11 LQ ™ October 2005 LogisticsQuarterly.com UPS Supply Chain Solutions – Atlanta, GA – NYSE: UPS (United Parcel Service) 866-822-5336 Bob Stoffel, President www.ups-scs.com North America: $5.3b Parent: $36.5b Service to 99% of World GDP; NA locations: 50 U.S., 20 Canada, 10 Mexico 25,000 employees 1,238 warehouses 900 tractors, 2,450 trailers Excellent TMS – i2, WMS – EXE, Manhattan, proprietary Air and ocean freight forwarding, customs brokerage, transportation management, warehousing and distri- bution, supply chain consulting, dedicated contract carriage Automotive, technology, healthcare, consumer products Key Customers: Cisco Systems, DaimlerChrysler, Dell, Ford, General Motors, Hewlett Packard, Honeywell, BM, Nike, Siemens, The big brown machine rolls on. UPS is the largest U.S.-based 3PL and it continues to spread worldwide, offering services everywhere the package company goes. A large new facility is being constructed in Singapore. Expansion in China continues. The acquisition of Menlo Forwarding fills some heavyweight airfreight and geographical gaps and costs little. Not only is UPS gearing up for the promise in China, but it already has over 200 employees in Japan. It’s only a start and Japan is the world’s second largest economy. In the U.S., UPS has added a less-than-truckload operation. Overnite broadens its portfolio. Mira Loma, CA is the first building of a multi-building West Coast campus similar to that UPS has in Louisville. Free cash flow, UPS capital and a host of options are key to the battles ahead with DHL, FedEx and the other guys. 3PL Turnover: Service Area: 3PL Assets: Information Systems: Services: Industry Focus/Key Customers: Armstrong & Associates’ Evaluation: C.H. Robinson Worldwide – Eden Prairie, MN – NASDAQ: CHRW 952-937-8500 John Wiehoff, CEO www.chrobinson.com North America: $4.3b North America, Europe, Brazil; NA locations: 134 U.S., 5 Canada, 4 Mexico 4,800 employees 100 warehouses and crossdock affiliates Very Good TMS – COSMOS; Express WMS – High Jump Freight brokerage, air and ocean freight forwarding, transportation management, warehousing, print logistics Technology, food and beverage, retail, paper products and printed materials, agriculture, consumer goods Key Customers: Amstar, Anchor Glass, Anheuser-Busch, AOL, Ball Foster Glass, Beatrice/Hunt Wesson, Best Buy, Cargill, Clorox, Dana Corp, International Paper, Wal-Mart C.H. Robinson Logistics continues to be a very profitable, well run company. It has expanded its produce sourcing operations. It is the leader in North American freight brokerage and crafts complete supply chain solutions. It has been very successful in the less-than-truckload market. CHR has recently developed competitive IT transportation and SCM solutions. CHR has relied on organic growth, a follow-the-customer strategy and small purchases for most of its international expansion. A majority of its business is in the food and beverage vertical. CHRL’s software has been redesigned to emphasize a detailed order management system linked to transportation execution. Robinson’s LTL transportation website approach provides a significant consolidation and cost saving methodology. 3PL Turnover: Service Area: 3PL Assets: Information Systems: Services: Industry Focus/Key Customers: Armstrong & Associates’ Evaluation:
The big brown machine rolls on. UPS is the largest U.S.-based 3PL and it continues to spread worldwide,offering services everywhere the package company goes. A large new facility is being constructed inSingapore. Expansion in China continues. The acquisition of Menlo Forwarding fills some heavyweightairfreight and geographical gaps and costs little. Not only is UPS gearing up for the promise in China, but it already has over 200 employees in Japan. It’s only a start and Japan is the world’s second largesteconomy. In the U.S., UPS has added a less-than-truckload operation. Overnite broadens its portfolio. MiraLoma, CA is the first building of a multi-building West Coast campus similar to that UPS has in Louisville.Free cash flow, UPS capital and a host of options are key to the battles ahead with DHL, FedEx and theother guys.
