ReedTMS Logistics Company Profile

Background

Founded in 1996 and headquartered in Tampa, Florida, ReedTMS Logistics is a family-owned and operated asset-based third-party logistics provider (3PL). The company offers a comprehensive suite of services, including freight brokerage, produce transportation, asset-based services, freight management, and dedicated services. ReedTMS is committed to creating an outstanding environment for its employees, who, in turn, deliver exceptional service to customers. The company's mission is to provide an outstanding experience for employees, driving value to customers and partners.

Key Strategic Focus

ReedTMS specializes in freight brokerage and truckload solutions, serving a diverse customer base across various industries. A significant portion of its revenue comes from the food and beverage sectors, reflecting the company's expertise in handling perishable goods. The company emphasizes building trust with customers, employees, and carriers, ensuring integrity in all dealings.

Financials and Funding

In November 2022, ReedTMS was acquired by Werner Enterprises for $112.4 million. At the time of acquisition, ReedTMS reported revenues of $372 million for the 12 months ending September 30, 2022, with 90% derived from freight brokerage and 10% from trucking operations.

Pipeline Development

ReedTMS has demonstrated a strong growth trajectory, achieving a 28% annual compound growth rate in revenues over the five years leading up to 2022. The company serves over 800 customers, with two-thirds of its revenues stemming from the food and beverage industries. Its freight brokerage network includes 19,000 active carriers and 70,000 approved carriers, highlighting its extensive reach and capacity.

Technological Platform and Innovation

ReedTMS has invested in advanced technologies to enhance operational efficiency. The company implemented PowerFleet's Dry Van Trailer Tracking system, enabling real-time location tracking, GPS-based mileage reporting, and full-trailer cargo detection. This technology has allowed ReedTMS to optimize trailer pool sizes, maximize driver efficiency, and minimize empty trailers, resulting in over $1 million in cost savings.

Leadership Team

The leadership team at ReedTMS includes:

Jason Reed, Chief Executive Officer

Mark Reed Jr., President

Bryan McDonald, Chief Financial Officer

These leaders have been instrumental in driving the company's growth and maintaining its commitment to excellence.

Leadership Changes

In October 2018, Bryan McDonald was appointed as Chief Financial Officer, bringing financial expertise and strategic vision to ReedTMS Logistics.

Competitor Profile

Market Insights and Dynamics

The logistics and transportation industry is highly competitive, with numerous players offering a range of services. The market is characterized by rapid technological advancements, increasing customer expectations, and a focus on sustainability.

Competitor Analysis

Key competitors in the logistics sector include:

Trinity Logistics: A 3PL provider offering freight brokerage and managed transportation services.

Arrive Logistics: Specializes in freight brokerage with a focus on technology-driven solutions.

Total Quality Logistics: One of the largest freight brokerage firms in North America, providing a wide range of logistics services.

Penske Logistics: Offers supply chain management and logistics services globally.

Redwood Logistics: Provides a variety of logistics services, including freight management and brokerage.

These competitors focus on leveraging technology and expanding service offerings to meet the evolving needs of customers.

Strategic Collaborations and Partnerships

The acquisition by Werner Enterprises has positioned ReedTMS to leverage Werner's extensive resources and network, enhancing its service capabilities and market reach. This strategic collaboration aims to create broader opportunities for employees and deliver enhanced value to customers.

Operational Insights

ReedTMS's focus on the food and beverage industries, combined with its technological investments, provides a competitive edge in handling perishable goods efficiently. The company's commitment to integrity and customer service further differentiates it in the market.

Strategic Opportunities and Future Directions

Under Werner Enterprises, ReedTMS is poised for continued growth and expansion. The integration offers opportunities to diversify industry verticals, enhance technological capabilities, and strengthen market position. The combined expertise and resources are expected to drive future profitable growth.