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 7,300 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 fewer than 20 workers and generates over $2 million annually.
- The process, distribution and logistics consulting industry consists of about 7,300 firms that employ about 155,000 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
Mar 14, 2024 - Process & Logistics Prices Rise, Wages Drop
- In Q4 2023, producer prices charged by process and logistics consulting firms were up sharply compared to a year earlier. Process and logistics consulting wages declined significantly over the same period. Prices rising while wages have fallen may signal that process and logistics consulting firms are enjoying healthy margins. Employment growth in the process and logistics consulting industry increased slightly in Q4, year-over-year.
- Crises at two of the busiest canals in the world are slowing the movement of goods by sea, according to The Wall Street Journal. The Panama Canal region is suffering a historic drought that has increased the wait times to pass through the waterway and driven up shipping costs more than eight-fold. On the other side of the globe, attacks on commercial vessels in the Red Sea by Yemen-based Houthi rebels have slowed traffic through Egypt’s Suez Canal as ships wait for naval escorts or avoid the canal altogether by sailing around South Africa. The snarls on the canals have reduced the volume of cargo through waterways by more than a third. While shipping fleet operators note the disruptions complicate planning and increase costs, so far, the logjams have not led to the level of delays seen in 2020 and 2021 during the pandemic.
- Some trucking industry watchers suggest shippers may want to lock in low freight rates while they are in a cyclical trough, according to Supply Chain Dive. Trucking demand has downshifted since the pandemic, and the field of shipping firms has become crowded. To bring capacity in line with demand and push carrier prices higher, more firms will have to exit the market or reduce fleet sizes. According to shipping data firm DAT, dry van rates in late February were down 9.4% year-over-year, and refrigerated and flatbed rates were off by 9.4% and 8%, respectively, over the same period. However, retail and ecommerce sales in Q4 2023 were better than expected, reducing inventories. Some industry observers believe carrier rates may be poised for an upturn amid improving demand as retailers replenish supplies.
- A recent survey by consulting firm Protiviti and the North Carolina State University College of Management’s Enterprise Risk Management (ERM) Initiative asked C-suite-level executives and board members to rank the top risks for organizations in 2024 and in the long term. The top risks for 2024 included economic conditions, including inflation; the ability to attract and keep top talent, manage shifting labor requirements, and address succession challenges; cyber-threats; third-party risks; and heightened regulatory changes and scrutiny. Looking ahead to the most significant risks in 2034, respondents were most concerned about cyber-threats; the ability to attract and keep top talent, manage shifting labor requirements, and address succession challenges; adoption of digital technologies that require new skills; speed of disruptive innovations and new technologies; and heightened regulatory changes and scrutiny.
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