Agility Continues its Global Expansion
Atlanta, Georgia USA
March 10, 2009
Mokhtar Bazaraa, Senior Vice President
Gultekin Kuyzu, Senior Manager
In 1979 Agility began providing logistics services and with 2008 revenues of $7 billion and operations in over 100 countries, it has expanded rapidly to become a top-ten global supply chain manager. It has grown both organically and through acquisitions of U.S. based GeoLogistics and several smaller sized third-party logistics providers (3PLs). Agility focuses on offering customers supply chain solutions tailored to meet individual business needs through a global network of warehousing facilities and transportation management operations. As part of its growth strategy, Agility has adapted an “asset-right” business model, which means acquiring assets to meet specific customer and regional market logistics needs. Major Agility customers include: ABB, BP, Epson, General Electric, Halliburton, Nestle, Nike, Princess Cruise Lines, Shell Oil, Siemens, U.S. Department of Defense, and Wal-Mart.
Agility is a publicly traded company organized into three major business groups. Global Integrated Logistics (GIL) is the largest with revenues of $4.5 billion and more than 23,000 employees. Over $4 billion of its revenues are generated outside of the U.S. GIL has core competencies in freight forwarding, contract logistics/warehousing, project logistics, fairs & events, and supply chain management 3PL services. Agility’s annual freight forwarding volume tops 420,000 ocean trailer equivalent units (TEUs) and its airfreight volume is over 490,000 tons.
Defense & Government Services (DGS) generates $2.2 billion in revenues for Agility and has a workforce of over 10,000. It provides 3PL services tailored to governments, relief agencies and international institutions worldwide. These services include extensive warehousing and trucking operations in Kuwait to support U.S. Department of Defense distribution needs in the region.
The final business unit is Investments which draws on local insights from Agility’s global network to identify real estate and private equity opportunities in Asia, Africa and the Middle East. Investments has revenues of $200 million and employs more than 2,000 people.
Agility focuses on developing 3PL business and solutions for three major internally defined sectors: Technology & Electronics, Retail and Regional Sectors. These are detailed in the figure below.
Figure 1, Agility Sectors for Focused Growth
For the Technology & Electronics sector, Agility provides extensive airfreight forwarding services and manages many vendor managed inventory (VMI) hubs globally. It manages many retail distribution operations globally in the Middle East, Europe and Asia. To support regional operations, Agility is investing $130 million in India to develop increased warehousing and transportation capabilities. It has been one of the leading 3PLs in developing projects in higher-risk/higher-return regions of the world.
Supply Chain Solutions Group
Within the GIL business group is the Atlanta, GA U.S. based Supply Chain Solutions (SCS) group headed up by Senior Vice President Mokhtar “Mo” Bazaraa. Mo’s group supports Agility by providing process reengineering and supply chain modeling and optimization services to internal and external customers. Its services include developing solutions, designing efficient warehousing operations, and modeling, planning and implementing improved transportation management programs. Agility's Supply Chain Solutions team has designed warehousing operations for customers such as P&G in Egypt and Morocco and Kraft in Bahrain. It has also redesigned Agility’s own European ground transportation network, which manages over $500 million in transportation annually.
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