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August 25 - September 1, 2001
National Truck Driver Appreciation Week
Professional truck drivers safely deliver important goods to every home, community, school and business in the United States. Each year, truck drivers travel more than 200 billion miles delivering 8 billion tons of freight.
Professional truck driver have been honored as among the safest drivers on our highways. Many have received awards for extraordinary acts of heroism and bravery for saving fellow motorists from injury and death.
America's professional truck drivers are hard-working men and women who serve the communities, schools and businesses of the United States with dedication and without fanfare. The economic system of this country rides on the wheels of trucks; the men and women who drive trucks keep that system going.
The week of August 25 -- September 1, 2001 has been designated National Truck Driver Appreciation Week in honor of the more than 3 million men and women in America who deliver our goods by truck. Businesses, schools, communities, churches and other civic organizations are holding festivals, fairs, parties, parades, barbecues, banquets and other appropriate events to honor professional truck drivers for the vital role they play in the lives of Americans.
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Business Is Good - Not Great -
For Vendors Of Logistics Software and Systems
It's optimistic caution all over the place, according to vendors of computer systems for logistics, supply chain and warehousing. In an online survey of vendors, most respondents say that business is "good" right now, and the outlook for all of 2001 is "better than now." They expect big jumps in sales in spite of the economic slowdown. Here's how vendors responded to the following questions:
"How's business for your company right now?"
30% Excellent
61% Good
9% Poor
"What's the outlook for all of 2001?"
41% Excellent
57% Good
1% Poor
Some 95% of the respondents said they expected sales to be up at their companies for the year. Their optimism is unbridled. On average, the group expects to see a 51% increase over sales levels in 2000.
Those 5% who thought sales would be down predict the dropoff to run an average of 27% at their companies.
An analysis of how they find new business shows that nearly all pull in customers using a full tool box of methods.
In first place for getting new business are referrals from current customers and prospecting via cold calls. About 85% get sales from referrals, proving that the best marketing technique is taking care of customers. Another 79% cite the hard job of calling on new clients as a source of new business.
Each method, on average, accounted for about 30% of new business for the survey respondents.
Trade shows came next in terms of generating business. Some 78% of the group take part in trade shows. They ranked shows right after referrals and cold calls in ranking methods used to make sales. Some 16% of new business was attributed to shows.
Direct mail campaigns are next for 62% of those responding, generating an average of 15% of sales for any given year.
About half - 49% -- cited advertising in trade publication as the source of an average of 13% of their sales.
Roughly 86% said customers did find them on the Internet, generating an average of 13% of sales. And about 45% used the internet to go after business, and were rewarded with about 8% of sales coming from that source. Some 22% have tried webcasting, and pulled in 6% of their sales on average with the online presentations.
The group sees a trend in the world of trade shows: more shows to take part in, and fewer attendees to see at each show. About 80% note that there are more shows to go to, but 75% note that attendance at individual shows has dropped.
The online survey was presented via email to over 3,000 vendors of systems; 115 responses were tallied for this report. The survey was conducted by C.S. Report Inc., the trade show organizer that produces the Distribution/Computer EXPOs.
Details - http://www.logistar2.com
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Jeff Banning
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Brokers on the E-Commerce Playing Field
by Jeff Banning, CTB
I was inspired by an editorial that appeared early this year in a web-based trade publication for third party transportation intermediaries. The businessINSIDER editor joined dozens of pundits who see the future of brokerage and logistics tied closely to e-business. She urged readers to "start thinking about how you can serve business-to-business e-commerce. The field of transaction may be different. But the goods still have to be delivered on a truck. Transportation and logistics are still involved."
She challenged brokers to get "up to speed and beyond in the world of Internet-based transactions and e-commerce. It's time!"
This sentiment was echoed by speakers at the TIA convention in March.
If we can move freight successfully for brick, we can move it for click as well. The biggest thing it requires is - CHANGE.
