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 - Supply Chain Disruptions Remain a Top Concern
- 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%).
- US manufacturers’ shipments - a demand driver for process, distribution, and logistics consulting services - decreased 0.4% in September 2024 from the previous month and fell 0.1% compared to September 2023. Durable goods shipments dropped 0.5% in September from August and were down 1.1% year over year. September’s nondurable goods shipments declined 0.2% from August and 1.4% from a year earlier. New orders for manufactured goods - a signal of future demand for process, distribution, and logistics consulting services - decreased 0.5% in September from August and 2.1% compared to September 2023 levels. September’s new orders for durable goods dropped 0.7% from August and 2.8% year over year. Nondurable goods orders slipped 0.2% in September compared to August and were down 1.4% from a year earlier.
- A three-day dockworkers strike in October helped fuel a boost in air cargo demand as shippers shifted ocean freight to air transport, according to freight rate analytics firm Xeneta and reporting by Supply Chain Dive. Air cargo demand increased 11% in October compared to a year earlier, and the average spot rate per kilogram rose 19% to $2.68. Xeneta said the air cargo market was able to absorb the added capacity as the strike was widely anticipated, and firms were able to take steps to ensure logistics disruptions were minimized. Due to the short duration of the strike, elevated air cargo volumes spiked the week ending October 20, then quickly fell to more normal levels. However, air cargo rates are likely to continue rising through the remainder of the year as winter air travel patterns reduce air cargo capacity.
- In September 2024, the US Postal Service announced it would increase shipping prices for some of its services for peak shipping season between October 6 and January 19, 2025. The USPS left prices unchanged during the peak season last year in a bid to compete with corporate shipping rivals. However, the Postal Service said it would raise rates to cover extra handling costs this year. Affected services include Ground Advantage, which will see a 6.4% price hike, Priority Mail (+5.5%), and Priority Mail Express (+4.9%). The price increases come as the Postal Service continues to operate in the red; the agency posted a $2.5 billion net loss for its third fiscal quarter, which ended July 30.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.