Wal-Mart Canada Acquires Logistics Firms, Folds Them Into Its Operations
By: Truck news July 09, 2014
Wal-Mart Canada Corp. has purchased two privately held Canadian logistics firms that have acted as Wal-Mart service providers: trucking company Translogic Express Dedicated Inc. (TEDI) and distribution centre operator SCM.
Under the terms of the deals, which went into effect on July 1, TEDI will continue to do business under its existing name, but SCM will shed its old identity for a new one. Both TEDI and SCM will be operated as wholly owned Wal-Mart subsidiaries.
“There will be no impact on staff,” said, Andrew Pelletier, vice president of corporate affairs and sustainability for Wal-Mart Canada, adding that people formerly working for SCM and TEDI are now Wal-Mart employees drawing “better” compensation and benefits packages than they did with their former companies.
Pelletier said he expects the integration process to go smoothly, due to Wal-Mart’s history with the service providers.
“Both companies have been dedicated Wal-Mart logistics and transportation suppliers for many, many years, so we have very good synergies in the operation. We don’t see any negative impact whatsoever. We think this is a positive move.”