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GlobalTranz Acquires AFN Logistics

GlobalTranz Acquires AFN Logistics

Combined company to drive expanded technology and market leadership

PHOENIX and CHICAGO (September 13, 2018)  GlobalTranz Enterprises, Inc., a leading technology-driven third-party logistics (3PL) solutions provider, today announced that it has signed a definitive agreement to acquire AFN Logistics, an award-winning leader in freight brokerage, 3PL logistics, and transportation management services. The acquisition further solidifies GlobalTranz’s position as a top freight brokerage firm and significantly increases its market share in 3PL services.  The transaction is expected to close within 45 days.

“I am excited to write the next chapter in AFN’s evolution with GlobalTranz,” said Owen Schnaper, chief executive officer of AFN. “Since Ryan Daube founded the business 15 years ago, AFN has focused on driving high value for its customers through unparalleled service with trusted freight carriers providing high-quality, consistent capacity. By combining with GlobalTranz, AFN can continue this history on a bigger platform with differentiated technology.  I know this combination will be attractive and beneficial to our clients and partners alike.”

“AFN Logistics is one of the fastest growing and most exciting companies in the 3PL space,” said Bob Farrell, chairman and chief executive officer of GlobalTranz.  “AFN has leveraged people, processes and technology to create unique solutions for its customers and develop strong carrier partnerships. Combining GlobalTranz’s and AFN’s network and technology along with the best talent in the industry creates a company that will exceed $1.5 billion in revenue and will further accelerate our growth and market leadership in the 3PL industry.”

GlobalTranz recently announced The Jordan Company, L.P. (TJC) as its new equity partner. “We are pleased to support the acquisition of AFN by GlobalTranz,” said Brian Higgins, senior partner, TJC. Higgins added, “GlobalTranz is executing on its strategy to drive market leadership by strong organic and acquired growth. AFN is a strong fit with this strategy.”

“Our unique hybrid combination of the best independent freight agents in the industry with our strong direct channels is a clear differentiator. AFN will further enhance our channels to market,” added Farrell.

Ranked the 10th largest freight brokerage in the US by Transport Topics and voted an Inbound Logistics Top 10 3PL for 2018, GlobalTranz is driving strong growth with 25,000+ customers through technology innovation, a network of 34,000+ carriers, transformative M&A, creative products and superior customer service delivered by the best people in the industry.

For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.

 

About GlobalTranz

GlobalTranz is a technology-driven freight brokerage company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. In 2018, Transport Topics ranked GlobalTranz as the 10th largest freight brokerage firm in the U.S.

 

About AFN Logistics

AFN is an award-winning leader in freight brokerage, third-party logistics, and transportation management services that has served the needs of major manufacturers, top-20 retailers, and best-in-class carriers in North America since 2003. Known for its commitment to client service, AFN has a robust suite of people-first, technology-enabled solutions — from truckload, LTL, managed transportation and consolidation services to risk management, carrier compliance, cargo security and surveillance, and more.

 

About The Jordan Company, L.P.

TJC (www.thejordancompany.com), founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $11 billion since 1987 and a 35-year track record of investing in and contributing to the growth of many businesses across a wide range of industries including Industrials, Transportation and Logistics, Healthcare and Consumer, and Telecom, Technology and Utility. The senior investment team has been investing together for over 20 years and is supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies. Headquartered in New York, New York, TJC also has an office in Chicago, Illinois.

 

MEDIA CONTACT:
Annie Graupner 612-229–4040
communications@globaltranz.com

3PLs offer shippers ‘untapped capacity’

3PLs offer shippers ‘untapped capacity’

As the second half of 2018 unfolds, shippers are presented with compounding challenges as the holiday season approaches. The truck driver shortage is showing no signs of loosening, lower tax rates have fueled consumer spending, and the tariffs imposed on Chinese goods are spurring manufacturers to stock up on imports in order to get ahead of the presumed price increases, all of which are driving truckload capacity constraints.

In the recent American Shipper article, “3PLs offer shippers ‘untapped capacity’”, Maggie Turner, National Account Manager at AFN, delves into the complexities of the market and shares insight on how shippers can successfully navigate this uncharted territory. Turner discusses how shippers have found new ways to make themselves a ‘shipper of choice’ and tap into available capacity by working with a trusted 3PL to gain access to smaller carriers.

Please read the article to find out more.

 

To learn how AFN can help you access untapped capacity, contact our supply chain professionals today.

Walmart Tightens OTIF Requirements: Strategies for Shippers

A recent article in the Wall Street Journal revealed that Walmart executives plan to announce a further tightening of their on-time, in-full (OTIF) policy to go into effect in April 2018. Whereas the previous requirement called for larger suppliers to deliver within a one- or two-day window 75% of the time or be assessed a fine of 3% of the cost of the goods in the shipment, the new requirement raises the target to 85%. Smaller suppliers will see their compliance target rise from 33% to 50%. OTIF targets vary by department, and some of AFN’s clients have seen higher OTIF requirements (as high as 95%) go into effect already.

