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A World of Opportunities
June 21-23, 2002
TIA 24th Annual Convention & Trade Show
Dallas, Texas
Hyatt Regency Dallas
The TIA Annual Convention & Trade Show is the largest gathering of North American Intermediaries. For full information, registration form and a preliminary program, go to http://www.tianet.org/pdfs/TIA.pdf.
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HAIL TO THE OPERATIONS PEOPLE
OF THIRD PARTY LOGISTICS COMPANIES
By Gene Wherrity, The Tucker Company, Freight Management Services
Cherry Hill, NJ
Perhaps the only thing better than dealing with a third party logistics company is working for one. That's quite a statement, but certainly not overstated. I have been with Tucker Company for almost 20 years. I find it hard to believe that I've done something for that long but there are a few simple reasons for it. The job offers variety and challenges. Also, I enjoy working for a reputable company and "watching the chips fly."
UNSUNG HEROES
Over the years I have noticed that many of the trades that pertain to third parties, logistics, et al., rarely mention the core of our business: the dispatch function. These are the operations people who make the day-to-day decisions, coordinate with the customers and the customer's customers, contribute to the company's bottom line and put the company's ideology into practice. Three cheers for the dispatch personnel - we can't get along without them!
ROADWAY REVUE
How many of you dispatchers - on the way home at night or on the way to work in the morning - go through a mental checklist? "A hot load to North Carolina has to be there by 7a.m. or the line shuts down. Did I fax everything to the carrier? Oh good, he's got satellite tracking; I can monitor this from home tonight. The driver sounded very capable, he understood what was at stake, etc." I know I do it all the time, and I'll bet each one of you do, too. It's part of the job that can't be escaped.
SENSITIVITY TO CUSTOMERS
Covering loads and making commitments, coupled with the responsibility to follow through, can be stressful for any dispatcher but in logistics, it creates a unique challenge. Their job is to match the right carriers to fit the customer's needs. These evaluations must sometimes endure over a long period of time. They often have to decide who to choose and when to do it in a matter of minutes. The choice has to be the right one. Customers won't tolerate many mistakes by a logistics company, so the operations people must strive to be accurate in their analyses every time. (No stress here!)
Operations people have to be attuned to changes in the customer's attitudes and patterns. Has their business with us decreased or increased? Either scenario is a signal that something has changed and the dispatcher is responsible to be sensitive to those changes.
SENSITIVITY TO CARRIERS
The carriers look to the operations people for good "balancing freight" and to get them into accounts that perhaps only used orange or yellow trailers. In many cases they are an extension of the carrier's sales staff.
With a few exceptions, small and medium size carriers are our best partners and have the most longevity with us. They, like ourselves, learned a long time ago that we need to have a symbiotic relationship and the biggest isn't always the best.
Operations people must solicit and maintain carriers in much the same way that sales people solicit customers. The keys are: 1) having a good product, 2) building relationships, and 3) following through on business agreements. It is amazing what can be accomplished between a carrier and a broker when the relationship is genuine and the effort is sincere.
Just like customer sensitivity, dispatchers need to be sensitive to changes in carrier performance. Are they making a sincere effort or is it half-hearted? A logistics operations person cannot afford to have a "convenient" relationship with the carrier. Sometimes there may be a change in the carrier's philosophy with regard to broker freight. I call this a "carrier's manifest destiny", that he should someday stand on his own without brokerage. This is an unfortunate myth in our business.
SIGNIFICANT DIFFERENCE
The bottom line is that operations people make a significant difference in keeping or loosing a customer, moving a carrier's equipment, rate analysis and on-call responsibilities. The dispatch function is the pulse of the business and sometimes the job only looks easy.
I have never gotten away from dispatching loads and being involved in the problems that may arise. This is a hands-on business and despite what the dotcoms are professing, there's no replacement for person-to-person communications in the transportation of freight. And there's no more important group of communicators than those overlooked dispatchers and operations people. We salute you!
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I look forward to reading submissions from other logistics operations people, and hope this magazine can provide a forum for an exchange of philosophies, as well as the sharing of ideas. This may prove to be cathartic to those of us involved in the day-to-day challenges of freight management.
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Governor to Head ATA
The current governor of Kansas, Bill Graves, has agreed to serve as president and CEO of the American Trucking Associations, effective January 2003. Until then, the position will be held by William J. Canary.
In making his announcement, Graves stated he planned to run a trucking company when he got out of graduate school. In the meantime, his father sold the business and he took another path that led ultimately to the governor's mansion in Kansas.
