10 3PLS KILLING IT WITH DISTRIBUTION LOGISTICS - Global Trade Magazine
  August 11th, 2020 | Written by

10 3PLS KILLING IT WITH DISTRIBUTION LOGISTICS

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  • The third-party logistics (3PL) industry did more than $200 billion in revenue in the U.S. in 2018.
  • Moving pharmaceuticals around the country requires more than simply a cold chain distributor.
  • For customers that deal with hazardous materials, logistics can be a tricky, even dangerous proposition.

The third-party logistics (3PL) industry did more than $200 billion in revenue in the U.S. in 2018, according to Armstrong & Associates. That figure is double what it was just a decade ago. Rising labor costs, tight shipping capacity and a general need for companies to cut distribution costs are all fueling the growth.

Here are 10 3PLs that are making noteworthy advancements in the world of distribution logistics.

C.H. Robinson

Already one of the largest 3PLs in the world, C. H. Robinson is in the process of acquiring Prime Distribution Services, one of the nation’s leaders in retail consolidation services. “Prime Distribution Services is a high-quality growth company that brings scale and value-added warehouse capabilities to our retail consolidation platform, adding to our global suite of services,” said Bob Biesterfeld, C.H. Robinson CEO, in January. Prime currently operates five distribution centers throughout the U.S., totaling about 2.6 million square feet. With nearly $20 billion in freight under management and 18 million annual shipments, C. H. Robinson earned the top slot in Armstrong & Associates’ Top 50 U.S. 3PLs for 2018.

Holman Logistics

Headquartered in Kent, Washington, Holman opened in Portland back in 1864. Today, it’s one of the leading logistics firms in the Pacific Northwest, though it also manages facilities throughout the nation. The company offers public and contract warehousing (with 7 million square feet of warehousing space), manufacturing logistics, plant support, transportation, collaborative logistics and order-fulfillment services. In terms of distribution, Holman handles both truckload and LTL deliveries, as well as spotting and shuttle services. Some of Holman’s biggest customers are Hill’s Pet Nutrition, Kimberly-Clark, General Electric appliances, Dr. Pepper/Snapple Group, Dole Pineapple, Kerry Foods, Cargill and Morton Salt.

Anchor 3PL

For customers that deal with hazardous materials, logistics can be a tricky, even dangerous proposition. If it’s going the 3PL route for distribution, it’s imperative that it find a company that thoroughly understands the demands of hazmat logistics. While not a large firm, Anchor 3PL operates a 140,000-square-foot warehouse that has 40,000 square feet dedicated to hazmat. Based in Salt Lake City, Anchor regularly deals with chemical and hazmat storage and distribution, works with fire and safety departments, stays on top of the thousands of legal requirements for storing and transporting hazardous materials and maintains relationships with all the regulating authorities.

Kanban

Even with the Trump Administration’s 2018 tariffs on imported photovoltaic panels, the solar industry is booming. Located in eastern North Carolina, in the heart of domestic solar energy production, Kanban is using its thorough knowledge of the industry and logistics to help customers with warehousing and distribution of solar panels. With a million feet of warehouse space, Kanban was able to both assist customers with high-volume warehousing before the tariffs took effect, and then offer solutions for companies that had to change course once the tariffs started. The company also offers logistics assistance for aerospace, food processing and automotive industries.

Cardinal Health Specialty Solutions

Moving pharmaceuticals around the country requires more than simply a cold chain distributor. In 2011, Cardinal began using a special non-toxic, environmentally friendly insulated tote to keep products between 2°C – 8°C (36°F – 46°F) during shipment. The result keeps the supply chain safe as well as prevents possible spoiled or adulterated products from re-entering the supply chain. For vaccine storage and shipment, Cardinal’s commercial refrigeration units are only calibrated using devices from the National Institute of Standards and Technology (NIST). It’s no surprise that Cardinal Health moves one out of every six pharmaceutical products in the country.

Cerasis

Since 1997, Cerasis has specialized in less than truckload (LTL) freight management. In fact, close to 95 percent of the company’s business has been in the LTL realm. Not only does this make sense for those wishing to move smaller volumes of freight, but it’s also perfect for e-commerce shipping. Cerasis is based in Minnesota but maintains offices in Oklahoma and Texas. GlobalTranz acquired Cerasis in January 2020. “Combining with GlobalTranz allows us to continue this history while providing our customers with increased service offerings and access to capacity,” said Cerasis President Steve Ludvigson shortly after the acquisition.

Expeditors

Based in Seattle, Expeditors operates 322 locations in more than 100 nations. Though it handles logistics for a variety of industries, Expeditors has considerable experience and expertise in the automotive world. Its customers include both original equipment manufacturers and tier suppliers, and it uses its sprawling global network—which includes more than 25 million square feet of warehouse space—to track items at the part or vehicle identification number level. Expeditors’ distribution services even include light manufacturing, labeling, product localization, inspection and product rework and compliance.

BDP International

Moving oil and gas around the world is complex, even in the realm of international logistics. No shipment is the same, and regulations are often changing. But BDP has long specialized in moving fuel, so it understands pricing, procurement, heavy lift and turn-key rig mobilization. In terms of distribution, the company operates facilities all around the world (including Dallas, Houston, Los Angeles and Philadelphia), and uses extensive barcode scanning technology to keep track of everything. The company even offers its own BDP Smart Tower application, which allows customers to monitor asset locations, maximize asset utilization and coordinate maintenance and repairs to keep equipment downtime at a minimum.

Qualex

In 1990, Qualex opened as a dock-to-dock delivery company for Southern California furniture makers. Since then, it’s evolved into a full 3PL firm with tightly integrated warehouse and transportation services, though it still specializes in the furniture industry. For each customer, Qualex sets up an Electronic Data Exchange (EDI), which channels replenishment orders directly into its own Warehouse Management System (WMS), making logistics practically invisible.  Full distribution services include confirmation receipts, the automatic emailing of proof of delivery, inventory status reports, installation job status and even emailed photos of product condition upon delivery.

United Natural Foods, Inc.

Since grocery profit industry margins hover around just 2 percent, outsourcing logistics is practically mandatory. With its 2018 acquisition of Supervalu Advantage Logistics, United Natural Foods Inc. (UNFI) became a leader in grocery industry logistics. In fact, it’s the largest publicly traded grocery distributor in the nation. And its warehouse facilities are cutting edge—some have radiofrequency devices that guide selectors to stock, while others are completely automated, ready to deliver aisle-ready pallets to retail stores. SuperValu also ran all the logistics for four regional warehouses belonging to Krogers, the second-largest grocery chain in the country.