North America, Europe, Brazil; NA locations: 134 U.S., 5 Canada, 4 Mexico
4,800 employees100 warehouses and crossdock affiliates
Very GoodTMS – COSMOS; ExpressWMS – High Jump
Freight brokerage, air and ocean freight forwarding, transportation management, warehousing, print logistics
Technology, food and beverage, retail, paper products and printed materials, agriculture, consumer goodsKey Customers: Amstar, Anchor Glass, Anheuser-Busch, AOL, Ball Foster Glass, Beatrice/Hunt Wesson,Best Buy, Cargill, Clorox, Dana Corp, International Paper, Wal-Mart
C.H. Robinson Logistics continues to be a very profitable, well run company. It has expanded its producesourcing operations. It is the leader in North American freight brokerage and crafts complete supply chainsolutions. It has been very successful in the less-than-truckload market. CHR has recently developed competitive IT transportation and SCM solutions. CHR has relied on organic growth, a follow-the-customerstrategy and small purchases for most of its international expansion. A majority of its business is in the food and beverage vertical. CHRL’s software has been redesigned to emphasize a detailed order management system linked to transportation execution. Robinson’s LTL transportation website approachprovides a significant consolidation and cost saving methodology.
Very goodTMS – G-Log, i2, Red PrairieWMS – HK Systems, Topex, Insight, Red Prairie, Manhattan
Warehousing and distribution (contract logistics), air and ocean freight forwarding, supply chain consulting, customs brokerage, transportation management, returns management, home delivery
Consumer goods, retail, computers and electronics, automotive, chemical, healthcareKey Customers: Adolph Coors Co., Alberto Liquor & Gaming, Apple Computer, BP, Colgate Palmolive,Compaq, Daewoo, Ford Motor Co., Hewlett-Packard, Home Depot, Honda, Intel, International Paper, Kodak,Maxtor, Miller Brewing, Mitsubishi Corp., Motorola, Nissan, Owens Corning, Pepsi Americas, PPG, Procter& Gamble, SC Johnson, Shell, Sony, Sun Microsystems, Unilever Bestfoods, Wal-Mart, Xerox
Exel has been the world’s largest 3PL. (DPWN/DHL has bid to acquire Exel as we prepare this profile andExel’s CEO John Allen will be the head of the new combined DHL Solutions operation.) It has grown pri-marily by acquisition, adding Tibbett & Britten recently. Its strengths are in contract logistics and freightforwarding. Exel is one of the world’s largest airfreight forwarders. Exel has had difficulty with some of itsNorth American domestic transportation businesses. Some are realigned – others are being closed asExel’s emphasis refocuses on international supply chain management. Exel did generate over $500 millionin free cash flow last year, but its overall profit margins continue to be small. Exel does a good job of mar-keting and can supply the whole range of value-added services. It covers all the major verticals. Exel has120 offices in the U.S., Canada and Mexico. Exel Direct is a solidly profitable last-mile delivery service.
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Expeditors International of Washington – Seattle, WA – NASDAQ: EXPD206-674-3400Peter Rose, CEO & Chairmanwww.expeditors.com
Expeditor’s net revenue grew 21% last year and its net profit continues to be one of the best in the business. It is expanding its European and American operations, but its largest growth is in informationsystems. Expeditors has made a commitment to increasing its communications and technology capabilitiesto the global supply chain management level. Expeditors maintains its strong commitment to quality personnel. Its business is roughly 40% airfreight forwarding, 40% customs brokerage and 20% ocean forwarding. Its primary traffic lane is between China and the U.S. Expeditors has opened new offices inPoland, Sweden, China, Brazil, Mexico and India this year.
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LogisticsQuarterly.com 13LQ™ October 2005
Penske Logistics – Reading, PA 610-775-8285Vince Hartnett, Presidentwww.penskelogistics.com
$3.2b
North America, Europe, Brazil; NA locations: 130 U.S., 5 Canada, 10 Mexico
Automotive, retail, food, appliances, utilitiesKey Customers: Amcor Sunclipse, Baxter Healthcare, Carrefour, Ford Motor Co., GE Medical, Iams,International Truck and Engine, Knoll, Mission Foods, Panasonic, Whirlpool Corp
Penske Logistics is one of the top automotive 3PLs. It is a lead logistics provider for Ford and Saturn. Majornew business gains included the takeover of GM Power Trains’ cross-dock and transportation manage-ment, inbound transportation for Whirlpool’s distribution center and a large dedicated operation for CSK.Its European operation continues to grow. Penske’s Brazilian operations are automotive- and retail-based.An office has been opened in Shanghai. Penske’s primary stockholder, GE Capital, has cleared the bar onsome important governmental requirements in the Peoples Republic of China. Penske should benefit andexpand quickly. Penske often functions as a lead logistics provider. Dedicated contract carriage is astrength as is its transportation routing center. Penske has been a beta test site for new i2 innovations.Penske has done well at implementing business expansion plans. Penske’s European operations includeeleven supply chain customers, warehousing, cross-docking and trucking. The operation is headquarteredin Roosendaal. Brazilian operations involve eight customers in Sao Paulo and Vitoria. Penske’s EuropeTMS center is based in Maastricht. Penske will add significant new operations in Asia this year.
