellos, Infor, Sistema Logistics G2000, Flux

Services: Lead logistics provider, transportation management, dedicated contract carriage, equipment leasing, returns management, contract logistics, freight payment and auditing, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Groceries, Retailing, Technological Key Customers: Carrier Corp., Chrysler-Fiat, Columbus Serum, Delphi, Do-It-Best, General Motors, Haverty's Furniture, Kellogg's, Kroger, Meritex, PepsiCo, Reckitt Benckiser, Toyota

Armstrong & Associates’ Evaluation: Ryder, one of the most recognizable 3PL brand names, is a big-5 logistics 3PL. Ryder is a lead logistics provider for most GM plants and services Chrysler/Fiat, Toyota and Honda plus a multitude of tier-one suppliers. Ryder runs top notch inbound supply chain management, sequencing centers, just-in-time and dedicated contract carriage operations. Ryder and Leaseway (Penske) started DCC from single-source truck leasing in the late 1970s. For its key customers, it provides 200 to 350 tractors each. Its revenue target without the fuel surcharge is $150,000 a year. Ryder DCC has 150 on-site managers, 400 locations and 250 accounts. Ryder’s transportation management center assists with balancing lanes. Equipment is specifically assigned to 85% of accounts. A large part of trailers are specialized equipment. Ryder runs more straight trucks than any other DCC. About 50% of its trips are greater than 500 miles. Around 200 to 300 owner-operators are used primarily for home delivery, newspaper accounts and some long haul business. John Williford, chief executive officer, Tom Jones, senior vice president and chief of the automotive logistics operations, and Stephen Dean, executive vice president, have redesigned Ryder's SCS emphasis. Their redesign is based on an expansion of Asia-U.S. retail business leveraging off of the purchase of Transpacific Container Terminals and CRSA and a joint partnership with Hong Kong based Cargo Services Far East. Ryder’s SCS business was about 60% automotive through 2008. In 2010 automotive was about 45% of the business, high-tech was 22%, retail/consumer packaged goods was about 18% and industrial/other 15%. Williford's team has been working hard on the further expansion of retail, consumer goods, and high- tech business. Operations in South America were eliminated so that Ryder’s resources can be applied more strategically. Mexican operations are very good with revenues at $210 million a year. In December 2010, Ryder acquired Total Logistic Control, a leading 3PL in providing value-added warehousing and transportation management services to customers in the food and grocery and retailing vertical industries. In January 2011, Ryder acquired two southern California dedicated operations to expand its presence in dedicated contract carriage in the West, as well as increase its customer base in the retail vertical industry.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Ryder_Site_Visits.htm

Panalpina World Transport Basel, Switzerland SWX: PWTN

In the U.S. Panalpina Inc. Morristown, NJ Lucas Kuehner, Managing Director USA 973-683-9000 www.panalpina.com

3PL Turnover: $2.1b Americas ($7.4b Global)

Service Area: Tier 1 – Global Supply Chain Manager – Freight Forwarding

3PL Assets: 15,051 employees 242 warehouses

Information Systems: Excellent Emphasis is on internet native SCM

Services: Air and ocean freight forwarding, NVOCC, project logistics, warehousing, technology, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Elements, Healthcare, Retailing, Technological Key Customers: Armani, Celestica, Chevron, Gucci, Hyundai, Philips Consumer Electronics, Telus Communications, Thomson Premises Connected

Armstrong & Associates’ Evaluation: Panalpina is a top 10 freight forwarder. It handles more than 1.3 million TEUs per year, more than 800,000 metric tons of airfreight and about 1 million tons of non-containerized break bulk cargo. It has 242 sub-contracted warehouses in 150 countries and is consistently profitable. The life blood of Panalpina is its ongoing financial stability and transparency. Its gross profit runs greater than 20%, EBITDAs (earnings before interest, tax, depreciation and amortization), EBITs and net incomes consistently run among the industry’s best. Like all of the truly strong players, these results are clearly and straightforwardly reported for each financial period. Gross profit (net revenue) runs 46% for air freight, 30% for ocean freight and 24% for logistics. Panalpina concentrates on nine verticals/segments: Automotive, Chemicals, Consumer Retail, Fashion, Healthcare, High-Tech, Manufacturing, Oil & Gas, and Telecommunications. Telecom growth was major in 2007. Its Oil & Gas operations are primarily in project logistics, which accounts for 10% to 15% of Panalpina's revenues.

Armstrong & Associates’ Case Study: http://www.3plogistics.com/Panalpina_4-2009.htm

Schneider Logistics Green Bay, WI John Vesco, VP & GM 866-875-9046 www.schneider.com

3PL Turnover: $2.1b Parent: $3.4b

Service Area: North America

3PL Assets: 33 warehouses 12,000 tractors, 20,000 trailers

Information Systems: Good TMS – SUMIT, Oracle, TMW Systems WMS – HighJump

Services: Domestic transportation management, dedicated contract carriage, port logistics, cross-docking, spare/service parts logistics, freight payment and auditing, consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Elements, Food/Groceries, Industrial, Retailing, Technological Key Customers: Andrew, Chevron, Dow Chemical, Ford Motor, Honeywell, Johnson Controls, Kimberly-Clark, MillerCoors, Neenah Paper, PolyOne, Wal-Mart, Welch's

Armstrong & Associates’ Evaluation: Schneider Logistics provides transportation management and port logistics (warehousing, transloading, distribution, drayage and transportation management). It has six port logistics operations including Chicago, Los Angeles and Savannah (four buildings). Schneider's port logistics handles 200,000 containers a year. It also runs a Wal-Mart distribution center in Savannah. In addition, Schneider has eight regional cross-dock locations for distribution of domestic traffic. Schneider Logistics' freight under management runs $1.9 billion a year. John Vesco is vice president and general manager of Schneider Logistics. Freight brokerage and its related transportation management are done by Schneider Transportation Management (STM). Erin Van Zeeland is senior vice president and general manager for STM. STM is part of Schneider National. STM's purchased transportation is $210 million. There are 300 employees.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Schneider_Site_Visits.htm