As AFN has shared previously, these OTIF requirements apply not only to late deliveries, but to early deliveries as well: any deliveries outside the stipulated window are penalized. Some shippers have been surprised to learn that Walmart also charges non-compliance fines for collect freight that they route on behalf of the shipper.

In a transportation environment flush with capacity, these requirements would represent a challenge to shippers and their transportation providers. However, in today’s current market, characterized by historically high load-to-truck ratios, the issue becomes more acute. It is precisely because of those current capacity constraints that, perhaps counter-intuitively, early shipments have emerged as the more serious potential stumbling block for shippers.

It all boils down to load balancing. For example, a shipper may be expecting to deliver five full truckloads into a specific Walmart location in a given week. Walmart, however, may order all five truckloads to deliver on a single day. Now, a carrier that could handle five truckloads in a week is being asked to deliver all five in the same day, which can create a capacity challenge. As a result, some carriers will attempt to spread the capacity needs by picking up their loads early, however, this can lead to drivers arriving early to their Walmart appointment. This scenario runs the risk of the load being noncompliant and subject to costly fines, as Walmart will allow for, and then penalize, early deliveries.

Given their nationwide presence and scale, Walmart is often a shipper’s largest customer. Therefore, even a slight increase in demand versus forecast could mean substantial incremental volume. Building out contingency plans for waterfall capacity alternatives or overflow volume could save a shipper substantial dollars instead of having to utilize the spot market in tight timelines.

That being said, load balancing and planning only addresses the “On-Time” part of the OTIF policy. It is also critical for shippers to understand how the “On-Time” and “In-Full” requirements are intertwined. For example, while the On-Time equation is binary (i.e., a shipment is either on-time or it’s not), the fill rate metric can be partial. As a result, as the compliance window tightens, shippers are incentivized to “cut and ship” rather than waiting for production lines to complete lagging runs, or for inbound deployment loads to arrive. It may also require expediting of raw materials or inbound loads in order to ensure subsequent shipments to Walmart are on-time compliant, which can inflate overall logistics costs even as compliance fines are mitigated.

How can shippers mitigate the risk and improve their on-time, in-full delivery?
  • Plan capacity needs on a daily and weekly basis: While challenging, working with your 3PL or carriers to anticipate future capacity needs and to develop contingency plans for volume surges can help you stay one step ahead of the game.
  • Increase communication with your 3PL and/or carriers: The forward planning mentioned above is only possible when there is a free flow of communication between shippers and their 3PL and/or carriers. Shippers should be proactive and transparent in communicating their priorities and challenges so their providers can be better positioned to help.
  • Seek out expert help: At the risk of stating the obvious, one of the best approaches for shippers that are being challenged by the new OTIF requirements is to work with a 3PL that has intimate knowledge of the OTIF policies, relationships with experienced and vetted carriers, and access to Walmart’s scheduling tools. In addition, 3PLs can provide access to technology that delivers critical business insights.
  • Keep your eye on the clock: Ensure that drivers have adequate HOS in the event that they arrive early for a delivery and must wait until the appointed delivery window to open.
  • Recalibrate the trade-off between cost and service: As OTIF compliance becomes more stringent, and the risk of fines increases, it doesn’t make sense to seek out rock-bottom truckload rates from subpar providers only to cough up the savings (and potentially much more) in the form of chargebacks. Instead, work with your 3PL to increase your on-time/in-full delivery, avoid the fines, and in the process, improve your relationship with Walmart.

To learn more about shipping successfully into Walmart, please download our white paper.

As US demand rises, 3PLs see margins squeezed

January is nearly over, and while there are some indicators that the truckload freight market has plateaued after a roaring and record-breaking 2017, there has not been as of yet a return to “normal” volumes and rates.

In this environment, it is imperative that shippers and logistics providers develop “a strategic partnership rather than a transactional relationship,” as Rachal Snider, AFN’s Vice President of Customer Supply Chain, explains in this recent article from The Journal Of Commerce. For more market insights, please read the article at JOC.com (subscription required).

 

Please feel free to reach out to AFN at info@afnww.com with any questions.

3PLs Up The Ante

A good third-party logistics provider can be your ace in the hole to keep supply chain operations running straight and your bottom line flush.

Thirty years ago, the value-add many third party logistics (3PLs) providers offered included simple warehousing and freight transportation services. Even from as recently as the 1990s, most shippers expected 3PLs to move their goods from Point A to Point B. Their main concerns were competitive prices, available capacity, and good service. The process wasn’t integrated to any system. “Logistics was an afterthought,” says Brian Winshall, executive vice president of business development with AFN, a logistics firm based in Niles, Ill.