Your staff may roll their eyes if you bring up the word and think, "Not again!" They may even wonder why you don't get the technology issue right one time and keep it that way, like we could do years ago.
The truth is, we DO get it right. And getting it right means we must keep changing to keep pace with our customers, their needs and the incessantly improving role of technology.
Each of the changes we have made at Trinity Transport has been for the better and has moved us forward. I'm sure it's the same in your company.
Think about how you could not get used to e-mail just a few years ago, and how you live by it now. Think about how keyboarding was "girl's work" and how we all bang those keys today - men and women alike.
Your staff has conquered a tremendous amount of change. Some of them are probably asking, "Can't you just leave us alone now and be satisfied?" In a word, the answer to them is - NO.
The new software you installed a few years ago was probably state-of-the-art. Everyone was enthused about learning it. They thought it was the ultimate. Today, it's obsolete, unless it's Internet-based. If it's not, it can't take you to the e-market.
At the TIA convention for the past two years, e-commerce has been all the buzz. Brokers are either doing it already, learning how to do it or planning their retirement. It's not optional. To provide transportation today, it's mandatory. Every day, more and more people buy via the Internet. The goods they purchase need to be moved. It's as simple as that.
After all the disappointment with dotcoms, some of your staff may wonder why you would want to go after that business. The shakeout with dotcoms, painful as it was to some, was inevitable. There were too many, too fast without appropriate infrastructure or management. Venture capitalists were backing vaporous concepts that they seemed to think would succeed just because they jumped the 'Net.
After the shakeout, hundreds of good, solid firms are left. Many are brick, supplemented by click. They are more grounded, better managed, and will be around for a long time. These are the companies whose freight we should be moving.
So what is exactly is b-2-b e-commerce? In its simplest form, it is any business transaction that takes place via a digital process over a network.
In its full view, however, it is much more than just an exchange of products or services for money over the Internet. It is also enabling technology that allows for increased accuracy, efficiency and interactivity with the customer. It allows us to know customers better and serve them better. It handles transactions automatically in seconds, leaving dispatchers more time to pay attention to out-of-the-ordinary loads.
E-commerce is the next playing field for transportation intermediaries. We will be there. Will you?
Jeffrey E. Banning, CTB is president of Trinity Transport, Inc. of Bridgeville, DE (www.trinitytransport.com) and a member of the advisory board of T/L businessINSIDER (www.transportmarketing.com/businessinsider). Banning serves on the board of directors of the Transportation Intermediaries Association (www.tianet.org).
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Dewey Wilson
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TIA - New International Conference
I.C.C.I. President Dewey Wilson has been appointed chairman of a steering committee of the Transportation Intermediaries Association (TIA) to form an International Conference of the national organization. TIA already has conferences for brokers, intermodal, logistics companies, freight forwarders, motor carriers and agriculture and refrigerated brokers.
Purpose of the conference will be "to spawn more international business opportunities." The conference would serve as the U.S. member of the International Federation of Freight Forwarders (FIATA).
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Winning Position on Search Engines
The growth of e-commerce is staggering. Over the past year, Web traffic has grown by 300%, and by 2002, sales are expected to reach $360 billion (Forrester Research, December 1999). Today, "search engine positioning" has become a fundamental component for any company looking to increase their online traffic.
Not only is Internet traffic growing, but so is the need to address a varied number of search engines. According to recent reports, there are more than 100,000 searchable databases available on the Web.
Studies suggest the existence of a hidden "deep Web" with an estimated 500 billion individual documents, most of which are available to the public. This is an amazing number, considering the estimated count of only 2.7 billion Web pages in November 2000. According to the NEC Research Institute, no single engine is indexing more than 60% of the Web with some smaller search engines indexing just 2%!
The challenge to online marketing success is clear: The search engine and directory industry parallel the explosive Internet traffic trends. If your company doesn't address all relevant search engines and directories, you exclude a large segment of your target audience.
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Small Business CD - Free for the Asking
The Small Business Resource Guide, CD-ROM 2001 is intended to be a one-stop source of easy access federal tax and other regulatory information as well as other information important to small business entrepreneurs.
