Changing Times and Work Force
 by Greg Stachura, CTB

    The present day job market is difficult for employers. As the economy perks along with record employment, there are too few qualified people who have the qualities that employers seek. Paradigms have changed between employer and employee. Commitment to long-term mutual benefit has faded on both sides of the relationship.

    GSA extensively serves the retail industry where the turnover rates for workers at the store level is as burdensome as it has ever been. We surely empathize with the struggles of our clients. Our cross-dock operations work equally hard to attract and retain quality people.

TODAY'S WORKER - DIFFERENT?

    Why is today's worker different from past generations of workers? Or are they? The reasons for the perceived and/or real changes are numerous. Changed work circumstances, dramatically different demographics in the work force and shifts in economic situations have combined to deliver a challenge to employers.

    The Great American Work Ethic that so many of us like to recall is generally connected to the wave of Eastern Europeans who immigrated to the United States to fuel the Industrial Revolution at the turn of the century. To many, this opportunity to escape political and economic oppression was the answer to a prayer. These folks saw America as a horizon of opportunity to control their own destiny by hard work and dedication to their dreams. Such chances for them in the "old country" were nonexistent.

LACKING SAFETY NETS

    The social safety nets of unemployment insurance and social welfare programs had not yet been established in this country. Human nature being what it is, people can be expected to act, as the famous professor of moral philosophy, Adam Smith, said "In their own enlightened self interest…these workers recognized their options and pursued them with vigor!"

    Although we might like to fondly consider these people more loyal than present-day workers, that is more romantic notion than fact. Each of those workers was hoping to reach up to the next rung on the ladder, to lift themselves to successively higher stations in life, or at least to deliver that promise to their progeny.

NEW IMMIGRANTS

    The changing demographics in the work force of today is largely due to a shift in the pattern of emigration from Europe to Asia and Central America. Many of the challenges are similar; the language difference for example. Others are distinctly different, such as bilingual cultural values that dissolve more slowly into the melting pot. Many employers struggle to bridge the gap.

    The expanding economy gives workers a mobility that they would not enjoy in a contracted marketplace. The competition for workers is fierce. Training is costly and until workers are trained, they cannot serve our customers well. How might employers respond to recognize the value of dedicated workers?

MAINTAINING CONTINUITY

    Transportation employers can establish an environment where employees can make the American dream come true for themselves. Establish compensation systems that allow employees to share in the fruits of their labors. Benefit plans are a major draw. Plans that cover family security, as well as the employee, show the intent of the employer. They demonstrate a commitment to helping employees find their way toward their hopes and dreams.

    Training is a must. It's not optional. From transportation regulations to new technology, to software programs, workers must constantly train and learn to stay ahead of the curve. With a large enough work force, training can be arranged right in your office. Otherwise, staffers should attend off-site sessions, take on-line courses or do home study.

    The most difficult negotiation with staff is time. As transportation employers, we need lots of employees' time. As realists, we must accept that employees must also have a life. Time off assures that workers stay bright, sharp and motivated. A burned-out work force will undermine your profit and reputation.

    GSA works hard at attracting and retaining folks with the right attitude, energy and work ethic. Our clients benefit from the professional continuity that the staff provides. We are extremely proud of our associates. We believe them to be the foundation for our success on behalf of our clients.

    If you have a similar commitment to your staff, let your "New Year's Resolution" be a commitment to maintaining, training and rewarding your fine staff for the good work they accomplish daily on your behalf.

Greg Stachura, CTB is President of GSA International, Inc., Livonia, MI.



Playing at Level 10
 by Rick C. Jones, CTB

    Ever play the video game called Tetris? It's the one where geometric shapes (squares, rectangles, etc.) drop out of the sky and the point is to place them in an unbroken line at the bottom by turning and manipulating the angle of descent. The more "lines" that are achieved, the faster the shapes fall. Level 1 is real pokey; level 10 is a blur.

    I always start at level 10! The only way I can "keep up," is to focus on the line! If I look up to see the score, I get buried. If I try to focus on the shapes, I get clobbered. The only way to stay in the game is to constantly build a line. I guess you could say I'm focused on "line building."

