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Supply Chain News: In Surprising move, 3PL Transplace Acquires Consulting Firm LeanCor


Expects to Leverage Logistics Improvements as Part of Lean Strategies

Sept. 7, 2020
SCDigest Editorial Staff

Transplace, a 3PL providing freight management services and Transportation Management System technology, among other offerings, continued its string of 2020 acquisitions with a surprising move to buy consulting firm LeanCor.

Supply Chain Digest Says...


That will certainly include further leveraging LeanCor's is a proprietary material flow plan that includes specific data on every part number coming from suppliers and every finished-good SKU going to customers.

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In June, Dallas-based Transplace announced the acquisition of ScanData, a firm offering parcel transportation management solutions. In January, Transplace acquired Lanehub, a Cloud-based platform and community that helps shippers and carriers collaborate.

The acquisition of LeanCor, a Florence, KY-based firm focused on implementing Lean strategies in manufacturing and distribution, is a deal of a very different sort, and how Transplace will use the company remains unclear.

It appears the move is to bolster Transplace's offering to the manufacturing sector – and a bet that Lean thinking can include improving transportation processes as part of scope.

"LeanCor's business is focused on delivering advanced technologies and processes for manufacturing logistics, which ultimately improves material flow and visibility, as well as inventory management," Transplace CEO Frank McGuigan said in a statement. "The two companies share a culture of customer first and people always, and we know that all stakeholders will see immediate benefits from the combination."

"We see great opportunities to expand into the manufacturer vertical and add value to their logistics strategies," McGuigan added in an interview with The Loadstar web site. "We've identified more and more opportunities to support manufacturers with a need to modernize their inventory management."

The Lean manufacturing expertise LeanCor brings to the table should also bring benefits to Transplace's non-manufacturing clientele, he added. "We believe our clients in the retail, CPG, automotive, electronics and technology verticals will benefit from Lean principles."

Transplace has more than 1,000 customers and $11 billion in Freight Under Management (FUM) in North America and a growing client base in Europe. That customer base will provide an entree for marketing LeanCor services.

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LeanCor was founded by CEO Robert Martichenko, a recent recipient of CSCMP's prestigious Distinguished Service Award and prominent Lean expert.


"Combining our expertise with Transplace is the perfect next step and growth opportunity for our team members and our customers," Martichenko told a Dallas web site. "Deeply rooted in Lean principles, we support organizations to build operational excellence and drive down costs across their supply chain."


That will certainly include further leveraging LeanCor's is a proprietary material flow plan that includes specific data on every part number coming from suppliers and every finished good SKU going to customers. This "Plan For Every Part (PFEP)" tool contains information LeanCor says enables companies to make informed decisions about transport, packaging, inventory, placement, ordering quantities and handling.


"A well-designed PFEP system significantly reduces material shortages, inventories, supply chain complexities and costs," McGuigan said. "Our goal is to advance the Transplace platform, through both innovation and acquisition, so that we can strengthen logistics performance of all shippers in our community with advanced technology, domain expertise and scale."

Any reaction to Transplace's LeanCor acquisition? Let us know your thoughts at the Feedback section below.




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