3PL Turnover: $1.7b

Service Area: Tier 1 – Global Supply Chain Manager

3PL Assets: 4,000 employees 100 warehouses

Information Systems: Excellent TMS – Proprietary--CAT TIS, i2 Technologies, GT Nexus WMS – SAP EWM, Proprietary, ProAct OMS – SAP CRM, Proprietary, ProAct IMS – SAP SPP, Proprietary

Services: Supply chain strategy and design, systems and technology, materials management, distribution center management, order management, manufacturing logistics, spare/service parts logistics, transportation services

Industry Focus/Key Customers: Automotive, Elements, Industrial, Technological Key Customers: American Tool, Bombardier, Case New Holland, Caterpillar, Daimler, Delphi, Donaldson, Fisher Control Valves, Land Rover, Mazda Motor, Mosaic, Newmont Mining

Armstrong & Associates’ Evaluation: Neovia Logistics Services, formerly Caterpillar Logistics Services, has heavy U.S. and European operations with a growing presence in South America and Asia, distributing to more than 190 countries from over 100 facilities. Neovia Logistics’ scope reflects Caterpillar's global reach and dealer network. Neovia Logistics’ business is split equally between North America and the rest of the world. It continues to expand its automotive logistics business in Europe. In the U.S., Neovia Logistics has completely integrated warehousing and manufacturing supply chain services. Visibility in its integrated systems of SAP, i2 and GT Nexus is very good. Demand and supply forecasting and material planning capabilities are excellent. Forecasting for low turnover items is a controlled standard operating procedure. Neovia Logistics manages over $2.4 billion in purchased transportation per year. Neovia Logistics focuses on customers with high-value durable goods. A major initiative involves logistics into and out of China. In May 2012, Caterpillar sold 65% of Cat Logistics to private equity firm Platinum Equity and rebranded it as Neovia Logistics Services, LLC.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/CatLogistics_Site_Visits.htm

3PL Turnover: $1.6b Parent: $5.3b

Service Area: Tier 1 – Global Supply Chain Manager – Major Markets

3PL Assets: 6,500 employees 137 warehouses 34 tractors, 80 trailers

Information Systems: Excellent TMS – Proprietary--LMS, Oracle--OTM WMS – Infor WM Provia (Menlo-modified), SIMS Visibility & Event Management – VIEW (Viewlocity) Global Trade Management – TRAXi3 Data Warehousing RFID

Services: Lead logistics provider, transportation management, truckload brokerage, contract logistics, light assembly, packaging, sequencing, returns management, technology, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Elements, Industrial, Military/Government, Retailing, Technological Key Customers: A.O. Smith, Caterpillar, Daimler, Diebold, Dow Chemical, General Motors, Hewlett-Packard, Imation, Navistar International, Sears, Unilever, U.S. Dept. of Defense

Armstrong & Associates’ Evaluation: Menlo Worldwide Logistics is one of the leading U.S.-based 3PLs. It has adapted a Lean Six Sigma management approach that generates positive results both on its profitability and in developing new business. Menlo has solid inbound supply chain management and finished goods distribution capabilities. It is a prime contractor for the U.S. Transportation Command’s Defense Transportation Coordination Initiative and the lead logistics provider for truck manufacturer Navistar. Menlo is also a key 3PL for HP, Caterpillar, GM, Sears and Dow. Menlo has significantly grown its China and Southeast Asia network and is continuing to expand its European operations. Both are adding significant pieces of business with retailers such as Triumph in the U.K. and Malaysia and Puma in Singapore. In Southeast Asia, Menlo runs 27 value-added warehousing operations with 3.5 million square feet of space and a workforce of 1,175. Menlo's IT capabilities, including its recent addition of Oracle-TM’s transportation management system, provide it with solid supply chain management and optimization capabilities.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Menlo_Site_Visits.htm

Copyright © 2012 Armstrong & Associates, Inc. J.B. Hunt Dedicated Contract Services (DCS) & Integrated Capacity Solutions (ICS) Lowell, AR NASDAQ: JBHT (J.B. Hunt Transport Services Inc.) Nick Hobbs, President, DCS & Shelley Simpson, President, ICS 800-643-3622 www.jbhunt.com

3PL Turnover: $1.4b Parent: $4.5b

Service Area: North America

3PL Assets: 6,802 employees 10,900 tractors, 78,236 trailers

Information Systems: Good TMS – Proprietary

Services: Dedicated contract carriage, transportation management, intermodal transportation/drayage

Vertical Industry Focus/Key Customers: Consumer Goods, Food/Groceries, Retailing Key Customers: Anheuser-Busch, Cargill, Family Dollar, Home Depot, J.C. Penney, Navistar International, Office Depot, Orchard Supply Hardware, PPG Industries, Procter & Gamble

Armstrong & Associates’ Evaluation: J.B. Hunt Dedicated Contract Services (DCS) has over 300 customers and is the largest dedicated contract carrier. It is the benchmark standard for DCC comparisons. A&A estimates that about half of J.B. Hunt’s dedicated tractors are tandem axle sleepers. About as many are day cabs used in regional operations. Driver turnover rates are about half of regular over-the-road trucking operations. Revenues run $565 per load and most round trips average 300 miles. Average revenue per tractor per year runs $209,000. A significant part of Hunt’s DCS operations involve direct store delivery. It uses its parent company and other facilities for last mile operations. It has 87 last mile support locations and has introduced a major home delivery initiative. Over 95% of Hunt's dedicated contract carriage power units are assigned to specific accounts. J.B. Hunt DCS continues to grow and has spread into integrated transportation management. J.B. Hunt Integrated Capacity Solutions (ICS) generates about a quarter of the gross revenue shown and its gross margin runs 13.5%. ICS is primarily a transportation manager. Hunt is also one of the largest U.S. intermodal marketing companies. Intermodal is now 60% of its total business.

