Penske Logistics is ramping up its freight brokerage capabilities with increased hiring and the opening of new offices in Chicago and Edison, New Jersey, the company reported June 1.
"We are opening these new offices to support our freight brokerage expansion goals and to be closer to population centers that feature a wealth of supply chain talent," Jeff Bullard, Penske Logistics SVP of operations—freight management, said in announcing the expansion. "While many of our new hires will be based in Chicago, we will also add new associates to existing locations in Beachwood, Ohio; Reading, Pennsylvania; and Corona, California."
Indeed, Chicago has been the “epicenter” of the American 3PL industry since deregulation, Kris Glotzbach, head of business development for Penske Logistics, told FleetOwner. And the Chicago work ethic is a great fit for logistics, “a very blue collar, roll up your sleeves and get to work type industry.”
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“The talent pool here is just tremendous,” Glotzbach said. “A lot of people come to Chicago from the Big Ten schools, with an emphasis on solving complex problems and challenges—and that natural curiosity really gravitates toward the supply chain.”
That fortunate combination of geography, talent, and timing has resulted in tremendous growth for the logistics industry, more than doubling in size since 2010, Glotzbach noted. And while tens of thousands of brokerages are registered with FMCSA, the top 200 firms account for about two-thirds of the business.
“The big are getting bigger and consolidating,” he said. “We have a real competitive advantage, both for our carriers—who are paramount to this business—and with our additional service lines, and then with the talent that we're able to attract here. There's a huge runway for us in the space to be one of the premier brokers, over time.”
Customers are no longer turning to 3PLs just for additional capacity during seasonal surges, Brian Kenney, Penske Logistics VP of brokerage, told FleetOwner. Instead, shippers and carriers need “creative solutions” in an “unpredictable economic environment.”
“Customers are coming to us because they're looking for stability,” Kenney said. “As the supply chain has become more complex, and as we come out of COVID, there's a lot of uncertainty. Penske provides customers with insights, stability, and consistency.
“We can offer end-to-end global supply chain solutions, and incorporate both asset- and non-asset-based components to that. It's something that customers are very interested in.”
The range and depth of expertise will be critical as the supply chain continues to evolve, Glotzbach added.
“Customers want to make sure that their freight gets moved, but they also want to know what's coming around the corner and down the line,” Glotzbach said. “Our company, when you look at all the different components that we can bring to bear, allows them to do that.”
Penske Logistics has in excess of $7.1 billion in freight under management, executing thousands of daily loads with reliable transportation modes, the company reports.
The new Chicago location, at 500 W. Madison St., will house an expected 80 associates in the 9,000-sq.-ft. space within the year. These associates will have sales, account management, operations, and customer success responsibilities.
At the 5,000-sq.-ft. offices over in Edison, New Jersey, at 110 Fieldcrest Ave., there will be associates working in operations, customer success, and logistics coordination. There are expected to be 25-30 associates working from this location in the next year.
Penske Logistics is a Penske Transportation Solutions company headquartered in Reading, Pennsylvania.
