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A Strategic Assessment of Transportation Services

Transportation services represent one of the largest line item service expenditures within the global economy in general, and the Reverse Logistics Industry specifically. This market has been the focus of extensive study and research by our firm. We estimate the market for Third Party Transportation services in support of Reverse Logistics activities within North America represents a $2.6 Billion opportunity in 2005. This market is forecast to experience a 15 % growth rate over the next three years. Expenditures for 3rd party transportation services account for over one half of expenditures for all 3rd party reverse logistics services. The remaining expenditures are allocated toward Warehousing/Storage services, which accounts for 19% of expenditures in 2005, and value added services (i.e., returns management, recycling, reclamation, repair, etc.) which accounts for the remainder of spending and is expected to experience the most significant growth, 18%, over the next 3 years.

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