Learn more about the evolution and integration of 3PLs in Inbound Logistics latest feature story: 3PLs Up the Ante, including contributions from our very own Brian Winshall.

A Winning Supply Chain

At AFN, we’re never content with the status quo and continuously raise the bar to improve our, and our clients’, bottom lines.  Although we never seek to reinvent the wheel, we’re always looking for ways to improve upon it by increasing efficiency for a smoother ride. Our client-first mentality extends to the approach we take when working with both our customers and our carriers.  Seeing ourselves as a seamless extension of your businesses, we’ve identified and implemented numerous operational efficiencies that benefit all involved.

Quarterly Review of AFN Accolades Click To Tweet

On the heels of the success we’ve garnered for our clients, AFN has been recognized by several industry publications for providing top notch transportation solutions.  “We’re honored to receive these awards,” says Ryan Daube, CEO of AFN.  “Each award reinforces the service and value that we provide our customers, and all are proof of a job well done.”

Food Logistics Top 3PL & Cold Storage Providers
In August, AFN was recognized as a Top 3PL & Cold Storage Provider for 2014.  The Top 3PL & Cold Storage Providers publication serves as a resource directory of third-party logistics and cold storage providers whose products and services are critical for companies in the global food and beverage supply chain.  Committed to continuously find new ways to better service customers and carriers, this award validates our efforts.  Inclusion on the list also recognizes AFN’s leadership in providing solutions in the food and beverage vertical.

Global Trade “America’s Leading 3PLs”
Global Trade magazine recently completed an extensive search for America’s leading third party logistics providers.  In conjunction with Armstrong & Associates, the nation’s leading 3PL market research and consulting firm, Global Trade magazine’s editors selected 105 companies based on their ability to meet the ten most strategic needs that shippers have.  Here is what the editors had to say about AFN, noted on the list of 15 3PLs to watch: “Last year we recognized its versatility, but considering its many accolades… we think this is one 3PL to watch.”  Read more about “America’s Leading 3PLs” here.

Supply & Demand Chain Executive 100 Great Supply Chain Projects
AFN Wins SDCE 100 Earlier this year, AFN was awarded Supply & Demand Chain Executive magazine’s “100 Great Supply Chain Projects” designation for the third year in a row.  Our inclusion on the list recognizes our continued leadership as a solution and service provider in assisting manufacturing and retail clients in the Supply Chain function.  Recipients are selected based on how well they generate proven measurable gains in ROI through cost-cutting and increased efficiency in various categories in the end-to-end supply chain.  They are evaluated according to the scope of the project, creative application and extent of the business results.  AFN’s award was based on our just-in-time transportation solution for a leading global appliance manufacturer.  Our team rapidly designed, launched and executed a startup large appliance line requiring 48 hour turnaround in direct-to-consumer deliveries, maintaining 97% on-time delivery or better and keeping our client’s promise to customers.  A complete case study on the project can be found here.

Continuous Improvement

Survey Findings Reveal What Shippers Really Want

“I never pick up an item without thinking of how I might improve it.” – Thomas Edison (1847 – 1931).
Inventor and owner of 1,093 United States patents, an individual record that still stands.
 

In our view, Edison was absolutely on track in his quote above.  Despite the fact that he gained his fame and made his fortune by inventing new products, he never missed an opportunity to improve on existing ones.Survey Reveals What Shippers Really Want Click To Tweet

“Constant improvement”.  In the 3PL world, these are not just buzzwords.  In our business, we’d be out of business if we stopped striving to improve.  While we’ve operated on this principle ever since we launched AFN eleven years ago, we recently decided to test our assumptions by taking a closer look at recent surveys of shippers.  Our goal was to check our understanding of what shippers really want so that we, and the carriers we work with, can become even better at what we do.

Here are some of the highlights from our scan of third party research in the public domain:

  • Shippers outsource for many reasons, but mostly to fill gaps in internal expertise.  As the chart below indicates, the top reasons shippers outsource their transportation solution are cost, flexibility, avoiding investments and improved service.

Why Shippers Outsource Survey Results

  • Shippers decide to outsource to save money but they select 3PLs based on service.  Most surveys we looked at show that shippers value service over price.  According to the 2014 18th Annual Third-Party Logistics Study commissioned by Cap Gemini, Penske and others, an overwhelming majority (93.1%) of shippers surveyed primarily look at quality of service as a factor when choosing a solution provider.  Cost was the runner up, while industry expertise was third.
  • Shippers also cite service as the primary reason they switch providers.  According to data in eyefortransport’s 2012 survey shippers cancel contracts, first and foremost, when they find an alternative 3PL offering better service and, secondly, when they experience inefficient management.