The announcement was made by ATA Chairman Duane Acklie during ATA's recent Management Conference in Nashville, TN.
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Double Awards to Cathy Davis
The Delta Nu Alpha Transportation Foundation honored Cathy Davis, president of MCD Transportation in Smyrna, TN with a scholarship that bears her name-The Cathy Davis "Motivation To Education" Scholarship.
Cathy serves as a daily motivation to colleagues within DNA, customers, carrier partners, family, friends, and employees. scholarship will be awarded to an eligible recipient in 2002 in recognition of Cathy's valuable contributions to the transportation and logistics community. This scholarship will allow an undergraduate/logistics major to carry on the tradition of "Motivation To Education".
Davis has also been presented with a Lifetime Achievement Award by the National Association of Small Trucking Companies. This award is in recognition of Cathy's outstanding service to NASTC and the entire transportation industry by providing exceptional service and promoting education and communications in the industry.
Details: www.mcdtrans.com
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TransCore's Commercial Services Group Appoints Three New Executives
TransCore's Portland, OR-based Commercial Services Group, which provides technology-based business tools for more than 20,000 transportation-carrier and intermediary customers, announces the appointment of three new employees.
Don Thornton - Vice President Carrier Services
Don Thornton, vice president of carrier services, comes to TransCore's Commercial Services Group from Market Transport Ltd. the largest truckload carrier in Oregon. During his tenure at Market Transport, Thornton served as VP of business development and technology. As VP of carrier services at TransCore, Thornton will rely on his 10 plus years of combined transportation and technology experience to build TransCore's share of the carrier market, which includes trucking companies that haul truckload freight. Thornton received an MBA from Pepperdine University's Presidential Key Executive MBA program.
Tom Petrick - Director of Customer Solutions
Tom Petrick, director of customer solutions, comes to TransCore Commercial Services Group from Corillian Corp., a Portland-based company that delivers Internet eFinance solutions to banks. While at Corillian, he held senior management positions in sales support and business development. Before joining Corillian, Tom held similar customer facing positions at Integrion, a joint venture between VISA and IBM, and VeriFone, a subsidiary of Hewlett-Packard. In the recently created director of customer solutions role, Tom will be responsible for the implementation and management of a newly integrated Siebel customer relationship management (CRM) system and the organizational resources that support TransCore's customers on a daily basis.
Rebecca Armstrong - Director of Sales
Rebecca Armstrong is TransCore's Commercial Services Group's new director of sales. Armstrong will use her extensive experience in creating and leading complex sales organizations to increase sales at TransCore. Prior to joining TransCore, Armstrong spent two years as vice president of global sales and marketing at RapidEdit.com. She also served 10 years with ESCO Corp. building market share in a highly competitive environment.
About TransCore's Commercial Services Group
TransCore's Commercial Services Group is headquartered in Beaverton, Ore., a suburb of Portland, and is a part of TransCore, a privately held transportation services company with 1,800 employees and more than 80 locations throughout the world. With installations in 37 countries, more than 160 patents, and a world-class manufacturing facility, TransCore's expertise in providing technology-based applications that improve transportation efficiency is unparalleled. TransCore's Commercial Services Group includes Amtech® technology, DAT Services® freight-exchange network, KEYPOINT operations software, Link Logistics (TransCore's Canadian freight-exchange network), and Viastar® cash and fuel management and regulatory compliance services. TransCore's freight-exchange network was recently included in "Forbes' Best of the Web: B2B." For more information, visit www.transcore.com or www.dat.com.
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Enron Transportation Markets Bankruptcy
Transportation Intermediaries Association executive director Robert Voltman reports that two members have contacted him regarding the Enron Freight Markets bankruptcy. Both members moved truckloads through the Enron system. With the resulting bankruptcy and shut down of Enron Freight Markets, these members have been contacted by the performing motor carrier for direct payment. While the TIA members want to pay the carriers, a problem exists.
If the brokers pay the carrier directly, they are not in compliance with their contract with Enron and may end up paying twice. If they pay Enron, they will have satisfied their payment obligation to Enron, but the bankruptcy estate may not pay the carrier. In this latter situation, while the broker would not have to pay twice, the motor carrier might not get paid at all.
According to Voltman, TIA and the Truckload Carriers Association are each attempting to gauge the magnitude of their members' involvement with the Enron bankruptcy. He has voiced concern that, just like during the Undercharge Crisis of the 1980's, the bankruptcy court could create new law that might have far-reaching effects on the industry.
