June 2001


Broker Wins Back Solicitation Case

    This precedent-setting case was reported in the January/February issue of BI. It is important enough to bring to your attention again.

    In a recent Federal Court action in New Jersey, judgment was entered in favor of a broker in a jury trial. While not yet published, the case sets a precedent that can be cited by other brokers in similar situations.

    The jury found that a shipper tortuously interfered with a broker's carrier relationship, in the case of J. A. Tucker Company v. M. A. Bruder & Sons, Inc., d/b/a MAB Paints and Guy J. Transportation Company, Civil Action No. 97-CV-5289(SMC), . The case was tried in U. S. District Court, for the District of New Jersey, Camden Vicinage, before Honorable Stephen M. Orlofsky. The jury=s decision was handed down on October 4, 2000 and became final 30 days later, when the time for appeal elapsed.

    Click here for the full story from the January/February issue of businessinsider.



TIA Convention Unmasks Future

    "Unmasking the Future" was the theme of the annual convention of the Transportation Intermediaries Association in New Orleans in March.

    Sessions unmasked various levels of transportation and communication technology so that brokers could see how technology can be used to cement the relationship with both carriers and shippers. There were sessions for beginners, intermediate level technology users and advanced users. The number of attendees at each level was about even.

LANDSTAR CHAIR IS KEYNOTER
    "We do our business on the Internet. That's where you need to be now." So stated Jeffrey C. Crow, chairman, president and CEO of Landstar System, Inc., truckload carrier based in Jacksonville, FL. As keynote speaker, Crow told the audience of transportation intermediaries how Landstar is using technology to cut costs, save time and become more efficient and effective. He reported that his firm is spending $25 million a year on technology.

BIGGEST CONVENTION YET
    Some 500 people interested in brokerage of freight attended the convention making this the largest such event in the organization's 23 years. The trade show had 50 exhibits, with a concentration on technology for brokers and truckers.

PASSING OF THE GUARD
    Outgoing TIA President Robert Pulley of Southland Logistics, Inc. said, "The third party logistics segment is expected to grow rapidly to $500 billion a year. Our association is providing tools and resources for its members to capture their fair share of this market. Where else can we get specific offerings, access to education, technology and information that help our companies build their business?"

    At the business session, election of new officers resulted in Steve Sample of Tyme-It Transportation, Inc. stepping up as president.

SYMPOSIUM HANDBOOK
    TIA provided attendees with the "Official Symposium Handbook" which contained the list of exhibitors and attendees. Presentations of some speakers were provided on site, supplemented by the rest sent through the mail. Handbooks are available for sale for anyone who did not attend the meeting, but is interested in the speakers from the seminars and the vendors from the trade show.

    Session highlights were featured in the March 2001 issue of TIA Update, official publication of the organization.

Details - www.tianet.org



Al Jubitz

Marc Cameron


Farewell From Jubitz

For years, DAT Services has sponsored the closing banquet of the annual convention for transportation intermediaries. At this year's event, DAT founder and TBCA/TIA mentor Al Jubitz bid farewell to the industry. DAT Services and its international EuroDAT operations have been acquired from the Jubitz Corp. by TransCore, Inc.

    Marc Cameron, who has headed the DAT Services operation for the past seven years, has assumed the expanded role of chief operating officer of TransCore's newly formed Commercial Services Group. DAT Services is the cornerstone of this enterprise. The firm is headquartered in Portland, OR and has branch offices in Nashville, TN, West Palm Beach, FL and Brussels, Belgium.

    TransCore president and CEO, John Worthington, attended the TIA convention and actively participated in the DAT Services exhibit in the trade show. He told BI editor Annette Petrick that his interest in DAT was piqued when he realized the reputation the firm has with the transportation industry and the respect it has achieved over time.

    Explaining the DAT acquisition by TransCore, he said, "The logistics model has definitely changed, and that's the basis for assembling these core service capabilities in one organization. By bundling services and leveraging our unique mix of wireless and Internet capabilities, we can now offer our customers integrated solutions to their logistics problems."

    As Al Jubitz explained the acquisition to the dinner audience at the TIA convention, he said the emotions he felt are similar to those of giving away a daughter in marriage - something he just recently did.

    "You're sure everything will be fine, and you're happy for her, but you sure hate to see her go," he said.

    Al noted the highlights of the company's history with the Transportation Brokers Conference of America and now the Transportation Intermediaries Association. He assured the audience that DAT Services is now ready to handle new challenges such as leading the transportation industry's online freight marketplace arena with DATconexus. He noted that the company would be well poised to continue its efforts in expanding DATconexus with the help and technological support of TransCore.

