Industrial Transport (Cleveland), a U.S. regional provider of intra- and inter-plant freight movement services, and Exel (Columbus, Ohio), a North American contract logistics provider and wholly owned entity of Deutsche Post World Net (DPWN), have combined capabilities in Innogistics LLC, to be based in Cleveland.
The joint venture will operate as a minority business enterprise certified by the National Minority Supplier Development Council. The certification confirms Innogistics' status as an enterprise that is owned, operated and controlled by Industrial Transport, a minority business enterprise.
The arrangement enables both companies to leverage their strengths to capitalize on growth opportunities with existing and potential customers. Innogistics, which offers secondary packaging, sequencing and sub-assembly services, serves organizations in the consumer products and automotive sectors and plans to expand its offering to other industry sectors.
Industrial Transport and Exel possess deep expertise in near- and in-plant logistics. Industrial Transport’s ability to deliver time-sensitive transportation services in the manufacturing environment are complemented by Exel’s global resources throughout DPWN's DHL Logistics Division and its expertise in delivering value-added manufacturing support services such as sub-assembly, sequencing and packaging. The companies share a commitment to operational excellence, project management processes, and continuous improvement.
Brian Hall, chief executive officer of Industrial Transport, serves in the same capacity with Innogistics. The joint venture is a logical extension of Industrial Transport’s business as it seeks to provide a more vertically integrated solution, according to Hall.
"This is a good strategic fit for us as we seek to expand our niche expertise in material sequencing, inventory control and efficient traffic flow," Hall said. "The combination of people, processes and technology from Industrial Transport and Exel equips Innogistics with an operationally sound business model built on industry best practices."
He also noted that market trends continue to indicate that companies sourcing business to minority business enterprises are likely to increase revenue and market share, enhance supplier performance and build a favorable reputation within the communities they serve.
Mike Gardner, Exel’s chief development officer, said, "In listening to our customers, we recognized their pledge to improve their financial spend with minority suppliers. Exel saw an opportunity to support this goal and act on our own commitment to economic and community development by integrating our portfolio of best practices with those of a leading MBE in the logistics business. We’re fortunate to have partnered with such a successful and proven organization to form Innogistics."
Source: Excel