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Jamie Cooke
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Trinity Creates Logistics Division
Logistics management is now being offered by the family of Trinity companies. Trinity Logistics launched officially in January 2002, under the team leadership of Jamie Cooke, CTB, Director of Logistics.
A member of the Council of Logistics Management, Cooke is a candidate for a Master of Science degree in Transportation and Logistics at Wilmington College. Jamie has transportation experience with UPS, Brinks and D.M. Bowman. Affiliated with Trinity Transport for three years, he has been building the logistics operation for the last year.
Customers now have the option of outsourcing their entire transportation department to Trinity, as well as using the firm for individual load movement.
"The difference is a matter of the relationship," explained Cooke. "The logistics operation cuts across the traditional lines of service among shippers, carriers and third party. We become involved in choosing the type of service, creating transportation savings and becoming more involved with supply chain issues.
"A company can outsource their entire transportation operation to Trinity, knowing that our core competency is the management and timely delivery of freight," stated Cooke. "This allows our customers to concentrate on their core competency instead of spending their time solving transportation problems."
The move to a logistics management division is a natural progression as Trinity provides integrated, effective transportation service.
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Publisher and Editor
Annette E. Petrick
540-459-8390
Fax - 540-459-3440
anetrick@shentel.net
transportation and logistics
business INSIDER:
Authoritative sources quoted.
Outside-the-box approach.
THE GOOD NEWS
what you've been looking for -
about how mainstream manufacturers
and distributors (not just the giants)
are benefitting from transportation outsourcing.
* Surveys that show third party service cuts cost
* The popularity of outsourcing
* What the experts say
* What industry trade publications say
Subscribers are welcome to feature
stories from business INSIDER on their
web page.
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Website Design - Aaron Collegeman
Editing - Kathryn Rosypal
Published by
Petrick Outsourcing Unlimited, Inc.
Management and Marketing Consultants
to North America's Transportation Companies
679 Hottel Road
Woodstock, VA 22664
www.transportmarketing.com
Subscriptions/billing
Sandi Thomasson
540-459-9632
Fax - 540-459-8775
sthomass@shentel.net
Advertising
Lea Frazier
540-459-8390
Fax 540-465-9487
lafraz@shentel.net
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Editorial
Loss of a Gentle Cowboy
by Annette E. Petrick
Sincere thanks to all those who sent words and remembrances of sympathy on the sudden death of my husband, Ken Christopher. For over an hour and a half, folks stood in line at his memorial service, to tell stories, share laughter and otherwise celebrate the life of this man who stood out from the rest.
He was life student, writer, philosopher, humorist, playmate and, of course, cowboy, all rolled into one. Although his daily companionship is sorely missed, the lessons he taught and the love he emanated live on.
So do his words - in the book that features his work. If you would like a copy of the book of poems and short stories we published, just send an e mail with your address to anetrick@shentel.net. I would be glad to send it to you.
Letters to the Editor
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Annette, we are getting a GREAT response from brokerage employees since we removed the BI password and told everyone it's there to read at their leisure or print out and take home to read.
Your "Insider" is really nice, full, informative and carries an air of savvy. I like it. Good tool, good pieces.
Thanks again.
Rick Jones, Meadow Lark Agency, Inc.
Billings, Montana
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Petrick Outsourcing Expands Portfolio
Terrorists are very interested in America's trucking industry. This continues to be a threat. Transportation security techniques are being adopted to prevent a repeat of the WTC disaster, using trucks instead of planes.
Petrick Outsourcing has expanded its portfolio to include Transportation Security Consulting. Contact Annette Petrick (annette@petrickoutsourcing.com) and ask about the defense alert systems and training programs now available.
Don't be a pawn of terror. Get the facts, be aware, be prepared.
Details: annette@petrickoutsourcing.com
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Pictured above (L-R) are Buster Anderson, Vice President of NASTC; David Owen, President of NASTC; David Taylor, President of Midwestern Transit Service Inc; and Donna Taylor, Vice President of Midwestern Transit Service Inc.
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National Trucking Group Recognizes Local Broker
Midwestern Transit Service, Inc., of Ashley, IL has been awarded the first annual "BEST of the BEST Awards" by the National Association of Small Trucking Companies (NASTC). The award recognizes Midwestern as one of the best brokerage firms in the nation.
The award was presented at the NASTC Annual Conference in Nashville, TN. In making the presentation, NASTC Vice President Budster Anderson stated, "This company distinguished themselves as an excellent company to deal with in their years of service to our members. The support they have given our organization over the years rivals the good service they've given our members."
