Essendant is redefining its century-old business with a decisive exit from the office-supplies market and a sharp turn toward ecommerce and logistics modernization.
Essendant is one of the largest wholesale distributors in the U.S. The Deerfield, Illinois-based company has launched a three-year partnership with transportation and logistics provider Hub Group to introduce a new “managed delivery” model. The initiative is part of Essendant’s New Way Forward strategy. It integrates Hub Group’s nationwide truckload, less-than-truckload and final-mile network with Essendant’s distribution centers to improve delivery speed, consistency and cost efficiency.
“This partnership enables Essendant to provide more efficient, predictable and cost-disciplined deliveries to our customers’ warehouses,” said Tim Engstrom, senior vice president of 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.”
How Essendant is pushing deeper into the ecommerce world
The model leverages Hub Group’s network of more than 200 final-mile facilities, forming a hub-and-spoke system that can reach 98% of the U.S. population within 48 hours. The program consolidates multi-stop shipments, reduces transportation costs and targets a 95% on-time performance rate.
The logistics overhaul underscores Essendant’s broader reinvention as a digital-first distributor. Its Connected Commerce platform connects brands, resellers and marketplaces to real-time inventory visibility, multichannel content syndication and drop-ship fulfillment.
The system turns Essendant’s nationwide footprint into a commerce-enablement network capable of supporting both business-to-business (B2B) and business-to-consumer (B2C) sales.
By emphasizing data integration and digital-channel reach, Essendant is shifting from a traditional wholesale model. It’s moving toward a platform-based strategy focused on fulfillment, analytics and marketplace connectivity.
The transformation coincides with Essendant’s decision to wind down its independent office-products dealer channel, ending its historic role in a shrinking sector. Once known as United Stationers, the company rebranded in 2015 and has since diversified into higher-growth categories such as janitorial and sanitation, foodservice, technology, and industrial supplies.
Industry analysts say the move reflects a necessary realignment. Demand for office supplies continues to decline — down roughly 2% annually, according to Circana. Meanwhile, sectors tied to facilities maintenance and industrial products show steady expansion.
By shedding low-growth lines, Essendant aims to concentrate investment in digital infrastructure and high-velocity categories that offer better margins and recurring demand.
For Essendant, the pivot represents more than an operational reset—it’s a statement about where distribution is heading. The company’s bet is that integrated logistics and digital commerce will define the next era of B2B growth.
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