3PL Cost Benchmarking

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      We are looking to benchmark cost structure for a 3PL company that provides sourcing, purchasing and logistics of packaging materials from suppliers to manufacturers in China, Vietnam, Thailand, and Indonesia. Primarily, we are looking for benchmarking to negotiate a better deal with an incumbent. We understand that there are a lot of differentiators in the details, but are looking for high level benchmarks for the following in this industry:

      1. What is a benchmark Spend/Procurement FTE? Total spend under management is about $500 million.
      2. What is an average salary in the US for a procurement FTE? What is an average salary in APAC for a procurement FTE?
      3. What is an average overhead rate to apply to labor costs in the US? What is an average overhead rate to apply to labor costs in APAC?
      4. What is a competitive profit margin for this industry? 50% of costs?
      5. What are typical models for establishing fees? Fixed fee for service components with some variable cost factor based on volumes?
      6. What are best practices for contracting and performance management to ensure 3PL is working toward and rewarded for lowering total costs.

       

       

       

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