TRIOSE, Inc. Honored With NOVAPLUS® Supplier of the Year Award From Vizient, Inc. for Service Excellence

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TRIOSE, Inc. Honored with NOVAPLUS® Supplier of the Year Award from Vizient, Inc. for Service Excellence

Wyomissing, Pa., May 1, 2017 – Recognized for service excellence in healthcare logistics management, TRIOSE, Inc. received the NOVAPLUS® Supplier of the Year Award from Vizient, Inc., at their Supplier Summit on April 4, 2017 in Las Vegas. Vizient is the largest member-driven health care performance improvement company in the country.

“TRIOSE is (one of our top) NOVAPLUS non-pharmacy suppliers, with contract revenue up 50% over last year. They brought over $2.5M in integration value and are highly engaged with the sales team and NOVAPLUS, identifying over $15M in member savings for over 100 Vizient member systems in 2016,” Lindsay Phillips, MBA, program services manager for sourcing operations and strategic sourcing programs, NOVAPLUS®.

“Winning the NOVAPLUS® Supplier of the Year Award from an organization like Vizient is particularly exciting for our TRIOSE team. For us, this award validates the value and quality we deliver to Vizient members to drive sustainable cost savings in their supply chains,” said CJ Joyner, president and CEO, TRIOSE, Inc.

“We are constantly looking for ways to optimize supply chain management solutions so that our healthcare clients can focus on what matters most: patient care and positive outcomes,” said Joyner.

TRIOSE helps Vizient members have a transparent understanding, and therefore better control, of its supply chain expenses. These insights allow NOVAPLUS to work smarter to help their members improve cost savings through supply chain and operational efficiencies – without taking away from patient care.

“We are pleased to recognize TRIOSE as our supplier of the year for NOVAPLUS. This award reflects their commitment to collaboration and service excellence that helps Vizient’s members meet their goals for supply chain efficiency while also delivering exceptional care to the patients they serve,” said Pete Allen, executive vice president, sourcing operations, Vizient.

For more information about TRIOSE’s full-service logistics solutions, visit www.triose.com/solutions.

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About TRIOSE, Inc.

TRIOSE, Inc. is a nationwide logistics management firm specializing in managed solutions for the healthcare industry. Working hand-in-hand with hospitals and health systems nationwide, TRIOSE delivers smart, total logistics solutions customized for each client’s needs; lowers supply chain costs; and drives change for better healthcare in our communities. TRIOSE recently completed a merger with Predicata, East Providence, RI. A healthcare analytics company, Predicata’s SupplyLinQ service strengthens TRIOSE’s portfolio by adding innovative data analytic solutions to help healthcare clients reduce supply cost, mitigate risk, and improve quality of care.

TRIOSE’s logistics portfolio solutions include freight management, large cargo freight, courier management and 3PL consulting. While TRIOSE has relationships with hundreds of carriers and customizes carrier solutions for each of its clients, the company is proud to have a strategic corporate alliance with UPS®.

Privately held since 1999, TRIOSE is headquartered in Wyomissing, PA. TRIOSE is the first organization to be selected as No. 1 on the Greater Reading Chamber of Commerce & Industry’s Top 50 Businesses List for two consecutive years in 2014 and 2015. The company also earned a spot on the 2013, 2014, 2015, and 2016 Inc. 5000 as one of the fastest-growing private U.S. companies. Learn more at www.triose.com.

About NOVAPLUS

For more than three decades, Vizient’s private label brand, NOVAPLUS®, has delivered the best value and quality on the most frequently purchased products and services. The NOVAPLUS portfolio is continuously expanding, including seven services and more than 2,000 items in high-demand categories, including anesthesia, business products and services, diagnostic imaging, food, laboratory, medical, orthopedic, pediatric, pharmaceutical, respiratory and surgical.

About Vizient, Inc.

Vizient, Inc., the largest member-driven health care performance improvement company in the country, provides innovative data-driven solutions, expertise and collaborative opportunities that lead to improved patient outcomes and lower costs. Vizient’s diverse membership base includes academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks and non-acute health care providers and represents more than $100 billion in annual purchasing volume. The Vizient brand identity represents the integration of VHA Inc., University HealthSystem Consortium and Novation, which combined in 2015, as well as MedAssets’ Spend and Clinical Resource Management (SCM) segment, including Sg2, which was acquired in 2016. In 2017, Vizient again received a World’s Most Ethical Company designation from the Ethisphere Institute. Vizient’s headquarters are in Irving, Texas, with locations in Chicago and other cities across the United States. Please visit www.vizientinc.com as well as our newsroom, blog, Twitter, LinkedIn and YouTube pages for more information about the company.

