Logistics! Final Consumer! Supply Chain Management! Phrases that are extensively used in today’s commercialized world. What are they exactly and how are these keywords weaved among one another. The keyword which helps interlink all of them is Logistics.
What is logistics and why is it so key for many business organizations to have a very good logistics structure? Well, Logistics is the practice of outlining and administering practical transportation and storage of goods from the site of origin to the ultimate point of consumption which is the final consumer.
According to the IMARC Group, the global logistics market has reached an astounding US$ 4,963 Billion in 2019. The market is further projected to grow to a value of US$ 6,537 Billion by the year 2025, in addition to a CAGR(Compound Annual Growth Rate) of 4.7% during the years of 2020-2025.
The ultimate goal of logistics is to enable a business to meet its customer requirements swiftly and cost-effectively. With the emergence of the rapidly digitizing world and the spread of e-Commerce through all sections of society, logistics have been put in the front seat for successful businesses to thrive.
A strong logistics and supply chain structure lead to a fully functioning organization that operates efficiently and effectively.
In the top 10 list, we will be covering Top 10 Logistics companies around the globe, what makes them so successful and if you’re an aspiring entrepreneur or an existing business owner, or just a citizen who wishes to undertake some logistics services, we’ll break down each top 10 logistics corporation in the process and what they offer to the table.
XPO Logistics
Coming in, at the top spot is XPO logistics. This firm acts as a third-party provider in over thirty-two countries, in addition to the number of clients being surpassed with a staggering 50,000.
What makes the company such a key player in the market is the fact that it spends no less than $450M yearly on tech investments in order to keep giving force to making it a leader in the market today.
With the obsolescence of technology being rapid, investments to cope up and elevate XPO performance in terms of overall efficiency and effectiveness.
In the year 2020, XPO has established themselves in well over 30 countries, covering continents such as North America, South America, Western/Southern/Eastern Europe (Including the UK and Ireland), Northern Africa (Morocco), Asia (Japan, China, India, Thailand, Malaysia, and Singapore), Australia, and Russia, as it has a wide span across the globe.
The central office is located in Greenwich, CT, the US, while Leon, France serves as the European headquarters. In terms of XPO’s strategy for growth which primarily apart from investing in technology involves making significant acquisitions that extend its global reach or add new product lines and services to its existing array.
For instance, it acquired a 67% stake in Norbert Dentressangle, leading transportation, and logistics providers in Europe. Similarly, XPO also obtained Con-way, one of the largest trucking providers in the US, to elevate itself as a player in the large logistics market.
Pros
- Established in a huge range of the globe enables access to a large abundance of clients.
- Reputed for its deliverables as it is extremely punctual in ensuring the order is placed on time.
- Continuous investment in the latest technology allows for the most efficient and up to date practices in accordance with industry standards.
Cons
- In recent years, some companies such as Costco and Samsung have reported frequent delays in their operations done by XPO logistics, substantially for the technology giant Samsung.
- Many incidents and reporting of damages ranging from driveways/kitchens and other heavy damages costing the organization.
- CRM, not the most reliable as they have gotten negative reviews on their reachability and performance by the customer service department seldom even being unreachable.
Fun Facts on XPO Logistics
- In the first half of 2019, there was a reporting done by XPO having more than 100,000 employees under them.
- The company continues to invest in robotics and automation, customer service and visibility, with the major aim to advance the digital freight marketplace and the sphere of data science
- In the past two years (2018 and 2019) XPO Logistics has been ranked at the top in terms of net revenue.
UPS (United Parcel Service)
Being one of the most recognizable names across the world, from being starred in multiple movies to commercials, coming in at #2 is UPS also known as United Parcel Services. UPS is the world’s largest packaging delivery company.
The full form of the organization is United Parcel Services Supply Chain Solutions. Daily, UPS delivers more than 16.9M shipments to more than 9.4M receivers.UPS has an extensive coverage span entailing, 175 countries worldwide.
The company has 4 major head-quarters set across the globe, over the past years, UPS has enhanced its operations through mergers & acquisitions.
With 17 acquisitions up to date, UPS most major acquisition was acquiring the Atlanta based logistics giant Sandler&Travis Trade Advisory Services which when UPS described in their press release as being the “Largest independent provider of global trade management services, a major acquisition in the market of logistics.
