Weber Logistics, a third-party logistics company with a strong focus on clients involved in ecommerce, is planning to grow its services with new funding from Stellex Capital Management, an investment firm specializing in logistics and transportation businesses. The companies did not disclose the terms of the deal.
“We’re already exploring expansion opportunities beyond our traditional geographic region and in high-growth areas like ecommerce fulfillment, which has fueled much of our recent success,” says Weber Logistics CEO Bob Lilja, who recently took over as top executive after having served as president and chief operating officer. Weber has traditionally focused primarily on clients operating in the western United States, but the 3PL firm sees its market expanding as a result of the pandemic and the broad shift to more ecommerce direct-to-customer sales.
“Ecommerce activity from existing clients at Weber nearly tripled across the entire account base during the pandemic,” Lilja says. “While the reopening of many parts of the country did soften that impact in Q4, activity levels continue for most clients at more than double their prior-year activity, suggesting this shift from retail to direct delivery is permanent, at least in our base of business.”
He added: “Retail traffic was naturally hit hard overall during the shutdown, but there were winners as well as losers in the Weber account base. Sales by retailer vendors in industries such as paint, hardware, picnic goods, consumer electronics, and other products used by consumers at home were generally very strong, with several clients reporting their best year ever.”
Integration with ecommerce platforms
Weber’s offerings include pick-and-pack warehouse services and systems that integrate with several ecommerce platforms including Magento Commerce, Shopify, Brightpearl, DropStream and Ecwid; temperature-controlled warehousing; final-mile deliveries to retailers; and port services for importers who ship goods from Asia to California ports. Weber serves clients in multiple industries, including food-and-beverage, retail, consumer packaged goods and chemicals.
Trey Lee, a principal at Stellex, says “Weber operates as a key stakeholder in its clients’ success. By prioritizing a partner-oriented model, the company is better positioned to shoulder the burden of an increasingly complex supply chain on behalf of its customers.”
Other investments of Stellex include Cisco Industrial Services, a provider of construction equipment, parts and services; Fenix Parts Inc., a reseller of automotive parts from original equipment manufacturers; and Paragon Metals, a manufacturer and distributor of machined components and assemblies for automotive, heavy-truck and general industrial markets.
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