FreightWaves Live Recap: A Logistics Technology Renaissance
At the recent FreightWaves Live event in Chicago, Transplace CEO Frank McGuigan sat down with George Abernathy, President of FreightWaves. During the conversation, they discussed some of the innovations currently happening at Transplace surrounding our best-in-class technology, brilliant people and continuous improvement processes. Frank shared how Transplace is applying these advancements in 2020 and beyond to provide both our shipper and carrier communities with tremendous value.
Below, you can find the key highlights from Frank and George’s discussion.
A Multi-layered Business
Frank opened up the conversation by explaining how Transplace is continually working to build upon our legacy of servicing shippers. And while there are three major components of the company, the Transportation Management System (TMS) portion of the business is perhaps the most critical.
A question often asked by shippers is, “How can Transplace’s technology provide measurable outcomes within my supply chain network?” Ultimately, customers are asking more of Transplace from a technology and outcome standpoint. To support the best possible outcomes for each of our customers, Transplace has moved from the business model of operating relationships enabled by technology to supporting a truly outcome-based relationship that is managed by our best-in-class proprietary technology platform.
A Logistics Technology Renaissance
The transportation industry is currently in an exciting and revolutionary time. When discussing the latest in transportation management technology, shippers often have many questions about the various features and functions of a certain platform or solution. But the most important question to ask first is: “What are you trying to find or achieve inside your supply chain with that specific feature?”
The answer to this question is often “better visibility and greater predictive analytics.” To help meet this need, Transplace became an early industry adopter of key technology features such as real-time visibility as a standard for all customers, as well as leveraging AI and machine learning technology—all in the effort to drive more value and supply chain predictability.
Transplace by the Numbers
- The Transplace network currently has roughly $10 billion of freight under management
- Transplace had a revenue of $3.2 billion in 2019
- Transplace is 30% larger than it was in 2017
- In 2019, Transplace had ~16% net revenue of growth over 2018
- Logistics platform services make up 60% of the business, and Transplace saw a record contract year in 2019
- 30% of Transplace revenue is generated from the intermodal and truck capacity (brokerage) business
- 10% comes from the customs brokerage part of the business
- Transplace is a top 10 brokerage in North America
What Will Drive Transplace’s Growth in 2020 and Beyond?
Transplace broke ground on a new operations center in Rogers, Arkansas to support a growing investment in technology and to accommodate our plan to add hundreds of new employees over the next several years.
Transplace has also made our people a top priority through the strategic hiring of key leaders. It is important to create a highly engaging work experience where employees understand the mission of serving the shipper. The following executives have recently joined our organization:
- Tracy Rosser as the Executive Vice President of Operations
- David Marsh as the Chief Operating Officer of Celtic Intermodal
- Karen Sage as the Chief Marketing Officer
- Leigh Robinson as the Chief Human Resource
- Chris Nester as the Chief Financial Officer
- Jim French as the Chief Technology Officer
- Matthew Harding as the leader of Data Insights & Analytics
Transplace also continues to invest in our products to achieve greater, actionable insight into data. To achieve this, it is critical to focus on technology solutions that can provide outcomes for shippers rather than just offering additional features. In 2020 and beyond, Transplace will continue to place a tactical focus on augmenting and expanding our best-in-class technology and making people a crucial priority, all in the effort to serve our growing customer base.
Interested in hearing more of Frank’s conversation from FreightWaves Live? You can watch the full video.