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EGL Eagle Global Logistics – Houston, TX – NASDAQ: EAGL800-888-4949James R. Crane, Chairman & CEOwww.eaglegl.com
$2.7b
Asia Pacific, Australia, Europe, Middle East, Africa, Central and South America, United StatesNA locations: 80 U.S., 8 Canada, 9 Mexico
10,000 employees238 owned facilities
GoodTMS – proprietaryWMS – proprietary
Supply chain management; domestic and international transportation (air, ocean, ground, multimodal);logistics; customs brokerage; trade services and compliance; warehousing and distribution; expeditedground and air service; project management
High tech, pharmaceuticals and healthcare, automotive, oil and gas, retail and fashion, government anddefense, aerospaceKey Customers: 3M, Abbott Labs, Amazon, DaimlerChrysler, Dell, General Electric, Hewlett Packard, IBM,Intel Limited, Nike, Procter and Gamble, Target,
EGL has had a major success with its Iraq operations using 40 ton capacity Antsnov aircraft. It continues to have large increases in revenues and profitability. About half of the revenue for this heavy weight airfreight specialist is North America-based. Airfreight forwarding is about two-thirds of the business, with ocean and customs brokerage splitting the rest. Trucking linehaul substitution, along with its Iraqsuccess, has contributed significantly to EGL’s return to profitability.
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LogisticsQuarterly.com14 LQ™ October 2005
BAX Global Supply Chain Management – Irvine, CA – NYSE: BCO (The Brink’s Company)404-768-2003Joseph L. Carnes, Presidentwww.baxglobal.com
North America: $2.4b Global Revenue: $4.7
Asia, North America, United Kingdom; NA locations: 100+ U.S., 12 Canada, 7 Mexico
Air freight forwarding, transportation management, warehousing and distribution, supply chain consulting, freight payment and auditing, customs brokerageComputers and electronics, automotive, aerospace, airlines, healthcare, retailKey Customers: Airbus, Boeing, Bombardier, Epson, GE Medical Systems, Microsoft, NEC, PhilipsConsumer Electronics, Raytheon, Subaru,
The core BAX service is time definite heavy airfreight. Over the last five years, BAX has added more value-added warehousing services, eliminated airplanes and increased its SCM emphasis. Asia-based opera-tions have expanded. More North American traffic has been converted to truckload. The change of corporatedirection has brought BAX back to profitability and revenues have grown quickly. International revenues are58% of total revenue. BAX Global Supply Chain Services is nearly one-third of North American operations.
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UTi – Rancho Dominguez, CA – Nasdaq: UTiW310-604-3311Roger MacFarlane, CEOwww.go2uti.com
$2.5b
Service to 90% of world GDA; NA locations: 108 U.S., 10 Canada, 5 Mexico
Ocean and air freight forwarding, value-added warehousing and distribution, transportation management,customs brokerage, supply chain management
Automotive, building materials, retailing, chemicals, industrial, technology, healthcare, consumer goodsKey Customers: Bristol-Myers Squibb, Case New Holland, Dow Corning, Dupont, General Electric, GeorgiaPacific, Honeywell, Johnson Controls, Sara Lee, Wal-Mart
UTi has grown in 12 years to be a major global freight forwarder/SCM and darling of Wall Street. Growthexceeds 20% per year while gross and net margins remain solid. Airfreight forwarding and contract logistics are each one-third of the business. Customs brokerage and ocean forwarding split the rest. More value-added services and contract logistics will be added this year. UTi now has competitive SCMtechnology. The company has developed innovative pharmaceutical supply chain networks in South Africa.Roger MacFarlane leads by example, emphasizing teamwork, measurement and results. Managementstructures are fluid and adaptive with a core of 10 key leaders. UTi contract logistics opened a 4 millionsquare foot operation this year near Houston for Wal-Mart.