Pros
- As UPS is the world’s largest delivery service it has the capability to many expedited shipping options, including next-day delivery and same-day delivery in some cases.
- As it is such a large corporation it can offer its clients/customers discounts and lower rates for large quantities. It is affordable compared to its peers in the same market.
- It has a very structured and detailed tracking system for each step in the process from the point of origin to its destination.
Cons
- It charges a hefty amount of additional fees and surcharges for heavier packages when clients opt for such.
- One aspect which is frowned upon is the fact that UPS does not offer free package pickup which leaves many flustered.
- Even as a corporation that spans the entire globe it has tricky extra fees policy for international shipping when clients opt for such, as it can be complex when getting a final quote on the service.
Fun Facts on UPS
- In the past two years (2018 & 2019) UPS has been ranked #2 in terms of net revenue for logistics firms globally.
- UPS is a long-established organization tracing back to the early days of Seattle, Washington, US in the year of 1907.
- In the year of 2018, UPS declared its total assets worth an extraordinary figure of $50B.
DHL Supply Chain
Coming in at #3 is DHL also known as Dalsey, Hillblom, and Lynn. It is one of the most famous logistics companies around the globe. It is a leader for the worldwide market for expedited services.
DHL as a company started in San Francisco but now is a subsidiary to Germany’s own Deutsche Post which offers expertise in air, ocean freight, overland transport, express, international mail services, and contract logistics solutions. DHL Supply Chain specializes in handling the processes of cataloging and shipping goods of their clients (mostly large corporations) worldwide.
As a company DHLruns its operations in an astounding 120,000 cities from 220 countries. Moreover, it has 84,000 branches, around 98,000 delivery vehicles, and 260 planes.
Pros
- As a large corporation with an array of services, DHL can offer affordable rates to its clients.
- It is renowned for its door-to-door delivery whether it be by air with its extensive fleet of aircraft or sea.
- It charges ZERO fees for the pickup of its packages.
Cons
- It has a weak presence in the United States market making it unfavorable for US clients, its networks run extensively in the European continent.
- It can charge extra fees and surcharges heavily due to certain conditions not being met.
Fun Facts on DHL
- DHL is a part of Deutsche Post AG and which has a total number of employees crossing 200,000.
- In 2017, the company posted total annual revenue of $68.3B.
- Bayer Healthcare, Chrysler, Coty, Diageo, Campbell’s Soup, Rodan + Fields, Lego, and Nike are to name a few of DHL key customers that are customers of DHL Supply Chain.
J.B. Hunt Transport Services
J.B. Hunt Transportation Services is a transportation and trucking services firm and serves as one of the largest logistics companies in the United States.
This company is a real-time expert when it comes to Dedicated Contract Services, Intermodal, and Integrated Capacity Solutions segments. The company engages in the continental US, Canada, and Mexico. As of today, J.B. Hunt has over 12,000 trucks in its holding.
Offering single-source logistics management for its customers who desire to outsource their transportation functions to 3rd party providers.
The company also conveys and orchestrates for its transportation of freight, including but not limited to prevailing merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, raw materials for building, automotive parts, agricultural products, and chemical substances.
Pros
- It offers an array of less than truckload also known as LTL solutions.
- It has a wide array of temperature-controlled solutions, a good example being refrigerated trucks that have the capacity to enable perishable products from point of origin to the desired destination.
- It has a very unique final mile service it’s in its stock
Cons
- It has a history of having trouble with the past installation of appliances.
- Reports in the past have shown that it has had trouble with meeting certain client’s deadlines hurting the goodwill of the brand.
- Some clients such as Costco have experienced undue difficulty in working with J.B Hunt transportation services.
Fun Facts on JB Transport Service
- J.B. Hunt Transportation Services is an established brand with its founding tracing back to 1961 by Johnnie Bryan Hunt.
- In 2019 in the final quarter of its performance posted net earnings of $144.7M.
- As of 2019, the company had more than 29,000 employees working under them.
C.H. Robinson Worldwide
Coming in at the #5 spot is C.H Robinson worldwide. The company has been a 3rd party logistics provider since its early operations from 1905. The company has a huge network of contacts with over 71,000 carriers and handles around approximately 18 million shipments per year for its 113,000-plus customers specifically in the food and beverage, manufacturing, and retail industries.