Why Shippers Outsource Survey Results

  • Shippers generally view their relationships with 3PLs favorably. According to the same eyefortransport survey cited above, both shippers and 3PLs generally view their relationship as successful.  The study notes that shippers are increasing their use of outsourced logistics services, and shippers and 3PLs are now about equally satisfied (70% and 69%, respectively) with the openness, transparency and good communication in their relationships.

Summary
The majority, if not all, of the survey data we have reviewed reinforces how we’ve already been operating and what we’ve been hearing from our shipper customers for years. As we get ready to roll out a customer service program, we’re using this external data to create a custom customer experience survey program and will be asking both our shipper and carrier customers for formal detailed feedback on our operations so we can further improve how we serve you. “If it ain’t broke, don’t fix it” is an expression you’ll never hear from AFN.

List of “America’s Leading 3PLs”

low res (2) AFN Named by Global Trade Magazine as One of Ten of the “Most Versatile” 3PLs

“AFN treats carriers as if they were clients, with all the attention and customers service that entails. In that way, AFN has not only built a great reputation within trucking circles but that has given them a flexibility to get anyone when they want, which is how AFN, founded just 10 years ago, has been able to grow so quickly.”  That is one of the reasons cited by the editors of Global Trade, who recently completed a study of 120 global 3PLs, and named AFN as one of the ten most versatile logistics providers on its list of “America’s Leading 3PLs”.  The list, compiled in partnership with Armstrong and Associates, the nation’s leading 3PL market research and consulting firm, selected companies based on their ability to meet the twelve most strategic needs that shippers have.  Read more here.

AFN Recognized by Inbound Logistics as a Top 100 Third-Party Logistics Provider

AFN Receives Top Industry Recognition for the 8th Year in a Row

Niles, IL – July 30, 2013 – AFN, an award-winning logistics and supply chain company, has been named as a Top 100 Third-Party Logistics Provider for 2013 by Inbound Logistics, a respected industry trade publication. This is the eighth year in a row that AFN, which recently celebrated its 10th anniversary,  has been nominated and received the award recognizing the top providers in the logistics and supply chain industries.

“On behalf of our entire team, we’re honored to continue to be recognized by Inbound Logistics as one of the top companies in our industry. We have a single-minded focus to build a reputation in this industry that’s second to none. To receive the award eight years in a row is affirmation of that commitment to our customers and to our carriers,” said Michael Nervick, CEO of AFN.

“It’s very difficult for the editors to select the winners among the hundreds of companies that submitted credentials once again this year,” said Felecia Stratton, Editor, Inbound Logistics. “Selecting only 100 3PL leaders among them presented a difficult challenge.”  The magazine’s annual list of Top Third Party Logistics providers appears in the publication’s July issue.

To learn more about AFN:

AFN Receives Honorable Mention in Logistics Quarterly’s 2013 Third Party Logistics Sustainability Study and Awards Program

AFN, a logistics and supply chain company, is one of only two companies to receive an Honorable Mention designation.

Chicago, July 23, 2013 — AFN, an award-winning logistics and supply chain company, has received an Honorable Mention in Logistics Quarterly’s 2013 Third Party Logistics Sustainability Study and Awards Program.  Fifty companies participated in the study but only three finalists and two honorable mentions, including AFN, were named.

The selection process was spearheaded by LQ’s Executive Editors, as well as academics and supply chain management experts. Entries were evaluated based on proven strategic vision and performance in economic, environmental and societal areas of sustainability. The overall objectives of LQ’s Sustainability Study and Awards Program are to:

• Encourage and recognize sustainability excellence

• Support innovation in sustainability

• Generate case studies highlighting sustainability effectiveness

• Enhance industry research regarding 3PL sustainability practices

• Celebrate business supply chain excellence

 

Eric Malcolm, AFN’s Director of Sales Strategy, has been invited to present on AFN’s winning submission at LQ’s Symposium, to be held later this year, in Toronto, Canada. AFN’s project focused on developing sustainable logistics for a worldwide leader in the manufacture and sales of zipper plastic bags. (Click here to download the case study.) “We’re very excited about this award, and about the opportunity to share our perspectives on sustainability with delegates representing some of the most progressive logistics operations in the business,” stated Malcolm.

About AFN

Serving motor carriers, manufacturers and retailers since 2003, AFN (formerly known as Advantage Freight Network) is an award-winning leader in freight brokerage, third party logistics and transportation management services. We are known for our commitment to client service, our proactive approach to fighting cargo theft and our expertise in retail compliance. To learn more about AFN, visit https://www.loadafn.com or call 877-LOAD-AFN.