Werner Enterprises, ranked among the country’s largest logistics and freight transportation corporations, recently acquired NEHDS to augment its last-mile delivery capacity.
The $64 million purchase adds upwards of 400 delivery vehicles that NEHDS utilizes to service customers who buy large, bulky products in the Northeast and Mid-West. The outfit also enjoys footprints in the Mid-Atlantic and Southeastern states. The Connecticut-based operation typically employees driver-striker pairs to make commercial and residential drop-offs. NEHDS possessed upwards of 19 warehousing and fulfillment centers before agreeing to the Werner buyout.
“The addition of the NEHDS operations, management team, talented staff, and strong customer relationships to the Werner family represents a significant step forward in our Final Mile delivery program. The combination of award-winning service that NEHDS provides to its clients, along with the comprehensive portfolio of trucking capability, final mile logistics services, and technology will bring the Werner and NEHDS customer base many advantages,” Werner CEO Derek Leathers reportedly stated. “We are excited at the opportunity to create additional value for new and existing customers. We remain committed to profitably growing our Logistics portfolio.”
Werner officials reportedly indicated that wide-ranging NEHDS personnel will remain in place. The management team, truck drivers, strikers, and independent contractors are expected to continue with business as usual. The most visible change will involve rebranding the outfit as “Werner Final Mile.” Moving forward, Werner decision-makers anticipate implementing gradual synergies and growth opportunities during 2022. Integrating the last-mile capacity of NEHDS rounds out Werner’s position in a freight hauling and logistics environment that increasingly favors soup-to-nuts operations.
“It makes sense for Werner to double down on its core surface transportation business. Like many companies in trucking, the next frontier is last-mile. NEHDS gives Werner the ability to expand its final mile capabilities, addressing the customer gap that has expanded in the past year,” Cambridge Capital’s Ben Gordon reportedly said. “As FedEx and UPS pass through 5.9 percent rate increases, and cut back on their ability to serve certain customers, there is a golden opportunity for smart trucking companies to grow in this arena.”
Werner began its slow-roll into the last-mile delivery sector during the Spring of 2017. More than four years later, the company has built a delivery network with upwards of 200 locations capable of serving residential and commercial customers. Adding the NEHDS assets increases its ability to handle large items for curbside, front porch, or in-home deliveries.
“It’s a changing marketplace when it comes to the buying habits in the U.S. and the global population,” Werner vice president Craig Stoffel reportedly said in 2017. “Nearly half of our revenue is touching retail and affecting a large amount of our customer base and volume. And, for us to continue to add value to our customers, it was a natural step for Werner to expand into this part of the supply chain.”
Based out of Omaha, Nebraska, Werner Enterprises generated $2.4 billion in revenue last year, as the seventh-largest truckload carrier in the U.S.
Source: ccjdigital.com
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