CHEP Brambles, best known for their pallet and containers services, announced on March 3rd that it has agreed to acquire LeanLogistics for $45 million cash.
LeanLogistics is a transportation management solution (TMS) provider who competes directly with Sterling Commerce as well as other smaller hosted TMS players like MercuryGate and Transplace. (See the January 29, 2008 "The Forrester Wave: Transportation Management Solutions, Q1 2008" report for more information)
This acquisition does raise a few questions. First and foremost, why would a pallet provider buy a TMS vendor? Certainly, there is an opportunity to leverage the software within their own operations, but does CHEP really want to be in the software business?
To learn more, we spoke with Pete Stiles, VP of Marketing and Strategy, and Dan Dershem, President and CEO of LeanLogistics.
Forrester: Can you give us some insight into why CHEP made this acquisition?
LeanLogistics: Because of the way CHEP charges for and tracks pallets they have quite a bit of information on the movement of goods, but they were lacking two things to really leverage that data: 1) an enabling technology platform, and 2) domain expertise to deliver a service offering around it. They look at LeanLogistics as an enabler to both.
Forrester: Leverage the data how?
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