To differentiate this company from others, Christopher Connor added service offerings across the finished-vehicle supply chain. Amanda Barber reports.

Four years ago, Wallenius Wilhelmsen Logistics Americas, LLC (WWL) decided to expanded its footprint beyond its 100-plus years of deep-sea ocean transportation to become the first factory-to-dealer service provider for finished vehicles. Nearly two years ago, under the guidance of Christopher Connor, president and CEO, WWL acquired a company previously owned by Nissan North America to build the platform and begin the diversification.

“We zeroed in and expanded our footprint across the supply chain, beyond ocean transportation, increasing our involvement with many levels of our customers’ businesses,” said Connor. “We gave our manufacturers the option to choose a single provider across the finished-vehicle supply chain.”

Setting the standard
The core business and legacy of WWL is that of deep-sea transportation, primarily with finished vehicles, including automobiles, construction and agricultural equipment, and oversized machinery. Soe years ago, the company recognized that its services were at risk of commoditization and wanted to give its customers more comprehensive service offerings based on the experience and reputation it earned at sea.

Christopher Connor

“We wanted to simplify and streamline the different modes and relationships manufacturers had across the finished-vehicle supply chain,” said Connor. “Our vision was to offer one- stop shopping, factory to dealer, for vehicle manufacturers.”

Although the proposition sounded good on paper, Connor quickly realized his company did not have the scale to satisfy the different requirements of its manufacturers. In 2004, the opportunity arose to purchase the formerly Nissan-owned company, Distribution and Auto Services (DAS), and the acquisition filled holes the existing operations of WWL could not.

First, the acquisition expanded the company’s auto dealer distribution capabilities. To manage and optimize distribution networks for customers, the company needed to operationally control its volumes, mixing and matching different OEMs. Prior to the DAS acquisition, WWL had ideas and ambition but lacked the necessary scale. The addition of DAS gave Connor and his team the scale, scope, and credibility to propose distribution management to their customers as more than a theory.

Second, the company expanded its technical services division. WWL previously operated two technical services centers, but the addition of centers in both the US and Mexico significantly increased the number of vehicles the company handled per year. “We went from distributing 20,000 or 30,000 cars a year to dealers to 1.5 million cars a year,” said Connor. “Our processing activity grew from 100,000 per year to 2.2 million.”

Although this growth boosted the company’s revenue, it created operational challenges. DAS was headquartered in Southern California, while WWL is based in Bergen County, NJ. Connor knew he had to integrate the businesses quickly, particularly in the support areas such as IS&T, finance and accounting, and human resources.

“We offered the DAS headquarters employees the chance to move to New Jersey, but convincing people to relocate from sunny southern California to northern New Jersey proved difficult,” said Connor.

Several senior managers made the move, and Connor and his team focused on retaining the critical competence in southern California, while they recruited and trained new hires in New Jersey. “All in all, it was a very successful transition,” he continued. “Everyone was motivated because of our growth plans for the company and because of WWL’s international presence. In the end it worked because we were honest about our intentions and treated people well throughout the process.”

Raising the bar
Expanding its services across the finished-vehicle supply chain is a major focus for WWL, but it is not the only one. As the sole sponsor of World Wildlife Federation’s High Seas Conservation program, WWL continues to develop environmental initiatives that hold true to the focus of the two Scandinavian families that own the company.

In July 1999, two Scandinavian shipping companies merged to form Wallenius Wilhelmsen Lines, now Wallenius Wilhelmsen Logistics. Both parties in the merger brought a desire to change the deep-sea industry to an environmentally friendly one, starting with the type of fuel their vessels burn.

“We burn low-sulphur diesel in our ships, well beyond what is required by the regulatory authorities and at a great expense to us,” said Connor. “We have moved past trying to make our environmental initiatives an economic issue with our customers. The focus is more on what type of company we are environmentally and who our customers want to do business with.”

Additionally, WWL uses tin-free paint on its vessels, reducing the amount of toxins seeping into the ocean. The vessels crews do not use plastic plates or silverware, and the company uses a filtration system to ensure any displaced ballast water leaves the ship contaminant free.

Another technologically driven but environmentally focused event was the creation of the WWL concept vessel, the Oracelle. The vessel was designed to hold up to 10,000 automobiles, a significant increase from today’s vessel capacity of 6,500. The vessel’s propulsion would be based on wind, sun, and waves, and while Connor realizes the Oracelle may never make it to production, that wasn’t really the point.

“Elements of the Oracelle concept will start to find their way into designs of future vessels,” he said. “It was kind of a stretch about where we want the industry to go, and we will continue to move toward that goal.”