    Transportation brokerage is like that. There are only so many hours in a day to "build lines" (do transactions, sell business). If the day begins at level 1, by 4 p.m. you might be at line 40, level 5! If starting at level 10 doesn't scare you, by 4 p.m. you might have 100 lines and be at level 12!

    Which speed causes the day to go by faster? Which one has the "Big Reward?" Which one flexes the professional muscles? For training, which speed will turn a novice into a professional?

    After many years, five transactions a day per dispatcher, was as good as it got! Now it's four times that! Why the difference? It's got to be our focus!

    Instead of spending hours to move a load, we spend hours moving all 20 loads that we get every day. The carrier base is in place, the rates are secure, and the job is to move all the freight - local, regional and national.

    Rarely do we "look for a truck." That exercise was performed before the business was sold. We approached these customers through the traffic door, selling the ability to move every shipment and guaranteeing it (with penalties) in writing.

    As we speed through our day, it's fun slam-dunking transactions so fast that we lose count! When the smoke clears, we have done some work!

    There's a lot of preparation that goes into running that fast. Listening to the customer is first and foremost. If he or she is looking to outsource, it's vital to get access to all the business.

    You can't just do the tough stuff. You are going to need volume leverage to get the trucks. The client carrier base is also important. The customer should understand that all these carrier relationships are valuable to the new arrangement. But they may or may not be used.

    Introducing other carriers, visiting the plant site and meeting with other carrier partners is vital. It sets the stage to build lines. It takes the guesswork out of everything. Pricing is important: the generic pricing for the "same ole - same ole" stuff and the "off the scale" numbers for contingencies outside the box. Having everything "inked" with a longevity clause - usually a year, but sometimes two years - and an escape clause for both parties, is vital.

    Then, with all the distractions out of the way, turn it up to level 10 and build lines.

    A nice by-product of playing level 10 with a customer is that the carrier base becomes personal to you. They can be utilized on other projects if the current one works. Also, a smooth running level 10 model is a great reference for future opportunities. Since most factories have other related companies ("links" on their website) word gets around if something works (or doesn't work).

    Removing all the distractions will allow a concentration on customer service. My highest score in a game that began at level 10 was 144,000 and 100 lines. I have gotten close to that score a number of times, but conditions had to be perfect - no phone, no TV, no one else around - all I had to do was sit in my comfortable chair and build lines. In the professional world, all objections need to be overcome, all distractions eliminated and let the transactions "fall out of the sky." If there is a bottleneck in dispatch, perhaps technology might speed things up.

    Perhaps a carrier isn't responsive enough, perhaps the billing department doesn't move as fast as operations, then you "tweak" it a little. Loosen this, tighten that, grease something else and build those lines.

    Often having the right personality involved will move things along. An independent thinker, who can juggle 20 balls in the air at once, is needed. When they get this business "broke to lead," have all the nuances of customer service and shipper requirements figured out, they can be used to manage a similar account using the same carrier base.

    Now we are at level 11 or 12. Things are moving fast. Who's going to be the backup? Unfortunately, there is no "pause" button in business. Even when someone's sick or needs a break, the "shapes" just keep falling. There needs to be a plan for line building, no matter what's happening.

    It's a matter of focus starting at level 10.

Rick Jones, CTB is President of Meadow Lark Companies, a freight brokerage in Billings, Montana. www.meadowlarkco.com



Transportal Network - Latest Dot-Com Casualty

    The nationally recognized name of Lana Batts did what it was supposed to do, when the veteran transportation executive joined Transportal Network (TN). It captured national attention in the industry. As staff head of the Truckload Carriers Association and a senior executive in the American Trucking Associations, Batts had the industry respect and loyalty that is so crucial to a start-up company. However, the national reputation and the cutting edge concepts were not enough. Transportal Network folded in just seven months after failing to secure a second round of venture capital funding.

    Commenting on the demise of the Atlanta-based firm, Transport Topics stated, "Transportal's sudden closure illuminates the treacherous landscape of dot-com startups. Wall Street's infatuation with Internet companies appears to be waning. Venture capital funding, which once flowed like water to any 20-something with a dot-com idea, is drying up - especially for those companies who cannot show a profit."

