Process, Distribution & Logistics Consulting
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 7,600 process, distribution, and logistics consulting services providers in the US include a broad range of specialties, including manufacturing operations improvement; productivity improvement; production planning and control; quality assurance and quality control; inventory management; distribution networks; warehouse use, operations, and utilization; transportation and shipment of goods and materials; and materials management and handling. Firms may offer multiple services or specialize in a particular area.
Dependence on Skilled Labor
Despite a dependence on technology, the process, logistics, and supply chain consulting industry remains labor-intensive and reliant on skilled workers.
Competition from Alternative Service Providers
Process, distribution, and logistics consultants compete with a variety of alternative service providers, including accounting firms, management consultants, IT service providers, and transportation companies.
Industry size & Structure
The average process, distribution and logistics consulting services provider employs 22 workers and generates over $2 million annually.
- The process, distribution and logistics consulting industry consists of about 7,600 firms that employ about 166,000 workers and generate $16 billion annually.
- The industry is fragmented; the top 50 companies account for almost 33% of industry revenue.
- Large firms that offer process, distribution and logistics consulting services, which include C.H. Robinson and XPO Logistics, have a global presence.
Industry Forecast
Process, Distribution & Logistics Consulting Industry Growth
Recent Developments
Nov 12, 2024 - Industry Insiders Highlight Top Supply Chain Trends for 2025
- Diversifying supply chains and implementing AI will be top of mind for retailers and manufacturers in 2025, according to industry insiders and observers who spoke to Supply Chain Dive. President-elect Trump’s call for increased tariffs and mounting geopolitical strife are leading companies to reshuffle and build redundancies into their procurement networks. Between 2018 and 2024, Vietnam, Mexico, and India have seen significant increases in exports while China’s have fallen, according to consulting firm AlixPartners. Warehouse operators are expected to leverage AI to improve inventory optimization and safety, while manufacturers and retailers hope AI can give them more visibility into their supply chains and improve forecasting. Supply chain challenges in 2025 will include managing higher labor and transportation costs and guarding against increasing cyber threats and cargo theft.
- While the raw materials shortages that posed headwinds for manufacturers during the pandemic are just a bad memory for some, challenges remain, according to Supply Chain Management Review. The growth of data centers and electricity generation capacity needed to power AI has given rise to shortages of some types of electrical and electronic components. Industrial production of electrical equipment used to generate and distribute electricity is now 25% higher than in 2017. The proportion of US computer and electronic products manufacturers that cite raw materials as an impediment to capacity utilization has been rising since the end of 2023, according to US Census data. Manufacturing sector observers are likely to follow any fluctuations in factory capacity utilization closely. Rises in capacity utilization would likely indicate stronger demand but might also signal future raw material shortages, especially among industries already experiencing procurement delays.
- US manufacturers’ shipments - a demand driver for process, distribution, and logistics consulting services - increased 0.1% in November 2024 from the previous month and rose 0.1% compared to November 2023. Durable goods shipments dropped 0.2% in November from October and were down 0.6% year-over-year. November’s nondurable goods shipments grew 0.4% from October and 0.7% from a year earlier. New orders for manufactured goods - a signal of future demand for process, distribution, and logistics consulting services - decreased 0.4% in November from October and 2.8% compared to November 2023 levels. November’s new orders for durable goods dropped 1.2% from October and 6.4% year-over-year. Nondurable goods orders rose 0.4% in November compared to October and were up 0.7% from a year earlier. The marked year-over-year decline in November’s durable goods orders was mostly due to a sharp drop in orders for nondefense aircraft and parts, a market segment prone to volatility.
- According to a recent Gartner survey of sourcing and procurement leaders, supply disruptions, such as natural disasters and transportation problems, remain the leading risk that could impede procurement operations. A third of respondents ranked macroeconomic factors, such as inflation and economic downturns, as their second most significant risk. At 32% of respondents, geopolitical trends (tariffs, regulatory changes) and compliance issues (regulatory and contractual risks) were tied for the third most significant procurement challenges. Other leading risks included supplier capability and capacity (30% of respondents), cyberattacks and data security (29%), and procurement talent capabilities (24%).
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