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:
- What is a benchmark Spend/Procurement FTE? Total spend under management is about $500 million.
- What is an average salary in the US for a procurement FTE? What is an average salary in APAC for a procurement FTE?
- 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?
- What is a competitive profit margin for this industry? 50% of costs?
- What are typical models for establishing fees? Fixed fee for service components with some variable cost factor based on volumes?
- 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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