    The concept behind Transportal Network was to use the Internet to cut costs and pool resources. While industry-wide cooperation in the trucking industry has been sorely lacking for decades, there seemed to be great hope that the Internet would somehow create the platform for collaboration.

    The initial investment of $8 million came from real estate investment trusts. The firm failed when it reached out for additional capital to fund its future development.

    The business plan for TN was created in consultation with Mercer Management. Batts called it the "anti-auction" site for transportation. Rather than gouging for the lowest price, TN sought to provide high tech productivity tools to its market of small to midsize fleets of 100 to 300 trucks. This is the market that makes up the bulk of the truckload sector, which Batts had served for most of her association career.



Outcome of Bear Stearns Technology Conference
E-Commerce Spurs Need for E-Gistics

    "We believe that e-commerce companies will have greater needs for logistics and less infrastructure to support these needs which will require a high level of outsourcing." That was one of the conclusions drawn at the annual Technology Conference sponsored by Bear Stearns, multi-faceted asset management firm (www.bearstearns.com).

    Here are excerpts from the firm's report on the panel discussions held at the conference. Companies represented in the discussions included freight exchanges/marketplaces (ground, air and ocean), freight optimizers and auditors, on-line ASP logistics tool providers, logistics software providers, secure information providers and international trade logistics service providers.

    The Market is Enormous... Last year, total logistics costs accounted for 9.9% of the U.S. economy, or about $920 billion. While not all of this market is outsourceable to third parties, the large majority of logistics services already is, or should be over time. Our 2000 estimate for the size of the third-party logistics market in the U.S. is $64 billion, with another $75 billion globally. The market has been growing at a rate of 15% per year for the past five years, and we expect this pace to accelerate over the next few years with the increased focus on supply-chain management.

    Growth in e-commerce spurs the need for e-gistics (and conventional logistics) services in our view... Our view is that the growth in e-commerce will contribute to high growth for e-gistics companies as well as increased growth (above 20%) for the leading conventional logistics providers. Using the Forrester Research projections for growth in e-commerce, we project a market for third party logistics from the e-commerce players of nearly $11 billion in 2000, growing at a CAGR of over 70% to $100 billion in 2004. With the added growth from e-commerce, we estimate that the total third-party logistics market (e-gistics and conventional logistics) will grow at 30% to 35% annual rates through 2004.



3 PLs Extend Reach

    The cover story in American Shipper   magazine in November is about 3PLs and how they have done this year. It is titled, "3PLs Extend Reach." According to author and associate editor, Robert Mottley, "The short answer is that more of them are getting work from Fortune 500  companies but their clients want global and Internet capabilities beyond the current reach of many 3PLs."

    Mottley pulled these conclusions from an overview of providers presented at the annual conference of the Council of Logistics Management in New Orleans. The insights were drawn from users of 3PL services and from chief executive officers of selected 3PLs.

    The survey, done by CLM, was based on questionnaires mailed to chief logistics executives of the 500 largest American manufacturers. There were 82 responses; a 17% response rate. Survey results were presented by Dr. Robert C. Lieb and Dr. Melvyn J. Peters. Lieb and Peters did the survey with John R. Miller, a partner with Andersen Consulting.

    While the Fortune 500  group of manufacturers is not the primary market for transportation intermediaries and small logistics firms, the trends with giant companies bear watching.

Significant survey highlights:

  • Use of third-party logistics providers is at an all-time high. More than three of four Fortune 500  companies use 3PL service.
  • Three out of four manufacturers said that use of 3PLs has had a positive impact on logistics costs
  • Companies starting relationships with 3PLs have clear agreement on expectations. The missing piece is specific performance matrices that can guide future action
  • Customers are using multiple 3PLs as users focus on one-stop shopping

Details: www.clm1.org



Publisher and Editor
Annette E. Petrick
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Editorial
Not About Buying Stuff
by Annette E. Petrick

    E-commerce got a foothold in the American economy in the form of business-to-consumer transactions. But e-commerce is not really about buying stuff. It's about interacting with people in a different way. It's about thinking of the Internet as the customer visit, the coffee break, the service center.