3PL Turnover: $1.3b

Service Area: Americas, Asia, Europe

3PL Assets: 7,000 employees 130 warehouses 121 tractors, 407 trailers

Information Systems: Excellent TMS – Oracle--OTM, MercuryGate--TMS, Proprietary--eFocus WMS – Zethcon--Synapse, Cadre--Accuplus, Manhattan, CargoWise

Services: Transportation management, contract logistics, air and ocean freight forwarding, NVOCC, customs brokerage, duty drawback, temperature controlled, technology, supply chain consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Elements, Food/Groceries, Industrial, Retailing, Technological Key Customers: Apple, Arch Chemicals, Cargill, Land O'Lakes, Limited Brands, PetSafe, Polo Ralph Lauren, Red Bull, Remington Arms, Samsung, SKF, Starbucks, Stone Source, Sysco

Armstrong & Associates’ Evaluation: During 2008, Ozburn-Hessey Logistics and all of its acquired companies rebranded as OHL. The branding project was undertaken to meld the multiple divisions, companies and brands that were parts of OH Logistics. Companies that had been acquired had specialized service offerings, management teams, customer relationships and were well-known within their geographies. However, none of the companies had an established international brand. OHL intends to establish itself as a strong international supply chain management solutions provider. It has an extensive global network and a broad range of services. The company provides logistics solutions for several large companies including Arch Chemicals, Coca-Cola, Land O'Lakes, Red Bull, Samsung, and Starbucks. OHL has over 32 million square feet of warehouse space, primarily in North America, and has greatly enhanced and expanded its domestic and international transportation offerings. Private equity investment firm, Welsh, Carson, Anderson & Stowe, has reconfigured top management over the last few years to reflect OHL's push to 3PL globalization. In October 2012, OHL sold off its Turbo Logistics freight brokerage to XPO Logistics.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/OHL_Site_Visits.htm

3PL Turnover: $1.2b Parent: $2.6b

Service Area: North America

3PL Assets: 625 employees

Information Systems: Good TMS – Oracle--OTM, Proprietary

Services: Transportation management, freight brokerage, intermodal, air and ocean freight forwarding, NVOCC, customs brokerage

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Groceries, Industrial, Technological Key Customers: Calgon Carbon, Electro-Motive Diesel, Ford, GlaxoSmithKline, Grupo Antolin, Jacobs Engineering Group, Kohler, Max Packaging, Sony, Unilever, Westinghouse

Armstrong & Associates’ Evaluation: Landstar continues to adapt to its customers and agents needs. Over the last three years, Landstar has added freight forwarding and stronger transportation management capabilities. These competencies meet expanding customer needs and provide Landstar’s network of agents with better tool kits for rapidly changing markets. The push has been from the top. Chairman, President and CEO, Henry Gerkens, is responsible for intermodal, air, ocean, freight under management and logistics technology services as well as the logistics engineering and analytical design function.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Landstar_Site_Visits.htm

3PL Turnover: $1.1b Parent: $2b

Service Area: North America, China, Australia

3PL Assets: 4,303 employees 7,200 tractors, 23,045 trailers

Information Systems: Excellent TMS – Proprietary--SMART

Services: Dedicated contract carriage, value-added transportation management, freight brokerage, intermodal, cross- docking, air and ocean freight forwarding, NVOCC, customs brokerage, technology, consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Elements, Food/Groceries, Industrial, Retailing Key Customers: 20th Century Fox, AGC Flat Glass North America, Bass Pro Shops, Chevron, ConAgra Foods, Dollar General, Gordmans, Home Depot, Kraft Foods, OfficeMax, Procter & Gamble, Staples

Armstrong & Associates’ Evaluation: Werner is a major dedicated contract carrier and U.S. trucking company with growing non-asset based domestic and international transportation management operations. Werner Enterprises has invested significantly in its non-asset based 3PL operations, Werner Global Logistics (WGL) and Value Added Services (VAS), to expand beyond its core North American trucking operations. Werner Global Logistics (WGL) is a licensed U.S. NVOCC, U.S. Customs Broker, TSA-approved Indirect Air Carrier, ITAR Certified Air Carrier and IATA Accredited Cargo Agent. Werner Global Logistics (Shanghai) Co. Ltd. is a licensed freight forwarder and NVOCC in China and a logistics, consulting, warehousing, consolidation and ground transport operator throughout China. Werner Global Logistics Mexico provides freight forwarding and NVOCC services to Werner Enterprises’ customers in Mexico. VAS consists of Brokerage, Freight Management services and Intermodal. VAS and WGL have grown to over $450 million in annual freight under management. When adjusted for accounting revenues, combined gross revenues for 2011 were $320 million and accounted for 16% of Werner Enterprises’ total revenues. Total operating income for the non-asset logistics services operations was $17 million in 2011, which equated to 9.8% of Werner Enterprises’ total operating income. Before 2009, Werner Enterprises’ Dedicated services operations had grown at over 33% annually. With 2011 revenues of $767 million, Dedicated services accounted for nearly 40% of Werner Enterprises’ revenues and approximately 47% of its total truck fleet with 3,400 tractors. Dedicated services’ largest customer is Dollar General. Other major Dedicated services accounts include: Anheuser-Busch, ConAgra Foods, Family Dollar, Home Depot, Kraft, OfficeMax, P&G, Sears, Staples and Wal-Mart (power only). Dedicated services manages over 120 individual customer fleets ranging from one to 100+ tractors. About 70% of the fleets are managed on-site at customer locations and about 30% of the smaller fleets are managed from Werner Enterprises’ operations center in Omaha. Werner is a major U.S./Mexico carrier with more than 600 border crossings a day.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Werner_Site_Visits.htm

3PL Turnover: $1b

Service Area: North America

3PL Assets: 1,744 employees 53 warehouses 2,000 tractors, 7,350 trailers

Information Systems: Very Good TMS – Proprietary, Innovative, IES, Pegasus WMS – Infor/EXE, Cadre--Accuplus, FourSite

