USF Logistics acquires reverse logistics specialist

By Staff -- Logistics Management, 5/1/1999

Reverse logistics--the business of handling returns of damaged, obsolete, discontinued, or other unsaleable goods--is becoming a bigger part of logistics operations and is likely to grow rapidly, most observers agree. That opens new opportunities for third-party providers that can manage reverse flows.

USF Logistics, the third-party logistics unit of USFreightways Corp., has made a major commitment to the reverse logistics business with its recent acquisition of Processors Unlimited Co., which provides reverse logistics services to the grocery and drug industries in the United States and Canada. The company will continue to operate under the name Processors Unlimited. Kevin Sheehan, the company's president and CEO, will remain on board along with the rest of his management team.

Doug Christensen, president and CEO of USF Logistics, says the acquisition fills in one of the major missing pieces in his company's portfolio. USF Logistics and Processors already had a number of common customers, he says. "We just saw a tremendous opportunity to complete the circle."

Processors recently created a new service called ProcessorsAuction, an Internet auction site for overstocked, returned, discontinued, and odd lot goods. "We wanted a better method of disposing of that type of product," Sheehan says. "This allows access to a large community of buyers."