    Does that mean it replaces people? Absolutely not. It is a tool to be used by people to enhance your relationship with your customers. It's a tool to do automatically what you used to do manually - thus giving you more time to spend addressing special needs and providing preventive maintenance that precludes problems.

    When you can find transport electronically instead of calling dozens of carriers, you have more time to spend catering to clients. When you can notify a client of a change within a matter of minutes without suffering each other's voice mails, that benefits the client. When you can hear from a driver on the road instead of making him stop, find a phone, find a phone that works and make his call, that's efficiency that gets the goods delivered faster, better.

    The new year may be the time for you 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.

    Think about a New Year's Resolution that brings you up to speed and beyond in the world of Internet-based transactions and e-commerce. It's time!

Annette E. Petrick, Editor and Publisher


LETTERS TO
THE EDITOR

It was a pleasure visiting with you yesterday! We have become fans, as subscribers to The Business Insider, of the timely and thought provoking articles you have authored.

Jerry Beckstead
Sr. Vice President
Johanson Transportation Service
Fresno, CA



Facing the Future

    Those entrepreneurs who plan to be in business for the next twenty years need to be interested in the millennial generation. What kinds of recruits will it provide for future employment?

    Recent research suggests a new population subgroup of "cultural creatives" will be the primary founders of a new culture in America. The younger generation is expected to have low cynicism, high self-confidence, technical savvy and a tendency to associate and work together as teams.

    Is this good news for the transportation business or not? BusinessINSIDER Editor Annette Petrick says, "Here's a future prediction you can take to the bank: the transportation business will accommodate whatever the next generation has to offer. Those truck wheels will keep on turning."

    Petrick is participating in a project on future change that explores trends and probabilities. Future Scan is a multi-year program being conducted by the Institute for Alternative Futures. The project explores many of the critical challenges facing businesses in the 21st century.

    Participants met in person last year for a day to get acquainted and to learn the parameters and protocol of their future meetings. They would all be held on the Internet. A platform was presented by the Institute where the 70 or so participants could converse, share ideas on specific subjects or even go to the "water cooler" section, where any subject including the weather could be discussed.

    Each month or so, the future-focused group holds a chatauqua, with an expert in a field related to the subject being currently discussed. The expert converses with the project participants during a given week - sometimes in real time, sometimes as a response to comments or inquiries.

    Afterwards, participants continue to discuss, challenge and build on the premises offered by the experts. In advance of the expert appearance, participants are given access to white papers, magazine articles, thought pieces and books written by the experts.

    Using these high tech methods, people from all over the world can come together to share ideas and see different perspectives.

The scan explores five broad themes:

  1. Converging Technologies and New Economies
  2. Demographic Destinies and Human Choices
  3. Global Societies and Local Communities
  4. Learning Organizations and Visionary Leaders
  5. Noble Aspirations and Lasting Legacies
    Petrick reported that the project will continue through January, with a comprehensive report presented by the Institute next August.


See Power Point Presentation on Transportation Intermediaries as
 Frontier Guides

    "Transportation Intermediaries as Frontier Guides" is the title of a Power Point presentation shown at the annual convention of the National Industrial Transportation League (NITL). It shows the benefits of using brokers and other intermediaries for transportation services.

    The presentation was created by the Transportation Intermediaries Association (TIA) of Alexandria, VA.

    See the full presentation by clicking here: http://www.tianet.org/



Types of Business Entities
 by William A. Gray, Esq.

    We are frequently asked questions concerning the different types of business entities that are available to business owners. This article will discuss three types of business entities, specifically: sole proprietorships, general partnerships and limited partnerships. The next issue of businessINSIDER  will contain an article discussing corporations, including Sub-S corporations, and limited liability companies (LLCs).

    You should always keep in mind that legal requirements vary by state, depending on the business form chosen. Therefore the state law where the business entity is formed must be carefully reviewed. The following, however, are some general characteristics of sole proprietorships, general partnerships and limited partnerships.

    Sole Proprietorship. The primary advantage of a sole proprietorship is its simplicity. The business and its owner are the same. Business income is reported on the proprietor's personal tax return. A significant disadvantage to this type of business entity is that the sole proprietor has personal responsibility for all liabilities of the business.

