Hub Group Partners with Essendant to Revolutionize Supply Chain Efficiency

### Hub Group and Essendant Forge Strategic Partnership to Enhance Supply Chain Efficiency

In a significant move to reshape supply chain logistics, Essendant, a leading wholesale distributor based in Deerfield, Illinois, partners with Hub Group to roll out its Managed Delivery model. Set to launch on November 1, 2025, this initiative is part of Essendant's broader New Way Forward strategy, focusing on enhancing operational efficiency and customer service. By leveraging Hub Group’s extensive truckload and less-than-truckload (LTL) networks, along with its nationwide final mile facilities, the partnership aims to achieve rapid warehouse deliveries within 48 hours across the majority of U.S. markets. This collaboration is positioned to streamline multi-stop truckload shipments, reduce costs, and improve service reliability for Essendant’s clients.

Tim Engstrom, Senior Vice President of Supply Chain at Essendant, emphasizes that this partnership will not only make deliveries more efficient but also more predictable and cost-effective. The Managed Delivery model features a sophisticated hub-and-spoke system with over 200 final mile locations, granting the capability to deliver to 98% of the U.S. population within two days. Furthermore, it includes multi-stop truckload solutions that optimize delivery routes and boasts a remarkable 95% on-time service reliability for warehouse deliveries. Such features underscore Essendant's commitment to evolving with customer demands and delivering exceptional value through disciplined supply chain solutions.

Hub Group, a publicly traded logistics and transportation company, is well-positioned to support Essendant’s ambitious goals. With approximately $4 billion in revenue and a workforce of nearly 6,000 employees, Hub Group specializes in optimizing supply chains for improved service and efficiency. The partnership is expected to enhance delivery times significantly while reducing operational costs, thereby enabling Essendant to better serve its diverse clientele. This strategic alignment not only signifies a potential boost for both companies in the competitive wholesale distribution market but also reflects an evolving landscape in logistics where collaboration is key to navigating customer needs effectively.

In addition to improving delivery capabilities, the partnership highlights the importance of adaptability in supply chain management. The flexible structure of the Managed Delivery model is designed to respond to changing market dynamics and customer requirements, ensuring that both Essendant and Hub Group remain competitive. As Essendant continues to serve thousands of resellers and customers nationwide, this collaboration showcases a commitment to innovation in logistics.

Overall, the alliance between Hub Group and Essendant marks a promising development in the logistics sector, combining essential resources to enhance supply chain efficiency and customer satisfaction. With both companies poised for growth, this partnership sets a new standard for operational excellence in wholesale distribution.