NAL Worldwide Acquires SIRVA Logistics to Expand Supply Chain Services Offering

Also, American Package Express changes name to APX Logistics

Also, American Package Express changes name to APX Logistics

Westmont, IL — July 18, 2005 — NAL Worldwide has signed a definitive agreement to acquire the SIRVA Logistics business assets from North American Van Lines as part of the company's drive to expand its supply chain services offering.

Elsewhere in the logistics sector, after the completion of its merger with the package logistics business of RR Donnelley, American Package Express has officially changed its name to APX Logistics.

NAL Deal Boosts Services

NAL's deal to acquire the SIRVA Logistics is expected to close by July 31, and the SIRVA business will be renamed NAL Worldwide. Lake Capital Partners LP, a private equity firm that invests in and supports growth strategies of service-based businesses, has allocated capital to expand NAL Worldwide's presence and capabilities.

While NAL Worldwide's name is different, it is not new, and neither is the business it is acquiring. SIRVA Logistics, formerly known as the solutions segment of northAmerican Logistics, and its associates have been providing value-added supply chain services companies since 1988.

NAL Worldwide has a portfolio of inventory management and value-added services, delivered by a workforce of more than 600 employees. NAL Worldwide will have its operational headquarters in Fort Wayne, Ind., corporate headquarters in Westmont, Ill., and facilities across the United States

SIRVA Logistics has created and executed customized solutions on behalf of its clients to address an array of supply chain challenges. Representative solutions include:

  • The branding conversion of 10,000 U.S. retail stores to a new brand identity as a result of a sizable merger. The result was the automation of 70 percent of the workflow transactions, saving thousands of manager hours, facilitating timely execution of the conversion and enabling the client to reduce total supply chain costs by 50 percent versus traditional store remodeling processes, according to NAL.

  • The design and execution of an inventory in-transit merge program focused on ensuring the on-time delivery of telecommunications equipment and components from multiple vendors to cellular sites across the nation. Today the service provider said it handles more than 17,000 sites annually for the telecommunications industry.

  • The operational reinvention of a 170-person call center providing emergency high-tech parts location and dispatch. The result was increasing service levels and enabling this technology client to meet 40 percent increased volumes with approximately half the original headcount, according to NAL.
"We are proud of our reputation as an innovator in supply chain services with the processes, technology and executional experience that proactively help clients with business-transforming results," said Doug Christensen, president of SIRVA Logistics, who will continue as president of NAL Worldwide.

New Names for American Package Express

Meanwhile, after the completion of its merger with the package logistics business of RR Donnelley, American Package Express has officially changed its name to APX Logistics. "The change," said Brad Garberich, CEO of APX Logistics, "reflects our new, combined capabilities as an independent, fully-integrated, low-cost national provider of package delivery services."

American Package Express and the package logistics business of RR Donnelley came together in November 2004. Heritage Partners, a private investment firm, is the principal shareholder of the combined company.

APX Logistics will be one of the nation's largest third-party logistics providers of business-to-consumer package delivery, delivering more packages through the United States Post Office than any other carrier. APX Logistics said it will continue to service the catalog, retail/e-retailer, direct response television, direct marketing, manufacturing, fulfillment, healthcare and publishing markets.

"Our organization is focused on providing a range of services that yield delivery performance, cost-efficiency and customer advocacy," said Steve Korol, president of APX Logistics. "The name change supports our commitment of value and reliability to our customers through our innovative services and capabilities."

In addition to the name change, APX Logistics has redesigned its Web site to be more easily navigated. The Web site offers a track-and-trace option so customer's can track packages directly from the site.

APX Logistics is headquartered in Santa Fe Springs, Calif., with sales and customer support functions located in Oak Brook, Ill.

Additional Articles of Interest

— Hard data and sophisticated planning are key when goods and materials start flowing upstream through the reverse supply chain. Read more in "Meeting the Reverse Logistics Challenge" in the June/July 2005 issue of Supply & Demand Chain Executive.

— How can you beat the trends and lower your less-than-truckload costs, even in a seller's market? For a guide to help you get started, read the article "LTL Sourcing: Success for Buyers In A Seller's Market."

— Your company's back-end supply chain may be so efficient that you are the envy of all your competitors. But what about the customer-facing portion? Taking a look at the "last mile" in your supply chain may be what it takes to ensure your customers come back to you  and not your competitors  time and again. Read more in the article "The Last Mile Is the Longest Mile."