Essendant Partners with Hub Group to Launch Managed Delivery Model Delivering to Warehouses Within 48 Hours

Rhea-AI Summary

Essendant (HUBG) announced a strategic partnership with Hub Group to launch a Managed Delivery model that will begin on November 1, 2025 under a three-year agreement. The program uses Hub Group's truckload, LTL, and final mile facilities combined with Essendant's distribution footprint to enable warehouse deliveries within 48 hours in nearly all major markets.

Key metrics in the agreement include a hub-and-spoke network with over 200 final mile locations, coverage reaching 98% of the U.S. population, and a target of 95% on-time service. The model is positioned to streamline multi-stop truckload shipments, lower costs, and scale to meet customer needs.

Positive

• 48-hour delivery capability across 98% of U.S. population
• 200+ final mile locations supporting hub-and-spoke operations
• 95% on-time service target for warehouse deliveries
• Three-year agreement starting November 1, 2025

Negative

• None.

Insights

Supply-chain partnership analyst

Essendant's three-year managed-delivery deal with Hub Group promises faster, more reliable warehouse deliveries and lower transport complexity.

The agreement pairs Essendant's distribution footprint with Hub Group's truckload, LTL, and final-mile network to enable a hub-and-spoke model that reaches 98% of the U.S. population and targets warehouse deliveries within 48 hours. The service commitment includes a stated 95% on-time performance metric and over 200 final-mile locations, which should simplify multi-stop truckload planning and reduce routing complexity.

Key dependencies and risks remain operational execution and scale-up during the roll-out to meet the stated metrics; the program goes live on November 1, 2025 under a three-year agreement, so early-month performance will signal whether the promised cost and reliability gains materialize. Watch implementation metrics such as achieved on-time rate versus the stated 95%, coverage consistency across major markets, and evident cost-per-delivery improvements over the first 90 days.

DEERFIELD, Ill., Oct. 24, 2025 /PRNewswire/ -- Essendant, a leading national wholesale distributor, today announced a strategic partnership with Hub Group to implement its Managed Delivery model, a cornerstone of Essendant's New Way Forward supply chain strategy. The model leverages Hub Group's truckload network, less-than-truckload (LTL) network, and nationwide final mile facilities to support warehouse deliveries within 48 hours across nearly all major markets.

By combining Hub Group's extensive carrier network and final mile facility density with Essendant's distribution footprint, the Managed Delivery model is designed to streamline multi-stop truckload shipments, reduce costs, and provide consistent, reliable service for customers nationwide.

"This partnership enables Essendant to provide more efficient, predictable, and cost-disciplined deliveries to our customers' warehouses," said Tim Engstrom, SVP, 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."

Partnership Highlights

• 48-Hour Delivery Capability: The hub-and-spoke model, with over 200 final mile locations, makes two-day warehouse delivery achievable across 98% of the US population.
• Hub-and-Spoke Efficiency: Multi-stop truckload solutions engineered to optimize routes and lower costs.
• Nationwide Coverage: Dense final mile network providing broad reach and operational flexibility.
• Improved Reliability: Consistent, 95% on-time service for warehouse deliveries across the U.S.
• Scalable Model: Flexible structure that adapts to changing customer and market needs.

The Managed Delivery program is scheduled to go live on November 1, 2025, under a three-year agreement, reinforcing Essendant's strategy to deliver value through disciplined and customer-focused supply chain solutions.

About Essendant
Essendant is a leading wholesale distributor of janitorial products, food service disposables, technology, and industrial supplies, serving thousands of resellers and customers across the nation. With a 100-year heritage, Essendant is committed to delivering service with cost — aligning customer value with operational discipline.

About Hub Group

Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers' needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers' supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (Nasdaq: HUBG) with approximately $4 billion in revenue, our nearly 6,000 employees and drivers across the globe are always in pursuit of "The Way Ahead" – a commitment to service, integrity and innovation. For more information, visit hubgroup.com.

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SOURCE Essendant Inc.

FAQ

What is Essendant and Hub Group's Managed Delivery launch date for HUBG?

The Managed Delivery program goes live on November 1, 2025 under a three-year agreement.

How quickly will HUBG deliveries reach customer warehouses under the new model?

The program is designed to deliver to warehouses within 48 hours in nearly all major markets.

What geographic coverage does the HUBG Managed Delivery model provide?

The hub-and-spoke model with 200+ final mile locations aims to reach 98% of the U.S. population.

What on-time performance does Essendant expect from the HUBG partnership?

The partnership targets 95% on-time service for warehouse deliveries nationwide.

How long is the contract between Essendant and Hub Group for HUBG?

The agreement is a three-year contract beginning November 1, 2025.

How does the HUBG Managed Delivery model aim to reduce logistics costs?

The model uses hub-and-spoke routing and multi-stop truckload optimization to streamline shipments and lower costs.