    And then, as has been his style, he ended his remarks, and his transportation career, with a heartfelt bit of poety, personally written for the occasion, that showed his personal and emotional ties to the transportation brokerage business. The standing ovation he received was a fitting farewell to a man of honor and integrity.



E-BUSINESS GOES OFF THE CHARTS
AT DISTRIBUTION/COMPUTER EXPO 2001

    In the biggest shift in over 18 years, a new application has captured the registered attendees for this year's Distribution/Computer EXPO 2001, being held May 23-24 at the Navy Pier in Chicago.

    Almost half of attendees say they are coming to the show looking specifically for E-business systems and software to assist them in their operations and their logistics, distribution, transportation and warehousing functions.

    "This year we see huge jumps in the percentage of people looking for solutions in the internet related areas of E-commerce, Business-to-Business and Business-to-Consumer," According to Tom Dulaney. "As the landscape of how business is done changes in the U.S., logistics seems to be at the forefront of turning the change into working business processes." Dulaney is president of CS Report, which produces the Expo.

    "There is a merging of new technologies that blurs the lines among applications. The areas of Business-to-Business, Business-to-Consumer, Supply Chain, Electronic Data Interchange, E-Business and E-Commerce are so tightly interlinked that you can’t tell where one starts and the other ends.

In new categories now being tracked by EXPO organizers:
    49% are searching for Business to Business solutions
    27% are searching for E-commerce solutions
    24% are searching for Business to Consumer solutions
    33% are searching for Customer Relations Management solutions

    "The Seminar tracks devoted to these areas reflect that merging. The tracks, themselves, are blended at this year’s Seminar. We found it impossible to plug many sessions into one or another category, since they rightfully belong in many of the categories."

    The Seminars held in conjunction with the show will be held May 22-23. There are 61 educational sessions focused on the latest news and topics of logistics information systems. In addition, two keynote sessions will be part of the Seminars and EXPO this year.

    The EXPO is the leading and largest trade show devoted to information technology for logistics and supply chain.

    Some 1,800 to 2,000 attendees are expected, not counting the 1,300 to 1,500 people manning booths for about 210 exhibitors. Approximately 1,000 different systems will be demonstrated at the show.

FOR COMPLETE INFORMATION GO TO http://www.logistar2.com
OR CALL 800-338-4112 or 610-458-6410

Following are current demographics on registered attendees:

Buying plans per quarter are:
    16% plan to buy within 3 months of the EXPO
    38% within 3 to 6 months
    7% within 7 to 9 months
    34% within 9 to 12 months
    5% within 12 to 18 months

    "The economic slowdown will also be much on the minds of most attendees," notes Thomas Dulaney, president of C.S. Report Inc., which has produced the show in Chicago annually since 1983.

    "At this 19th annual EXPO, logistics professionals are looking for systems that will streamline logistics operations and drive savings down to their beleaguered bottom lines. Logistics and supply chain systems are perfectly suited to the challenge, since they usually have a high return on investment in terms of savings and greater productivity."

    "The EXPO has been an important part of U.S. logistics’ since the first EXPO," he continues. "The EXPO is the largest grouping of vendors of information technology for all aspects of all logistics operations. It’s highly focused, and draws an audience of buying-minded professionals."

    Show statistics bear this out. Of registrants for the show to date, some 54% already have budgets OKd to buy the kinds of products they will see at the EXPO. And 95 percent of all attendees expect to complete purchase of such systems within a year whether they currently have budgets approved or not.

Top management is the largest group of EXPO registrants:
    38% are President, Vice Presidents, Directors, CEOs or CFOs
    35% are middle to upper level managers of operations and functions
    10% are supervisor or administrative personnel
    17% are various other logistics titles, press and consultants

By job function:
    64% are in logistics, distribution, transportation or warehousing
    38% are involved in transportation management
    37% are involved in warehouse management
    25% are operations management
    14% are data processing or information systems professionals
    17% are involved in supply chain management and execution
    16% are in finance and/or purchasing
    16% are in manufacturing or marketing

By Applications Attendees Want Systems For
Click here for a detailed list of applications attendees want to computerize:
http://www.logistar2.com/showstatsenter.asp

By company size as determined by annual sales:
    19% have sales in excess of $1 billion
    27% have sales over $500 million
    43% have sales over $100 million
    52% have sales over $50 million

   On the lower end of the scale:
    6% have sales under $5 million
    23% have sales of $5 million to $10 million
    19% have sales of $10 million to $50 million

    "This broad spread of attendee company size is typical of the EXPOs, showing that the exhibited technology is well sought after by both larger and smaller companies," Dulaney said. "Especially with the advent of Application Service Providers offering large-scale systems in a use-what-you-need, pay-as-you-go environment, the logistics systems playing field for attendee companies is more level in terms of the system power they can harness."

