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CMA CGM Group takes strategic step in logistics development with major acquisition of Ingram Micro’s Commerce & Lifecycle Services business

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CMA CGM Group takes strategic step in logistics development with major acquisition of Ingram Micro’s Commerce & Lifecycle Services business. Image: CMA CGM
CMA CGM Group takes strategic step in logistics development with major acquisition of Ingram Micro’s Commerce & Lifecycle Services business. Image: CMA CGM
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CMA CGM Group, a world leader in shipping and logistics, and Ingram Micro have signed a Share and Asset Purchase Agreement for the CMA CGM Group to acquire most of Ingram Micro’s Commerce & Lifecycle Services activities, including Shipwire and the company’s technology forward logistics businesses in North America, Europe, Latin America and Asia-Pacific. The remaining portions of the existing CLS business will be retained by Ingram Micro. The enterprise value of the transaction is USD 3.0 billion.

Strengthening CMA CGM Group’s offering in logistics to support its customers’ supply chains

The Ingram Micro CLS business being acquired specializes in eCommerce contract logistics and omni-channel fulfillment. The transaction includes Shipwire, a cloud-based logistics technology platform. The acquired business represents estimated annual revenues of USD 1.7 billion in 2021 and employs 11,500 staff members worldwide across 59 warehouses, with a strong presence in the U.S. and in Europe.

This acquisition illustrates the CMA CGM Group’s commitment to strengthening its position as a global leader in shipping and logistics. Between CEVA Logistics and the CLS business, the combined logistics workforce will constitute approximately 90,000 people across nearly 1,100 sites in 160 countries. The combination of CEVA Logistics and Ingram Micro CLS activities will create the fourth-largest global provider of contract logistics services. Michiel Alting von Geusau, currently Executive Vice President, and President of Global Commerce & Life Cycle Services for Ingram Micro, will continue to lead the business within CEVA Logistics.

This acquisition will further complement CEVA Logistics offering in the contract logistics industry and support its objective to become a Top 5 global third-party logistics player. CEVA is already ranked in the Leaders quadrant by Gartner in its 2021 Magic Quadrant Third-Party Logistics Worldwide report.

Reinforced exposure to rapidly growing eCommerce space

Ingram Micro’s CLS business will complement CEVA Logistics’ existing eCommerce business and accelerate its growth in key market segments, such as technology, retail and fashion. The CLS business has a strong base in contract logistics with excellent eCommerce capabilities including reverse logistics management, parcel visibility, and same-day delivery.

The Shipwire order fulfilment platform provides flexible eCommerce logistics solutions for small and medium-sized companies. Shipwire will be able to access CMA CGM’s client base of more than 100,000 customers and CEVA’s warehouses to accelerate its development and extend its global footprint.

Together, CEVA Logistics and the CLS business will be one of the world’s leading end-to-end eCommerce services.

Accelerating CMA CGM Group’s investments and supporting its strategic growth

This acquisition is part of the CMA CGM Group strategy to build and develop extensive transportation and logistics solutions in support of its customers’ supply chains. The Group is accelerating investments to strengthen its shipping and logistics network, targeting solutions designed to increase supply chain resiliency and fluidity.

The CMA CGM Group intends to fund this acquisition from its own resources. The closing of this transaction is subject to customary conditions, including regulatory approvals by relevant authorities. The transaction is expected to close during the first half of 2022.

Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said, “The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group. After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world’s Top 4 in contract logistics. Its position will be significantly strengthened in the U.S. and European markets, enhancing its ability to seize the opportunities offered by the boom of eCommerce. Committed to providing leading end-to-end supply chain solutions, the CMA CGM Group will continue its development, relying on two solid pillars, shipping and logistics, with a world leadership position in both sectors.”

Alain Monié, CEO of Ingram Micro, said, “CMA CGM Group is committed to investing in the technology, capabilities, and talent to rapidly become one of the world’s largest players in the global ecommerce space. With a mission of enabling businesses to grow and communities to thrive, I am confident this is an excellent fit for our dynamic, innovative, and solutions oriented CLS team.”

Jacob Kotzubei, Partner at Platinum Equity, and Matthew Louie, Managing Director at Platinum Equity, which acquired Ingram Micro in July, said “We have great respect for CMA CGM Group and believe CLS is an excellent fit with CEVA Logistics. This move allows Ingram Micro to focus on the growth and expansion of its core technology distribution and cloud services capabilities. We will continue to invest in growing those businesses organically and through prospective acquisitions.”

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Food Logistics

MSC announced a new direct service, called NWC – WAF service

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MSC announced a new direct service, called NWC - WAF service. Image: Pixabay
MSC announced a new direct service, called NWC - WAF service. Image: Pixabay
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MSC announced a new direct service, called NWC – WAF service, connecting Dakar and North Europe, and providing the best transit times on the market.

The new NWC – WAF service, dedicated to the export of reefer commodities from Senegal, will connect the country’s fruit, vegetable and frozen fish suppliers directly to key commercial partners across Europe including France, Belgium and United Kingdom in one week. MSC will connect Senegal with key European gateways such as Antwerp in 7 days, London in 9 days and Le Havre in 11 days.

