Richard Armstrong of Armstrong & Associates has released his annual report of the top 3PL providers in North America. Rankings are based on total annual revenue in N. America.

I found it interesting to note that in the article customer satisfaction was deemed greater with the mid-sized 3PL’s ($500-1000 million annual revenue) as opposed to the larger 3PL’s. Although, many of the larger 3PL’s have grown through acquisition which has most likely caused customer service to suffer during integration activities.

It seems that every big deal has generated a host of problems, disrupting some customer relationships and lowering profits for the new companies. Turnover of key personnel and procedures because of purchases are a regular complaint. Our analysis indicates that the net income margin* is only 4.1% for 3PLs with net revenues greater than one billion dollars. If we take expeditors and Caterpillar Logistics out of the group, the margin drops to 2.5%. Expeditors and Caterpillar have primarily grown organically rather than through purchases.

Here are the top 30:

1. UPS Supply Chain Solutions
2. C.H. Robinson Worldwide
3. Schenker USA/BAX Global
4. Expeditors International of Washington
5. Schneider Logistics/Dedicated
6. DHL Contract Logistics (Exel)
7. Penske Logistics
8. EGL Eagle Global Logistics
9. UTi Worldwide
10. Kuehne + Nagel Contract Logistics, North America
11. Ryder System
12. Caterpillar Logistics Services
13. Hub Group
14. Menlo Worldwide
15. Meridian IQ
16. J.B. Hunt Dedicated Services
17. TNT Logistics North America
18. Werner Dedicated Services
19. Landstar Global Logistics
20. Greatwide Logistics Services
21. Transplace
22. NFI Industries
23. PBB Global Logistics
24. GENCO
25. Logistics Insight Corporation
26. Ozburn-Hessey Logistics
27. Total Logistics Control
28. BNSF Logistics
29. A.N. Deringer
30. Kelron Logistics

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