    "There is a strong history of over 95% of attendees finding and buying what they need at the D/C EXPO," Dulaney continues. "From these early statistics, it looks like that history will repeat itself, despite the slowing economy.

    "In our extensive conversations with exhibiting companies over recent months, most tell us that business is very good and they are expecting increases over last year’s sales levels," Dulaney says. "This seems to indicate that in the midst of overall economic slowdown, the businesses that provide the means to make and save the most money with improved logistics operations are faring well. The rest of industry is coming to these people for solutions they need to weather the harder times."

FOR INFORMATION GO TO http://www.logistar2.com
OR CALL 800-338-4112 or 610-458-6410

Sponsored by C.S Report, Inc. - (610) 485-6410



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Editorial
Be Careful of Dot.Coms
by Annette E. Petrick

    Technology offers unprecedented efficiencies to those in the transportation business. It is taking the guesswork out of the business. Millions of dollars are being invested into constant upgrading of hardware and software.

    But beware - you may not be getting your money's worth from the expensive systems and protocols - if your staff is not using its electronic tools properly.

    It is alarming how often staff members "fake it," rather than admitting that the changes are happening too fast, or they don't quite understand what is expected of them with the new technology. Many dispatchers are former drivers who have never studied typing. The very act of getting the information into the computer can be daunting for these guys.

    Other times, the technology is confusing and those trying to keep up are snowed under with terminology they don't understand. So as not to lose face, they try to assess context clues to move to the next step. Very dangerous!

    One broker insisted that Indiana offers free website hosting to businesses located there. He was trying unsuccessfully to apply for it. Turns out to be a portal for businesses and associations in that state, not a hosting service. The broker lost three precious months in improving his technology applying for something that did not exist.

    In another brokerage, a dispatcher thought it was a little strange that she had not received e-mail all week, but figured her customers were busy elsewhere. Finally, irate calls started coming in asking why e-mails were not being answered. The dispatcher had moved to another workstation, oblivious to the fact that her e-mails were piling up at her assigned work station.

    A large operation just moved to the Windows environment, and it is throwing teammates for a loop. They didn't expect to have to do things so differently. The owner had better train initially, train again in six weeks and again in six months. Such repeat training assures that everyone picked up the correct nuances and is not making their own rules about how to use the system.

    These are true incidents. Before you laugh them off, be sure to look around at your own operation. What percentage of computer power are you using? Have your personnel learned the logic behind the systems? Once they are thoroughly trained, only then should they be shown the short-cuts. Does your administrative staff know the protocol of electronic business communication?

    For dispatchers who input with two fingers, send them to keyboarding class. Every local community college has such classes. There are Internet sites where in-house or home-study courses can be accessed. Think how much more each dispatcher could do if they could type faster.

    Set up a mentor system of veteran and new dispatchers. Younger folks may be more adept at the spectrum of software use, and veterans have a lot to teach the newcomers about moving freight.

    Choosing the right software is a challenging experience that often takes a year or more. But remember, that's just the beginning. The next challenge is training personnel to use it - correctly and fast. Only then will you achieve the transactional efficiency you seek.

Letters to the Editor

    The professional brokers are most fortunate that your dedication to our industry has carried forward into publication of BI B written specifically for the transportation brokerage industry

    The articles and opinions on BI walk the fine line between transportation & technology. They stretch our perspective and introduce us to concepts that force us to look beyond the day-to-day operations. We must allow our minds to be continuously stimulated by advances and creativity in technology B especially in the area of communication, which is so critical to our success.

    Most important, BI addresses the issues and importance of integrity and good business ethics; these, I feel, are truly the heartbeats of a successful professional in any business and this message comes through clearly in your publication B thank you.

    There is always something interesting, whether you are a veteran broker or a brand new operation. In every issue, I always find a piece of information or technology to investigate. Much success to you and your staff.

