Hub Group, Inc. (NASDAQ:HUBG) stock gained on Friday after the company entered a long-term logistics partnership with Essendant, a national wholesale distributor.
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The collaboration aims to roll out Essendant’s Managed Delivery model, central to its “New Way Forward” supply chain overhaul.
The agreement leverages Hub Group’s truckload, less-than-truckload (LTL), and final mile networks to enable two-day warehouse deliveries across nearly every major U.S. market.
Strategic Partnership for Faster Deliveries
Essendant will integrate Hub Group’s logistics infrastructure with its national distribution footprint to streamline multi-stop shipments, cut costs, and enhance reliability.
The new hub-and-spoke system is engineered to improve route efficiency and achieve consistent 95% on-time performance across the country.
“This partnership enables Essendant to provide more efficient, predictable, and cost-disciplined deliveries to our customers’ warehouses,” said Tim Engstrom, senior vice president of supply chain at Essendant.
“Hub Group’s managed delivery expertise ensures we can meet evolving customer needs while advancing our commitment to service with cost.”
How the Model Works
The Managed Delivery model uses over 200 final mile facilities to support warehouse shipments within 48 hours for 98% of the U.S. population.
Hub Group’s carrier network and Essendant’s broad distribution coverage together provide the scalability and flexibility to adapt to changing market demands.
The program is set to launch on Nov. 1, 2025, under a three-year agreement, reinforcing Essendant’s goal to improve customer service through efficient, data-driven logistics operations.
The model also allows scalable expansion as the company’s product range and delivery volumes evolve.
Essendant’s Role in Distribution
Essendant is a century-old wholesale distributor offering janitorial, food service, technology, and industrial supplies to thousands of resellers nationwide.
Its focus on aligning service reliability with cost discipline remains key to its modern supply chain transformation.
HUBG Price Action: Hub Group shares were up 2.08% at $35.90 at the time of publication on Friday, according to Benzinga Pro data.
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