Services: Transportation management, dedicated contract carriage, air and ocean freight forwarding, NVOCC, intermodal, contract logistics, temperature controlled, manufacturing support, packaging, consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Food/Groceries, Retailing, Technological Key Customers: Anheuser-Busch, Bimbo Bakeries, Carter’s, Colgate-Palmolive, Doane Pet Care, George Weston, Georgia-Pacific, Hasbro, IBM, Lowe’s, MeadWestvaco, Nestlé Waters, Staples

Armstrong & Associates’ Evaluation: Founded in 1932, NFI offers a variety of integrated supply chain services. Its strongest operations are in the Northeast, California, Illinois, Ohio and Texas. The company is one of the largest privately held third-party logistics providers in North America. NFI’s divisions include NFI Logistics, NFI Distribution, NFI Transportation, NFI Intermodal, NFI Real Estate, NFI Global, NFI Contract Packaging, and NFI Consulting. NFI relies on NFI Real Estate for new warehouse facilities and National Distribution for established locations. NFI continues to integrate its divisions and move its asset based transportation away from transaction business to dedicated carriage. NFI made a few acquisitions over the past year including IPD Global (now NFI Canada), World Warehouse and Distribution and the West Coast operation of Maersk subsidiary The Gilbert Company. NFI is at its best in integrated operations involving dedicated contract carriage, transportation management and value-added warehousing and distribution. Trucking operations are all dedicated contract carriage. Sid Brown is a strong, hands-on CEO.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/NFI_Site_Visits.htm

3PL Turnover: $1b

Service Area: North America, Asia, Europe

3PL Assets: 2,000 Employees

Information Systems: Capable TMS – FastTrack, GT Nexus

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, LCL consolidation

Vertical Industry Focus/Key Customers: Consumer Goods, Retailing Key Customers: Bass Pro Shops, Bridgestone, Hill’s Pet Nutrition, Pampered Chef, Ty, Inc., Whitney Design

Armstrong & Associates’ Evaluation: Phoenix International is an aggressive international freight forwarder, NVOCC and customs broker. It has 73 owned offices. It handled 250,000 ocean TEUs and 41,000 airfreight metric tons in 2011. Its FMC license number is 2431F. Its customs filer code is 279. Phoenix has 50 licensed customs brokers throughout the U.S. The Phoenix in-house operating system in the U.S. runs on an AS400. Phoenix is developing a new Java-based system, Pixos, to cover all functions. Much of the development work is being done in China where Phoenix has an IT staff of 50. Phoenix maintains a transparent, teamwork approach. It has 50 people actively involved in sales. Its strongest verticals are in retail and fast-moving consumer goods including housewares. In September 2012, Phoenix International was acquired by C.H. Robinson. Rambaud is the CEO for the new combined operations.

Armstrong & Associates’ Case Study: http://www.3plogistics.com/Phoenix_5-2008.htm

3PL Turnover: $990m Parent: $4b

Service Area: Americas, Europe, Asia

3PL Assets: 7,888 employees 102 warehouses 2,180 tractors, 2,878 trailers

Information Systems: Excellent TMS – i2 Technologies, Proprietary--LMS WMS – Flux, RT Systems, MARC, Proprietary

Services: Lead logistics provider, global freight management, transportation management, dedicated contract carriage, equipment leasing, contract logistics, sequencing, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Groceries, Healthcare, Industrial, Retailing, Technological Key Customers: BMW, Cardinal Health, Continental Tire, Daimler, Eaton, Ford Motor, General Electric, General Motors, Merck, Navistar International, Staples, Wawa, Whirlpool

Armstrong & Associates’ Evaluation: Penske Logistics is a major automotive logistics player. It is Ford’s lead logistics provider and provides significant services for General Motors, Daimler and tier-one suppliers. Penske is one of five major automotive 3PLs with over $200 million per year in automotive revenues. It has made significant strides in leveraging its automotive experience to other verticals. Major wins include: Steelcase, PPG, Wawa, Mission Foods, Samsung, Sony, Merck, Eaton and Emerson. Penske Logistics is a master of inbound supply chain management, cross-docking, sequencing, just-in-time support and dedicated contract carriage. Penske's legacy in DCC goes back to Leaseway which was a major innovator in transportation and logistics. Leaseway was a founder of DCC in the late 1970s. Penske provides Cardinal Health with 700 tractors in DCC. For Wawa stores on the East Coast, it uses 38-foot trailers for deliveries to 575 stores. Penske logistics is divided into three regional groups. As a result, DCC, value-added warehousing and distribution, and transportation management are often overlapping and integrated. Tractors average about 80,000 miles a year because of length-of-haul and route structures. Mexican and Brazilian operations are particularly strong. European business continues to grow and gain in a much tougher market. Penske Logistics opened a Shanghai, China branch to broaden its global network. It has also expanded operations in India.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Penske_Site_Visits.htm

3PL Turnover: $969m Parent: $4.6b

Service Area: North America, Asia, Europe, Brazil

3PL Assets: 1,000 employees 13 warehouses

Information Systems: Good TMS – Oracle--OTM WMS – RedPrairie

Services: Transportation management, aftermarket spare/service parts logistics, reverse logistics, remanufacturing, materials/inventory management, contract logistics, sequencing, manufacturing support, custom packaging

Vertical Industry Focus/Key Customers: Automotive Key Customers: Meritor WABCO

Armstrong & Associates’ Evaluation: Meritor Logistics is the new 3PL unit of Meritor, Inc., formerly ArvinMeritor, Inc., a leading provider of drivetrain mobility and braking solutions for original equipment manufacturers of trucks, trailers, and specialty vehicles. Meritor Logistics specializes in motor vehicle aftermarket spare/service parts logistics.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Meritor_9-2011.htm

In the U.S.: APL Logistics Americas Scottsdale, AZ Jim McAdam, President 866-896-2005

www.apllogistics.com

3PL Turnover: $893m Americas ($1.4b Global) Parent: $9.2b

Service Area: Tier 1 – Global Supply Chain Manager – Freight Forwarder

3PL Assets: 4,500 employees 99 warehouses 20 tractors, 1,066 trailers

Information Systems: Very good TMS – Oracle--OTM, TM400, LoadTech, Alerce WMS – Manhattan WMi (PkMS), Dematic/HKwm, Proprietary--WMSp

