Radiant Logistics, Inc., operates as a third-party logistics company, providing
multi-modal transportation and logistics services primarily to customers based
in the United States and Canada. We service a large and diversified account
base which we support from an extensive network of over 100 operating locations
across North America as well as an integrated international service partner
network located in other key markets around the globe. We provide these services
through a multi-brand network which includes 20 Company-owned offices. As a
third-party logistics company, we have approximately 10,000 asset-based transportation
companies, including motor carriers, railroads, airlines and ocean lines in
our carrier network. We believe shippers value our services because we are able
to objectively arrange the most efficient and cost-effective means, type and
provider of transportation service without undue influence caused by the ownership
of transportation assets. In addition, our minimal investment in physical assets
affords us the opportunity for a higher return on invested capital and net cash
flows than our asset-based competitors.
Through our operating locations across North America, we offer domestic and
international air and ocean freight forwarding services and freight brokerage
services including truckload services, less than truckload (“LTL”)
services, and intermodal services, which is the movement of freight in trailers
or containers by combination of truck and rail. Our primary business operations
involve arranging the shipment, on behalf of our customers, of materials, products,
equipment and other goods that are generally larger than shipments handled by
integrated carriers of primarily small parcels, such as FedEx, DHL and UPS.
Our services include arranging and monitoring all aspects of material flow activity
utilizing advanced information technology systems. We also provide other value-added
logistics services, including customs brokerage, order fulfillment, inventory
management and warehouse services to complement our core transportation service
offering.
We expect to grow our business organically and by completing acquisitions of
other companies with complementary geographical and logistics service offerings.
Our organic growth strategy will continue to focus on strengthening existing
and expanding new customer relationships leveraging the benefit of our truck
brokerage and intermodal service offerings, while continuing our efforts on
the organic build-out of our network of strategic operating partner locations.
In addition, as we continue to grow and scale the business, we believe that
we are creating density in our trade lanes which creates opportunities for us
to more efficiently source and manage our transportation capacity. In addition
to our focus on organic growth, we will continue to search for acquisition candidates
that bring critical mass from a geographic and purchasing power standpoint along
with providing complementary service offerings to the current platform. As we
continue to grow and scale the business, we also remain focused on leveraging
our back-office infrastructure and technology systems to drive productivity
improvement across the organization.
The logistics industry is highly fragmented with thousands of companies of
various sizes competing in the domestic and international markets. As business
requirements for efficient and cost-effective logistics services have increased,
so has the importance and complexity of effectively managing freight transportation.
Businesses increasingly strive to minimize inventory levels, perform manufacturing
and assembly operations in the lowest cost locations, and distribute their products
in numerous global markets. As a result, companies are increasingly looking
to third-party logistics providers to help them execute their supply chain strategies.
Shippers typically manage their supply chains using some combination of asset
and non-asset based service providers. We operate principally as a non-asset
based third-party logistics provider focused on freight forwarding, truck brokerage
and intermodal transportation services along with associated value-added services.
According to Armstrong and Associates, the market for third-party logistics
services in the United States and Canada is estimated at approximately $175.5
billion.
Because non-asset based companies select from various transportation options
in routing customer shipments, they are often able to serve customers less expensively
and with greater flexibility than their asset based competitors, who are typically
focused on maximizing the utilization of their own captive fleets of trucks,
aircraft and ships rather than the specific needs of the customer.