ProcurementAsia Says 3PL Networks Due for Makeover

From ProcurementAsia: “Structural changes that have taken place in the express industry mean 3PLs need to reorganise their networks to survive, says a new report. DHL, TNT, FedEx and UPS have not been spared the effects of lower volumes, with all four recording lower profits in the last quarter.

“Since the last set of poor results was announced by FedEx last month, in its Q2 results presentation yesterday TNT announced a double digit decline in revenues in its express division despite volume decline bottoming out in the last few months. Similarly DHL Express’ revenues fell by 28.6% in Q2; even after discounting the effect of its exit from the US domestic market, organic revenues fell by more than 15%. UPS saw a similar decline in revenues, as lower volumes and a lower yield per item (as a result of lower fuel surcharges), customers sending lighter packages, currency effects and a negative product-mix as customers opt for cheaper alternatives, all impacted both its US domestic and international businesses.” 3PL networks due for makeover

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