TRIOSE Awarded Vizient NOVAPLUS® Supplier of The Year Award

FOR IMMEDIATE RELEASE

TRIOSE Awarded Vizient NOVAPLUS® Supplier of the Year Award

IRVING, Texas–(BUSINESS WIRE)–Vizient, Inc., the largest member-driven health care performance improvement company in the country, today announced the recognition of 23 suppliers and distributors for service excellence in 2016. The awards were presented on Tuesday, April 4, during the 2017 Vizient Supplier Summit in Las Vegas. The event featured education tracks and collaboration opportunities to help suppliers and distributors more efficiently deliver products and services that accelerate the performance of Vizient members.

“The Vizient Supplier Summit is all about creating momentum – creating the momentum with the supplier community that is critical to us delivering on our promise – helping our members deliver exceptional, cost effective care. The event is also about taking the time to recognize and celebrate the companies and individuals who consistently go above and beyond in serving members of Vizient, Provista and the Children’s Hospital Association. We truly appreciate the work you do,” said Pete Allen, executive vice president, sourcing operations.

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About Vizient, Inc.

Vizient, Inc., the largest member-driven health care performance improvement company in the country, provides innovative data-driven solutions, expertise and collaborative opportunities that lead to improved patient outcomes and lower costs. Vizient’s diverse membership base includes academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks and non-acute health care providers and represents more than $100 billion in annual purchasing volume. The Vizient brand indentity represents the integration of VHA Inc., University HealthSystem Consortium and Novation, which combined in 2015, as well as MedAssets’ Spend and Clinical Resource Management (SCM) segment, including Sg2, which was acquired in 2016. In 2017, Vizient again received a World’s Most Ethical Company designation from the Ethisphere Institute. Vizient’s headquarters are in Irving, Texas, with locations in Chicago and other cities across the United States. Please visit www.vizientinc.com as well as our newsroom, blog, Twitter, LinkedIn and YouTube pages for more information about the company.

About TRIOSE, Inc.

TRIOSE, Inc. is a nationwide logistics management firm specializing in managed solutions for the healthcare industry. Working hand-in-hand with hospitals and health systems nationwide, TRIOSE delivers smart, total logistics solutions customized for each client’s needs; lowers supply chain costs; and drives change for better healthcare in our communities. TRIOSE recently completed a merger with Predicata, East Providence, RI. A healthcare analytics company, Predicata’s SupplyLinQ service strengthens TRIOSE’s portfolio by adding innovative data analytic solutions to help healthcare clients reduce supply cost, mitigate risk, and improve quality of care.

TRIOSE’s logistics portfolio solutions include freight management, large cargo freight, courier management and 3PL consulting. While TRIOSE has relationships with hundreds of carriers and customizes carrier solutions for each of its clients, the company is proud to have a strategic corporate alliance with UPS®.

Privately held since 1999, TRIOSE is headquartered in Wyomissing, PA. TRIOSE is the first organization to be selected as No. 1 on the Greater Reading Chamber of Commerce & Industry’s Top 50 Businesses List for two consecutive years in 2014 and 2015. The company also earned a spot on the 2013, 2014, 2015, and 2016 Inc. 5000 as one of the fastest-growing private U.S. companies. Learn more at www.triose.com.

TRIOSE Executive Gerry Romanelli Featured In HPN ‘Crisis & Disaster’ Article

FOR IMMEDIATE RELEASE

TRIOSE Executive Gerry Romanelli Featured in HPN ‘Crisis & Disaster’ Article.

Wyomissing, Pa., March 20, 2017 – TRIOSE Executive Gerry Romanelli has been interviewed and featured in the April 2017 edition of Healthcare Purchasing News. Leveraging nearly 30 years of Supply Chain experience, Romanelli recounted disaster mitigation efforts during the 2012 Hurricane Sandy aftermath.

“In October 2012, the impact from Hurricane Sandy devastated the New York metropolitan area. All transportation infrastructure – except the Lincoln Tunnel – leading to Manhattan was closed. Power outages impacted over 2.2 million people. A major research and acute-care health system located in Manhattan experienced heavy flooding and failure of a backup generator. The hospital was forced to divert patients to surrounding hospitals and evacuate its medical buildings.

With limited access to communication, the hospital had difficulty contacting suppliers to divert all orders to a temporary warehouse in New Jersey. As the health system’s supply chain partner, TRIOSE stepped in and engaged all suppliers and carriers with updated shipping instructions and served as the proxy between hospital and vendors. Ultimately, TRIOSE was able to help the hospital keep its supplies in the New York metro area so patients could have access to much-needed healthcare resources.

Supply chain should immediately notify carriers and suppliers about contingency plans that may impact procurement and delivery. In the case of the major healthcare organization in the New York City metro area, being unable to divert shipments to the temporary warehouse in New Jersey would’ve resulted in products returning to the supplier. This would have directly impacted the ability to provide patient care in a time of crisis or disaster.”

For more information about TRIOSE’s full-service logistics solutions, visit www.triose.com/solutions.

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About TRIOSE, Inc.