    General Partnership. This type of business entity consists of two or more persons who own and operate a business in the same manner that one person would own and operate a sole proprietorship. Each partner has unlimited personal liability for all partnership debts (including debts incurred by other partners), can incur obligations on behalf of the partnership, and acts as an agent for the other partners and the partnership. The individual partners pay taxes on their individual share of the profits.

    Limited Partnership. In a limited partnership, there are general partners and limited partners. General partners run the day-to-day operations of the business and have personal liability for all partnership obligations. Limited partners are usually passive investors in the business. They are generally not personally liable for partnership debts and the most they can lose is the amount invested in the partnership.

    More detailed information concerning these types of business entities should be obtained from your accountant and/or attorney or from the author.

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.

William Gray is a partner in the Law Firm of Vuono & Gray, LLC, Pittsburgh, PA (412) 471-1800


  What's Happening In The Industry
    • Crooks to Head Kelron Logistics
    • Pro Source Bought by TLC
    • Entire Management Team Earns CTBs
    • ICCI Introduces Company Newsletter
    • Flynn Opens Office in Nevada
    • BTC Logistics Wins Provincial Award
    • Schneider Logistics to Create New Revenue Source
    • NGL Names VP
    • New Logistics Guide Grades Websites
    • Bank Executive Joins Vimich


Crooks to Head Kelron Logistics

    Kelron Logistics, Toronto, Ontario, has named Rick Crooks to head up the company's newly formed corporate logistics group. Kelron is a cross-border transportation intermediary.

    Details: www.kelron.com



Pro Source Bought by TLC

    Pro Source Group in Aurora, IL has been acquired by Total Logistic Control (TLC) of Zeeland, Michigan. Robert Koerner, formerly president of Pro Source, has been named president and chief operating officer of TLC and will relocate to Zeeland.

    Details: www.totallogistic.com




Jeff Banning, CTB


Ronda Banning, CTB


Al Klineburger, CTB


Richie Smith, CTB


Entire Management Team Earns CTBs

    Congratulations to the management team of Trinity Transport, Inc. in Bridgeville, DE. All four members earned the prestigious designation of Certified Transportation Broker (CTB) this year. The CTB was conferred by the Transportation Intermediaries Association (TIA) on President Jeff Banning, Director of Accounting Ronda Banning, Agent Division Director Al Klineburger and Operations Manager Richie Smith.

    The Certified Transportation Broker Program was developed by the Transportation Brokers Conference of America to increase the professionalism and integrity of property brokerage through a rigorous certification program. It provides brokers with a wealth of information on business operations, transportation regulations, and brokerage practices, then tests their knowledge.

    Based on both academic scholarship and practical experience, the CTB Program provides brokers professional recognition, marketing advantages, and career advancement. The program is now handled by TIA, of which TBCA is a conference. This is the only certification program for property brokers in the transportation industry.

    TIA is the leading policy and education organization for North American third- party transportation providers. TIA members include property brokers; domestic freight forwarders; intermodal marketing companies; perishable commodity brokers; air and ocean freight forwarders; motor carriers; and logistics management companies.



ICCI Introduces Company Newsletter

    International Commodity Carriers, Inc. (ICCI) has begun publishing a quarterly newsletter, The Right Move. The brokerage, headquartered in Medford, Oregon, is now engaged in a significant growth program that includes the building of a 16,000-square-foot headquarters next to its current location.

    The newsletter is edited and published for ICCI by Petrick Outsourcing Unlimited, Inc., a management and marketing consultant for transportation companies.

    Details: www.transportmarketing.com



Flynn Opens Office in Nevada

    Flynn Transportation Services, Inc. has opened a branch office in Las Vegas, NV. A fast growing, Florida based third-party transportation firm, Flynn specializes in the time-sensitive distribution market for audio and video products.

    "Our Nevada team of professionals will enhance services to our existing customers and will expand Flynn's participation in other markets," said Chip Flynn, President and CEO. "This branch office demonstrates our commitment to strategic growth to meet and exceed the requirements and expectations of customers in our primary market, the entertainment industry."

