Newgistics acquires logistics company, plans fulfillment services
Expanding its role beyond a provider of package return services, Newgistics Inc. has acquired transportation broker Logistics Management Inc. and plans to begin offering order fulfillment services to retailers this summer, Newgistics CEO Bill Razzouk says.
“We see fulfillment as a big opportunity for us,” says Razzouk, former president and COO of FedEx Corp. who has led Newgistics for the past two years.
By acquiring Logistics Management, Newgistics expects to gain operating efficiencies in managing high volumes of daily truck shipments and continue to improve on its financial performance, Razzouk says. Newgistics turned its first “measurable profit” in 2006 and expects to do better this year, he says.
With Logistics Management, Newgistics will deliver orders for online retailers to bulk mail centers of the U.S. Postal Service, which will handle the local delivery. The new fulfillment service complements the existing Newgistics returns service, Razzouk says.
For the past three years, Newgistics has focused on providing a package return service that allows consumers to return an order from a retailer through the Postal Service. Newgistics picks up the returned package from a Postal Service bulk mail facility for final delivery to the retailer; it also provides the merchant with web-based notification of return-processing status.
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