The CD contains business tax forms, instructions, and publications needed by small business owners. In addition, the CD provides an abundance of other helpful information, such as how to prepare a business plan, finding financing for your business, and much more.
Although the CD-Rom is designed to be a stand-alone product its value is greatly enhanced for individuals with Internet access. Internet access will enable a small business to; subscribe to a multi-agency e-mail newsletter, view UPDATES to the CD-ROM at a special web site, and link to thousands of government agency, and non-profit web sites that provide important information for small businesses.
Details - http://www.irs.ustreas/bus info/sm bus-cd.html or call 800-829-3676. Ask for publication 3207.
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Anger Control
The transportation business can trigger anger that reflects frustration and loss. Frequent explosions of such anger puts undue pressure on everyone within hearing distance. It risks the health of the person whose blood pressure goes through the roof during such anger spurts. These days, it's also frightening.
Transportation sales rep Sheila Fooks says, "Some things are really worth an intense, angry response - seeing injustice or witnessing an act of violence. Some things are not - a copy machine that doesn't work, a driver who cuts you off, a missed shot on the tennis court."
Anger control seeks to help people distinguish between what's worth the cost of anger and what is not. Sheila's test asks, "If today were the last day of your life, would all the things you get angry over still be important to you?"
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Rick Jones
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Facing Obstacles in Our Business
Learning from Disney
by Rick Jones, CTB
Have you seen the movie "The Emperor's New Groove" by Disney Studios? In it, two characters are tied to a tree and floating down a river, heading toward a waterfall. One is facing away from the disaster while the other is looking right at impending doom.
The one who can't see what's going on questions the other:
A: "Any way out of this mess?"
B: "None comes to mind!"
A: "Are we heading toward a waterfall?"
B: "Yep."
A: "With sharp rocks at the bottom?"
B: "Most likely!"
A: "Bring it on!"
"Bring it on!" has become our battle cry around here, as we encounter some scenarios that we can't do anything about - except face them. How we face them is the measure of our character.
Another children's film I've always liked is "Never Ending Story." In it, a boy finds himself in a terrible place. The whole world is coming apart, being destroyed, and there is nothing he can do about it.
Finally, a huge wolf - that has been chasing him throughout the story - has the boy cornered. Now, it looks like the world is ending with him in it and he is about to be killed and probably eaten.
He picks up a sharp rock, stands up and says to the wolf, "If I'm going to die anyway, I'd rather die fighting!" The wolf attacks the boy but the boy manages to kill his adversary and, suddenly, he is plucked out of the dying world by a miracle.
I think we make our own luck - our miracles - and fighting hard against all odds makes life so much more exhilarating.
Rick Jones, CTB is President of Meadow Lark Companies, a freight brokerage in Billings, Montana. www.meadowlarkco.com
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Damages Cannot Be Speculative
by William A. Gray, Esq.
It is well established that where a plaintiff claims loss of or damage to property, the plaintiff has the burden of proof to present sufficient evidence from which damages can be determined by some rational basis and other than mere speculation and conjecture. A recent case decided by the United States First Circuit Court of Appeals graphically illustrates this principle.
The facts of this case are that the plaintiff purchased at auction surplus U. S. Navy marine equipment for $215. The plaintiff had in the past purchased surplus marine equipment from the United States government and had refurbished and resold that equipment, usually to foreign governments. The motor carrier transporting the marine equipment somehow lost the shipment in transit.
The plaintiff alleged that the resale value of the marine equipment was $353,370, which it determined based upon its prior sales of marine equipment. The equipment purchased by the plaintiff was nine to 16 years old and originally cost the Navy $275,000. Plaintiff never inspected the equipment or reviewed the maintenance records. Although the plaintiff had made huge profits on past sales of surplus marine equipment, it had no particular customer for the particular goods that had been lost.