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, export consolidation and import deconsolidation, transportation management, intermodal, dedicated contract carriage, contract logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive/Industrial, Consumer Goods, Retailing, Technological Key Customers: American Honda Motor, Asics, Avon, Birds Eye Foods, Colgate-Palmolive, Dow Corning, Electro-Motive Diesel, Emerson, Kellogg's, Netgear, Newell Rubbermaid, Stein Mart

Armstrong & Associates’ Evaluation: APL Logistics' strengths have been in the automotive/industrial and retail client verticals. It has also been expanding its consumer goods and high-tech business with accounts such as Colgate-Palmolive and Netgear. Forty percent of revenues are in the automotive/industrial segment, 33% retail, 10% consumer goods, 5% electronics/high-tech and 12% other. The Americas generate 63% of revenues, Asia/Middle East 25% and Europe 12%. APL Logistics has automotive joint ventures in China. About 63% of APL Logistics’ revenues are from contract logistics. Consolidation, deconsolidation and freight forwarding make up the rest. Its global warehousing network consists of 99 facilities with 15.8 million square feet of space. Its forwarding operations are closely linked to its parent company's ocean container operations. APL Logistics provides customers more transparency than other Asia-based logistics companies. APL Logistics handles about 35,000 shipments in its intermodal division annually. Top intermodal customers include: 3M, Ace Hardware, Baxter, Bay Valley Foods, Del Monte, Hino Diesel Trucks (U.S.A.), IKEA, Wal-Mart, and Winn Dixie. APL Logistics purchased 1,000 new 53’ APDU containers in 2011 to expand its intermodal capabilities. Sister company VASCOR is a major automotive 3PL.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/APL_Site_Visits.htm

Jacobson Companies Des Moines, IA Brian Lutt, President & CEO 800-636-6171

www.jacobsonco.com

3PL Turnover: $892m

Service Area: United States, Asia, Europe

3PL Assets: 7,000 employees 150 warehouses 650 tractors, 1,950 trailers

Information Systems: Very Good TMS – Proprietary--LINCS/iLINCS, TMW WMS – Cadre--Accuplus, Infor--Provia, RedPrairie, SAP

Services: Domestic and international transportation management, customs brokerage, dedicated contract carriage, contract logistics, contract packaging, manufacturing, supply chain consulting

Vertical Industry Focus/Key Customers: Chemicals, Consumer Goods, Food/Groceries, Healthcare, Industrial, Retailing Key Customers: Barilla America, BASF, Bayer, Carter's, Dow Chemical, DuPont, Fonterra, Georgia-Pacific, John Deere, Kohler, Lexmark, Merial, PepsiCo, Philip Morris, Ralston Foods

Armstrong & Associates’ Evaluation: Jacobson is a quality, modern, value-added 3PL with significant transportation management, warehousing, and packaging operations. Food and Beverage is its largest industry segment by revenue at 38%, followed by Chemicals and Durables at 16% each, Consumer Packaged Goods 14%, Industrial/Agri 10%, Life Sciences 3% and Electronics 3%. Private-equity owner, Oak Hill Capital, has helped Jacobson in its recent recapitalizations and acquisitions allowing it to expand significantly. Jacobson restructured its six integrated operating companies into three business units: Transportation Logistics Services (TLS) 24% of revenue, Contract Logistics Services (CLS) 72% of revenue, and International Logistics Services (ILS) 4% of revenue. Jacobson’s 2011 acquisition of Chimerica Global Logistics, Ltd. (CGL), a 3PL headquartered in Hong Kong with subsidiary operations in mainland China, provides it with a platform for further expanding its international freight forwarding operations and building a “beachhead” for growing its domestic warehousing operations in China. In the U.S., Jacobson is providing parts distribution center and just-in-time (JIT) services for John Deere. Philip Morris, Merial and BASF are also large customers.

Armstrong & Associates’ Case Study: http://www.3plogistics.com/Jacobson_11-2010.htm

Yusen Logistics Tokyo, Japan TSE: 9370 / TSE: 9101 (Nippon Yusen Kabushiki Kaisha)

In the U.S. Yusen Logistics (Americas) Inc. Secaucus, NJ 800-414-3895 www.us.yusen-logistics.com

3PL Turnover: $885m Americas ($3.9b Global) Parent: $22.7b

Service Area: Tier 1 – Global Supply Chain Manager – Freight Forwarding

3PL Assets: 12,350 employees 354 warehouses 787 tractors, 2,373 trailers

Information Systems: Very Good TMS – i2 Technologies, Proprietary WMS – Manhattan PkMS, Infor/Provia, Proprietary

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, freight brokerage, contract logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Groceries, Healthcare, Industrial, Retailing, Technological Key Customers: Baxter Healthcare, CVS, Dell, Home Depot, Isuzu Motors America, Lennox, National Semiconductor, NOVA Chemicals, Procter & Gamble, Sony, Sapporo Breweries, Wal-Mart

Armstrong & Associates’ Evaluation: Yusen does not have the kind of strong domestic base in Japan that characterizes Nippon and others. It has aggressively grown international markets and expanded through organic growth and acquisitions. It started in 2001 by combining purchases and adding a transportation and warehouse network to expanding contract logistics and airfreight operations. Contract logistics and distribution are strong in Europe. In the Americas, seven companies have been combined to create a broad suite of logistics services offered in North, Central and South America. Automotive, industrial and retail/consumer goods verticals are emphasized. Its automotive logistics includes roll-on/roll-off, JIT and parts distribution. Nippon Cargo Air is now an NYK owned entity and Americas has its own airfreight forwarding capability. Japan accounts for 27% of the business, Europe 24%, the Americas 22%, South Asia and Oceania 14% and East Asia 13%.