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15LQ™ October 2005LogisticsQuarterly.com
Kuehne + Nagel, Inc. – Jersey City, NJ – SWX: KNIN888-246-8726Rolf Altorfer, Presidentwww.kuehne-nagel.com
Americas: $2.3b Global Revenue: $9.3b
Service to over 90% of World GDP; NA locations: 46 U.S., 19 Canada, 4 Mexico
2400 employees44 international forwarding locations40 contract logistics locations
Very goodTMS – G-Log, GC3WMS – Exceed, CIEL FW, FourSite
Ocean and air freight forwarding, value-added warehousing and distribution, transportation management,customs brokerage, supply chain management
Automotive, high tech, industrial goods & chemicals, pharmaceutical & healthcare, retail & durablesKey Customers: Dupont, Nortel, Siemens, Memorex, Harman, Dana
Kuehne + Nagel is a well run, transparent Swiss company with consistently good financial results. It is theworld’s largest ocean freight forwarder, handling over 1 million TEUs per year. It is also one of the top fiveairfreight carriers. Kuehne + Nagel has ISO 9001 certification for all of its company locations. Kuehne +Nagel Contract Logistics specializes in multi-client, high-value-added customers.
Supply chain consulting, transportation management, warehousing and distribution, dedicated contractcarriage, air and ocean freight forwarding, equipment leasing, returns management, freight payment andauditing, insurance
Automotive, aerospace, industrial, telecommunications, computer and electronics, food and beverage,pharmaceuticals, building materials, utilities, consumer products and retail, newspaper distributionKey Customers: Applied Materials, Cadbury Schweppes, Caroline Power & Light, Coca Cola,DaimlerChrysler, Dallas Morning News, General Motors, Philips Consumer Electronics, Visteon Corp.
Ryder has traditionally been the most recognized brand name in North American logistics. For two decadesRyder has been one of the largest U.S. providers of dedicated contract carriage, often converting leasingcustomers to expanded service. Ryder’s dedicated operations average 15 trucks each and Ryder is a particularly good choice for small, stand-alone replacements. Ryder’s SCS is profitable and has won somesignificant new business this year from LG Electronics and Home Depot.
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LogisticsQuarterly.com16 LQ™ October 2005
Hub Group – Downers Grove, Il – NASDAQ: HUBG800-964-2515David Yeager, Vice Chairman & CEOwww.hubgroup.com
$1.4b
North America; NA locations: 21 U.S., 1 Canada, 1 Mexico
1,200 employees300 tractors
GoodTM – ICC, Sabre, i2
Intermodal, truck brokerage, rail car management, value-added warehousing/distribution
Building materials, computers and electronics, consumer goods, retailing, healthcare, food and groceriesKey Customers: Georgia Pacific, Hewlett Packard, Kraft Foods, Matsushita Electric, Nabisco, Pfizer, PhilipMorris, Sears, Staples, Unilever, United Natural Foods
Hub Group is a major North American intermodal management company. It provides a range of transportation solutions and contract logistics. 70% of revenues are intermodal – 15% are from UnysonLogistics, a 3PL and cross-dock specialist. Intermodal transportation is given preference because of costunless time constraints require highway transportation. Mexican service is handled through a partnershipwith TMM. Hub’s top management is respected for its candor.
