Newgistics Acquires Cornerstone, Unveils First Postal-Based Solution For Forward And Returns Shipping
AUSTIN, TX - February 11, 2008 - Newgistics Inc., the only provider of a postal-based, intelligent logistics solution for forward and returns shipping, today announced the acquisition of Cornerstone Shipping Services, the leader in small package shipping solutions. The combination of Newgistics and Cornerstone now provides direct retailers and marketers with the industry's first Intelligent Logistics Management (ILM) solution, a highly customized forward and reverse logistics offering. Key capabilities to Newgistics' ILM solution include unparalleled visibility, individualized reporting for streamlined inventory management, and a unique Web-based technology for easily tracking the return and delivery process.
To meet growing consumer demand for a convenient shipping process, retailers are demanding an alternative to traditional, expensive parcel carriers that offer rigid, inflexible solutions. A recent survey commissioned by Newgistics and conducted by Harris Interactive, found that an overwhelming majority (68 percent) of respondents said the ability to easily track and access details about their purchase, is very important or important when deciding whether to shop with an online or catalog retailer.
"With this acquisition, Newgistics is delivering the first and only centralized, USPS-based solution that combines our proven technology for managing the returns process with Cornerstone's leading parcel shipping," said Bill Razzouk, CEO of Newgistics. "We are committed to providing our customers with a customizable logistics solution to ensure they can meet the unique needs of their consumers. We are excited about the company's momentum and look forward to extending our success into the forward shipping market."
As a result of the acquisition, Newgistics is appointing logistics veteran and Cornerstone co-founder and former CEO David Plemons vice president of business solutions. Prior to Cornerstone, Plemons was with United Parcel Service (UPS), where he was recognized for his success in business development, leadership and for meeting a number of key performance goals.
"Newgistics is truly an innovator in the reverse logistics space and I look forward to leveraging my experience to offer direct retailers and marketers a comprehensive,'one stop shop' for all their forward and reverse shipping," said Plemons. "I am thrilled to join Newgistics at such an exciting time."
This announcement comes on the heels of Newgistics' recent acquisition of Logistics Management Inc (LMI), which extended the company's offering to include transportation management capabilities for Less-than-Truckload (LTL) and Truckload shipping. As a result of organic growth and the additions of LMI and Cornerstone, Newgistics has increased net revenues to well over $100 million annually.
Cornerstone Shipping Solutions will now be known as Newgistics, Inc.
ABOUT NEWGISTICS, INC.
Newgistics (www.newgistics.com) provides direct marketers and retailers with the only postal-based, intelligent logistics solution for forward and returns shipping focused on residential pickup and delivery. Newgistics' flagship solution, SmartLabel, features a dynamic barcode integrated with customer data at the point-of-sale that allows the shipper to populate their CRM systems with their customers' information once the barcode is scanned in the Newgistics process. Newgistics lowers handling and overhead costs, maximizes operational control and drives greater customer satisfaction. Newgistics provides a competitive alternative to the traditional, expensive parcel carriers and drives customer loyalty and increases profitability for leading retailers like Neiman Marcus, and Abercrombie & Fitch.
ABOUT CORNERSTONE SHIPPING SOLUTIONS
Cornerstone Shipping Solutions is a business solutions provider in the field of parcel consolidation that provides small package shipping solutions through the use of zone skipping, in an information-rich environment. We work with the United States Postal Service and various transportation companies, to deliver consumers products in a personalized delivery process.
For more information, please contact:
Aimee Eichelberger or Michelle Koehn