TRIOSE, Inc. is a nationwide logistics management firm specializing in managed solutions for the healthcare industry. Working hand-in-hand with hospitals and health systems nationwide, TRIOSE delivers smart, total logistics solutions customized for each client’s needs; lowers supply chain costs; and drives change for better healthcare in our communities. TRIOSE recently completed a merger with Predicata, East Providence, RI. A healthcare analytics company, Predicata’s SupplyLinQ service strengthens TRIOSE’s portfolio by adding innovative data analytic solutions to help healthcare clients reduce supply cost, mitigate risk, and improve quality of care.

TRIOSE’s logistics portfolio solutions include freight management, large cargo freight, courier management and 3PL consulting. While TRIOSE has relationships with hundreds of carriers and customizes carrier solutions for each of its clients, the company is proud to have a strategic corporate alliance with UPS®.

Privately held since 1999, TRIOSE is headquartered in Wyomissing, PA. TRIOSE is the first organization to be selected as No. 1 on the Greater Reading Chamber of Commerce & Industry’s Top 50 Businesses List for two consecutive years in 2014 and 2015. The company also earned a spot on the 2013, 2014, 2015, and 2016 Inc. 5000 as one of the fastest-growing private U.S. companies. Learn more at www.triose.com.

TRIOSE, Inc. Awarded NOVAPLUS Freight Management Contract By Vizient, Inc.

FOR IMMEDIATE RELEASE

TRIOSE, Inc. Awarded NOVAPLUS Freight Management Contract by Vizient, Inc.

Wyomissing, Pa., February 20, 2017 – A leader in healthcare logistics management, TRIOSE, Inc. has been awarded an exclusive contract from Vizient, Inc., Irving, TX, to be the sole source for providing freight management services to members of its private label brand, NOVAPLUS®.

“Our comprehensive contracting process is designed to select suppliers that provide the greatest value and quality to members. We felt TRIOSE could meet that standard. Partnering with TRIOSE to be our NOVAPLUS® freight management provider will ensure that we continue to offer members sustainable cost savings.”, said Brent Gee, Associate Vice President, Strategic Programs and Contract Services, Vizient.

As part of the agreement, TRIOSE will help Vizient members have a transparent understanding, and therefore better control, of its inbound and outbound freight expenses. This strategic partnership will allow NOVAPLUS to work smarter to help their members improve cost savings through supply chain and operational efficiencies – without taking away from patient care.

The agreement will enable Vizient members to improve their freight management through the ongoing management, visibility to freight costs and meaningful, detailed reporting that TRIOSE provides.

“Ultimately, we work to improve the impact NOVAPLUS can extend to its members to help lower costs in healthcare. TRIOSE cares about helping hospitals and healthcare systems improve their results and the care they provide to their patients. When our experts can evaluate freight management programs, they can find areas to save without taking services away. We look for every way possible to simplify the conversion process by focusing on a step-by-step process to make the transition smooth and seamless,” said CJ Joyner, CEO, TRIOSE, Inc., Wyomissing, Pa.

For more information about TRIOSE’s full-service logistics solutions, visit www.triose.com/solutions.

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About TRIOSE, Inc.

TRIOSE, Inc. is a nationwide logistics management firm specializing in managed solutions for the healthcare industry. Working hand-in-hand with hospitals and health systems nationwide, TRIOSE delivers smart, total logistics solutions customized for each client’s needs; lowers supply chain costs; and drives change for better healthcare in our communities. TRIOSE recently completed a merger with Predicata, East Providence, RI. A healthcare analytics company, Predicata’s SupplyLinQ service strengthens TRIOSE’s portfolio by adding innovative data analytic solutions to help healthcare clients reduce supply cost, mitigate risk, and improve quality of care.

TRIOSE’s logistics portfolio solutions include freight management, large cargo freight, courier management and 3PL consulting. While TRIOSE has relationships with hundreds of carriers and customizes carrier solutions for each of its clients, the company is proud to have a strategic corporate alliance with UPS®.

Privately held since 1999, TRIOSE is headquartered in Wyomissing, PA. TRIOSE is the first organization to be selected as No. 1 on the Greater Reading Chamber of Commerce & Industry’s Top 50 Businesses List for two consecutive years in 2014 and 2015. The company also earned a spot on the 2013, 2014, 2015, and 2016 Inc. 5000 as one of the fastest-growing private U.S. companies. Learn more at www.triose.com.

About NOVAPLUS

For more than three decades, Vizient’s private label brand, NOVAPLUS®, has delivered the best value and quality on the most frequently purchased products and services. The NOVAPLUS portfolio is continuously expanding, including seven services and more than 2,000 items in high-demand categories, including anesthesia, business products and services, diagnostic imaging, food, laboratory, medical, orthopedic, pediatric, pharmaceutical, respiratory and surgical.