Karen Pelle, President
Megatrux, Inc.
Brea, CA
www.megatrux.com



Selling Out - Retirement for the 3PL Owner
by Steve Fernlund

    You've built a successful 3PL/brokerage business. Now what? From time-to-time, every business owner thinks about selling out. It's what the professionals call "the exit strategy." Although the professionals are invaluable with the mechanics of the business "exit," they generally haven't been through it the way you will.

    You're the entrepreneur, the leader, the boss, the guy (and/or gal for you politically correct readers out there) who built this business, risked it all and survived. This is your life work we're talking about, and you won't believe the emotions that take over when your life work is handed over to someone else!

Why sell?
    Among the reasons to sell might be retirement, death, a partnership break-up, divorce, or just the chance to convert equity in the business to more liquid assets.

Maybe you're just tired.
    Do you dream of sailing off into the sunset? Do you have a great idea for another business but no time to make it work? Maybe you just want to move to the woods like I did several years ago.

    Businesses are often sold for strategic reasons. Selling to and becoming part of a larger organization can mean great benefits for your customers and employees, not to mention your own net worth. Add an employment agreement to help you transition out of the business and strategic business sales become very attractive.

    But if you can't think of a good reason to sell your business, don't.

What's my company worth?
    The old adage applies here. Your business is worth what a willing buyer is able to pay and what you are willing to accept. If you don't arrive at a realistic value for your business at the beginning of this process, you are in for months of heartache. No one should, or will, pay you more than your business is worth.

    Your accounting firm can lend you a hand with the pricing process. There are many formulas for valuing businesses and these formulas help you arrive at a range of reasonable prices.

    After getting a price range you're comfortable with, step back and think about what you would pay for this business if someone brought it to you today. Is the return on the money invested in the business adequate to justify the risk of proceeding with the purchase? If you're honest here, you'll have a good idea what price you can expect to finally get from a qualified buyer.

Who'd buy my business?
    Confidentiality in the sale of your business is a must. Even though we often say, "Everything is for sale - at the right price of course," you don't want customers, vendors and employees to know your business is for sale until the right time.

    As you start to look for a buyer, look close to home first. You may have a key employee or group of employees who could run your business profitably while buying you out over time.

    Maybe someone from another company - within or without the 3PL industry - has approached you about selling to them. These strategic mergers can be very good for you, as the seller, offering liquidity along with continued employment until you're ready to step aside.

    Finally, you may retain the services of a business broker or investment banker to find qualified buyers for your business. They may bring strategic buyers from within the industry, or an individual or group from outside the industry. Although they charge substantial fees, the services of these intermediaries can prove invaluable.

    Before you do anything, have a serious discussion with your professional advisors. Your CPA and your lawyer are not only good resources for potential buyers, but having them involved at the beginning will also enable them to work in your best interests throughout this process.

What happens to my employees when I sell?
    During the negotiations that lead to the sale of your business, you can attempt to provide job security or financial compensation for your employees, but don't expect much.

    No matter what anyone tells you, and no matter how hard you try, the sale of your business will have a tremendous impact on your employees and their relationship with you. For all the times I've heard business buyers say, "We expect no changes," I've never seen a purchased company that does not change. Every business culture is unique and when ownership changes, so does the culture.

    Many of your employees will see your sale as more than just a sale of the company; they'll see it as sellout of them as individuals as well. Expect the unexpected: resentment, anger, jealousy and many other negative emotions. Just don't take it personally. Their life, like yours, is irrevocably changed by this single transaction.

    What is certain to you in the deal creates great uncertainty in the minds of your employees. Even if you stay on with the new company, the relationship will always be different. The esprit de corps that led you to success will not be sustained in the same way.

Bottom line: they'll survive.

What happens to me when I sell?
    You will control the practical things that will happen to you in negotiations with your buyer. If you're leaving the business you'll know when to turn over the keys, clear out your desk and be on your way. If you're staying on for a while, you'll have a clear idea what duties the new owner of the business expects you to perform.

    The emotions you'll have are quite another thing. They cannot be negotiated and they cannot be accurately predicted.

    Your key staff members now report to someone else. The checkbook you've had access to for all these years is locked in someone else's drawer. You're outside of that office where a closed-door meeting is going on, and you don't even know what the meeting's about. People are moving into your office that you don't know and didn't hire and they don't care who you are.

    You'll feel exhilaration because you've achieved the American Dream. You'll feel confused about what you should do next. You'll be excited by the possibilities for using your newly found freedom. You'll feel the fear that comes with the loss of control and structure.

You'll survive.

When should I sell?
    When you're ready. And you will know when you're ready.

    Like all aspects of your business life, you won't get there without a plan. The details of that plan should be worked out with your family, your professional advisers, and maybe your employees, if you are so inclined.

    And make time to talk with a few people who have sold a business or two. These guys (and gals) have been through it all, and most are happy to help you.

Steve Fernlund sold his interest in Twin Modal, Inc. in 1995 and moved to northern Minnesota where he and his wife became publishers of The Cook County News-Herald, a weekly newspaper. They sold the newspaper to a group publisher in January of 1999. Fernlund now leads the Las Vegas, NV office of Flynn Transportation Services, Inc. Flynn is a 3PL with headquarters in Delray Beach, FL.



Rick Jones

"I Object"
by Rick Jones

I object to using a broker because:

  1. It's against company policy!

  2. We lose control!

  3. I don't want to pay the freight bill twice!

  4. I don't want to have to wrestle someone I don't know to get a claim paid!

  5. I want an asset-based carrier!

  6. I want to keep the 10% the broker keeps!

  7. I want to know who's handling my freight!

  8. I need spotted trailers, team service, satellite tracking, dedicated equipment, blue Kenworths with our logo on the sleeper and refrigerated double-drops to haul our chilled "D-9s" and....
    These are common reasons why businesses don't or won't use brokers or other third parties. Most of these notions are actually canned responses aimed at brushing off pesky sales types. We have discovered that these are just what they seem: objections. A salesperson's job is to overcome objections.

    The shipping world wants third party services to work. The trend to outsource puts a lot of pressure on them to compete for freight costs and for service. However, a few well-publicized failures in the marketplace keep the anti-broker sentiment alive.

    Many shippers don't realize that an asset-based carrier has to broker some of the freight to compete because, when a carrier is out of trucks, he's "out of trucks."

    Many freight producers insist upon a "no-broker" clause to prevent the practice and it hamstrings a carrier. The result is that carriers broker the freight covertly, without having that particular expertise, and get away with it until there is an incident!

It is refreshing to explain that:

  • We intend to broker all the freight

  • We are professionals

  • We make our living in the third-party world, and

  • We never run out of equipment!

    A good way to approach these issues is by confronting the objection with the question: "Why is that, may I ask?"

    If it's a policy matter, often the person who made the policy is the one to whom you are speaking. Without being offensive, ask for an opportunity to revisit the "policy" with a program that will save him money, control his freight costs and allow him to retain control over shipping. Ask if it is possible to speak with those who set the policy.

    Loss of control is a valid reason for caution. If you tell a story over and over again, some details are going to be changed or missed. The more folks in the loop, the greater the margin for error.

    Having a "policy" where the driver is actually talked to will eliminate about 80% of the errors or misunderstandings. Asking him whom he works for and where he's physically located will clear up a lot of "mud!" Using the same carrier partners and even the same drivers, over and over again, increases security and control. Making delivery arrangements for the carrier will eliminate the remaining 20% of errors. Delivery confirmations are vital.

    Although there are many legal precedents against paying freight bills twice, your first order of business is to convince players of your financial strength, as well as your ethics. You need to convince them that there is "no way that freight bills will need to be paid twice!"

    The second issue is to illustrate in your contract to the carrier that "payment of a freight bill to a broker relieves the shipper or consignee of any further liability for freight charges" and that "the broker is the agent for the carrier in the collection of freight charges."

    The third point to emphasize is case law: if a shipper pays the third party, his obligation is fulfilled. The broker's obligation to collect on behalf of the carrier is fulfilled. The courts have been ruling in favor of the shippers, barring other contract obligations.

    Claims happen! Accept them as a part of our world. Unless there is negligence, the third party has no part in the settlement of claims. That is the legal side of our business. The ethical side is: "I gave my freight to you, therefore I want you to take care of me!" I guess the shipping public wants us to look and act like a carrier. If that's what they want, so be it.

    There are many insurance products that take contingent cargo coverage a step further, even claiming to provide all risk coverage as primary on third party transactions. Each year these products get cheaper and easier to use. If a third party has motor carrier authority, often the carrier side will insure the brokerage side as a rider that is competitively priced and primary in nature.

    That's what shippers want: seamless coverage and seamless service.

    Another tip: when talking claims, mention that you are aware of the trend to put exclusions in carrier cargo policies. These are circumstances under which the policy will not pay, such as for water damage, driver negligence, theft and some policies even exclude certain commodities such as agricultural exempt, glass, used machinery, etc. The exclusion page can be requested on all carrier policies. It drove us nuts, trying to keep everything in perspective. Since shippers usually aren't very thorough, an insurance product that protects them from unknown exclusions will be a huge benefit to them.

    The bottom line on claims is: handle them, whatever it takes! That's what shippers want. The old saying works for claims: "Take care of the customer or someone else will!"

    We hear the shipper say, "I want assets." Today's third party has assets: people, property, computers, even trucks. But you'll never convince the client of that! He wants to see the truck, know that the driver can handle his product and count on it, day in and day out. He wants to know that his "provider" has committed assets to his business. If that's done, he surmises that the relationship will be more stable.

    We give him what he wants. He wants to know whose handling his local regional, and national freight. He wants it transported for a competitive price and he wants it to be seamless - no picking and choosing. He wants contingencies for special handling or special circumstances and he wants to talk to a real person, in person! He wants to pay one vendor at agreed rates. He wants the security of knowing how the financing will work, how claims are handled, etc. He may even want to meet the carrier partners.

    We oblidge. It takes a lot of up-front work to line up the assets and it all begins with the client sharing with you what's required. That starts by simply asking!

    "I'm greedy. I want what you guys keep!" That's a mindset that's hard to overcome. Most of the time salespeople just get mad and leave. The trick is to not take this honest remark too personally. It's meant to see what you are really made of, to see how deep you go, to find out how badly you want the business.

    It's just a "price objection." To overcome it, put more than 10% value on your service. This is done by showing rather than telling. List the strengths of your value-added services in dollars and cents or in hours saved or in control and put the benefit in terms of bucks. That's how you can challenge this notion.

    "Benchmarking" is a logistical term used to illustrate this issue. If you can find the benchmarks, you can show ways to exceed them.

    Looking at the pricing is important. If this is a real objection, he will want to see your cards without showing you his. Doing a little homework on the market and comparing other client pricing should give a bead on what's required.

    If he's shrewd (clients always are), he will say, "We are not even on the same planet. You're way too high." At least now, you can ask to see his cards. It is time to commit to volume business for your price. I have been frequently surprised that the client called for service even before I left his neighborhood, after he told me, "No business!"

    Don't drop the ball now that you've convinced him to pass it to you! Wouldn't it be nice if all shippers were alike? They aren't. As soon as you get real specific about what your expertise is, the client wants what you don't have. Or, as an objection, he requires what no third party can provide.

    Again, this is just an objection. Don't take it personally. He's basically saying, "I'll ride in your car if it's a blue BMW with a tinted sunroof and I want stereo sound, a television and a GPS with mapping capabilities."

    Getting him to tell you what he wants is half the battle. Once you know, just go lease a car like that, mark it up and take him for a ride. Give him what he wants.

    In today's world, networking with a competing firm is common. Find a player who can provide the service, do a little homework on pricing, ethics and capabilities, get it in writing, repackage it and sell to your client. Keep it clinical and legitimate.

    Every business knows there has to be a profit. They have to be profitable using your services and you have to generate a profit from the service. Once your professional expertise has been established and the new services are accepted by the client, they become your specialties that can be marketed to other clients, too.

    It's strange, but the brokerage objection is the "hook" that opens the door to all the wonderful things we can do for a client. It provides an organized format to sell to a client. It is a positive rather than a negative notion. It can shut you down or open the door. Look for it. Hope it's there because, if it is, you have no real competition!

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



Brokers Explore
Transportation Intermediaries Exchange (TIE)

    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.

    Davis reported significant interest in TIE when the concept was presented to individual brokers attending the convention of the Transportation Intermediaries Association in New Orleans in March. He noted that the agenda for the convention two years ago was full of Wall Street representatives and dotcom executives predicting the demise of brokers.

    "The predictions of disintermediation have not been fulfilled. If anything, the demand for and technological assets of brokers have increased as shippers opt to focus on their core competencies instead of moving freight," said Davis.

    "It is widely accepted that electronic transactions alone cannot serve the full needs of the shipper. 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."

    Davis points out that the invasion of electronic exchanges into transportation has been presented in some cases as a viable option to third party service.

    "They have the cutting edge appeal to draw attention and investigation," he noted. He points out, however, that "no automated system can do the whole job. The system must run in the presence of experienced personnel who can step in, when necessary."

    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."

    A website describing the enterprise and inviting broker participation is located at www.tie.net.

Details: Boe Davis - 919-876-5942/ boe.davis@lmts.com


Staff and guests of International Commodity Carriers, Inc. pose proudly before the new World Transport Center in Medford, OR at the opening day ceremony on February 23, 2001.