NASTC represents over 1500 trucking companies in the U.S. and Canada that employ over 40,000 drivers.
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Circus Party
When the folks at Megatrux, Inc. got to their Brea, CA office one morning in December, they saw everything but pink elephants. President Karen Pelle had the office redecorated, overnight, into a big top tent as the property setting for her annual holiday theme party.
As Ring Master, Karen showed up in tux and top hat. Cotton candy, circus treats and gifts aplenty were shared.
Cindy and Adam Deluca
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Karen Pelle, Ring Master
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Megatrux in the center ring
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Rick Jones, CTB
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Jettison This!
Otherworldly Operations Tips by Rick Jones, CTB
"Captain, it won't go any faster! The dilithium crystals are melting!"
Star Trek's Captain Kirk (owner) always wanted the starship to go faster. The engineer, Scotty (head of dispatch) always reminded him that the Enterprise just couldn't go any faster!
All Kirk could see was that the Klingons (competitors) were getting away.
Again Scotty said, "Captain, I'm giving you all she's got!"
Kirk said, "Spock (operations manager), what do you think? Can we go any faster? We've gotta catch those bloody Klingons."
Spock said, "I'm inclined to agree with Scotty. We are at warp nine and there are stress fractures everywhere. The Enterprise might break apart at any time!"
Kirk said, "Bones (sales manager), what's your opinion? We need more fuel (sales). How are we gonna get some?"
Bones said, "We are tapped out, Captain. I suggest melting down a chair or sink for fuel (cut benefits). And, Captain, chill a little. You're gonna have a stroke!"
Kirk: "O-Hurra (human resources-personal manager), what's your take on this? How we gonna catch the Klingons?"
O-Hurra said, "Well, Captain, we could jettison some people and lighten the load!"
Kirk said, "I'm not losing anyone. We'll move into the main section and jettison the saucer section (unprofitable nitches). Then, we'll try combining the thrusters (dispatch teams) for added power and direction and less moving parts. Then we'll make the jump to light-speed by burning salt crystals (lowering freight rates) instead of dilithium and I believe we'll catch those Klingons that stole our freight!"
There are other ways to make the jump to light-speed and catch Klingons. Dumping deadwood accounts, even if they've been part of the business for eons, is vital. While we're chasing the penny-ante freight, the stellar-stuff is getting away. When asked, "Why don't you do that anymore?" we can simply reply, "That was then and this is now," and don't look back.
When jettisoning to lighten the load, don't cast off the people. You'll need them to develop the good stuff. You'll need their experience in the "Star Fleet" to catch and beat the Klingons.
A few more tips that might take your ship into a new dimension of speed and scope are:
- Spend your day serving the volume players.
Book ahead. If a load picks up in 24-48 hours, book it!
Snatch the easy ones first. Always!
Adopt, adopt, adopt. Find carrier and customer partners that are compatible and adopt them. Make them part of your professional life.
Become like a drug to your customers, so that they need you like black coffee or nicotine!
Be first. By the time you fix your first cup of coffee, warm up the computer, spread the bagel and read the headlines, the bloody Klingons have taken the best prize. If there's anything left (loads or trucks), they're leftovers.
Focus on finding ways to speed up all transactions. Software can help. With a good program, you can:
- Shorten the carrier setup time
- Speed up the credit process
- Duplicate repeat business with a keystroke
- Speed dial telephones
- Manage several calls at once, using the hold button
- Develop "Blast Fax" capabilities
- Access high speed internet phone books to reach hundreds of players in just a few minutes
- Electronically tender freight and have freight tendered
Yes, burning every scrap of paper in your "starship" will allow you to out run and out class those Klingon competitors.
Like Star Trek, moving at the speed of business is how you beat the Klingons. Being able to jettison whatever holds you back is important, such as paper, keystrokes, procedures, unprofitable business or stagnant relationships.
Getting rid of whatever acts like an anchor will give you an edge. Being able to run full speed on salt, instead of dilithium, will make your ship recession-proof. Any business can survive in a booming economy but what if there is no demand for your services? What if you insert Klingons (competition) into the equation? What if the Klingons are willing to do anything to capture business? How can you fight that kind of resolve?
Learn to power the ship on anything! Then realize how much profit can be made if you can find a whole planet of dilithium!
The Klingons are out there; they've got our freight. We've got to catch them! Let's lighten the load and make the jump to light speed.
Rick Jones, CTB is President of Meadow Lark Companies, a freight brokerage in Billings, Montana.
Details: www.meadowlarkco.com
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