Apart from this, CHRW as a player in the fresh produce market where it buys sells and transports fresh produce throughout the United States.
Pros
- Freight Weight is one of the most reliable tools in the field of logistics.
- Offers and caters to a flexible, fast and cheap air charter service.
- Robinson Fresh, their very own fresh produce option, delivers perishable commodities on time.
Cons
- C.H Robinson is not one of the most affordable options in the field of logistics.
- The area of coverage is not as widespread as compared to its competitors.
Fun Facts on C.H Robinson
- In the year of 1997, the firm renamed itself as C.H. Robinson Worldwide, Inc and went public by issuing its IPO. Thus, helping them launch their IPO campaign which helped them to raise more than $190M in launching.
- Microsoft, Walmart, Lowe’s, Tesco, Coca-Cola, Ocean Spray, and Newell Brands are the big brand names and key customers that have hired for C.H. Robinson Worldwide services.
Ryder Supply Chain Solution
Ryder Supply Chain Solutions is a part of the bigger Ryder System, Inc. It plays a huge role in large American supply chain management and also as a transportation provider.
As of 2019, Ryder’s revenue was estimated at $8.9B, while the supply chain segment is in charge of 26% of the revenue (about $1.6B). Moreover, the firm has well over 50,000 clients in the hire of their services. Ryder has established networks in North America, South America, Europe, and Asia.
Their headquarters is located in Miami, FL, in the United States. As of today, the company has approximately 10,000 drivers, and more than 272,000 vehicles in its name.
Pros
- It has warehouse space well over 55M square feet making it an advantage as it is able to store many goods when the time utility is not present.
- They have a high on-time delivery rating, making it one of the trusted logistics brands as they are able to execute on time swiftly and efficiently.
- They have acclaimed a high number of community, and media awards due to their work outside the logistics field as well as in it, making it a good CSR reputed company.
Cons
- They have been plagued with scandals that were related to lobbying and not paying taxes a few incidents.
- They are susceptible to inconsistent and sometimes heavy pricing for their services.
Fun Facts on Ryder Supply Chain solutions
- Forbes named Ryder Supply as one of America’s best employers in 2018 for the fourth year in a row, so they are well known for the wellbeing of their employees.
- The company is considered to be one of the most tech-savvy as well as advanced in its use of drones, autonomous vehicles, and many other modern technologies in their warehouse.
- Ryder’s management has been divided into three segments: Supply Chain Solutions, Dedicated Contract Carriage, and Fleet Management Solutions making for the most efficient and most effective way to handle large scale operations.
FedEx Logistics
Coming in at #6 is FedEx a famous American courier delivery services firm, which is best known for providing its 3rd party logistic solutions for companies of all sizes.
This company has consistently been on the list of the world’s top 20 logistics companies for the last 10 years as it is one of the more reliable logistics firms to have been established in its activities.
FedEx is able to deliver 3.5M items daily with the use of 57,000 vehicles and 640 aircraft under their holdings. FedEx is in operation in well over 220 countries spread across the globe. The FedExCorporation was founded in 1971 and has its headquarters in Memphis, Tennessee.
Services that FedEx offers under its name, for example, are FedEx Express segment which provides shipping services for delivery of packages and freight.
Alongside the FedEx Ground segment which provides business and residential money-back guaranteed for the ground package delivery services as well as assured that their money is being put to the best use possible; consolidates and delivers low-weight and less time-sensitive business-to-consumer packages.
Pros
- It has one of the most reliable logistics tracking systems in comparison to its peers.
- With its delivery management option, FedEx allows its users to reschedule or hold packages to a more suitable date allowing the utility of time and storage.
- The company has a policy that if a client is placing a massive order that it can negotiate to lower delivery prices based on the volume.
Cons
- FedEx in comparison to its peers has relatively higher pricing rates for its common services.
- It is not the fastest delivery company in the market.
- It does not offer its customers the option for picking up the items being placed.
Fun Facts On FedEx
- As of 2019, more than 239,000 people were registered as FedEx workers.