MSC operates one of the world’s largest and most advanced reefer container fleets. We provide exporters with expertise at every step of the cold supply chain including dedicated reefer experts guaranteeing regular and frequent monitoring of shipments, from the receipt of the loaded container to its final destination.

The fleet deployed for this service will be ready to meet the demand for reefers throughout the season to transport fruit, vegetable and other fresh and frozen products from Senegal to consumers across Northern Europe with an average of 600 plugs available onboard each vessel.

Starting immediately, the service will rotate as follows: Antwerp– London Gateway – Le Havre – Tema – Lomé – Tincan/Lagos – Abidjan – Dakar – Antwerp

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Logistics & Supply Chain

Maersk launches new rail service in India, Pratigya Express

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Maersk launches new rail service in India, Pratigya Express. Image: Maersk
Maersk launches new rail service in India, Pratigya Express. Image: Maersk
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A.P. Moller – Maersk, the integrated logistics company, continues to design and implement logistics solutions that address the ever-evolving needs of its customers. Building further on its strong commitment towards developing a robust rail network in India, Maersk flagged off yet another weekly, dedicated rail service, the ‘Pratigya Express’, from Sonipat Inland Container Depot in NCR to APM Terminals Pipavav Port on the western coast of India in Gujarat.

“The NCR is abundant with retail and rice exporters who need a regular connection from their manufacturing facilities to the consumers in the western market. Through our dialogues with our customers, we realised that they faced two challenges – either they don’t have a fixed schedule for departure from Sonipat ICD, and once they get it, they do not necessarily make it to the right vessel connection at the port.” said Major Jyoti Joshi Mitter, Head of Rail, Maersk India.

She added, “Our ambition was to address both these problems with a single solution – we launched a dedicated weekly rail service that gives the exporters a fixed visibility on departure from the origin and then connects to a fixed vessel connection at the APM Terminals Pipavav Port.”

The ‘Pratigya Express’ will move cargo from Sonipat ICD to APM Terminals Pipavav Port with a transit time of two and half days. From there, the cargo will have the option to connect on services such as the Shaheen Express, which will be launched in the coming days or the MECL.

Both of these services will then be able to take the cargo to the Middle Eastern or European markets. Studies show that cargo moved on rail instead of road has advantages in terms of both cost-savings and time-savings. These two benefits eventually also contribute to reducing carbon footprint.

Maersk’s new ‘Pratigya Express’ service on the Western Dedicated Freight Corridor will move 90 TEUs very week. APM Terminals Pipavav Port also plays an important role by being the first port to be connected to the DFC and has excellent connectivity to the hinterland through its rail head and road infrastructure.

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Logistics & Supply Chain

DHL Supply Chain signs an expanded contract with Vodafone

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DHL Supply Chain signs an expanded contract with Vodafone. Image: DHL
DHL Supply Chain signs an expanded contract with Vodafone. Image: DHL
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DHL Supply Chain, Deutsche Post DHL Group’s contract logistics specialist, has signed an expanded contract with Vodafone. For many years, DHL has been supplying network components and equipment for the expansion of Vodafone’s cable network. Such equipment includes cable reels, fiber optic cables and the telecom cabinets that can often be seen along streets. In addition to handling logistics for this equipment, DHL has set up a new and innovative webshop solution for Vodafone and its service partners to process orders for approximately two thousand Vodafone products.

DHL Trading Solutions, a business unit of DHL Supply Chain Germany & Alps, is working on the project as a 4PL provider. It coordinates and manages all processes in the end-to-end supply chain, including planning, implementation and oversight. Vodafone and its customers and business partners benefit from having DHL as their sole point of contact. Among other things, DHL has taken over the management of materials and suppliers from Vodafone. New orders are triggered whenever reorder points or warning levels are reached or Vodafone’s forecasts indicate that new inventory needs to be procured. This ensures that Vodafone’s technicians and external service partners receive the materials they need when and where they need them.

Based on Vodafone’s specifications and requirements, DHL has developed a customized, integrated webshop solution for order processing. Customers and business partners will also benefit from having a customer service unit operated by DHL to assist with any questions about webshop orders when needed; this unit is to be expanded and improved in cooperation with Vodafone in the months ahead.

“We’re very pleased to have set up this intuitive, innovative and customized webshop platform for Vodafone after a very short preparation and implementation period,” says Rainer Haag, Chief Executive Officer of DHL Supply Chain Germany & Alps. “It enables Vodafone’s technicians and external service partners to order at short notice the network components and equipment needed to expand its cable network.”

Ullrich Heid, Head of Network Logistics at Vodafone GmbH, is also pleased with the expanded contract. “With DHL Supply Chain, we have an experienced, expert partner of long standing who, in a short time, has shown us it can completely take over these extremely important and time-critical logistics processes and everything associated with them,” he says.

In this partnership, with assistance from an external partner DHL is also providing Vodafone with inventory financing for all products stored in the warehouse. To this end, DHL has taken over all of Vodafone’s inventory. That means DHL will now sell the required equipment to the construction companies so that Vodafone is ultimately invoiced only for the materials actually needed and sold. “Thanks to our expanded cooperation with DHL through the webshop platform and the associated services, we’ve been able to remove the inventory from our own business and have it efficiently pre-financed until customers order from the DHL webshop,” adds Heid.

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