Schneider National Ltd.
Seeks to expand its role in the distribution of chemicals by investing in start-ups that are building online marketplaces for industrial raw materials.
A Green Bay, Wisconsin-based carrier led a Series A round of ChemDirect Inc. This will make Schneider a minority shareholder in the business and truck companies a major logistics connection for digital operations.
The terms of the investment to give Schneider a 12% to 13% stake in the business have not been disclosed. Tyler Ellison, a former senior executive at Schneider, founder and chief executive officer of ChemDirect, said the company raised $ 7 to $ 12 million in funding rounds and valued $ 30 to $ 50 million. He said he expected it to be.
Schneider’s investment will range from $ 3.6 million to $ 6.5 million on these financial terms.
With this agreement, Schneider will bring potential strategic expansion of its capabilities in the specialized market for mass delivery to industrial customers. According to Schneider, the bulk division, which accounts for 4% of the total business, mainly deals with chemicals.
Shaleen Devgun, Schneider’s Chief Technology Officer, said: Technology officer.
Devgun said Schneider will provide trucks for cargo booked through ChemDirect and manage logistics with other companies, including the use of intermodal operations on rail trucks.
Dean Croke, Principal Analyst at DAT Solutions LLC, an online freight market, said he sees these transactions more often.
“It’s about controlling more aspects of the supply chain to ensure that customers get their cargo when and where they need it,” Cloak said.
According to the American Chemistry Council, the move will drive Schneider, which operates about 9,000 tractors, deeply involved in the US chemical industry, which generates $ 486 billion annually.
Ellison founded ChemDirect in 2019 with the goal of creating an online marketplace for chemical buyers and sellers similar to e-commerce retail sites, and is part of the area of business that is trying to create it. I made it Inter-company e-commerce function In industrial markets that often work through established intermediaries and suppliers.
Ellison was a 12-year executive at Schneider and later CEO of the chemical manufacturer Nova Molecular Technologies Inc.
According to ChemDirect, it takes about three and a half days to deliver an order, compared to the industry average of 12 weeks. According to Ellison, the company also provides chemical suppliers with access to data about buyers.
The company actually lifts the dark veil of the supply chain, giving manufacturers visibility into “who is buying, why they are buying, and what else they are buying.” “There is,” Ellison said.
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Truck company Schneider invests in chemical supply market
Source link Truck company Schneider invests in chemical supply market