The logistics business division of Penske Transportation Solutions (PTS), experienced a 6.7% revenue increase in 2024, reaching $3.2bn compared to $3.0bn in 2023. However, this represents a 12.7% decrease from 2022. While the LSP has faced some financial challenges over the past two years, the year-on-year growth in 2024 demonstrates resilience within the competitive logistics landscape.
Penske Logistics continues to leverage Mexico’s growing workforce, a key factor in addressing labour shortages in the US, as noted by Andy Moses, Senior Vice President of Penske Logistics. With nearly 30 years of experience managing cross-border shipments between the US and Mexico, the company has built relationships with carriers, navigating logistics challenges.
Despite its operational successes, Penske is faced with workforce reductions in the US, having filed Worker Adjustment and Retraining Notification Act (WARN) notices for potential job cuts at its Washington and Oregon facilities. In 2024, the company projected the loss of over 200 jobs, highlighting the broader shift in the logistics market as companies like Penske turn to Mexico for labour support. These cuts juxtapose with Penske’s growing reliance on the Mexican workforce, indicating a transformation in both talent sourcing and logistics management.
Penske Logistics utilizes its cross-border management solutions, powered by ClearChain technology, to ensure secure and timely shipments. The company recently partnered with Snowflake’s data platform to improve data management, which is crucial for optimizing fleet operations and customer service. Snowflake’s cloud-based, scalable solutions have helped Penske enhance its data science initiatives and better integrate artificial intelligence (AI) innovations to improve productivity and performance.
To further enhance its technological capabilities, Penske partnered with Cimcorp to enhance its bakery sector distribution by integrating Cimcorp’s Warehouse Control System (WCS) and MultiPick technology. This automation aims to optimize the flow of fresh bread and buns from the bakery to store shelves.
In addition to its expanding technological footprint, Penske has implemented Blue Yonder’s Yard Management solution to optimize tracking and monitoring of equipment across its warehouse yards. The successful pilot at one warehouse site in 2024 is set to expand to more locations, improving Penske’s ability to manage logistics infrastructure efficiently.
Ramu Pannala, Vice President, Supply Chain Technology, Penske Logistics: “Thanks to Blue Yonder’s computer vision-based Yard Management solution we have gained greater visibility in our yard, allowing us to know trailer and container location details and status, which has resulted in improved efficiencies. Automating the gate-in, gate-out process has allowed us to make better business decisions that positively benefit our customers. We are looking forward to further implementing this solution in the coming year.”
Penske’s 2024 saw notable technological advancements and revenue growth, but also faced workforce shifts and external challenges. This mix of factors highlights a transformative period for the logistics leader, as it navigates evolving market demands and internal adjustments.
Author: Shruti Sasidharan
Source: Ti Insight
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