Armstrong & Associates’ Case Study: http://www.3plogistics.com/NYK_6-2010.htm

FedEx SupplyChain/FedEx Trade Networks Memphis, TN NYSE: FDX (FedEx Corporation) Craig Simon, President & CEO, FedEx SupplyChain Fred Schardt President & CEO, FedEx Trade Networks 901-818-7732 www.fedex.com

3PL Turnover: $838m Parent: $42.7b

Service Area: Tier 1 – Global Supply Chain Manager (Service to 99% of World GDP)

3PL Assets: 6,100 employees 40 warehouses 298 tractors, 1,094 trailers

Information Systems: Excellent TMS – Optum--SCE Transportation, i2 Technologies WMS – Infor/EXCEED 4000

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, transportation management, contract logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Healthcare, Industrial, Retailing, Technological Key Customers: Alcatel-Lucent, AstraZeneca, Eaton, General Motors, Isuzu Motors, John Deere, Kmart, Mattel, Nacco Industries, Owens-Illinois, Polycom, Sun Microsystems, Wincor Nixdorf

Armstrong & Associates’ Evaluation: Contract logistics, freight forwarding and customs brokerage at FedEx are value-added service businesses whose role is to support FedEx express, package and less-than-truckload transportation. FedEx SupplyChain does not compete on isolated value-added warehousing and distribution business. FedEx Trade Networks has added 50 overseas offices in the last couple of years. FedEx has also expanded its pharmaceutical offerings. FedEx announced a major restructuring of its express business in October 2012. Its LTL operations have increased and turned profitable. Freight forwarding is expanding.

Agility Public Warehousing Company Safat, Kuwait KSE/DFM: AGLTY

In the U.S. Agility Logistics (Americas) Irvine, CA Michael Bible, CEO Americas

714-617-6300 www.agilitylogistics.com

3PL Turnover: $794m Americas ($4.4b Global)

Service Area: Tier 1 – Global Supply Chain Manager – Major Markets

3PL Assets: 22,000 employees 200 warehouses 6,000+ owned vehicles and transport assets

Information Systems: Excellent TMS – Proprietary--MicroTransport, Oracle--OTM WMS – Infor/EXE

Services: Domestic and international transportation management, contract logistics, project & exhibition logistics, government logistics, asset-based transport, technology, supply chain consulting

Vertical Industry Focus/Key Customers: Elements, Healthcare, Industrial, Military/Government, Retailing, Technological Key Customers: Army & Air Force Exchange Service, Cadbury Adams, Cemex, Domino’s Pizza, Flextronics Int’l, Princess Cruises, Siemens, Qatar Petroleum, U.S. Marine Corps, Wal-Mart

Armstrong & Associates’ Evaluation: Agility has expanded its business dramatically from its warehousing base in Kuwait. It is a Middle Eastern leader in integrated supply chain solutions and is organized into three major business groups. Global Integrated Logistics (GIL) is the largest generating approximately 65% of Agility’s revenues and having more than 14,000 employees. The majority of GIL’s revenues (just under 90%) are generated outside of the U.S. It has core competencies in freight forwarding, contract logistics/warehousing, project logistics, fairs & events, and supply chain management 3PL services. Agility provides 3PL services tailored to governments, relief agencies and international institutions worldwide. These services included extensive warehousing and trucking operations in Kuwait to support U.S. Department of Defense distribution needs in the region. Another business unit is Investments which draws on local insights from Agility’s global network to identify real estate and private equity opportunities in Asia, Africa and the Middle East. Investments accounts for approximately 3% of Agility’s revenues.

Armstrong & Associates' Case Studies: http://www.3plogistics.com/Agility_Site_Visits.htm

972-447-0075 www.modetransportation.com

3PL Turnover: $757m Parent: $2.8b

Service Area: North America

3PL Assets: 167 employees

Information Systems: Good TMS – MercuryGate--TRITAN

Services: Transportation management, freight brokerage, intermodal

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Food/Groceries, Industrial Key Customers: Bridgestone, Diageo, Frito-Lay, Georgia-Pacific, Goodyear Tire & Rubber, Ocean Spray, Technicolor

Armstrong & Associates’ Evaluation: Mode Transportation is a major freight broker/transportation manager in the United States with $800 million of freight spend. It has over 160 employees and 225 agents across North America. Its principal corporate transportation management locations are Dallas and Memphis. In addition to truckload and less-than-truckload work, Mode Transportation is heavily involved in intermodal and rail car management activity across the U.S., Canada and Mexico. Mode Transportation, was formerly known as Exel Transportation, an operating unit of Exel (DHL), until it was acquired by Hub Group in April 2011.

3PL Turnover: $750m

Service Area: United States, Canada, Europe, China, Brazil, United Arab Emirates

3PL Assets: 9,500 employees 70 warehouses

Information Systems: Capable WMS – Proprietary

Services: Contract logistics, transportation management, returns management, sequencing, fulfillment

Vertical Industry Focus/Key Customers: Automotive, Retailing, Technological Key Customers: Agilent Technologies, BMW, Chrysler, Clarion, Cricket Communications, Ericsson, Ford Motor, FiberTower, Hewlett-Packard, Hitachi, Home Depot, Paccar, Waldenbooks

Armstrong & Associates’ Evaluation: In 2007, TDS merged with Walsh Western and rebranded as syncreon. In late 2009, syncreon acquired NAL Worldwide and subsequently integrated H3 Logistics in early 2010, further expanding its market reach. It provides fulfillment, distribution, and reverse logistics services for all of the industries it serves. Additionally, syncreon provides market-centric services for each industry, such as parts metering/sequencing for automotive, e-fulfillment for technology, and store reset logistics for retail.

