• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • BLOG
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Warehousing 3PLs Expand Their Transportation Functions

Warehousing 3PLs Expand Their Transportation Functions

01.11.COVER_37.gif
February 18, 2011
SupplyChainBrain

Analyst Insight: The boundaries defining U.S. value-added warehousing (VAWD) get fuzzier. The major 3PLs in the contract warehousing market continue to expand their transportation functionality to better match broader customer needs.  As a result, all of the major players now have expanded transportation services, which add significantly to their value-added warehousing capability.

-Dick Armstrong, chairman of Armstrong & Associates

The largest North American value-added warehousing and distribution company, Exel, operates Oracle's transportation management system and others.  It also has a large freight brokerage, Exel Transportation, and a home delivery operator, Exel Direct.  Exel has more than 600 tractors in commingled dedicated contract carriage (DCC) in North America.  To round out its cross-selling capabilities, it is owned by the largest global freight forwarder, DHL.

Jacobson Companies, the third-largest contract warehousing company, has over 350 tractors with 260 in DCC.  In addition, Jacobson has expanded to China and initiated international freight forwarding.  Jacobson plans on opening nine offices in China.  Major multifunction, value-added customers are Dow, ITS and Ralston.

OHL, the fourth-largest, has extensive overseas forwarding operations (Barthco) in 60 locations and over 120 tractors supporting operations.  In addition, OHL does extensive transportation management using the Oracle TMS.

UTi Contract Logistics, CEVA, Kuehne + Nagel and DB Schenker are other companies with large value-added warehousing, global freight forwarding operations plus extensive transportation management activity.  These companies are all technologically sophisticated with TMS, WMS and other supply chain management capabilities.

All of the VAWD 3PLs with freight forwarding and TMS capabilities offer one-stop shopping global supply chain management.  They have scale and scope particularly with regard to combined transportation functions that put them in a different category from smaller competitors.

There are other transportation marketing approaches, which have worked well for large North America-only companies.  GENCO has a large TMS operation that specializes in small package contracting and auditing.  GENCO is the second-largest VAWD with a heavy emphasis on return logistics and fulfillment.  Kenco, NFI, Saddle Creek and Kane Is Able use dedicated contract carriage to augment their distribution operations.  DSC uses extensive i2-based transportation management.

Menlo Worldwide uses extensive non-asset TM and freight brokerage (Con-way Multimodal) to complement its primarily multi-client VAWD operations.  Menlo has expanded its network to include Europe, Asia and Australia.

The transportation functionality expansions of North American-based VAWD 3PLs increasingly makes them look more like European contract logistics operations.  European contract logistics is about 40 to 45 percent warehousing, 20 to 25 percent value-added services and 30 to 40 percent truck distribution.  For 29 European countries combined, the total contract logistics market was $114bn in 2009.  Germany, the largest individual market, was $24bn.  For North America, the comparable numbers for commercial warehousing and DCC was $64bn.

Commercial warehousing is estimated at $50bn for the United States in 2010 with $30bn being VAWD and $20bn in public warehousing.  DCC in 2010 is estimated at $9.8bn.  The 2010 estimate for U.S. contract logistics is $60bn.  Of this total, $20bn is DCC and other truck distribution, $24bn is net VAWD and $16bn is net public warehousing.

The Outlook

The public warehousing segment is expected to grow slowly or shrink over the next five years while VAWD grows at 7 percent or more per year.

RELATED CONTENT

RELATED VIDEOS

Global Supply Chain Management North America Latin America Europe China Canada Asia Pacific Technology Inventory Planning/ Optimization Transportation Management All Warehouse Services Business Strategy Alignment Logistics Facility Location Planning Global Gateways Global Logistics Warehouse Management Systems Logistics Outsourcing Service Parts Management Transportation & Distribution
KEYWORDS All Warehouse Services Asia Pacific Business Strategy Alignment Canada China Europe Facility Location & Network Design Global Gateways Global Logistics Global Supply Chain Management Inventory Planning/ Optimization Latin America Logistics Logistics Outsourcing North America Service Parts Management Supply Chain Analysis & Consulting Technology Transportation & Distribution Transportation Management Warehouse Management Systems
  • Related Articles

    Yusen Logistics Expands Warehousing Site in Germany

    Learn How Cytosport Trimmed $2 Million from Their Transportation Costs by Reconfiguring Their Network of Distribution Centers

    2015 to See Focus on Domestic Transportation, Warehousing & Manufacturing in China

  • Related Events

    How Neiman Marcus Transformed Ticketing for a Faster Time to Market

  • Related Directories

    Kuebix

    Snapfulfil

SupplyChainBrain

100 Great Supply Chain Partners Issue 2009

More from this author

Get regular updates!
Subscribe to our newsletter

Enjoy curated articles directly to your inbox.

Popular Stories

  • 1115_chinarareearthminerals

    Podcast | Can China’s Monopoly on Rare Earth Minerals Be Broken?

    Sourcing/Procurement/SRM
  • 1107_intelusedsupplychain

    Intel Used Its Supply Chain to Reshape Company Culture — and Make Millions

    Technology
  • 1111_makeorbreakblockchain

    The Element That Can Make or Break Blockchain for the Supply Chain

    Technology
  • 1125_themodernfactory

    The ‘Modern’ Factory Remains a Dream for Many Manufacturers

    Technology
  • 1118_howconsumerproductscompanies

    How Consumer-Products Companies Are Wasting Their Digital Spend

    Technology

Digital Edition

55746

Subscribe today and receive the latest issue

Start Your Subscription

Case Studies

  • Manufacturer Slashes Shipping Costs With AI Packaging Solution

  • Apparel Retailer Saves $45 Million With Reverse Logistics Solution

  • QuestaWeb Configures Fragrance Company’s Complex Procedures Into Its Advanced FTZ Software

  • Business Turnaround: Integrated Business Planning as a Management Tool

  • How a 3PL Reduced Rejected Deliveries Using LoadProof

Visit Our Sponsors

  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • The Magazine
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • 100 Great Partners Form
  • Resources
    • Newsletters
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing