| For ABC Co., on-time delivery to customers is critical. This
small company, which doesn't wish to reveal its identity, ships printed material to
printers throughout the US, in truckload and less-than truckload (LTL) quantities. In the
past, its small fleet handled short-haul deliveries and a logistics partner, Tucker Co.,
managed the long-haul deliveries. ABC's highest priority is 100% on-time delivery. Its
customers often are on dead-line. As their business grew, they looked to increase the size
of their private fleet. They believe that's the way to guarantee the all-important on-time
delivery.
But a private fleet is expensive. ABC didn't think they could justify the investment
unless the fleet could generate income. Looking for ways to deliver the required service
level in the most cost efficient way, ABC brought an unusual proposition to their
logistics partner.
Tucker is a transportation broker that has grown into a third party logistics company.
The logistics partner's role had been routing and managing truckload and large LTL
shipments which ABC did not handle with its own trucks. With it's expanding fleet, ABC
wanted to take on more of the long haul movements themselves and make money doing it. They
asked Tucker to arrange return hauls to earn revenue with ABC's trucks. |
"We sensed they would be converting what had previously
been 'our' hauls to their own trucks," says William J. Tucker, president of Tucker
Co. "That would lose us business. But, since their outbound freight flows terminated
in 'headhaul' areas which had a chronic shortage of trucks, their empties would fetch good
paying freight for us on the homeward hauls." Because ABC Co. insists on 100% on-
time delivery, they are a very reliable service provider to their new transportation
customers. As ABC reorganized its private fleet into a profit center, it relied on
Tucker to continue managing long-haul freight. And Tucker continues to handle the
inevitable surges. It also has been able to keep ABC's trucks filled about 95% of the
time.
"We originally thought we'd be working ourselves out of a job," says Tucker.
"But, after two years, we seem to be almost as busy as ever. The amount of total
commission probably has increased."
ABC once saw Tucker Co. as a strong partner to augment their shipping needs. They've
grown the relationship into a win/win partnership. |