The Court of Appeals affirmed a trial court determination that the motor carrier defendant was only liable for the $215 that the plaintiff had paid to purchase the marine equipment. It determined that any other measurement of damages was too speculative.
The Court of Appeals recognized that under the Carmack Amendment lost profits are normally recoverable unless they are speculative. The key to the Court's determination in this case is that at the time of the loss the plaintiff had not found a customer for the equipment.
In his deposition, the President of the plaintiff admitted that the plaintiff had no customer for the equipment at the time of the bid or at the time motor carrier lost the shipment. The Court also relied on the fact that the plaintiff was relying on sales of prior equipment, which may have been of a different condition. The Court also noted that the goods were sold to the plaintiff "as is" and that perspective bidders were urged to inspect the goods.
The Court found that it was simply too speculative to say that the goods were in the same condition as the prior goods or that they would bring the same price. This is a very harsh result given the fact the plaintiff almost certainly could have made a huge profit on the sale of this marine equipment just as it had done previously.
William Gray is a transportation attorney with the Law Firm of Vuono & Gray, LLC in Pittsburgh, PA. This article is not meant to provide legal advice or offer solutions to individual problems. Questions about individual problems should be addressed to the author at (412) 471-1800.
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Schneider Logistics Introduces MySUMIT™
Schneider Logistics, Inc. has released Supply Chain Integrator, in its MySUMIT suite. The new Web-enabled application allows shippers, suppliers and carriers to obtain product-level visibility at every point along the supply chain and stay connected with their supply chain partners.
Supply Chain Integrator is the same powerful tool Schneider Logistics uses internally to manage the supply chains of its Fortune 100 clients. It is now available to their customers of any size via the Internet.
"Essentially, our Supply Chain Integrator allows our customers to replace inventory with information," said Chris Lofgren, CEO of Schneider Logistics. "With its advanced capabilities, Supply Chain Integrator levels the flow of inbound materials, reduces inventory and helps users consolidate items to save freight costs."
The new tool provides detailed, line-item visibility of inbound and outbound materials to any facility such as manufacturing, distribution, etc.
Details: http://www.schneiderlogistics.com
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Hiring, and the Crime Control/Law Enforcement Act
Have you implemented affirmative hiring procedures to avoid liability under the Federal Violent Crime Control and Law Enforcement Act? As you probable know, this statute (in existence since 1994) provides that, without a waiver issued by the state commissioner, individuals cannot participate in the business of insurance if they have been convicted of a felony involving dishonesty or breach of trust. The law also contains criminal sanctions for insurance agencies that knowingly employ or retain such an individual.
To avoid liability, two actions are recommended: First, we suggest you include the following questions on your employment applications:
- Have you pled guilty to, pled nolo contendere to or been convicted of any felony involving dishonesty or breach of trust?
If so, please explain.
- Have you pled guilty to, pled nolo contendere to or been convicted of any felony or misdemeanor charge during the past seven years?
If so, please explain.
If you ask these questions, and the candidate misrepresents his or her criminal history, you should not be held liable since you did not knowingly hire the felon. For those candidates who identify a felony conviction, you have the opportunity to deny employment or facilitate that person in obtaining the requisite waiver.
Second, your agency should consider whether a pre-employment criminal history check should be conducted. Though not required by law, conducting such examinations will demonstrate your intention to comply with this federal statute. If such background checks are conducted, you will also need to comply with the authorization and disclosure requirements of the Fair Credit Reporting Act.
Reasons you may want to consider such testing:
- Avoid public embarrassment of employing an individual having a criminal record.
- Avoid potential liability of employing an individual who has a criminal record and may misappropriate monies.
- Ensure that the agency does not employ felons who are disqualified from working in the insurance business.
Adopt similar practices to your commercial lines insures who are using criminal background checks as a way to screen applicants.
These criminal history application questions are contained on the Employment Application included in the HUMAN RESOURCES BEST PRACTICES TOOL BOX, designed exclusively for the Independent Insurance Agents of Georgia by ERMI (Employment Risk Management, Inc.). This product provides a COMPLETE set of documents that ensure compliance with employment practices, including applications, interview guidelines with Insurance Industry questions, employee handbook, performance appraisals, background investigations and more.