TRIOSE & Predicata Coming Together to Make a Difference in Healthcare

Wyomissing, Pa., January 11, 2017 – Recognized as a leader in healthcare logistics management, TRIOSE, Inc., Reading, Pa., has recently completed its merger with Predicata,East Providence, RI. Predicata is an innovative data analytic solutions company that helps healthcare clients reduce supply cost, mitigate risk, and improve quality of care.

“Joining forces with Predicata will strengthen our portfolio and bring even greater value to our clients, and ultimately, the patients they serve,” said President Ira Tauber, TRIOSE, Inc. “In addition to providing healthcare solutions through our supply chain expertise, merging with Predicata adds more value and makes a stronger impact on the Healthcare Systems we serve. We are committed to helping healthcare customers by adding additional services through mergers, acquisitions, alliances and new product development.”

The merger provides TRIOSE with a platform for fueling growth opportunities, expanding its footprint into a new market, and propelling its brand forward. Predicata will provide a sophisticated approach to transform analytics into meaningful action that help solve client needs, such as improving the cost savings.

“Predicata is excited to become part of the TRIOSE portfolio of solutions. Our cultures and values are so similar that this is a win-win,” said Michael Palazzini, vice president of customer engagement, Predicata. “Hospital administrators are held to reducing costs while at the same time improving outcomes. It has never been more important to make data actionable in the healthcare industry. Predicata is focused on identifying variation in the cost and quality of care in order to achieve improved results while lowering costs.”

For more information about TRIOSE’s logistics portfolio, visit www.triose.com/solutions.

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About TRIOSE, Inc.

TRIOSE, Inc. headquartered in Wyomissing, Pennsylvania is a privately held, full-service third party logistics company dedicated to providing customized solutions to the healthcare industry. They approach every situation with the client’s patient in mind, quantifying measurable success by providing better cost, improved quality, and excellent service outcomes. As a leading transportation management company, TRIOSE’s tailored supply chain solutions include freight management for small package and large cargo, outbound and international shipping, capital and construction logistics, courier and fleet management, brokerage services and consulting. To learn more about TRIOSE go to www.triose.com.

About Predicata

Predicata provides actionable and smart analytics to help hospitals improve the cost and quality of healthcare by identifying variation and the steps required to make meaningful improvements. Their suite of products and services enable hospitals to diagnose and take action to improve quality performance and mitigate risk in delivering patient care. To learn more about Predicata, go to www.predicata.com.

Gerald Romanelli Appointed Executive Vice President of Business Development For TRIOSE, Inc.

Wyomissing, Pa., August 30, 2016 – TRIOSE, Inc., a nationwide healthcare logistics management firm, announced it has appointed Gerald (Gerry) Romanelli as executive vice president of business development for his leadership and proven ability to develop innovative supply chain solutions for the healthcare industry.

Romanelli is responsible for developing new products, services and markets for TRIOSE. Additionally, he will be instrumental in the strategic planning and direction for the company’s marketing and communications, which is a key component of driving demand and supporting sales strategies.

Backed by three decades of transportation and logistics experience, Romanelli was chosen to join the leadership team to innovate market strategies and expand the TRIOSE portfolio.

“Gerry’s solid expertise in logistics and in the healthcare space makes him an enormous asset to TRIOSE,” said Chief Executive Officer CJ Joyner, TRIOSE, Wyomissing, Pa. “I couldn’t be more pleased to have him as a part of our executive leadership team. We’re confident he’ll make an immediate impact on our strategic direction.”

According to Joyner, Romanelli’s philosophies strongly align with the TRIOSE mission to make a difference in healthcare. He is focused on tapping into new market opportunities in an effort to continually enhance the services clients need to stay competitive. With an engaging and collaborative approach, Romanelli is well-suited to evolve the TRIOSE legacy, sophisticate operations, make processes to help improve clients’’ bottom lines, and ultimately grow revenue.”

Previously, Romanelli served as vice president of sales for Livingston International, Chicago, where he was responsible for new revenue generation and the development and expansion of its US salesforce.

Prior to Livingston International, he held various sales leadership positions at UPS®, Atlanta, Ga., over a 28-year career in VP-level sales roles for UPS Supply Chain Solutions, UPS Freight, Strategic Freight Accounts, Healthcare Strategy and Enterprise Healthcare.

“TRIOSE has an impressive enterprise-wide view. It is expanding its logistics services – from its early beginnings as a freight management company to presently managing all aspects of transportation within the healthcare supply chain,” said Romanelli.

“Aside from the phenomenal growth opportunities, I’m joining this team for its culture. I would be hard pressed to find another company as dedicated to the communities they serve. Once I saw how involved the (employees and company) are in the volunteering and learned about their GIVE 5 program, I knew immediately I wanted to be part of this organization.”

As an advocate for children and giving back to the community, Romanelli had served on the boards for Big Brothers Big Sisters of Metro Atlanta and INROADS Southeast Region. He is a graduate of Marist College, NY, where he earned a Bachelor of Science degree in computer science. Romanelli is a dedicated father of five grown children and currently resides with his wife.

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About TRIOSE, Inc.

