May 17, 2020

Report shows accelerated 3PL growth

Third-party logistics
3PL
Logistics Solutions
Armstrong &
Freddie Pierce
2 min
Armstrong & Associates report shows third-party logistics industry continues to grow ahead of the GDP curve
Most third-party logistics providers (3PLs) got back on track in 2010 and are sprinting in 2011. Consistent with ongoing economic globalization, the In...

Most third-party logistics providers (3PLs) got back on track in 2010 and are sprinting in 2011. 

Consistent with ongoing economic globalization, the International Transportation Management 3PL segment led with a 30.1% gross revenue (turnover) and net revenue (gross margin) increases. 

Dedicated Contract Carriage followed at 13.1%.  Overall, 3PL U.S. gross revenues jumped 18.9% in 2010 to $127.3 billion slightly exceeding the 2008 market result.)

The compound annual growth rate (CAGR) for third-party logistics market net revenue from 1995 through 2010 was 12.7%.  2009 was the only negative year since Armstrong & Associates began tracking results in 1995. 

From 2009 to 2010, the increase in 3PL net revenue was 4.7 times the rate of U.S. gross domestic product (GDP) growth.  One driving factor of 3PL growth was world trade volumes which increased 12.4% for 2010.

Revenues and profitability increased in all four 3PL segments in 2010.  Gross revenue increases ranged from 12.9% to 30.1% and were up 19.4% overall.  Net revenues (gross revenue minus purchased transportation) were up 13.2%. 

Net revenues are a better indicator of true business improvement since fuel related costs have minimal impact.  Overall, net income increased 23.4% from 2009 levels.

The complete report and other Armstrong & Associates research can be found at: http://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates, Inc.:

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. 

Edited by Kevin Scarpati

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Jun 8, 2021

DHL Claim Multi-Sector Collaboration Key to Fighting COVID

DHL
Supplychain
COVID19
Logistics
3 min
Global logistics leader DHL’s new white paper highlights what supply chain professionals have learned one year into the pandemic

Since January, global logistics leader DHL has distributed more than 200 million doses of the COVID vaccine to 120+ countries around the globe. While the US and UK recently rolled out immunisation plans to most citizens, countries with less developed infrastructure still desperately need more doses. In the United Arab Emirates (UAE), which currently has one of the highest per-capita immunisation rates, the government set up storage facilities to cover domestic and international demand. But storage, as we’ve learned, is little help if you can’t transport the goods.

 

This is where logistics leaders such as DHL make their impact. The company built over 50 new partnerships, bilateral and multilateral, to collaborate with pharmaceutical and private sector firms. With more than 350 DHL centres pressed into service, the group operated 9,000+ flights to ship the vaccine where it needed to go. 


 

Public-Private Partnerships

With new pandemic knowledge, DHL just released its “Revisiting Pandemic Resilience” white paper, which examined the role of logistics and supply chain companies in handling COVID-19. As Thomas Ellman, Head of Clinical Trials Logistics at DHL, said: “The past one year has highlighted the importance of logistics and supply chain management to manage the pandemic, ensure business continuity and protect public health. It has also shown us that together we are stronger”. 

 

Multisector partnerships, DHL said, enabled rapid, effective vaccine distribution. While international scientists developed a vaccine in record time—five times faster than any other vaccine in history—manufacturers ramped up production and logistics teams rolled out distribution three times faster than expected. When commercial routes faced backups, logistics operators worked with military officers to transport vaccines via helicopters and boats. 

 

In the UAE, the public-private HOPE Consortium distributed billions of COVID-19 doses to its civilians as well as other countries in need by partnering with commercial organisations such as DHL. For the first time, apropo for an unprecedented pandemic, logistics companies made strong connections with public health and government.

 

“While the race against the virus continues, leveraging the power of such collaborations and data analytics will be key”, said Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions & Innovation. “We need to remain prepared for high patient and vaccine volumes, maintain logistics infrastructure and capacity, while planning for seasonal fluctuations by providing a stable and well-equipped platform for the years to come”. 


 

How Do We Sustain Immunisation? 

By the end of 2021, experts estimate that we need approximately 10 billion doses of vaccines—many of which will be shipped to areas of the world, such as India, South Africa, and Brazil, that lack significant infrastructure. This is perhaps the greatest divide between countries that have rolled out successful immunisation programmes and those that have not. As Busch noted, “the UAE’s significant investments in creating robust air, sea, and land infrastructure facilitated logistics and vaccine distribution, helping us keep supply chains resilient”. 

 

Neither is the novel coronavirus a one-time affair. If predictions hold, COVID will be similar to seasonal colds or the flu: here to stay. When fall comes around each year, governments will need to vaccinate the world as quickly as possible to ensure long-term immunisation against the virus. This time, logistics companies must be better prepared. 


Yet global immunisation, year after year, is no small order. To keep reinfection rates low and slow the spread of COVID, governments will likely need 7-9 billion annual doses of the vaccine to meet that mark. And if DHL’s white paper is any judge of success, multi-sector supply chain partnerships will set the gold standard.

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