Details: 770-396-0202 or call IIAG's Fax-On-Demand Service at 800-548-9350 and select Document #6500.
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 Don Lafferty
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Surviving An Economic Slow Down
by Don Lafferty
Remedies for surviving an economic slow down… Take two aspirins and go to bed. Ignore the issue. Panic. Beat the bushes. Of the four, the last is undoubtedly your best choice. But, if you are expecting immediate results, you may be disappointed.
So, can there be a remedy? Where can I get relief? How about from existing resources? That's it! Answers abound are there to be uncovered and implemented.
Existing customers are undoubtedly your first best resource for additional business in tough times. First and foremost, however, you must give them reasons to give you more business. How? Offer more. Be more visible. Cut your rates. Offer concessions. These are but a few of the possible answers. It will undoubtedly take some creativity, but you may be surprised with the results of this effort. You may even recover a lane that you lost.
"The sales department is not the whole company, but the whole company is the sales department." Get your on line staff to step up their customer development efforts. Get them in the habit of always asking for more business and to suggest ideas to stimulate more business.
Ask any salesman about referrals. These are often the best leads. How about leads and referrals from your employees? Fill them in on your economic needs. Find out whom they know? Find out what do they know? Who are their friends, contacts and resources? You may be surprised at the opportunities that lie right under your nose.
And, of course, we must not over look our sales staff. Should their priorities be changed? Do they need to refocus? Are more frequent sales meetings in order, geared toward generating ideas for acquiring new business?
But what if you don't have a sales staff, as is the case of many small carriers. These carriers could reap the benefits from others doing their sales work for them, namely Freight Brokers. Brokers are always looking for carriers willing to establish to a year-around business commitment. A commitment that guarantees equipment based upon an average seasonal rate, rather than one that leaves them high and dry when rates temporarily spike elsewhere.
Core Competency. More than just a buzzword, attention to and development of one's Core Competency is fast becoming the key to survival when addressing the need for better, faster and cheaper transportation services…and for getting and saving business in tough times.
For a long time the transportation industry has recognized and promoted the need for shippers to outsource their logistics and in particular their transportation. This has been one of transportations strongest selling points when trying to improve the value of their services. Shippers have learned that by outsourcing their logistics needs, valuable time is opened up for them to pursue their own core competency.
There may be a lesson to be learned in this. Just maybe, we need to invest more time, money and effort to improve our Core Competency, to improve our ability to give shippers the solutions and service they need. Just maybe this could open more doors for business for your company or perhaps even prevent doors from closing.
A lot of progress has not been made in the transportation industry investing in new skills and technologies, such as we have done at InterConnect Logistics Group, Inc. Training and educating our brokers, drivers, service personnel, as well as our office support staff is at the heart of this investment. Investing in new technology, such as new computers and computer software, EDI, the Internet, WEB sites, satellite communications, etc., is also a recipe for additional business.
Nevertheless, you can educate, train, gear up and implement until you are blue in the face. Unless you specifically address the needs of your customers, your best efforts and intentions may fall on fallow ground. You must walk in your customer's shoes to insure results and availability of new business when there is little new business to go around.
Retaining business is just as important as getting additional business. It's part of the same equation. We must be available and willing to work hand-in-hand with our customer to work out issues and resolve problems. Then following through to make sure all expectations are met and that customer satisfaction is achieved. Let's face it, if you are not addressing all of your customer needs, you stand a good chance of loosing the account to the next best (or lowest) offer, particularly during an economic slow down.
Ours is a business that constantly lives with the specter of service failures. Service failures are impossible to eliminate, whether caused by a driver, dispatcher, handler, shipper, consignee, a lack of communication, or an Act of God. The consequences of these, on the other hand, may be possible to eliminate. Human intervention can make the difference. By developing and nurturing closer relationships with our shippers, failures can be dealt with and resolved to the satisfaction of all involved.