In the U.S. Damco USA Inc. Madison, NJ Mark Michaels, Chief Commercial Officer, North America 973-514-2076 www.damco.com

3PL Turnover: $686m Americas ($2.8b Global) Parent: $60.2b

Service Area: Tier 1 – Global Supply Chain Manager

3PL Assets: 10,800 employees 15 warehouses

Information Systems: Good TMS – Proprietary--Damco.com WMS – Proprietary--Damco.com, Manhattan

Services: Air and ocean freight forwarding, NVOCC, customs brokerage, consolidation/deconsolidation, retail- based contract logistics, supply chain consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Food/Groceries, Retailing, Technological Key Customers: CVS, Children’s Place, DairyAmerica, Kellogg, Kmart, IBM, LG Electronics, Macy’s, Polo Ralph Lauren, Reebok, Sears, Starbucks, Wal-Mart, Williams-Sonoma

Armstrong & Associates’ Evaluation: Damco is a third-party logistics provider specializing in customized freight forwarding and supply chain solutions. The company has 10,800 employees in over 300 offices across 90 countries and agents in 30 more countries. In 2011, the company had a net turnover of $2.8 billion, managed more than 2.5 million TEUs in ocean freight and supply chain management volumes, and air freighted more than 110,000 metric tons. Damco is part of the A.P. Moller - Maersk Group.

3PL Turnover: $583m

Service Area: North America, Hong Kong

3PL Assets: 680 employees 5 warehouses

Information Systems: Excellent TMS – Proprietary--Dense Network EfficiencySM, CargoWise

Services: Transportation management, air and ocean freight forwarding, NVOCC, customs brokerage, intermodal, temperature-controlled, technology, consulting

Vertical Industry Focus/Key Customers: Chemicals, Consumer Goods, Food/Groceries, Industrial, Retailing, Technological Key Customers: AutoZone, Chicken of the Sea, Colgate-Palmolive, Cummins, Del Monte Foods, Elementis, Huhtamaki, Office Depot, Reichhold, RockTenn, Sunny Delight, U.S. Gypsum

Armstrong & Associates’ Evaluation: Transplace is a leading, domestic, non-asset based transportation manager in the U.S. It has small but solid, expanding operations in Mexico and Hong Kong. In December 2009, Transplace was acquired by CI Capital Partners. Having new owners has allowed Transplace to pursue domestic and international expansion. Transplace acquired SCO Logistics in April 2011, which added the chemicals vertical to Transplace's portfolio and gave Transpace an operations center in the Northeast. In October 2011, Transplace added intermodal marketing company, Celtic International, to complement its transportation management operations. Celtic is based in Chicago and will be a stand-alone division of Transplace. Transplace managed over $5 billion in transportation in 2011.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Transplace_Site_Visits.htm

3PL Turnover: $550m

Service Area: North America

3PL Assets: 175 employees

Information Systems: Good TMS – Proprietary, MercuryGate

Services: Domestic transportation management, lead logistics provider, consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Electronics, Food/Groceries, Healthcare, Retailing Key Customers: American Tire Distributors, CARQUEST, DSI Systems, Havertys Furniture, hhgregg, Highland Products Group, Snyder’s-Lance

Armstrong & Associates’ Evaluation: Thompson and Pazdera have been a team for over a decade. They had extensive LTL trucking experience and have rolled it up into a sizeable, quality transportation management operation. Total Insight, LLC, an affiliate of Transportation Insight, LLC, provides Lean consulting and organizational development. United Sourcing Alliance acquired by Total Insight in June 2009, provides supply chain sourcing specializing in indirect, packaging and maintenance, repair and operational (MRO) supplies.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/TransportationInsight_Site_Visits.htm

3PL Turnover: $522m

Service Area: North America

3PL Assets: 4,000 employees 102 warehouses 200 tractors, 400 trailers

Information Systems: Very Good TMS – LeanLogistics, Manhattan, MercuryGate, TMW WMS – Proprietary, RedPrairie, SAP WM, Manhattan

Services: Contract logistics, manufacturing support, sequencing, aftermarket spare/service parts logistics, fulfillment, domestic transportation management, dedicated contract carriage

Vertical Industry Focus/Key Customers: Consumer Goods, Food/Groceries, Healthcare, Industrial, Retailing, Technological Key Customers: Cummins, DuPont, GlaxoSmithKline, Keurig Coffee, Kimberly-Clark, Komatsu, Sears, Stryker, Valeant Pharmaceuticals, Whirlpool

Armstrong & Associates’ Evaluation: This established, North American value-added 3PL consists of five operating companies including logistics, transportation, material handling equipment, real estate, and management services. Kenco has developed transportation management services and expanded its dedicated contract carriage to broaden its integrated logistics offering, serving its diverse customer base in 30 states and Canada. Kenco plans to be the North American logistics services provider of choice, while expanding internationally with partners in Europe and Asia. Kenco adds to its domestic strength by having a diverse customer base. It provides warehousing, distribution and transportation services to customers in the appliance/furniture, pharmaceutical, medical equipment, food, building materials, apparel, and consumer packaged goods industries. Kenco provides manufacturing support for Komatsu’s heavy equipment manufacturing facility in Tennessee. This successful relationship is opening doors with other Japanese customers. In addition, Kenco has spread successfully into pharmaceuticals, managing all GlaxoSmithKline USA’s pharmaceutical and consumer packaged goods distribution centers. Kenco also provides transportation management services to both divisions of GSK. For Whirlpool, another major customer, Kenco operates 26 facilities with over six million square feet of space in 10 states and Canada. Value-added services provided by Kenco include OEM parts packaging and distribution, sequencing, kitting, display assembly, and custom solutions. Expansion into e-commerce fulfillment also adds value to its diverse customer base. Kenco is continuing implementation of Lean Six Sigma in all 102 sites.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/Kenco_Site_Visits.htm

3PL Turnover: $513m

Service Area: North America

3PL Assets: 1,200 employees

Information Systems: Capable TMS – Proprietary--Guardian

Services: Domestic transportation management, freight brokerage, intermodal

Vertical Industry Focus/Key Customers: Consumer Goods, Industrial, Retailing Key Customers: Cardinal Building Materials, Jacobs Trading, Par Aide, SVD Services, Wells Fargo

Armstrong & Associates’ Evaluation: Freightquote was a successful dotcom which became an Internet-based transportation manager. It provides an important service for small- to medium-sized shippers particularly in regard to LTL. Twin Modal, acquired by Freightquote in 2005, is an IMC and brokerage operation which has adapted to the changing marketplace and acquired new capabilities. Rockwell Transportation is a Pennsylvania-based brokerage operation that was acquired by Freightquote in 2007. Brokerage is 60% of revenue.

