Connect with us

Logistics & Supply Chain

A.P. Moller – Maersk to acquire the warehousing and distribution company Performance Team

Published

on

A.P. Moller - Maersk to acquire the warehousing and distribution company Performance Team. Image: Maersk
Listen to the story (FreightComms AudioPost)

A.P. Moller – Maersk announces that it has reached an agreement to acquire Performance Team, a US-based warehousing and distribution company, to further strengthen its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions to its customers. As a leader in North America Warehousing & Distribution, Performance Team specializes in B2B and B2C distribution solutions within retail, wholesale and e-commerce with 24 warehousing sites. It has a track record of profitable growth of 17% per year for the last four years, and revenue for 2019 of USD 525m.

“With this acquisition we invest in premium operational capabilities to significantly boost our existing Warehousing & Distribution offering. This will strengthen our ability to deliver products and solutions that meet our customers’ end-to-end supply chain needs. With its strong platform, Performance Team is a good match for A.P. Moller – Maersk as they complement our current Warehousing & Distribution proposition to customers in North America and will enable future growth,” said Vincent Clerc, CEO of Ocean & Logistics at A.P. Moller – Maersk.

Maersk is targeting the Warehousing & Distribution component to offer more supply chain options and flexibility to its Ocean customers. The global size of the Warehousing & Distribution sector is estimated at more than USD 200bn and for North America it is USD 50bn.  There is a significant growth opportunity for 3rd party Warehousing & Distribution players as only a small part of the Warehousing & Distribution sector in North America is currently outsourced and e-commerce is growing 12% annually.

“We are going all the way for our customers, offering new ways to optimize their supply chains, grow their e-commerce business and find warehouses and distribution options. Performance Team’s expertise, market reputation and scalability will create significant performance gains for our customers that grow and complement our existing Maersk Warehousing & Distribution product in North America. We are especially excited to strengthen our e-commerce fulfillment capabilities since many of our retailers are looking to grow online retail sales in 2020 and beyond,” said Narin Phol, Regional Managing Director of Maersk in North America.

Performance Team is a family run business that began operations in 1987 in California, US. Today, the company operates 24 warehousing sites covering 800,000 square meters across strategic supply chain locations.

“Joining a global container logistics leader like A.P. Moller – Maersk is the ideal fit for Performance Team’s future growth, our customers and associates. Maersk has a significant presence here in the US. They have a continuous improvement mindset like ours and together we can clearly deliver attractive logistics solutions that make our customers more competitive while ensuring our employees grow with the business. Our focus will continue to be customer-centric and we are excited about delivering results for years to come,” said Craig Kaplan, CEO of Performance Team – who will remain CEO of Performance Team once the transaction closes.

In North America, Maersk Warehousing & Distribution is based in South Gate, California and has a regional network of 20+ facilities strategically located in the United States and Canada that offer warehouse and distribution solutions, including domestic consolidation, e-commerce fulfillment, inland drayage, facility and yard management and other value-added services.

The value of the transaction is USD 545m (EV) including IFRS 16 lease liabilities of around USD 225m. Performance Team 2019 EBITDA adjusted for IFRS 16 effects is estimated at USD 90m. The acquisition is subject to regulatory approvals and the transaction is expected to close 1 April 2020. Until obtaining required regulatory approvals and closing of transaction, Maersk and Performance Team remain two separate companies and thus will do their business as usual.

Profile of the combined entity:

Performance Team Maersk Warehousing & Distribution North America Combined business

Sites

24

22

46

Area (Square meters)

800,000

563,000

1,363,000

Turnover (USD milion)

525m

406m

931m

[1] Transport Intelligence (2019), Global Contract Logistics

[2] Transport Intelligence (2019), Global e-commerce Logistics

Logistics & Supply Chain

DPD Portugal delivers more than 1 ton of materials to hospitals for combating COVID-19

Published

on

DPD Portugal delivers more than 1 ton of materials to hospitals for combating COVID-19. Image: Wikimedia/ An4oUs1331
Listen to the story (FreightComms AudioPost)

In association with Tech4COVID-19 and APT3D projects, DPD transports gloves, masks, visors and materials to equip Portuguese hospitals. DPD established a partnership with the entities Tech4Covid19 and APT3D in order to provide health professionals with personal protective equipment, as well as sheets, towels and other materials for Santa Maria field hospital, installed at the University Stadium in Lisbon.

DPD Pickup network was made available to more than 400 volunteers from APT3D whom, dispersed throughout all Portuguese territory, share the mission of printing 3D personal combat equipment to Covid-19. DPD Portugal collects the printed visors, which are sent to a partner who will sterilize, pack and send them to hospitals.

“Our expectation is that by the end of the week, more than 40,000 3D printed visors will be delivered to healthcare professionals”, says Olivier Establet, CEO of DPD Portugal.

In order to equip Santa Maria’s field hospital, more than 750 kg of materials including sheets, pillows and towels were collected in the hotels of Lisbon which participated in the action.

“It was an extraordinary mission carried out in one day. We had to collect at 6 hotels and deliver against the clock at the University Stadium. The field hospital was going to open the next day and would have to be ready for start working. And so it was! ”continues Olivier Establet.

The Curry Cabral Hospital also received personal protective equipment provided by some Lisbon hotels, and delivered by DPD.

