Transplace acquires LeanCor, for its third acquisition of 2020

Earlier this week, Dallas-basedTransplace, a non asset-based third-party logistics services provider, said it has acquired Florence, Ky.-basedLeanCor, a provider of end-to-end and supply chain solutions, training, and consulting.

Financial terms were not disclosed.

This marks the third acquisition made by Transplace in 2020.In January, it acquired Green Bay, Wis.-based Lanehub, a cloud-based platform and community focused on shipper-carrier collaboration by automatically identifying and connecting companies with complementary freight lanes to save on shipping expenses.And in June, it acquired Austin, Texas-based ScanData Systems Inc., a provider of parcel transportation management solutions (PTMS).

Transplace officials described LeanCor as a strategic supply chain partner that provides managed transport services, supply chain consulting, and corporate training programs for “manufacturing-centric shippers.” And the company added that LeanCor’s proprietary consulting and logistics management processes aid shippers in providing better service for their customers through the elimination of waste, decreasing costs, and building cultures of continuous improvement.

Transplace CEO Frank McGuigan toldLMthat although Transplace did not need to LeanCor, it did, because the opportunity presented itself to the company, and it was in alignment with its key strategic driver of Transplace, which is to continue to advance its technology and service offerings, through both innovation and acquisitions.

“We acquired Lanehub, ScanData, and LeanCor because they have complementary technologies, business models and company cultures,” he said. “As a result, we now have expanded technical capability, impressive new talent and deeper domain expertise. The combined organization further improves our ability to drive cost and service improvement as well as speed and nimbleness for our shippers. For all three of our acquisitions completed this year, we began conversations before COVID-19. However, with the pandemic, our strategic acquisitions have proven to be even more meaningful for our community of shippers and our carriers.”

As for what LeanCor brings to Transplace that it needed, or was missing, McGuigan explained that he is seeing opportunities to expand on current Transplace capability in manufacturing supply chains where inventory management is critical. LeanCor offers:

• LeanCor’s Plan For Every Part (PFEP), is a material flow plan technology and process that includes specific data on every part number coming from suppliers and every finished-good SKU going to customers. It contains all the information necessary to make informed decisions about transportation, packaging, inventory, placement, ordering quantities, and handling. A well-designed PFEP system significantly reduces material shortages, inventories, supply chain complexities and costs;
• Lean manufacturing expertise—This COVID-19 era has forced shippers to move from just-in-time to just-in-case, which stresses working capital. With lean principles, Transplace can optimize supply chain strategies and support movements across multiple supplier networks; and
• Consulting Practice—Transplace’s consulting practice is focused on transportation network performance and design. LeanCor’s consulting practice focuses on a culture change for the client to embrace lean manufacturing principles. The combination creates a unique customer offering that encompasses design, implementation, execution and control for its customers’ logistics networks.

When asked what the main benefits of this acquisition are for Transplace’s shipper customers, McGuigan said that as organizations step up to address the “new normal,” Transplace’s technology platform and domain expertise, now enhanced with LeanCor’s expertise in lean manufacturing, will streamline supply chains and better support our shippers with inbound logistics and inventory management.

From LeanCor’s perspective, Robert Martichenko, CEO of LeanCor, said in a statement that combining LeanCor’s expertise with Transplace is the perfect next step and growth opportunity for its team members and our customers.

“Deeply rooted in lean principles, we support organizations to build operational excellence and drive down costs across their supply chain,” he said. “As a part of Transplace’s expansive $11 billion network, we’ll move forward with advancing best practices, breaking down supply chain silos and elevating performance.”