TRIOSE, Inc. is a non-asset based nationwide logistics management firm specializing in managed solutions for the healthcare industry. Working hand-in-hand with hospitals and health systems nationwide, TRIOSE delivers smart, total logistics solutions customized for each client’s needs; lowers supply chain costs; and drives change for better healthcare in our communities. Solutions include freight management, large cargo freight, courier management and 3PL consulting. While TRIOSE has relationships with hundreds of carriers and customizes carrier solutions for each of its clients, the company is proud to have a strategic corporate alliance with UPS®.

Key regions for TRIOSE and/or its clients include Southeastern Pennsylvania; Salt Lake City, UT; Nassau County, LI; Raleigh, NC; Charlotte, NC; Dallas, TX; St. Louis, MO; New York, NY; and Brentwood, TN.

Privately held since 1999, TRIOSE is headquartered in Wyomissing, Pa. TRIOSE is the first organization to be selected as No. 1 on the Greater Reading Chamber of Commerce & Industry’s Top 50 Businesses List for two consecutive years in 2014 and 2015. The company also earned a spot on the 2013, 2014 and 2015 Inc. 5000 as one of the fastest-growing private U.S. companies.

TRIOSE Executive Named Award Winner

April 5, 2016 in Reading Eagle
Triose, a non-asset-based nationwide health care logistics management firm based in Wyomissing, has announced that Executive Vice President Tom Wengrowski has been named a 2016 Executive Management Award winner by Philadelphia SmartCEO.

Wengrowski is one of 40 management all-stars recognized in the Philadelphia region for his commitment to uphold the highest ethics, lead collaboratively and creatively, and enhance and support his organization’s mission.

Wengrowski has more than 20 years of experience within the logistics industry and leverages his expertise to spearhead strategic leadership and growth initiatives at Triose.

Wengrowski is active with Triose’s Give Five community impact program, which encompasses five pillars that represent how the company is making a positive impact on the world. This includes a national charity partnership with Alex’s Lemonade Stand Foundation, local volunteerism, veteran support, environmental sustainability and ethical conduct. Wengrowski participates in events that support ALSF and its mission of eradicating childhood cancer and is also very involved in supporting local veterans through a variety of outreach programs, including home renovations, clothing drives and job placement and assistance.

TRIOSE Executive Vice President Tom Wengrowski Named 2016 Executive Management Award Winner By Philadelphia SmartCEO

Wyomissing, Pa., March 29, 2016TRIOSE, a non-asset based nationwide healthcare logistics management firm, is proud to announce that Executive Vice President Tom Wengrowski has been named a 2016 Executive Management Award (EMA) Winner by Philadelphia SmartCEO. Wengrowski is one of 40 management all-stars recognized in the Philadelphia region for their commitment to uphold the highest ethics, lead collaboratively and creatively, and enhance and support their organization’s mission.

When Tom joined the TRIOSE team, he immediately had a tremendously positive influence on our business,” said CJ Joyner, CEO of TRIOSE. “He is a remarkable leader and a great asset to our team — consistently providing vision and innovative ideas — and he truly deserves to be recognized as a top executive.”

Wengrowski has more than 20 years of experience within the logistics industry and leverages his expertise to spearhead strategic leadership and growth initiatives at TRIOSE. This includes a focus on building and aligning TRIOSE’s team to lay a foundation for the future of the organization, which continues to evolve ahead of the complex healthcare industry.

“Our business is as much people as it is anything else,” says Wengrowski. “When people are aligned through goals and have a genuine investment in the outcome, they are inherently inspired to perform. Employee engagement has been the key to ensuring a high level of client service and satisfaction and it will continue to drive us forward as we further enhance our total logistics solutions.”

“SmartCEO designed the EMAs specifically to acknowledge senior leaders and honor their accomplishments. The 2016 EMA winners are not only leading their companies and co-workers to achieve great things, they are also making huge contributions to their communities,” said Jaime Nespor-Zawmon, President of SmartCEO Events.

Wengrowski is extremely active with TRIOSE’s Give Five community impact program, which encompasses five pillars that represent how the company is making a positive impact on the world around us. This includes a national charity partnership with Alex’s Lemonade Stand Foundation (ALSF), local volunteerism, veteran support, environmental sustainability and ethical conduct. Wengrowski regularly participates in events that support ALSF and its mission of eradicating childhood cancer and is also very involved in supporting local veterans through a variety of outreach programs, including home renovations, clothing drives and job placement and assistance.

An independent committee of local business leaders reviewed the EMA nominations and winners were chosen based on the quality of the nominations submitted. EMA winners were celebrated at an awards reception in Philadelphia earlier this month and will be profiled in the March/April issue of SmartCEO magazine.

The full list of 2016 winners can be accessed here. For information about TRIOSE’s total logistics solutions, visit www.triose.com.

