Capstone Logistics is a third-party logistics provider (3PL), with a long history in freight brokerage, that has recently expanded into managed transportation. The company selected 3G’s TMS software as the one platform upon which to build and grow this new division.
Business Situation
Capstone recognized managed transportation as an ideal growth opportunity, not only in the current climate, but any time shippers face supply chain challenges. It would allow the company to expand and diversify its product offerings, complementing its transactional brokerage business with an endto- end solution. Regardless of current conditions, managed transportation provides both growth and stability. For Capstone, it also presented an opportunity to apply decades of industry knowledge to helping small-tomidmarket shippers navigate uncertain times.
Our Solution
To execute on its growth strategy, Capstone required TMS software built from the ground up for managed transportation – software that could serve as a “single source” for running the division. That brought the company to 3G. Capstone had far more requirements than most software providers could meet, such as customer & carrier portals, ERP integrations, and optimization capabilities. No other vendor could both meet the requirements and provide the same level of confidence in implementation & postimplementation service, which
was important. With this new division and implementation, Capstone recognized the value – to both customers and the company – of developing a SaaS-like business model. However, this was still a significant change, requiring a partner that could take the team through end-to-end deployment. 3G’s implementation team brought the necessary combination of software skills and industry knowledge to accomplish just that.
The Outcome
Significant growth opportunities come with equal uncertainty, making the associated successes that much more rewarding. However, Capstone’s confidence in the 3G platform was so great that, prior to even completing its own 3G implementation, it had already signed multiple managed transportation customers! Of course, the odds were in Capstone’s favor… After seeing the 3G optimization demo, one customer’s first question was: “Wow, what else can this thing do?” Within a short time, managed transportation is expected to represent a double digit percentage of Capstone’s business.
By using 3G’s TMS to run its managed transportation, Capstone has created, and begun capitalizing on, multiple growth opportunities. As a successful brokerage, with many satisfied clients, there is an entirely new product to offer to them. At the same time, strengthening its position as a hybrid 3PL attracts an entirely new customer base, too.