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Schneider Logistics/Dedicated – Green Bay, WI800-525-9358Tom Escott, President-Logisticswww.schneiderlogistics.com
North America: $3.27m/$1.3b Parent:
North America, Europe; NA locations: 40 U.S., 3 Canada, 3 Mexico
Consumer products and retail, automotive, heavy equipment, computers and electronics, food and beverage, chemicals, healthcare, paperKey Customers: 3M, Anheuser Busch, Baxter Healthcare, CHN Corp., DaimlerChrysler, Dow Chemical, FortJames, General Motors, Georgia Pacific, Guardian Glass, Honda, Kimberly-Clark, Kroger, Nabisco, OceanSpray, PPG Industries, Thomson Multimedia, TRW, World Kitchen
Schneider Dedicated is the largest North American dedicated contract carrier, relying for the most part on dedicated capacity and SUMIT technology to take care of customers. Schneider’s emphasis is on largededicated opportunities. Schneider Dedicated has grown more rapidly over the last decade than any otherdedicated contract carrier. Schneider operates fleets that range in size from several to over 100 trucks, providing regional and local delivery as well as long haul. Schneider has dispatch offices at its Green Bayheadquarters for small operations. Operations are primarily with vans but some include refrigerated andflatbed trailers. Schneider is extremely competitive in bidding on large over-the-road fleets. It has grownsignificantly by expanding existing operations. It normally passes on small, local delivery and unionizedopportunities. SD has operations in which freight is consolidated in Browntown, MI and Northlake, IL forTOFC movement to California. About one-fourth of its industry-leading total consists of one-way dedicatedunits. Schneider's asset density and IT capabilities are leveraged to provide dedicated capacity for manycustomers rather than exclusive equipment dedication.
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17LQ™ October 2005LogisticsQuarterly.com
Menlo Worldwide – San Mateo, CA – NYSE: CNF650-378-5200Robert Bianco, Presidentwww.menloworldwide.com
Transportation management, warehousing and distribution, forwarder management, global supply chainmanagement, supply chain consulting, inventory management and light assembly/packaging
Automotive, chemical, CPG, high technology, public sector and retailKey Customers: 3Com, AMD, Cisco Systems, Delphi, Dow Chemical, Elextrolux, GM, Hewlett-Packard,Hurley International, IBM, Lam Research, Logitech, NCR, Nike, Nortel Networks, Ricoh, Sears LogisticsServices, Starbucks, Stanley Works, Takata
Menlo has realigned significantly after the sale of its freight forwarding operations to UPS. Menlo is one of the leading U.S.-based distribution logistics companies. It also has solid inbound supply chain manage-ment. Its LMS solution makes it a good transportation and supply chain manager. Interfaces to SAP havebeen made at HP and other companies. A firm toehold has been established in European logistics. VectorSCM, its successful joint venture with GM, is one of the few successful 4PLs.
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Schenker, Inc. – Freeport, NY516-377-3000Heiner Murmann, President & CEOwww.schenkerusa.com
North America: $1b Global: $6.4b
Europe, Asia, South America, Africa, North America; NA locations: 50 U.S, 6 Canada, 3 Mexico
36,000 employees405 warehouses
GoodTMS – SWORD, Procars, ILSWMS – HTS, SAP R/3, SoLiNet
Air and ocean freight forwarding, customs brokerage, warehousing and distribution, transportation management
Schenker is a major European player with expanding, but somewhat limited, U.S. presence. The quality of operations is good with the primary emphasis on international logistics. Recent expansion efforts have centered on Russia, Eastern Europe and China. Schenker is owned by Deutsche Bahn, the Germanrailroad, and is part of Stinnes, which has large oil and raw materials operations. European trucking operations account for over half of Schenker revenues. Forwarding operations are 40% and contract logistics is about 9%. The parent company loses aren’t helping Schenker in its efforts against major globalcompetitors.
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LogisticsQuarterly.com18 LQ™ October 2005
Meridian IQ – Overland Park, KS877-285-9126Jim Ritchie, President & CEOwww.meridianiq.com
Transportation management, warehouse management, air and ocean forwarding, dedicated contract carriage, brokerage and technology
Automotive, chemicals, metals, publishing, retailingKey Customers: Albertson’s, Arch Chemicals, Barnes & Noble, Bosch, BP Amoco, Charter Steel, DollarTree, Kennametal, Ryerson-Tull, Scholastic Inc.
Yellow Roadway’s acquisition of USF Corp. added USF Logistics to Meridian IQ and more than doubled itssize. It also added a large retail distribution network with 16 regional centers, a large dedicated contractcarriage operation, the i2 technology platform and solid, big-box value-added distribution. Meridian IQ,which started as a dotcom, has grown quickly to become a leading transportation management and cross-dock 3PL. In addition, it recently purchased a Hong Kong-based 3PL to add to its Asian capabilitiesand has some European presence. The new combination provides solid operations in the major logisticsareas and good IT coverage.
