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RedStone Logistics launches logistics resource group subsidiary
According to a study from supply chain consultancy Armstrong and Associates, the total global third-party logistics gross revenue was $141.8 billion in 2012, up 99 percent over the past 10 years. This trend of growing revenue for 3PLs is a clear indication shippers are looking for broader solutions than what is typically offered by most carriers. For a carrier to enter the 3PL market, their options become limited in order to maintain their current market share and yields: either acquire its own 3PL, or invest in the technology and talent necessary to start a new one. Both of these options require significant capital investments, with no guarantee of success.
“We simply want to enable our Carrier Partners with the ability to service, leverage and grow their customer relationships with the broader services they are looking for,” Jim Ritchie, president and CEO of RedStone Logistics, said. “We’ve talked to dozens of experts and business leaders in this industry and we’re confident that no one else is providing this kind of service. We’re not interested in taking customers away; instead, we’re focused on helping those carriers that have been struggling to keep the hard fought business they won over the years stay connected and profitable. With LRG, we’re working side-by-side and behind the scenes with our carrier partners to give them the knowledge, tools, technology and support they need to protect and grow their businesses.”
Created by the same industry veterans who have built large third-party logistics companies over the past 30 years, LRG will provide each partner with comprehensive services support, training and tools that will allow the carrier’s sales team to remain in control of the sales process and the ongoing customer relationship:
• Sales force training and marketing materials
• Field sales managers that will work with customer’s sales team
• Day-to-day operational support
• Industry-leading systems and technology
• Engineering experts to build sustainable value for the carrier and its customers
“There are some 3PLs who have good long standing relationships with the carrier community, however over the past several years there has been far too many companies calling themselves 3PLs, but really their only method of creating value is to drive carrier pricing down, negatively affecting the carriers volume and yield,” Ritchie said. “We believe it’s time for the carriers to have an organization like LRG on their side, helping them protect their customer relationships, and provide true 3PL solutions-based value across the customers entire supply chain.”
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