Third Party Logistics (3PL) Acquisition Due Diligence

Business Challenge

Golden Gate Logistics, a global logistics services company with offices in the US and Asia required an acquisition due diligence assessment of a third party logistics (3PL) company specializing in the retail industry with facilities located throughout the USA. The client was considering acquiring the 3PL to support their global end-to-end logistics services capabilities. WCL Consulting was tasked to perform a specialized on-site Due Diligence Assessment of representative facilities in the following areas:

  • Strategic Planning
  • Organizational Structure (Management and Personnel Evaluation)
  • Human Resource Management (including recruitment, training, and unions)
  • Facilities and Equipment, Safety, Security
  • Operations Management (including process mapping of sales, warehousing & distribution, cross-docking, value-added services and reverse-logistics functions)
  • Planning and Control Mechanisms
  • Resource Management
  • Quality Assurance Systems
  • Inventory Management and Control
  • Information Systems (including hardware infrastructure, software applications (Warehouse Management Systems, Transportation Management Systems, Yard Management, Financial Systems) Communications Networks, Electronic Interfaces and e-Commerce)

How WCL Consulting Helped

WCL completed the due diligence assessment within the required timeframe and provided the client with a report and presentations of the following information:

  • Detailed descriptions of areas assessed (including narrative descriptions, organizational charts, process flow charts, facility photographs, etc.)
  • Detailed evaluations and analyses of areas assessed (including strengths, weaknesses, industry benchmark comparisons, potential risks, and opportunities for improvements and growth)
  • Detailed actionable recommendations (e.g., to mitigate risks, improve process performance, and assist with transition planning)

The WCL assessment validated company representations, identified core strengths, and identified several areas of concern in the areas of company business planning, operations and information systems. Golden Gate Logistics was pleased with the assessment and was able to utilize the findings in their acquisition planning.