Probably the most important step to take, at this time, is to put together a master plan for dealing with a slow down before it occurs. Let's face it, ups and downs are a fact of business. The foresighted company will take measures to minimize the effects of tough economic times by planning ahead. If you lost a major account tomorrow, you could experience your own exclusive economic slow down. What is your plan if this should happen?
By all means invest in your core competency. Strive to build sound relationships with your customers. Listen to them. Work hand-in-hand with them. Remain focused on their needs. Take pride in being current. Plan ahead. With these attributes, who knows, you may just be able to survive better than most in tough times.
Don Lafferty is with InterConnect, Inc., Grand Rapids, MI - www.interconnectgroup.com
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Al Klineberger
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Trinity Transport Expands
The Delaware headquarters of Trinity Transport, Inc. has been expanded again, for the third time in as many years, to accommodate increased staff, business volume and activities. An addition has been built in the Operations wing to house the Agent Department and its staff.
After years as a three-man show, the agent operation has been expanded to include its own accounting and customer service personnel. The new addition allows this operation to be centralized. The space previously occupied by the Agent Department has been assigned to Trinity's growing Technology Department, according to Trinity President Jeffrey E. Banning, CTB.
Details: www.trinitytransport.com
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Flynn Updates Website
Flynn Transportation Services, Inc. has updated their company website. See www.flynntrans.com. The site features the company services, profiles on personnel, credentials, company philosophy and mission statement. There is an on-line newsletter for which customers can also sign to receive full color printed copies quarterly.
Site content, strategies and design are by Petrick Outsourcing, marketing and management consultants to transportation companies.
Details: www.transportmarketing.com.
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Lund Creates Outreach
A Transportation Outreach Program has been initiated by The Allen Lund Co. of San Luis Obispo, CA. The program seeks to inform the public and recruit young people into the transportation industry. It includes a certified refrigerated transporter program that trains carriers and shippers how to handle produce.
Details: www.allenlund.com
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Karen Pelle
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Megatrux Moves Up in Woman-Owned Business Ranks
Megatrux, Inc. has moved up to twelfth place in the ranking of woman-owned businesses in Orange County, CA as reported by the Orange County Business Journal. The Brea-based transportation intermediary has also moved up in rank in the list of 500 top woman-owned businesses in the country, as listed by Working Woman magazine.
"We move the freight with a phenomenal on-time track record," reported President Karen Pelle to Transport Topics in an interview earned by the honors she has won.
Details: www.megatrux.com
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TIE Could Offer Broker-Based Matching
A Private Electronic Exchange Network has been proposed for the strategic partnering of transportation intermediaries with their customer shippers and preferred carriers.
The purpose of the Transportation Intermediaries Exchange (TIE) is "to keep brokers squarely in the intermediary process," according to Boe Davis, President of L & M Transportation Services, Inc. in Raleigh, NC.
TIE would be used as a tool to speed ordinary transactions through electronic connection and allow transportation professionals to focus on the special needs of customers.
"It is widely accepted that electronic transactions alone cannot serve the full needs of the shipper," stated Davis. "The human element is still what counts. Brokers and other transportation intermediaries have honed the skills of the transactions, negotiations and customer service. It's time that we brokers collaborated on our own private electronic exchange network."
The enterprise envisioned for collaborating brokers would automate routine moves, freeing dispatchers to concentrate where special attention is needed by shippers.
"It's a new way of looking at the paradigm of third party service," stated Davis, who has been head of a well known and respected brokerage in the Southeast for more than twenty years.
TIE would provide both automated freight matching and a forum for special service. The new enterprise would be funded by participating brokers.
"The financial strength to do this exists," says Davis, "We just have to reach those brokers with foresight who have already tasted the power of the Internet and understand how it can be used for the benefit of the shipper."
Details: Boe Davis - 919-876-5942/ boe.davis@lmts.com
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other August articles
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