| Type | Public (NASDAQ: ECHO) |
|---|---|
| Industry | Transportation Services |
| Founded | 2005 |
| Headquarters | Chicago, IL USA |
| Key people |
CEO: Douglas R. Waggoner Founder: Brad Keywell Founder: Eric Lefkofsky |
| Revenue | $426,364,000 USD (FY 2010) |
| Website | www.echo.com |
Echo Global Logistics, Inc. (Nasdaq: ECHO) is a provider of technology-enabled transportation and supply chain management services, delivered on a proprietary technology platform, serving the transportation and logistics needs of its clients[1][2]. Echo’s web-based technology platform compiles and analyzes data from its network of over 24,000 transportation providers to serve its clients’ shipping and freight management needs. The Company has become a leading contender among 3PLs and has been listed in Inbound Logistics' Top 100 3PL Providers[3]. In 2011, Echo has procured transportation and provided logistics services for more than 22,700 clients across a wide range of industries, such as manufacturing, construction, consumer products and retail[4].
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Echo Global Logistics, Inc. was originally established as a logistics division for InnerWorkings, a prominent web-based printing company in Chicago[5]. In 2005, InnerWorkings founder Eric Lefkofsky decided to expand the logistics division into an independent company. Lefkofsky, most recently known for creating the social-coupon Website Groupon, is an expert on using the power of technology and the Internet to update a particular industry. With this in mind, Lefkofsky and fellow co-founder Brad Keywell set out to create Echo Global Logistics, a transportation and logistics outsourcing business utilizing the latest technologies[6].
In 2006, Douglas R. Waggoner became the CEO of Echo and brought with his experience in the transportation industry. Under the leadership of Waggoner, Echo combined technology and transportation in order to provide innovative solutions for shippers[7]. Waggoner has been recognized for his contributions to the transportation and business world. In 2009, Ernst & Young selected Waggoner as the Entrepreneur of the Year[8].
Within the first few years of operation, Echo experienced exponential growth. In 2007, Echo acquired SelecTrans, Mountain Logistics and Best Way Solutions[9]. They also opened three regional branches in Los Angeles, Portland, and Park City, Utah. In 2009, Echo made two additional acquisitions with Freight Management and RayTrans Distribution[9]. On October 2, 2009 Echo went public on NASDAQ[5]. In April 2010, Echo opened a new office in Dallas, Texas[10]. In March 2010, the Company opened another office in Atlanta, Georgia[11].
Echo provides transportation services for shipping including:
Main logistics services include:
Echo's technological approach to logistics enhances the traditional transportation outsourcing models. Echo developed Evolved Transportation Management (ETM) technology; a web-based proprietary software application that allows the company to analyze the transportation requirements of each client and create customized solutions[13]. ETM provides supply chain visibility, competitive pricing and shipment execution throughout all modes of transportation. The technology allows clients to manage transportation and logistics fees and navigate their way through the complexities in the transportation and supply chain functions[12]. Working with ETM, Echo employs technology portals which ensure high levels of efficiency. These portals include:
EchoTrakTM: customized web-based transportation management displaying details of shipments and automatic alerts to email
RatelQTM: Rating tool for LTL
LanelQTM: Rate and price quoting engine for truckload shipments
Optimizer Tracking: Performance ratings of carriers and shipment data
Optimizer Imaging: Stores all digital images of shipping documents[14]
Echo works with top carriers specializing in truckload, less-than-truckload, expedited, international and small parcel carriers[15]. To ensure the quality control, Echo employs a Carrier Certification Program. The program ranks carriers by relevance and appropriateness for all shipments. The carrier list is continuously updated and maintained according to performance, rate negotiation and other quality standards. All carriers working with Echo are licensed, insured, and adhere to proper safety rules[16].
In February 2010, Echo joined the U.S. Environmental Protection Agency's (EPA) SmartWay Transport Partnership, an initiative with the goal of environmentally cleaner, more fuel efficient transportation options. The Company achieved a score 1.25, which is the highest possible rating, representing "outstanding environmental performance”[17].
Top competitors of Echo include Network Global Logistics CH. Robinson Worldwide, Freightquote.com, Ozburn-Hessey Logistics, Total Quality Logistics, Transplace, Schneider National, FedEx, JB Hunt, ABF, YRC, Conway and UPS[1].