Genpro acquires the logistics and transportation services division of Cargo Chief
Cargo Chief, a transportation and logistics technology provider based in Mountain View, Calif. Focused on providing shippers with secure capacity and pricing on the road, said it has entered into a strategic partnership with 3PL Genpro , a company based in Rutherford, New Jersey. North American transportation service provider through various modes for perishable and non-perishable freight.
The companies said that under the deal, Genpro acquired the logistics and transportation services division of Cargo Chief, including its Chicago-based sales team, with Cargo Chief expanding its technology and operational capabilities, as its’ ability to match the right shipping capacity. with the correct shipping charge ”–– to the entire Genpro network.
Cargo Chief said the shippers and carriers served by the company will continue to be served by the same team, while being able to expand to additional tracks served by Genpro. And Genpro pro said that this acquisition benefits its customer base and its operator’s bandwidth, as well as establishing a footprint in the Chicago hub, coupled with leveraging synergies and increasing technological offers for its network of operators and customers.
In an interview with LM, Abtin Hamidi, senior vice president and co-founder of Cargo Chief, said that one of the main drivers of this deal was that Genpro was engrossed in exploiting good technology and the desire to use better tools rather than its current off the shelf. system.
“Initially they saw us as a 3PL as a service, which was interesting and what our conversations became more of an acquisition than a 3PL as a service,” he said. “One of the main themes we heard from many parties when we talked about this deal before we closed was that technology is a huge part for the future, and they love Cargo Chief building disruptive technology. . The second thing we heard was that more and more of the industry was moving towards a transactional environment, with Cargo Chief having invested all that time and energy into training and finding the right people and all the other stuff. that come into play and that are incredibly valuable. . ”
From the Cargo Chief’s perspective, Hamidi said the company is intrigued by the move, as it has spent the past three and a half years developing its brokerage using the technology. And to really go back to his roots, or his original mission, which was to develop technology, he said the focus on brokerage is key.
“We always knew the brokerage was interesting and where the action and the data was,” he said. “And now we’re at the point where we have the experience, data and contacts we need to be 100% focused on technology. Genpro was a unique buyer and very committed to this process and said it was a perfect match and they wanted to do what we were doing. The only lesson we learned from this, and we kind of knew that before we did, is that it’s really hard to run two different businesses at the same time. Brokerage is an incredibly difficult business that requires 100% concentration, just like technology, which is also incredibly difficult. We were trying to do both. It’s hard for two companies to coexist within one company, which comes down to our original value propositions of letting the tech people do the technology and the transportation people do the transportation.
The immediate goal of this partnership, he said, is to ensure that the integration with Genpro runs smoothly and to ensure that Cargo Chiefs carriers and customers and Genpro customers are aligned. in terms of service and benefits.
One of Cargo Chief’s primary goals is its integration and aggregation technology, which it has focused on in recent years, which has long focused on safety and capacity.
And another provides real-time capability for brokers as the next product.
“We were doing this for ourselves and now we are taking this and moving it to an external market,” he said. “This is a unique and personalized technology to offer to an operator and it is one of the 20 or so modules that we can integrate into an operator’s world, whether it is a TMS or plug-in, or integration or whatever, and it provides visibility into their available capacity and monitor that capacity in real time and ensure that it is accurate and very secure.
Genpro chairman Rob Goldstein said in a statement he was optimistic about the prospects for the deal.
“We acquired the brokerage business of Cargo Chief, which is primarily a developer of transportation technology applications,” he said. “While maintaining a relationship with Silicon Valley Transportation, we will have access to technology developed to help us improve our market knowledge and provide us with best practices for our customer service and purchasing efficiency. ”
About the Author
Jeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics management, Modern material handling, and Supply chain management review. Jeff works and lives in Cape Elizabeth, Maine where he covers all aspects of the supply chain, logistics, freight transportation and material handling industries on a daily basis. Contact Jeff Berman