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 Copyright © 2012 Armstrong & Associates, Inc. UPS Supply Chain Solutions Alpharetta, GA NYSE: UPS (United Parcel Service, Inc.) Scott Davis, Chairman & CEO 800-742-5727 www.ups-scs.com 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 Copyright © 2012 Armstrong & Associates, Inc. Expeditors International of Washington Seattle, WA NASDAQ: EXPD Peter Rose, Chairman & CEO 206-674-3400 www.expeditors.com 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. Copyright © 2012 Armstrong & Associates, Inc. UTi Worldwide Long Beach, CA NASDAQ: UTIW Eric Kirchner, CEO 562-552-9400 www.go2uti.com 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 Copyright © 2012 Armstrong & Associates, Inc. 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