- In 2019, the company reported a total assets worth of $54.4B
- In 2018, the company was ranked #8 logistics firm by the net revenue. But in 2019, FedEx lost a footing in its performance as its ranking dropped to the #11 position.
Expeditors International of Washington
As the name suggests in position #8 comes in from the state of Washington in the city of Seattle is where its head office is located. The firm is well known for its very distinctive compensation structure which is quite unusual in comparison to its peers in the market.
Each firm independent branch’s profits individually and the primary compensation for the branch group of management comes from the incentivized-based compensation system calculated directing from its operating income from that branch.
The company operates in well over 103 countries to date and has a presence in North America, South America, Europe (including the UK), Middle East, Africa, Asia, and Oceania.
Pros
- It has a wide array of transportation options for its customers to choose from.
- It has a very strong customer support service.
- Known for its very robust, structurally strong supply chain solutions.
- Well known for its high rate of satisfying its customers on time and in due process with the activities that it undertakes.
Cons
- It does not have the widest coverage across the globe unlike many of its peers in the market.
- The air mode of transport for delivery is quite expensive as it charges a heavy amount if the customer is choosing that mode of transportation.
Fun Facts about Expeditors International of Washington
- In the year of 2019 Expeditors, International grossed well over $8,175 million in revenue.
- During the year of 2019, the company was ranked #5 in terms of net revenue in logistic firms.
- It currently has over 17,000 employees working under them, very less in comparison to the above peers that we have covered thus far.
Penske Logistics
Sitting at #9 in our list is Penske Logistics which provides specialized services towards large firms, providing them with the latest most modern and competent supply logistics solutions in the market.
The firm works with the largest companies and can offer an array of versatile service packages, from it being warehouse management all the way to transportation services.
Penske Logistics runs its operations across 340 locations worldwide; the locations being in the US, Canada, China, Brazil, and Western European countries.
Pros
- The Penske corporation has a very diversified portfolio, with investments in various areas that help them enhance their business.
- They have an advanced supply chain management solutions.
- In the recent past, they have received a large number of delivery related awards for their extraordinary performance.
- They also have a very advanced tracking system.
Cons
- The coverage network in which Penske covers is not vast thus, in turn, making it not as competitive as its peers.
- It was plagued with multiple scandals in discrimination in the year 2019.
Fun Facts on Penske Logistics
- Penske is among one of the very few logistics services providers which give an insight into using blockchain technology for customers in order to manage logistical data in an efficient and effective manner.
- In the past year (2019) the company was ranked #8 logistics firm in terms of net revenue
- Some of Penske’s major clients include big brand names such as BMW, General Motors, Kroger, Sony, Whirlpool, Ford Motor Co, Delphi, and Adient are key customers of Penske Logistics.
Lineage Logistics
Sitting at the #10 spot in our list in a relatively young logistics company, Lineage Logistics yet have proven themselves successful in their campaign in establishing themselves as a force to be reckoned within the area of logistics and transportation services provider.
They’re constantly expanding their reach to ensure they are in an optimal position when it comes to providing satisfactory services towards their customers.
The company currently operates in North America, Europe, and Asia. Its current headquarters is located in Novi, MI, the United States. It is widely regarded as a cold storage specialist.
Pros
- Lineage Logistics is widely regarded to be the world’s largest refrigerated warehouses with real estate holding of a whopping $4B.
- The company offers innovative technology in handling customers’ orders from automation, blast freezing and energy consumption being a few.
Cons
- As it is a relatively new company in the market it does not have extensive coverage as compared to its peers in the market.
- With it being a new company many clients do not want to do business with them as they do not have existing goodwill as compared to their competitors many of the tops have been established for a century or so.
In conclusion, as the world turns more digital and more services go online, the logistics market will boom even more so than before. Logistics serve as a vital connector between producer to the consumer as without logistical companies the entire process of transporting goods to the final consumer would be a burden for organizations everywhere.
With each logistical company bringing something different to the table, customers can see that there is a vast area of specialties within the branch of logistics from whether it be from fresh produce all the way to pharmaceutical products.
Getting to point A to Point B can be a make it or break it moment for businesses around the globe, but ensuring that the task is handled by a trustworthy logistical company ensures that burden is lifted and the business can focus on its core areas of function.