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Werner Dedicated – Omaha, NE – NASDAQ: WERN402-895-6640Marty Nordlund Sr., Vice President-Specialized Serviceswww.werner.com
North America: $806m Parent: $1.7
United States, Canada, Mexico; NA locations: 12 U.S., 2 Canada, 2 Mexico
Food and beverage, retail, building materialsKey Customers: Coca-Cola, Dollar General, Family Dollar, Jimmy Dean Foods, Sears, Target, VT Industries,Wal-Mart
Werner is a major dedicated contract carrier and U.S. trucking company. Its financial results are amongthe best in the business year after year. It has 140 dedicated contract carriage accounts. Werner’s arrangements with these accounts include primarily exclusive use of equipment deals with backhauls fromregular company loads where possible. Werner is using electronic logging in all operations and is a stepahead of its competitors in this regard. Werner has extensive logistics service operations through itsvalue-added services division (VAS). VAS has over $100 million per year in revenue. VAS operationsinclude cross-docks, warehouses, intermodal and brokerage. Werner is a C-TPAT/PIP/FAST participant.Among the 3750 units it has in dedicated service are 600 reefers and 100 flatbeds.
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19LQ™ October 2005LogisticsQuarterly.com
TNT Logistics North America – Jacksonville, FL – Netherlands: TP888-LOGISTXDavid Kulik, President & CEOwww.tntlogistics.us
TNT is the world’s largest automotive 3PL. It is expanding in other sectors and spreading geographically,primarily with existing customers. Operations in France and Italy have been improved through “standardi-zation.” As a result, profit margins have been increased. TNT’s acquisition of Wilson Logistics helps fill a need for more freight forwarding ability. TNT is very good at value-added support activities. Its Matrixsoftware suite reflects its range of logistics capabilities, including materials management. Its parent runs the privatized Dutch post office and generates significant free cash flows for investment. Closer cooperation with TNT Express is working. Further acquisitions to fill out global supply chain managementcapabilities are likely. TNT’s core services include fulfillment centers, high-velocity cross docks, sub-assembly, modularization, dedicated contract transportation, network designs/redesigns. TNT Logisticsis using TIBCO technology to integrate its internal applications and automate its business processes. TNThas extended its systems to customers and partners via the Internet.
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J.B. Hunt Dedicated Services – Lowell, AR – NASDAQ: JBHT800-643-3622John Roberts III, Presidentwww.jbhunt.com
North America: $760m Parent: $2.5b
North America; NA locations: 300 U.S., 2 Canada, 2 Mexico
Food and beverage, retail, building materials, paperKey Customers: Anheuser Busch, Circuit City, Family Dollar, Georgia, Pacific, Home Depot, Office Depot,PPG Industries, Target, Wal-Mart, Weyerhaeuser
J.B. Hunt Dedicated Services continues to grow and has spread into integrated transportation management. J.B. Hunt has over 300 dedicated contract carriage customers. A significant part of Hunt’sdedicated operations involve direct store delivery. Services utilize owner-operators for 10% of the driverbase. Hunt revenues run $560 per load and most round trips average 300 miles. Van, flatbed and reeferservices are provided.
Domestic and international transportation management, customs brokerage and freight forwarding, supplychain consulting, warehousing and distribution services
Apparel, automotive, computer and electronics, healthcare, industrial, retailKey Customers: DaimlerChrysler, DirecTV, Ford Motor Co., GM PowerTrain, Hewlett Packard, Mitsubishi,Philips Semiconductor
Contract logistics, freight forwarding and customs brokerage at FedEx are service businesses whose role isto support FedEx transportation operations. FedEx Trade Networks is a quality international transportationmanager. FedEx SCS has lost key business and is no longer a significant third-party logistics competitor.For FedEx, SCM is a value-added part of express, package, less-than-truckload and other operations.
