One day, while working as a salesman for Overnite Transportation (now UPS Freight), Mike Wagner offered a customer a great set of rates. But the shipper said he didn’t need Wagner; the rates he already had with Overnite were lower than any Wagner could produce on his own. The shipper had obtained those rates from a third-party logistics (3PL) provider.
“That’s when I decided I had to get into the 3PL business,” Wagner says. Six months later, he started working for AFS Logistics. And less than four years after that, he founded his own 3PL, Target Freight Management (TFM), based in Pittsburgh. It took Wagner four months to sign his first account, but by month eight he turned a profit. In 2016, TFM expects to gross $65 million.