    Leading the Nevada team is Steve Fernlund of Las Vegas. Fernlund has more than 20 years of management experience in the third-party transportation industry. While running a successful third-party provider, he directed government affairs activities for the Transportation Brokers Conference of America (TBCA) and served on its board of directors for several years.

    "I welcome the challenges inherent in the markets served by Flynn Transportation," said Fernlund. "We look forward to working with Chip and his team in Florida to fulfill our commitment to excellent service."

    The new office is located at 8683 West Sahara Avenue, Suite 240, Las Vegas, NV 89117. Telephone (702) 967-2343, Fax (702) 967-2348.

    Details: www.flynntrans.com



BTC Logistics Wins Provincial Award

    BTC Logistics / Burnet Traffic Consultants Ltd. was recently named one of three winners of the Outstanding Business Achievement Award of Merit by the Ontario Chamber of Commerce. BTC was nominated by the London Chamber of Commerce after winning its own Business Achievement Award this past February.

    The Provincial awards program is judged by a distinguished panel of business and financial writers and editors from Ontario media. This year the panel presented five achievement awards and three awards of merit to outstanding firms selected from many nominations across the Province.

    BTC, a consulting firm as well as a third-party worldwide transportation, warehousing and distribution service provider, has been in business since 1977 and is based in Arva, Ontario.



Schneider Logistics to Create New Revenue Source

    Cognos, the world's largest business intelligence company, has announced an agreement with Schneider Logistics, Green Bay, WI, to supply a business intelligence extranet. The agreement is valued at more than $1 million dollars.

    Schneider Logistics' customers will be able to access reports and analyze personalized account information at Internet speed using the zero-footprint Cognos extranet solution. The fee-based service will create a new revenue source for Schneider Logistics, and add significant value to its e-business relationships.

    Schneider Logistics, a wholly-owned subsidiary of Schneider National, Inc., provides comprehensive logistics solutions and world-class supply chain technology to business partners throughout North America and Europe.

   Schneider National previously deployed a Cognos solution across its organization and achieved return on investment within six months. The initial success with Cognos, and the potential to create a new revenue source by marketing information to customers, spurred Schneider Logistics to develop the business intelligence extranet.

    "The strategic partnership between Schneider and Cognos is a model for how two companies can create business value and revenue opportunities for both partners," said Bill Braddy, Schneider Logistics' Vice President of Engineering and Knowledge Services. "We consider the Cognos partnership and solutions to be a strategic and essential part of our business."

    Schneider Logistics' customers will access the Cognos extranet through an easy-to-use and secure Web browser. Analytical insights derived from these Cognos-based products will enable customers to quickly identify potential savings and cost avoidance opportunities. Schneider Logistics leaders intend to strengthen customer acquisition and improve customer retention as a result. The company and its customers will also benefit from faster knowledge sharing achieved by reducing reliance on paper reports and a significant reduction in related retrieval and inputting of data.

    External end-users from senior executives to administrators will be able to access aggregated analytical data and Cognos reports on transactions and freight as well as transportation management. They can break down the summaries and analyze more detailed information using Cognos' multidimensional Online Analytical Processing (OLAP). For example, a customer can access an aggregated report on a series of shipments and then drill down to a particular shipment for details on time, cost, distance, and other critical information.

    Schneider Logistics' extranet will include Cognos' OLAP, managed reporting and open Portal components. The software will operate in a Sun Microsystems UNIX environment and access data in an Oracle data warehouse. Schneider Logistics cited the breadth and depth of the Cognos solution, its robust OLAP capabilities, scalability in a UNIX environment, and zero-footprint HTML architecture, which is ideal for large-scale e-business deployments, as the key reasons it selected Cognos.

    "Information is rapidly becoming a marketable product for organizations, and Cognos' business intelligence extranets are gaining broad acceptance as the preferred solution to create new sources of revenue and business value," said Terry Hall, Cognos' chief operating officer. "In the business intelligence market, only Cognos had the foresight to build its extranet solutions using zero-footprint HTML. This assures that our software solutions scale to any size system to meet ongoing demands along with the security and reliability features that global e-business requires." Schneider Logistics serves more than two-thirds of the Fortune 500 companies and a growing number of business-to-business e-commerce companies through its transportation and logistics services.