Vivian Greathouse, Marketing Director, I.C.C.I. President Dewey Wilson and the Honorable Lindsay Berryman, Mayor of Medford.


World Transport Center Opens

    Fifteen thousand square feet and ready for business. That's I.C.C.I.'s brand new World Transport Center. The huge facility was built over the last year to the most exacting specifications. The building and surrounding amenities were planned for current and future technology in an ergonomic environment with effective, efficient workspace.

    "Imagine the luxury of being able to create space specifically for professionals who have to move thousands of tons of freight every day," stated I.C.C.I. President Dewey Wilson, who had a personal hand in every phase of the design and construction of the new facility.

    The Medford, Oregon site is in a free zone for international commerce. It is in close proximity to the international airport and a clear south run to LAX. The facility situates I.C.C.I. squarely for its next phase of expansion into the international market.

    Said Wilson, "Over the next year, I.C.C.I. will be initiating four new business enterprises, all under the roof of the World Transfer Center. Each will be headed by an executive from I.C.C.I., who was specially chosen for skills, contacts and technological savvy that pertain to the enterprise they will oversee.

    "It's an extremely exciting time in the development of I.C.C.I. Some may watch the economy and pull in their horns. In this business, shippers need the value we offer all the more, in a challenging economic environment. All indicators are that our business will grow and prosper."



Management Firm Moves into Leadership and Sales Training

    On May 2 and 3, hazmat managers from around the country gathered at the Meadowlands in New Jersey for an annual leadership seminar. The standing-room-only event was sponsored by the American College of Hazmat Materials Managment. This is the third such leadership retreat sponsored by the organization to better prepare members to lead in the workplace as well as the organization.

    Presenter of all three two-day courses was Annette E. Petrick, CAE, President of Petrick Outsourcing Unlimited, Inc. in Woodstock, VA. (www.transportmarketing.com). Well known in the transportation industry as a consultant and speaker on management and marketing, Petrick has expanded her portfolio to include training in customer service, sales and leadership.

    This year, her firm presented twelve new models of leadership training, many combining in-person presentation with web-enabled follow-up - http://www.petrickoutsourcing.com/speaker.shtml.

    One model was used last July when Petrick facilitated a week-long board retreat for the American College of Osteopathic Family Physicians in Mexico. A half day model was used in Alaska this year when she provided leadership training for the National Society of Professional Engineers. Petrick has spoken at transportation industry events and provided training to transportation personnel from Canada to California.

    "Changes in the transportation industry require everyone on staff at a brokerage to have leadership skills," Petrick noted. "Managers and executives need to know when to take a chance, when to step forward and how to motivate others to high levels of achievement. Dispatchers need to apply leadership skills when working with customers, drivers, carrier management and consignees."

    Petrick's style of training is non-threatening and highly participative, with worksheets, tests, group discussions and exercises. The result is learning that is understood, remembered and practiced. Key points are underscored with stories, humor and learning from the experiences of all participants.

Details: www.petrickoutsourcing.com - 540-459-8390 - anetrick@shentel.net.


New world headquarters of McLeod Software in Birmington, AL The 60,000 square foot facility houses McLeod's current 150 employees centralizing software development, training, sales & marketing and administrative departments.

McLeod Releases Mobile "Symphony"

    McLeod Software has announced the release of its new Symphony interface product as a part of its LoadMasterTM Enterprise transportation software. Symphony is a universal mobile communications interface that is based entirely on Java technology.

    The Symphony interface product will allow truckload carrier companies to send messages to multiple mobile communications vendor units using a single point-of-message entry for the dispatcher. Tom McLeod, President of McLeod Software, explains, "Carriers who want multiple communications services will be able to seamlessly mix and match mobile communications systems in their fleets. Carriers who use Symphony will also be able to test and try new communications units from a second service provider as well as new products from current vendors."

    McLeod adds that carriers are likely to have several new mobile communications options in the near future due to advances in technology and additional bandwidth recently licensed by the FCC.

    Upon initial release, Symphony supports Qualcomm, Aether (formerly Motient), and Terion communication units. By mid-summer this system will add support for Peoplenet, @Track, and Eaton mobile communication services. Symphony will be able to interface with future communication technologies as they become available. "Through the use of form messages, dispatch functions can be automated to allow drivers to enter check calls, deliver loads, and request directions or settlement information," says Tom Kastenmayer, McLeod Software’s lead mobile communications developer. “All this without any special commands from the dispatcher.”