Landstar is organized around a network of agents. The agents rely on Landstar for i2 and other softwaretechnologies plus cash flow coverage. As a result, Landstar is more entrepreneurial and decentralized thanmany of its competitors. Landstar agents are often willing to take on accounts with annual transportationcosts as low as $2.5-$3 million. In so doing, they provide high quality logistics options for smaller and mid-sized companies. Agents do not have assigned geographical areas and are free to pursue any account.One specializes in the wine trade - another in automotive and so on. A recent international freight forwarding agent addition with solid IT has been a plus. Landstar has also originated warehousing servicesin the southeastern U.S.
AutomotiveKey Customers: Auto Alliance, DaimlerChrysler, Ford Motor, General Motors, Guardian Automotive,Nissan, Toyota
LINC is a major player in automotive logistics. LINC delivers quality services for GM, DaimlerChrysler,Ford, Nissan, Auto Alliances (a Ford/Mazda partnership) and tier 1 suppliers. LINC’s operating excellenceis demonstrated by its gold award from DaimlerChrysler for its Auburn Hills operation and it’s A+ assessment rating for its seven GM operations. LINC’s service list for major automotive manufacturersinvolves transportation management, dedicated contract carriage, sequencing and subassembly, returncontainers management, kanban, JIT to plants, kitting and export-import. These services are integrated tosupport automotive assembly plants. Some LINC locations deliver 2-3 services; others do the whole list.LINC’s sister company, Central Transport, is a major LTL carrier and Detroit mainstay.
GENCO dominates the reverse logistics area, including asset recovery. It also specializes in return centermanagement supported by software specifically designed for the task. Vertical industries percentage mix: automotive (4%), building materials (4%), consumer goods (18%), cosmetics and personal (22%),healthcare (5%), retailing (29%), technology (4%), transportation and moving (4%) and all other (10%).GENCO runs a host of quality value-added distribution operations and its addition of Iogistics gives it good transportation management.
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LogisticsQuarterly.com22 LQ™ October 2005
PBB Global Logistics – Fort Erie, ON905-871-6500Ken Chalmers, President & CEOwww.ppp.com
$300m
North America, China, United Kingdom; NA locations: 43 U.S., 41 Canada 2 Mexico
For decades a solid trans-border import and export manager, PBB expanded its North American operationsthrough the acquisition of Clarke Logistics and Unicity. PBB has operations in China and continues toexpand there. PBB relies on 90 exclusive PBB agents for global coverage. PBB has a heavy emphasis oncross-border traffic between Mexico, the U.S. and Canada. Visibility is increasing in the U.S.
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BNSF Logistics – Springdale, AR877-853-4756Eric Wolfe, V.P. General Managerwww.bnsflogistics.com
Founded in 2002, rapidly growing BNSF Logistics is on track to generate $190 million in revenue by theend of 2005, according to its Vice President & General Manager Eric Wolfe. Acquisitions make up a largechunk of Wolfe’s plan, but organic growth will contribute to half of the expansion. BNSF Logistics has foursuccessful acquisitions under its belt (it acquired parts of Clicklogistics in 2002; MRS Companies in 2003;and Sumark Services and RiteChoice in 2004) and is looking to make additional acquisitions in 2005 tohelp drive scale and increase its breadth of services. Much of BNSF’s organic growth comes from its abilityto manage rail in addition to intermodal and truck transportation. This multi-modal competency coupledwith value-added services and strong information technology provides BNSF Logistics with a competitiveadvantage awarding it entry into large accounts with rail and truck transportation needs. Value-added services include: cross-docking, transloading, expedited truck/rail service, pool distribution, and supplychain network analysis and re-design. Frito Lay, Wal-Mart de Mexico, U.S. Borax, and the Home Depot are current BNSF Logistics customers.
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23LQ™ October 2005LogisticsQuarterly.com
A.N. Deringer – St. Albans, VT800-523-4357Wayne Burl, President & CEOwww.anderinger.com
$125m
North America; NA locations: 32 U.S.
550 employees22 warehouses
Very goodTMS – G-Log; GC3WMS – SSA Global; EXE Technologies
Food, industrial, retail, paper and wood productsKey Customers: Bombardier, J.D. Irving, Ltd., Rolf C. Hagen, Skis Dynastar/Lange
Deringer is a very good Canada/U.S. cross-border 3PL. Customs operations are emphasized and Deringerexcels at them. Deringer’s IT skills match those of larger companies. Deringer recently expanded its coverage along the boarder west of the Rockies. This organization is flat and cohesive.
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