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About TRIOSE

TRIOSE, Inc. (TRIOSE) is a nationwide logistics management firm specializing in managed solutions for the healthcare industry. Working hand-in-hand with hospitals and health systems nationwide, TRIOSE delivers smart, total logistics solutions customized for each client’s needs; lowers supply chain costs; and drives change for better healthcare in our communities. Solutions include freight management, large cargo freight, courier management and 3PL consulting. While TRIOSE has relationships with hundreds of carriers and customizes carrier solutions for each of its clients, the company is proud to have a strategic corporate alliance with UPS®.

Privately held since 1999, TRIOSE is headquartered in Wyomissing, PA. TRIOSE is the first organization to be selected as No. 1 on the Greater Reading Chamber of Commerce & Industry’s Top 50 Businesses List for two consecutive years in 2014 and 2015. The company also earned a spot on the 2013, 2014 and 2015 Inc. 5000 as one of the fastest-growing private U.S. companies. Learn more at www.triose.com.

Keeping Partnerships Strong in a Shifting Landscape

March 2, 2016 in Inbound Logistics

In a 3PL market defined by rapid consolidation and growth, shippers and providers are ensuring seamless transitions.

Among the trends that shaped the transportation landscape during 2015, the rapid pace of mergers and acquisitions in the third-party logistics (3PL) market was one of the most notable. XPO Logistics alone purchased four companies with varied capabilities in 2015, including Con-way, making XPO the second largest less-than-truckload carrier in the United States. Other significant mergers last year included C.H. Robinson’s purchase of freightquote.com, the acquisition of Coyote Logistics by UPS, the FedEx purchase of GENCO, and the acquisition of OHL (Ozburn-Hessey Logistics) by GEODIS.

Some industry researchers expect the pace of 3PL mergers and acquisitions to remain brisk in 2016. During Armstrong & Associates’ annual 3PL Value Creation Summit, industry executives indicated that consolidation within the 3PL market would continue, although they predicted that mid-sized and small acquisitions, rather than the $100-million-plus mergers that were completed in 2015, will dominate 2016.

Similarly, Dr. Robert Lieb, professor of supply chain management at Northwestern University’s D’Amore-McKim School of Business, addressed the trend of mergers and acquisitions in the 22nd Annual Survey of Third-Party Logistics (3PL) Provider CEOs, sponsored by Penske Logistics and presented at the Council of Supply Chain Management Professionals’ conference in October 2015. The survey notes that consolidating firms need to weather significant industry restructuring, and navigate brand confusion in some markets.

SUPPORTING GROWTH IN ASIA

Not all growth in the 3PL market will occur in North America, according to executives speaking at the Armstrong & Associates summit. These leaders anticipate significant growth in the 3PL market in Asia.

“Most Asia 3PL growth will occur to support intra-Asia trade and distribution within Asian countries,” according to Armstrong. “Cross-border e-commerce is a hot market in China as increased wealth is driving the demand for products sourced in other countries.”

Online shopping has also had an impact on North American-based 3PL companies, accounting for 12 percent of 3PL growth, according to one survey, which anticipates that the percentage will climb to nearly 21 percent in three years.

WHY M&A?

Reasons for mergers and acquisitions are as varied as the 3PL providers involved. Some common reasons include growing pressure to expand services, increase geographic footprints, and drive scale in particular markets.

Because the 3PL market is highly fragmented, some consolidation is to be expected, according to industry analysts. “Consolidation in the 3PL industry generally facilitates scalability of operations in the merged organization, and should result in higher levels of service to the customer,” says Dr. John Langley, professor at Penn State University and noted supply chain academician. “While there could be impacts on pricing, the overall market is sufficiently competitive that pricing should remain the same.”

Not only is it important for shippers to choose the best 3PL to meet their needs, but they should also focus on being good customers, Langley notes.

“Perhaps the best strategy for the shipper is to continue to be a desirable customer for the new 3PL,” he says. “One of the first steps in any merger and acquisition is that the new 3PL assesses the quality of the newly acquired customers and places the highest priority on retaining the best, most attractive customers.

“Unfortunately, the assumption that all customers of the acquired organization are worth retaining is usually not a good one, as the acquiring 3PL will typically conduct an in-depth analysis of all customers and make decisions accordingly,” Langley adds.

TACTICAL CONSIDERATIONS

What do mergers in the 3PL sector mean for shippers? There will be no shortage of options for customers. For a shipper using a 3PL that has been acquired, however, some initial issues need to be addressed sooner rather than later. For instance, how will day-to-day operations or data transfer be impacted? Does the new provider have a level of expertise in a specific vertical?

Beyond these tactical questions, one key factor to consider is the relationship between the shipper and the acquired 3PL and how the acquisition will change this dynamic.

These issues were top of mind for Johnsonville Sausage when Ryder System acquired Total Logistic Control (TLC) in 2011. Headquartered in Sheboygan Falls, Wis., Johnsonville employs 1,600 people. Its products, primarily sausages and sausage-related foods, are available in 50 states and 40 additional countries. When the acquisition occurred, Johnsonville had been a TLC customer for more than one decade. Ultimately, Johnsonville chose to maintain its relationship with Ryder, and is still a customer today.