    Details: www.schneider.com - www.cognos.com.



NGL Names VP

    Victoria A. Saunders has been named Vice President, Traffic Services, Next Generation Logistics, Inc. (NGL). Vickie has extensive industry experience in foodservice vendor negotiations and purchasing and traffic management with highly respected companies such as Armour Dial, CFS Continental, Hayes Brokers, and Thomas Proestler.

    Vickie will head up NGL's newest service offering, OptiFreightTM Traffic Improvement Service. The service comes with a comprehensive analysis of your current traffic operations benchmarked to industry standards, and a 3-year growth/profit improvement plan for your traffic operations. Results are guaranteed.

    NGL is a leading logistics consulting, contract outsourcing and software development company in the food and service sensitive industries.

    Details: http://www.nextgeneration.com.



New Logistics Guide Grades Websites

    A concise solution to the confusion caused by claims about the new logistics and supply chain websites is now available. "Who's Who in Logistics Websites? Armstrong's Guide to Internet Transportation and Supply Chain Management Solutions" covers individual websites in-depth and grades them on an A-F scale. The Guide is published by Armstrong & Associates in Stoughton, WI, logistics management consulting firm specializing in outsourcing projects.

    Websites like GoCargo.Logistics.com, 3Plex.freightquote.com, Transplace.com and accuShip are presented. In this guide, over 130 companies are profiled and subdivided as "active managers," "facilitators," and "systems." To further explain the sites, they are classified as real or start-ups.

    "Logistics websites have proliferated at a mind-numbing rate over the last year," said Evan Armstrong, vice-president of Armstrong & Associates, Inc. "Just sorting out the names is a challenge. Some are good business models with experienced logisticians behind them. These "A" sites will stay in the race. Other sites, lacking substance, will have to face much tougher survival prospects. We're trying to give busy transportation, warehouse and other managers an easy way to sort them out."

    "Who's Who in Logistic Websites?" is over 300 pages in length. It has a complement of Armstrong's standard summary matrices to help readers quickly sort out the sites of greatest interest. The guide sells for $195 (hard copy only) or $495 (hard copy and CD).

    Details: www.3Plogistics.com.



Lou Ciuro


Bank Executive Joins Vimich

    Lou Ciuro has been appointed Vice President, Business Development for Vimich Traffic Logistics. Announcement was made by Ray Clavette, President. Since joining the firm this summer, Ciuro has been immersed in the processes and procedures that create The Vimich Model of logistics management. He is now conveying his new found information to the Canadian business community, on behalf of Vimich.

    "The more I see, the more impressed I am," stated Ciuro, who was a bank executive for nearly two decades. "The surprises are all positive ones."

    Ray Clavette explained that he chose Ciuro for this key position with his firm because of his intimate knowledge of the Canadian business community. For nineteen years, Ciuro was with the Toronto Dominion Bank, the second largest financial institution in Canada. For the past five years, Ciuro has headed the commercial loan department of TD Bank's Windsor Commercial Banking Center, overseeing an office of 23 Account Managers, Credit Analysts and support staff.

    Ciuro's involvement in the business community includes intimate knowledge of the automobile industry.

    "I am well aware of the Just in Time philosophy and the associated day-to-day operational challenges within the automotive supply chain. I have seen and helped clients deal with the dynamic pressures with which any supplier to the auto industry is faced," he said.

    "Lou knows the owners of the companies we can best serve," stated Clavette. "He now knows how much of an edge we can give a small or medium size manufacturer or supplier by providing supply chain and logistics management. He can tell our story from the position of knowing both our service and the needs of the prospect."

    "I am so impressed with the integrity with which Vimich approaches the marketplace," Ciuro observed. "The people in the firm have an unbelievable work ethic. The product and customer service are the best I've seen. I am very excited about the future potential for domestic and international service."

    Ciuro is introducing Vimich into a different and more diverse network of prospective clients. Working with professionals, accountants and attorneys in the community, he brings a different outlook to business development for the firm.