“And we didn’t stop there: we delivered more than 700 kg of sheets to a partner to transform into masks for health professionals. In the end, we’ve carried about 1 and a half ton of materials to its destination and that will allow those who take care of COVID-19 patients to be protected! Obviously, none of this would be achieved without the commitment of our Drivers. We are very proud of them! After all, they are our heroes … and they will not stop! ”, concludes the CEO of DPD Portugal.

Continue Reading

Logistics & Supply Chain

BMW Group uses Blockchain to drive supply chain transparency

Published

on

BMW Group uses Blockchain to drive supply chain transparency. Image: BMW Group
Listen to the story (FreightComms AudioPost)

The BMW Group is using innovative digital technologies to optimise its processes. A good example of this is Blockchain, a technology that enables tamper-proof data sharing, with potential applications throughout the entire automotive value chain. The BMW Group is using this technology in purchasing to ensure the traceability of components and raw materials in multi-stage international supply chains. “In 2019, we conducted a successful pilot project for purchasing front lights. This year, we want to expand the project to a large number of other suppliers,” said Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.

The automotive industry’s international supply chains are highly complex. They generally involve numerous players at different delivery stages and often undergo rapid changes. For this reason, considerable effort can be needed to clearly track a component’s origin or supply route, for instance. Up until now, it has been customary for the many partners to manage their own data separately. The companies’ respective IT systems have not always been able to communicate consistently with one another. For the BMW Group’s purchasing experts and its suppliers, ensuring transparency therefore involved considerable manual effort. The BMW Group initiated the PartChain project to ensure seamless traceability of components – more or less “at the push of a button” – and provide immediate data transparency in complex supply chains for all partners involved going forward.

“PartChain enables tamper-proof and consistently verifiable collection and transaction of data in our supply chain,” said Wendt. 2019 the pilot project focused solely on part tracking. In the long term, the BMW Group also expects the project to enable complete traceability of critical raw materials – all the way from mine to smelter. Wendt: “This move is designed to take the digitalisation of purchasing at the BMW Group to the next level. Our vision is to create an open platform that will allow data within supply chains to be exchanged and shared safely and anonymised across the industry.”

PartChain uses Cloud technologies (e. g. Amazon Web Services, Microsoft Azure) in addition to Blockchain solutions. This allows the origin of components to be tracked between all participating partners without any risk of manipulation. The 2019 pilot project already involved two of the BMW Group’s total 31 plants (Spartanburg/US and Dingolfing), as well as three locations of the supplier Automotive Lighting. This year, the platform will be rolled out to about ten suppliers.

BMW Group co-founded Mobility Open Blockchain Initiative (MOBI) in 2018

An industry-wide solution would enable all partners participating to link their business processes more closely and coordinate between companies. However, common standards and control models are needed to leverage the full potential of an open platform. The BMW Group therefore co-founded the Mobility Open Blockchain Initiative (MOBI) in 2018, a cross-industry initiative comprising 120 leading automotive, mobility and technology companies. Within MOBI, the company heads a working group on supply chain issues. The MOBI members’ shared objective is to help Blockchain technology break through in the mobility sector. “We want to share our PartChain approach with the initiative and invite interested companies to join the initiative,” explained Wendt.

Continue Reading

Freight Forwarding

CEVA Logistics is mobilized to help fight the COVID-19 pandemic around the world

Published

on

CEVA Logistics is mobilized to help fight the COVID-19 pandemic around the world. Image: Flickr/Graham Richardson
Listen to the story (FreightComms AudioPost)

As a key part of its innovative service initiatives to help customers through the COVID-19 crisis, CEVA Logistics has already delivered significant additional volumes on behalf of numerous customers around the world. Air, air charter, ocean freight, ground transport and rail freight have all been deployed to ensure that shipments can be delivered in spite of the operational challenges created by the global pandemic.

USA

In North America, CEVA Logistics is handling the distribution for one of the medical technology companies appointed by the US Government to manufacture and supply COVID-19 test kits. The CEVA Logistics US freight management team has leveraged its wide expertise in expedited ground, critical airfreight and final mile deliveries to ensure these vital shipments reach hot spots at hospitals and laboratories across the country. This has included areas such as New Jersey, Seattle and Chicago.

SPAIN

CEVA took charge of the Import process, Customs clearance and delivery of the important airfreight shipment for Huawei’s donation of one million masks to the Spanish health service. CEVA staff, Huawei’s Spanish team and the airport authority in Madrid collaborated throughout the operation to ensure the masks reached the distribution points the same day the shipment landed.

UK

Demand for PPE (Personal Protection Equipment) supplies for frontline healthcare workers is growing exponentially. In response to this, CEVA Logistics is working in conjunction with iMakrstudio and Guys and St Thomas’ Hospital Trust, building a server farm at a secure location in south-east England which will host 200-250 3D printers. This week the 3D printers will start making protection visors, and CEVA will manage the infrastructure and logistics which includes assembly of the visors, ready to despatch and deliver to hospitals across the region.

Maintaining essential services

CEVA Logistics continues to supply essential services for the community, guaranteeing deliveries of hundreds of vital parcels a day to supermarkets, hospitals and pharmacies. The company is also maintaining advanced stock at wholesalers to anticipate all scenarios.

Mathieu Friedberg, Chief Executive Officer – CEVA Logistics, says: “Keeping frontline services operating in this global time of crisis is our duty and a  team challenge between CEVA Logistics and its partners. As customers and patients are relying on us more than ever, we remain committed to ensure supply chain continuity to the highest possible standards.”

Continue Reading

Popular

Copyright © 2017-18 | FreightComms | Made with ♥ in Singapore