TFSA Investors: 1 Safe and Reliable Transportation Value Stock Set to Outperform

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Andlauer Healthcare Group (TSX:AND) is a leading and growing supply chain management company with a platform of customized third-party logistics (3PL) and specialized transportation solutions for the healthcare sector.

The company offers services to healthcare manufacturers, wholesalers, distributors, and 3PL providers through a comprehensive platform of high-quality, technology-enabled supply chain solutions for a range of products. These products include pharmaceuticals, biologics, narcotics, precursors, active pharmaceutical ingredients, health and beauty aids and medical devices.

Holistic solutions

Andlauer integrates uniquely designed nation-wide network of facilities, vehicles, personnel, and technology systems into businesses to offer holistic solutions. This satisfies the requirements of the highly regulated Canadian healthcare industry and spans all clients’ shipping needs. The company differentiates service offerings and delivers value to clients through competitive strengths in temperature management, quality assurance and regulatory compliance, technology-enabled visibility throughout the supply chain, and security.

The company offers robust solutions specifically tailored to the healthcare market and generates revenue across five principal product lines. These include logistics and distribution, packaging solutions, air freight forwarding, ground transportation, and last-mile delivery.

The company’s service offerings allow it to accommodate the full range of specialized supply chain needs on an integrated and efficient basis. Further, Andlauer develops and expands long-term strategic relationships with clients to provide improved operational efficiencies and access to value-added services.

Range of competitive strengths

The company’s integrated customized solutions and company culture are Andlauer’s competitive strengths. This allows Andlauer to build trust with key stakeholders. Through the leadership of Andlauer’s management team, the company has focused on developing healthcare-specific expertise to best serve clients and comply with healthcare industry regulations and best practices.

The company differentiates services and delivers value to clients through four competitive strength, including temperature management, quality assurance and regulatory compliance, visibility throughout the supply chain, and security. These capabilities are put into effect across Andlauer’s platform through the company’s employees, who are passionate about client service. Through Andlauer’s competitive strengths, the company is able to provide healthcare clients with specialized, integrated, end-to-end supply chain solutions.

Competitive strengths are an integral component of Andlauer’s business and span all of the services it offers. In the company’s healthcare logistics segment, the company is focused on providing a comprehensive range of services to healthcare manufacturers. Pharmaceutical manufacturers represent Andlauer’s largest client segment, and the company provides services to several top pharmaceutical companies.

Diverse services

Andlauer’s logistics services are provided under master service agreements typically between three to five years in length on average and operate on a fee-for-service basis, while the company’s packaging solutions are typically offered on a contractual and project basis.

In the company’s specialized transportation segment, Andlauer focuses on providing multi-modal service offerings to healthcare manufacturers, wholesalers and distributors and 3PL providers. Andlauer’s ground freight and air forwarding contracts typically range from three months to two years in length, with the majority of contracts having a duration of one year, and are provided through a fee-for-service model.

Overall, Andlauer provides a great investment opportunity at the current price.

The post TFSA Investors: 1 Safe and Reliable Transportation Value Stock Set to Outperform appeared first on The Motley Fool Canada.

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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Andlauer Healthcare Group Inc.

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