    He will also broaden the geographic scope of Vimich business. Having lived and worked in most major business centers throughout Ontario, Ciuro has developed a presence in the business community and enjoys "good relationships" with the business marketplace at large.

    "I look forward to not only expanding Vimich's business here in Canada but to the entire North American marketplace" stated Ciuro.

    As he becomes familiar with the Vimich methods, success stories and approach, Ciuro is intent on spreading the word.

    "I have done comparisons," he admits. "The Vimich Model is so much more thorough, complete and detailed that I was amazed at the difference. Ray and his team have this business down pat. First hand, I saw verification that what Ray has put in place pays dividends."

    "In the presentations we have made to date, there has been an extremely positive response. The research and knowledge are there. Clients can see how they will be protected, represented, how their costs will be improved and how internal efficiencies will be generated. And all the while, their service, control and the reports they are seeing on which to make decisions are constantly becoming more finite and valuable.

    "It is so exciting to be in such a win/win situation. We definitely have growth plans, to take the word into the business community."

    Through his involvement in the business community, Ciuro is active in a number of service organizations and with community fund raising. For the last three years, he has served on the board of directors of the Canadian/Italian Professional Business Association in Windsor.

    Lou and his wife Carolyne are originally from Hamilton, Ontario. They now live in Windsor with their daughters, ages 11 and 9 and their son, who is 8.

    "We have set down roots in Windsor," stated Ciuro. "We are delighted that this new venture allows us to remain here. We look forward to continuing to raise our family here."

    An avid golfer, Lou is waiting for business and pleasure to intersect out on the nines.

    Details: www.vimich.com

In Upcoming
Issues

• ASPs - Friend or Foe?

• Digital Signature

• Just in Time - To Wait

• Accessorial Charges - Bridging the Gap

• Web Architecture for Transportation Companies

Fuel Prices - Final Straw for Small Carriers
by Jeff Banning, CTB

    The biggest story in transportation this year seems to have been fuel prices. Over the last year, we've seen increases of some 40%. In October, the national average of diesel fuel stood at $1.65/gallon. That's an all-time high.

    While nearly all carriers have fuel surcharges in place, the recapture rate of the added expense, for both truckload and LTL carriers, has been estimated at 75-80%. The high prices and the expectations that they will remain high, will lead to the disappearance of some small fleets. This will lead to further consolidation in the trucking industry. We have seen this at an alarming rate, in the past five years. Big carriers are getting bigger; small carriers are shrinking.

    Throughout the 1990s, the rate of trucking company failure followed the price of crude oil. Over the past six months, carrier bankruptcies have tripled, over 1999.

    Insurance is another factor contributing to the demise of small carriers. There has been a sharp rise in insurance rates. It's forcing carriers to accept more risk and higher deductibles, in addition to contributing to higher operating costs. The largest trucking liability insurance writer raised their premiums some 15-20% this year.

    If the price of operating equipment remains constant in the future, the industry has a major challenge ahead of it. We could possibly see a total rate restructure - something the industry has not seen in twenty years.

Jeff Banning is president of Trinity Transport, Inc., Bridgeville, DE - jeff.banning@trinitytransport.com



Voicemail Message Outside The Box

    Voicemail continues to be a subject of interest to businessINSIDER readers. Future issues will explore changes you may want to consider for 2001. One company already considered changes and made a unique one. You should hear it.

    Call National Discount Brokers at 1-800-888-3999. Listen to ALL the options they offer. It only takes a few seconds. Listen carefully to Option #7, then choose Option #7. Don't worry, you won't bother anyone; it's all automated. And you will have your chuckle for the day.

    As one listener said, "Every company should have an option #7!"


Employment in 2001 - Stabilize?

    One industry invites viewers to participate in a weekly survey on their website. They asked for "your professional goals for next year." Jobwise, of the 309 who participated:
      143 saw themselves in a new job in the same industry
      82 saw themselves in a new job in another industry
      62 expected to have the same job for the same employer
      18 will have a different job for the same employer
      4 were retiring or taking time off

    A whopping 73% expected to change jobs next year!

    While unscientific, these results should give pause to employers in this industry. What will happen to the stability of employees in your firm next year?

    Source: American Society of Association Executives

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