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Transplace has extended its reach into the manufacturing vertical with the acquisition of LeanCor, a provider of supply chain solutions, consulting and training.
For the Dallas-based 3PL, it is the third acquisition this year. Financial terms of the agreement were not disclosed
According to Transplace CEO Frank McGuigan, the “marriage” of the two outfits aligns two complementary cultures, with little overlap in their respective customer bases.
“Transplace’s consulting practice is focused on transport network performance and design; LeanCor’s consulting practice focuses on a culture change for the client to embrace lean manufacturing principles,” he said.
“This creates a unique customer intimacy that encompasses training, consulting and logistics support.”
For Transplace the acquisition offers strong access to manufacturing, a vertical the company has targeted for expansion.
“We see great opportunities to expand into the manufacturer vertical and add value to their logistics strategies,” said Mr McGuigan. “We’ve identified more and more opportunities to support manufacturers with a need to modernise their inventory management.”
The “lean manufacturing expertise” LeanCor brings to the table should also bring benefits to Transplace’s non-manufacturing clientele, he added. “We believe our clients in the retail, CPG, automotive, electronics and technology verticals will benefit from lean principles.
“This Covid-19 era has forced shippers to move from just-in-time to just-in-case, which stresses working capital. With lean principles we can optimise supply chain strategies and support movements across multiple supplier networks.”
Another attraction of LeanCor for its new owner is a proprietary material flow plan that includes specific data on every part number coming from suppliers and every finished-good SKU going to customers. Plan For Every Part (PFEP) contains all the necessary information to make informed decisions about transport, packaging, inventory, placement, ordering quantities and handling, he explained.
“A well-designed PFEP system significantly reduces material shortages, inventories, supply chain complexities and costs,” added Mr McGuigan. “Our goal is to advance the Transplace platform, through both innovation and acquisition, so that we can strengthen logistics performance of all shippers in our community with advanced technology, domain expertise and scale.”
This year’s acquisitions of ScanData and LaneHub have added parcel optimisation and customer network mapping and overlaying capabilities. These integrations have been completed, said Mr McGuigan, and taking-in LeanCor’s business will involve one-by-one integration of its clients into the Transplace management system while retaining the full functionality of the LeanCor platform, he added.
“The software integration will be managed by our combined teams, which we expect to complete in less than a year,” he added.
By the time this is completed, Transplace may have added to its tally of strategic acquisitions.
“We always have our eyes and ears open for ways to add capabilities, innovative technologies, top-notch talent and industry expertise to increase our value to the community of shippers that we serve,” said Mr McGuigan.