“One reason we maintained the relationship was our long tenured, successful partnership with TLC,” says Paul Kramer, director of logistics for Johnsonville Sausage. “TLC had always provided great service, and added value to the Johnsonville supply chain.”

BUSINESS AS USUAL

Kramer was not concerned about the loss of specialized knowledge or expertise when Ryder acquired TLC. “We knew that TLC was being acquired by Ryder’s food and beverage vertical service segment, and that service would continue to operate largely as it had,” he says.

Before the acquisition, Johnsonville had a vehicle leasing relationship with Ryder, and was aware of the size and array of services the 3PL provided. “We were excited about the synergies and new opportunities the acquisition would create,” adds Kramer.

Ryder provides commercial transportation logistics and supply chain management solutions. Ryder Fleet Management Solutions offers leased truck rentals and related services. Ryder Supply Chain Management Solutions manages the flow of goods from the acquisition of raw materials to the delivery of finished products. Ryder Dedicated provides solutions that combine vehicles, drivers, routing, and scheduling.

One reason Ryder acquired TLC was to expand its presence in the food and consumer packaged goods (CPG) market. “We have typically looked at acquisition opportunities from the perspective of adding a capability we did not have previously, or entering a strategic niche market,” says Steve Sensing, president of Global Supply Chain Solutions, Ryder System.

This aligns with Ryder’s supply chain business model of focusing on specific vertical markets and developing expertise designed for each sector’s specific supply chain needs.The firm focuses on these vertical markets: aerospace and defense, automotive, consumer goods, energy and utilities, food and beverage, healthcare, high-tech and electronics, oil and gas, industrial manufacturing, and retail.

“Before acquiring TLC, a majority of the work Ryder did for the food and beverage industry was truck leasing/rental and dedicated transportation,” says Sensing. “The acquisition made it possible for Ryder to rapidly become a big player in the CPG market, as TLC was a leader in that space, offering specific capabilities, such as distribution management, contract packaging, solutions engineering, and temperature-controlled facilities, for CPG companies.”

Ryder also brought a number of attributes to the table that benefitted TLC customers. “These included our contacts and name recognition, which enabled TLC to be more competitive than it was on its own,” he adds.

“When Ryder acquired TLC, Johnsonville Sausage received several services including transactional transportation and public warehousing,” says Sensing. “Today, Ryder operates Johnsonville Sausage’s dedicated fleet in the Midwest.”

THAT’S DEDICATION

Ryder provides trucks, drivers, and engineering services for the fleet, which moves raw materials from the Chicago area to Johnsonville’s production facility in Wisconsin. The fleet then transports finished products to Johnsonville Sausage’s distribution center in Chicago, the largest in the company’s network. The dedicated fleet includes 10 tractors and approximately 40 trailers.

In addition, Ryder operates a captive maintenance facility for the fleet on Johnsonville property, operated by Ryder employees. Before the acquisition, TLC operated the dedicated fleet and facility.

IT’S A MATTER OF TRUST

For Johnsonville, the transition from being a TLC 3PL customer to being a Ryder 3PL customer was smooth. One of the greatest factors for the seamless transition was the relationship between Johnsonville and both TLC and Ryder.

“We trusted Ryder when they told us there would be no adverse impact on Johnsonville,” says Kramer.

That trust has resulted in a positive experience for Johnsonville. From Ryder’s perspective, the TLC acquisition has also proven beneficial, helping solidify its leadership and fueling 14-percent growth in the CPG market. The process was positive, as well.

“There is no silver bullet to make a transition like this successful,” notes Kramer. “The best practice has to be employed long before the transition occurs. It starts with choosing the right logistics service partner in the first place, one with a company culture that is closely aligned to yours and with a proven track record of service excellence.

“Once you select a provider, you then work to establish a trusting, collaborative relationship with them,” he adds. “If you have that, and the logistics partner stays true to who they are through the acquisition and transition, it will be successful.”

Ryder is committed to making all transitions seamless to customers, Sensing notes. In addition to the tangible assets of a company being viewed as a potential candidate for acquisition, cultural fit is also important.

ORGANIC GROWTH

Not all 3PL providers choose to grow through acquisition. For some, such as niche provider TRIOSE, growth has been totally organic. Based in Pennsylvania, TRIOSE was established in 1999 and focuses exclusively on the healthcare industry. In addition to a variety of services, TRIOSE offers customized solutions designed to help supply chain and materials management teams gain control and visibility over inbound and outbound freight expenses, from small parcel to large cargo.

“We have been methodical in our approach to growth,” says Ira Tauber, president of TRIOSE. “We did not want to let growth impact our ability to deliver for our customers.”

