3PL Brand Recognition, RFP Activity and Expected Profit Margins for 3Pls ‐ 2013

3PL Brand Recognition, RFP Activity and Expected Profit Margins for 3PLs ‐ 2013

April, 2013

Phone: +1‐800‐525‐3915 Website: www.3PLogistics.com Email: [email protected] Revised 4/12/13

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Armstrong & Associates, Inc. is a supply chain management market research and consulting firm specializing in competitive benchmarking, mergers and acquisitions, strategic planning, logistics outsourcing, centralized transportation management programs, and supply chain systems evaluation and selection. Armstrong & Associates publishes Who’s Who in Logistics and Supply Chain Management – The Americas and Who’s Who in Logistics and Supply Chain Management – International. Recent research papers include "Mexico: Trucking, Railroads and Third‐Party Logistics Market Report," "U.S. Gains Carry 3PLs ‐ 2011 3PL Market Analysis and 2012 Predictions," "The Business of Warehousing in North America ‐ 2012 Market Size, Major 3PLs, Benchmarking Costs, Prices and Practices" and "Dedicated Contract Carriage ‐ New Life in a Mature Market."

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Introduction

In the first quarter of 2007, Armstrong & Associates surveyed third‐party logistics (3PL) managers to identify the most recognizable brands in third‐party logistics. The surveys also included sections on request for information (RFI), request for proposal (RFP) and direct sales activity profit margin expectations.

In 2007, for the question, "When you think about 3PLs, what five companies are the first to come to mind?" DHL/Exel and UPS Supply Chain Solutions were mentioned on 22 surveys (65%). C.H. Robinson Worldwide, Ryder Supply Chain Solutions, Schneider Logistics, OHL and Menlo Worldwide Logistics formed a second group with 10‐11 mentions. A third group with 6‐7 mentions included UTi Worldwide, Kuehne + Nagel, GENCO and NFI. Twenty other companies were mentioned.

In the first quarter this year (2013), we repeated and expanded the previous study. From 3PL managers, we received 30 surveys which encompassed and expanded our previous study. These surveys cover brand recognition, RFI/RFP/direct sales and margin expectations. In addition, we provided a shorter questionnaire on brand recognition at our website. That questionnaire received 110 responses from 3PLs, customers of 3PLs and others associated with the industry. The surveys used are in Appendices A and B.

Brand Recognition Results ‐ Part 1

The list of recognized brand names has changed significantly over the last six years. Since our last study, the most surprising change is the lack of mention of Schneider Logistics in the core surveys of 30 3PL managers (30‐3PL). Schneider Logistics is mentioned eight times in the 110 responses (7%) to our website survey (Web‐110). Seven responses averaged to "B" scores for Schneider's dedicated contract carriage (DCC) and domestic transportation management (DTM) scores. The lack of mention of Schneider Logistics by our sample of 30 3PL managers indicates that Schneider Logistics is no long