Pilot Air Freight dba Pilot Freight Services Lima, PA Richard Phillips, Jr., CEO 610-891-8100 www.pilotdelivers.com

3PL Turnover: $491m

Service Area: United States, Canada, The Netherlands

3PL Assets: 2,500 employees 68 warehouses 250 tractors, 1,000 trailers

Information Systems: Good TMS – CSA--Air-Trak WMS – eWMS

Services: Airfreight-based logistics, warehousing

Vertical Industry Focus/Key Customers: Automotive, Consumer Goods, Electronics, Retailing Key Customers: Amazon.com, Bowflex, Ford, General Electric, Hallmark, Home Shopping Network, Neiman Marcus, Panasonic, Philips Consumer Electronics, U.S. Navy

Armstrong & Associates’ Evaluation: Pilot Freight Services changed its name from Pilot Air Freight in 2007 to better reflect its expanding service capabilities. It has 75 locations throughout the U.S. and Canada, a location in Amsterdam and a network of agents worldwide.

3PL Turnover: $350m Parent: $19.5b

Service Area: North America

3PL Assets: 450 employees

Information Systems: Good TMS – MercuryGate, CargoWise, Proprietary

Services: Transportation management, air and ocean freight forwarding, NVOCC, customs brokerage, project logistics, intermodal, consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Elements, Food/Groceries, Industrial, Retailing Key Customers: Amazon.com, Bed Bath & Beyond, Gamesa, Georgia-Pacific, Hilti, Kohl’s, LG, Morton Salt, Mott’s, Rio Tinto, Ryerson, Schlumberger, Wal-Mart

Armstrong & Associates’ Evaluation: Ray Greer, Eric Wolfe and their team are excellent transportation management operators. Wolfe built a good core business that put BNSF Logistics on the U.S. 3PL map. Greer's contacts and background have helped BNSF expand more rapidly. In addition to its core truckload, less-than- truckload, rail and intermodal transportation management services, BNSF Logistics is increasingly focusing on delivering solutions for project logistics customers with complex transportation management needs that often require a multimodal approach and significant engineering skills. BNSF Logistics has added international freight forwarding capability – BNSF Logistics International. This division was created from the 2008 acquisitions of Diversified Freight Logistics and NVOCC Royal Cargo Line. It accounted for 12% of BNSF Logistics’ 2011 revenues and managed over 20,000 ocean containers and 2.3 million kilos of airfreight. BNSF has become a leading provider of oil field logistics.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/BNSFL_Site_Visits.htm

3PL Turnover: $339m

Service Area: Americas, Europe, Asia

3PL Assets: 1,500 employees 18 warehouses

Information Systems: Very Good TMS – Proprietary--PowerTMS, MercuryGate WMS – Manhattan, RedPrairie

Services: Transportation management, freight brokerage, contract logistics, air and ocean freight forwarding, NVOCC, customs brokerage, project logistics, technology, consulting

Vertical Industry Focus/Key Customers: Consumer Goods, Elements, Food/Groceries, Industrial, Retailing, Technological Key Customers: BAE Systems, Barnes & Noble, Case-Mate, Costco Wholesale, Dollar Tree, Eddie Bauer, Kennametal, Mead Johnson, Progress Energy, Samsung Electronics

Armstrong & Associates’ Evaluation: MIQ Logistics provides an alternative with scale. It is large enough to have global supply chain tools yet its manageable size allows it to be agile and flexible. The company was founded in 2002 as Meridian IQ and then rebranded as YRC Logistics. Before becoming MIQ Logistics in 2010, it refined its offering to three profitable service lines. Growth and profitability at MIQ emphasizes total quality management. All MIQ personnel operate according to a succinct and straightforward list of Core Values. New ownership by Austin Ventures and tightly knit core leadership has the company growing while generating profits. Austin Ventures bought YRC Logistics at a bargain price of $38.7 million in August 2010. Joey Carnes, the former CEO of BAX, was named chairman and CEO. Carnes was reunited with his colleague, John Carr, who became the MIQ president and COO after being with the organization for the past several years. Carnes and Carr have worked in tandem for over 20 years going back to their days at Fritz, a major freight forwarder and customs broker, acquired by UPS in 2001.

Armstrong & Associates’ Case Studies: http://www.3plogistics.com/MIQ_Site_Visits.htm

3PL Turnover: $326m

Service Area: North America

3PL Assets: 310 employees

Information Systems: Capable TMS – Proprietary

Services: Domestic transportation management, freight brokerage, temperature controlled

Vertical Industry Focus/Key Customers: Consumer Goods, Food/Groceries, Industrial, Retailing Key Customers: Ahold USA, Berry Plastics, Costco Wholesale, M&M (Mars), Procter & Gamble, Quaker Oats, Trex, U.S. Battery, Wild Oats Markets

Armstrong & Associates’ Evaluation: Allen Lund is one of the largest freight brokerage operations in the U.S. It has 30 offices in 23 states and manages nearly 270,000 loads annually. It has good company processes and attention to detail. Lund handles dry, refrigerated (mainly produce) and flatbed shipments. Lund has a contract logistics operation in the Midwest. International and perishable logistics divisions were added in 2005.

3PL Turnover: $320m

Service Area: United States, Canada

3PL Assets: 65 employees

Information Systems: Good TMS – Proprietary

Services: Domestic transportation management, freight brokerage, intermodal, project logistics

Vertical Industry Focus/Key Customers: Consumer Goods, Food/Groceries, Industrial Key Customers: Coca-Cola, Cooper Tire & Rubber, Dannon, Energizer, Huxtable's Kitchen, Interplast Group, R.R. Donnelley & Sons, Sikorsky Aircraft, U.S. Nonwovens

Armstrong & Associates’ Evaluation: Sunteck is a fast growing freight broker and 3PL. Sunteck specializes in providing strong backroom operations for its agents. Wachtel has build a strong team with good agent support.

Armstrong & Associates’ Case Study: http://www.3plogistics.com/Sunteck_3-2009.htm