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Essendant and Hub Group Forge a Strategic Alliance

In a pivotal move to enhance its logistics capabilities, Essendant, a prominent national wholesale distributor, has announced a partnership with Hub Group. This collaboration aims to introduce a Managed Delivery model as part of Essendant's supply chain strategy, branded as the 'New Way Forward.' With a commitment to ensuring speedy and reliable deliveries, this model will allow shipments to warehouses within 48 hours, impacting nearly all major markets across the United States.

The Managed Delivery Model: A Game Changer

The crux of this partnership lies in the synergy between Essendant's robust distribution operations and Hub Group's extensive transportation network. By leveraging Hub Group's truckload network and its less-than-truckload (LTL) services, Essendant seeks to optimize multi-stop truckload shipments, which promises to cut costs while ensuring timely deliveries for their customers.

Tim Engstrom, Essendant's Senior Vice President of Supply Chain, emphasized the importance of this initiative, stating, "This partnership enables Essendant to provide more efficient, predictable, and cost-disciplined deliveries to our customers' warehouses." He further noted, "Hub Group's managed delivery expertise ensures we can meet evolving customer needs while advancing our commitment to service with cost."

Key Features of the Partnership

1. 48-Hour Delivery Capability

The new hub-and-spoke model, which incorporates over 200 final mile locations, makes it feasible to achieve two-day warehouse deliveries across 98% of the U.S. population. This significant reach stands to revolutionize how companies manage their supply chains, drastically speeding up the flow of goods and fulfilling customer demands swiftly.

2. Hub-and-Spoke Efficiency

Essendant and Hub Group have designed multi-stop truckload solutions that optimize routes to substantially lower costs. By pinpointing efficiencies in the supply chain, the partnership hopes to enhance delivery capabilities without compromising service quality.

3. Nationwide Coverage

With Hub Group's dense final mile network, the two companies can provide extensive national coverage that allows for greater operational flexibility. This is particularly vital in meeting the diverse needs of customers spread across various geographical locations.

4. Improved Reliability

The partnership promises a remarkable 95% on-time delivery rate for warehouse shipments across the U.S. This reliable service sets a precedent for operational excellence in the supply chain industry.

5. Scalable Model

The Managed Delivery program is designed to be flexible, allowing it to adapt to changing market conditions and client needs. This scalability ensures that as businesses evolve, their supply chain solutions can grow in tandem, maintaining efficiency and customer satisfaction.

Launch and Future Implications

Scheduled to launch on November 1, 2025, under a three-year agreement, this Managed Delivery program strengthens Essendant's initiative to provide value through disciplined and customer-focused supply chain solutions. With a century-long heritage in fulfilling various distribution requirements, Essendant’s evolution into this new logistical frontier underscores its dedication to aligning customer value with operational efficiency.

About the Companies

Essendant is not just a distributor; it is a partner for countless businesses offering janitorial products, food service disposables, technology, and industrial supplies. Its widespread reach and commitment to service have made it a trusted name in wholesale distribution.

Hub Group, on the other hand, excels in transportation and logistics management solutions. With a significant revenue footprint of approximately $4 billion, Hub Group employs around 6,000 individuals worldwide, showcasing its commitment to service and innovation within the supply chain sector.

In summary, the alliance between Essendant and Hub Group marks a significant advancement in the supply chain industry, setting new benchmarks in delivery speed, efficiency, and reliability. As these two companies embark on this joint venture, the future of logistics appears brighter and more customer-centric than ever before.