    "The modular software design of Symphony drastically reduces the amount of time required to get a new communications interface up and running." says McLeod. “We are committed to meeting whatever software needs or wants the carrier has in regard to interfaces with third-party service providers."

Details: www.McLeodSoftware.com



Megatrux Introduces Team Members on Website

    Proud of its executives and teammates, Megatrux, Inc. introduces its personnel on the company website. Under the icon, "Meet the Team," the firm features professional and personal profiles on all of its personnel.

    President Karen Pelle credits the teams with the success of the company, that celebrated its 15th anniversary last year. The Team Megatrux philosophy is stated on the website under "About Megatrux."

Details: www.megatrux.com



Canadian Warehousing by N'Amerix

    N'Amerix Logistix Inc is now operating its second distribution center in Toronto. The facility, less than two years old, has 125,000 square feet, clear height, 12 bays and 2 drive-in doors. The firm is soliciting collaboration with American warehousing and distribution and/or truck transportation to/from Canada.

Details: N'Amerix, Al Henry - 800-668-0363



Live Teleconferencing

    FocusFocus, the ultimate Web videoconference technology, lets your customers, vendors, business partners and employees instantly connect with live, private, 2-way or multi-point, video + audio + instant messaging. Web site contains more information and a quick demo. It's a new technology tool work investigating.

Details: www.focusfocus.com.



Scott Moscrip

Internet Truckstop Purchases AmericanLoadLink.com and USALoadLink.com

    Scott Moscrip, President of the Internet Truckstop, has announced the purchase of AmericanLoadLink.com and USALoadLink.com from Studio Sixty Six. This is the first purchase the Internet Truckstop has made of an existing freight matching service.

    "The acquisition of AmericanLoadLink.com and USALoadLink.com represent another step in technical and size expansion at the Internet Truckstop," said Doug Moscrip, the chief operating officer of the Internet Truckstop. "We are excited about this acquisition as it will allow the Internet Truckstop to better serve the niche market that AmericanLoadLink.com was serving. It will bring together customers and information from both companies into one central spot on the Internet making it easier for trucking companies to find the specialized freight they have been looking for."

    The merger of the two sites will begin immediately. The terms and conditions of the sales were not disclosed.

    The Internet Truckstop was founded in July 1995 and is the largest freight matching service on the Internet with more than 30,000 company registrations representing more than 400,000 trucks. It is based in New Plymouth, Idaho.

Details: www.truckstop.com.



Trinity Donations Support Community

    Last year, for the first time, a Community Service Team of staff members made recommendations about where and how corporate donations should be made for Trinity Transport, Inc in Bridgeville, DE. Previously, decisions had been made privately.

    According to Trinity president Jeff Banning, the Team recommended contributing to more than a dozen good causes. This was in addition to community projects supported with time and other resources. Trinity gave free Internet service to local schools, adopted a highway and provided reflective Halloween bags and safety reminders for kids.

    Six families were sponsored in the Trucking for Christmas program. Trinity personnel purchased gifts and food for a total of 14 children.

    Donations were made to the Al Dupont Hospital, the Alzheimer's organization, the Make a Wish Foundation, the Seaford Christian Academy and the Delmarva Christian High School.

    The Team found out that Eagle Scout awards would not be given this year because funding cuts to the Boy Scouts of America made it impossible to purchase them. A donation by Trinity allowed the awards to be presented after all.

    The Senior Center of Bridgeville received a donation, as did the Seaford Playground, the St. Johns Playground, the American Cancer Society, Hospice, the American Heart Association and the Seaford Mission.

    Two teams of Trinity personnel worked to beat each other out, in the competition to collect the most food for the St. John's Food Bank in Seaford. The extraordinary efforts of both teams resulted in a contribution of more than 3,000 items.

    For details on the mission and work of each of the community groups that received donations from Trinity Transport, see the What's New section of the Trinity web site. Click on Community Support.

Details: www.trinitytransport.com



Flynn Announces New Team Leader

    Diane M. Cortez has been made a new Team Leader at Flynn Transportation Services, Inc in Delray Beach, FL. After nearly two years on the job, she has taken on new responsibilities and taken the lead on her team. Flynn dispatchers and customer service personnel are arranged in teams that serve clients.

    Diane notes that in the time she has been with the firm, "I have seen Flynn grow in many aspects, all of them positive." She added, "I enjoy being part of a great team and family, here at Flynn."

Details: www.flynntrans.com



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