TRIOSE provides customized solutions to an industry with unique supply chain requirements. For example, one hospital may have 6,000 to 7,000 suppliers, and between 50,000 and 90,000 SKUs. In contrast, an automobile manufacturer may have a supplier base of 200 to 1,000 vendors, and manage anywhere from 2,000 to 5,000 SKUs when manufacturing a car. Additionally, the healthcare expertise is distinctive.

“In healthcare, product accountability is critical,” says Tauber, including chain of custody in some instances.

TRIOSE added value early in its relationship with Rockford Health System by developing consistent processes for purchasing, using, and measuring freight transportation costs. “Freight was something that just happened and was not monitored,” says Chip Geiger, purchasing manager for Rockford.

Rockford Health System, located in Rockford, Ill., is the largest health system serving northern Illinois and southern Wisconsin. It includes a 396-bed tertiary care hospital; numerous clinics with locations throughout the region; a 55-bed in-patient hospital offering a full range of rehabilitation services; and a visiting nurses’ association providing a variety of home healthcare services to patients of all ages.

The health system selected TRIOSE as its 3PL provider following a complete review of its supply chain process, conducted with the help of an external consultant. Implementing a freight management program was among the 53 cost-saving measures TRIOSE identified.

AN EDUCATION IN FREIGHT

“One big challenge for Rockford was the need to educate its health system workers and executive leadership on how freight impacts the bottom line,” says Tauber. “Rockford management needed to find a way to bridge its finance and accounts payable personnel with its purchasing staff to better manage all costs.”

While TRIOSE provides freight management services to many healthcare providers, one area of customization is reporting and access to data. Recognizing that each hospital or healthcare system is unique is one reason that the TRIOSE implementation program with Rockford was smooth and seamless.

“We used few internal resources, and implemented the program quickly,” says Geiger. Rockford saw measurable results within the first month. The first year produced $51,886 in savings as the system ran 43 percent of its freight spend through TRIOSE. Rockford currently has 70 percent of its freight spend through TRIOSE.

“By implementing the program, we brought a new and more comprehensive focus to freight,” says Geiger. “Instead of a necessary evil that no one wanted to address, we were able to install a consistent monitoring program that everyone from our receiving dock to accounts payable departments understands.”

Rockford has been a TRIOSE customer for more than seven years, and after the initial onboarding with TRIOSE, “we never looked back,” says Geiger. Although some larger supply chain firms have healthcare vertical teams, Geiger does not always believe that bigger is better. “Low prices do not necessarily equal low cost,” he notes.

LIFE OR DEATH SITUATIONS

Rockford and other healthcare providers deal with patients in operating rooms that need specialized products. When lives are at risk, a late or missed delivery is not just an exception on a report, but a potentially catastrophic event. Geiger counts on TRIOSE to establish and monitor carrier relationships and ensure that service levels are acceptable. If there is a problem, rather than making many calls, Geiger has only one call to place—to TRIOSE.

Rockford has been pleased with the level of customer service TRIOSE provides, and the ability to customize reports and other data needed to manage its supply chain. The company is also impressed with TRIOSE’s in-depth understanding of both freight management and the healthcare industry.

“I go to TRIOSE with my goals, and they develop a program that meets my needs,” says Geiger. “I do not have to be an expert on freight standards.” At times, TRIOSE provides services that eliminate the need for Rockford to hire two full-time equivalent employees, he adds.

Consolidation in the 3PL industry is not a surprise, Geiger says, and merger and acquisition activity in healthcare is also on the rise. And, much like the healthcare industry, it is important that companies that grow through acquisition not only leverage their expanded scale, but also deliver high levels of customer service.

THE FREEDOM OF CHOICE

As the 3PL industry continues to evolve, shippers will have many choices. For non-asset-based providers, the cost of entry into the market is relatively small, notes Satish Jindel, founder of SJ Consulting Group. He does not find the recent flurry of acquisitions as surprising or as something that is likely to limit options for shippers.

Shippers choose to contract with 3PL providers for many reasons: to focus on core competencies, reduce overall transportation or logistics costs, or to better manage inventory. As shippers evaluate existing, merged, or new 3PL providers, they should also be aware of their own processes and approach to vendor relationships and choose partners that best align with their strategies and needs.

TRIOSE is Future 50 Award Winner

February 1, 2016 in Reading Eagle

Wyomissing-based Triose Inc., a nonasset-based nationwide health care logistics management firm, has been named a Future 50 Award winner by Philadelphia SmartCEO for a third consecutive year.

The award recognizes the region’s 40 fastest-growing mid-sized companies and 10 small-emerging growth companies, which are chosen based on a three-year average of employee and revenue growth.

The 2016 Future 50 winners collectively generate $1.38 billion in annual revenue and employ 9,993 individuals in greater Philadelphia.

“We have a talented team that continues to expand while remaining steadfastly dedicated to one main goal, making an impact in the health care industry,” said Triose CEO C.J. Joyner in a statement.