Welcome to this special edition of the CLI
newsletter, "Trucking with CLI." In this issue, we will
cover our recent Annual Leadership Summit, which
took place September 26 - 28 at the Tarrytown House
Estate in Tarrytown, NY. The program, with its
theme, "Money Matters: Navigating the Financial
Landscape," was once again an unequivocal
Incredible content, priceless networking and valuable
information made this an enriching experience for all
who attended. From the opening keynote by James
Welch, former president and CEO of Yellow
Transportation, who shared his wisdom and insight
based on more than 30 years of experience, to the
eye-opening closing presentation, "View from the
Side: A Shipper's Perspective," by Joe Conoscenti,
director of North American transportation operations
for Nice-Pak Products, attendees learned an
incredible amount of valuable information in a
jam-packed two days.
For those of you unfamiliar with the Leadership
Summit, it is an annual business conference for
executives of LTL and courier companies underwritten
by Carrier Logistics. Each year, the meeting theme
focuses on a division of an organization.
theme was finance, including pricing, reducing costs
and boosting revenue. This is not a software or
technology conference. All speakers come from
outside Carrier Logistics.
Here's a sampling of what attendees thought about
the summit, based on their evaluations:
- "Topics were relevant to today's
important issues facing transportation"
- "Great variety of speakers this year"
- "Very worthwhile"
- "Extremely educational"
- "Always good - thought provoking"
- "Very well organized, communicated
- "Great speakers - Top notch"
- "Best program yet"
Keynote Address: James Welch
The program started off strong as James Welch,
former president and CEO of Yellow Transportation,
delivered the keynote address. James spoke
extemporaneously for 45 minutes, sharing his insight,
wisdom and perceptions about both the transportation
industry and how to successfully run a company.
Clearly his remarks sparked ideas among attendees,
as his session was followed by more than a half hour
According to James, "The marketplace will always
win - there is someone out there right now thinking
about how to do what you do smarter, faster or
cheaper." He noted that there has been more change
in the industry in the last five years than had occurred
in the previous 20. He stressed the importance of
investing in good employees and noted
that, "Technology is a critical path to the future of
transportation." Good information and great insight -
his remarks made for a fantastic start to the program.
||Day One Sessions
How to Manage Increased Costs
Joe Guimond, vice president and general manager for
Purolator Freight, joined Ken Manning, president of the
Transportation Costing Group, to discuss how
companies can control ever-increasing costs. Noting
that "you can't manage what you don't measure," Joe
and Ken emphasized the importance of tracking
costs. Joe shared some strategies that Purolator
Freight employs to manage costs, including
holding "weekly activity reviews" where key members
of the management team gather to review customer
accounts, activity, utilization, capacity strategies and
technology enablers. Joe feels strongly that to truly
manage costs you have to stay on top of these key
factors. Finally, Ken explained the concept of
competing on analytics, where one must measure
both profitability and productivity against each
New Ideas in LTL Pricing
"Pricing is an ongoing, integrated effort," said Steve
Fox, a principal at the consulting firm of Norbridge,
Inc. Steve led a session on pricing, reviewing why
pricing is important, what the regulatory legacy is, the
pricing opportunities that are available, and the
processes and tools that one can use. Steve
challenged the group by asking if their rate structure
was supportive of their business goals and reflective
of their operating costs, using real-life examples of
differences in actual tariffs. He then left the group with
some homework, stating that developing proper
pricing structures should be part of continuous
process improvement to support operational goals,
because every day delayed in deploying supportive
pricing structures is a delay in achieving those
Think Before You Leap: Determining True
Jeff Keller, principal of Keller Services, LLC,
discussed why 40 percent of all new IT projects fail
and how carriers can determine true ROI in advance.
He noted that good management yields success. He
then revealed his "Top Ten List to Maximize Return on
Investment," which included both actions and tools.
Jeff's session was a must-attend for anyone
embarking on a new project. His list detailed crucial
components and considerations that must be made
during the implementation process. Attendees
learned that successful projects start out with a clear
and detailed agreement, have a carefully controlled
scope, include provisions for training, and have a
committed and capable team.
Innovative Ways to Boost Revenue
"You are leaving thousands of dollars on the table by
not utilizing accessorial charges to their fullest,"
insisted Satish Jindel, principal of SJ Consulting
Group, at his session. He was joined by Sarah C.
Copp, vice president, corporate transportation and
logistics for Time Warner. Among other things, Satish
suggested that the LTL and courier companies in
attendance could boost revenue through geographic
expansion, faster transit times and offering new
Sarah offered a view from the other side, telling the
group what she looks for in a carrier. "First of all, I see
a lot of ill-prepared salespeople," Sarah exclaimed. "If
you are trying to win my business, do a little research
first about my company, my shipping needs, etc."
Other things that are important to Time Warner when
looking for a carrier are that they have some
knowledge, if not experience, in international
shipping. Sarah also noted that when there is a
problem, it's key that she can access the problem
shipment online without having to search through all
of her current shipments. Just having the technology
isn't the answer she stressed; it's having the right
Results from LTL Industry-Wide Customer Value
A just-completed U.S./Canadian study identified how
customers choose a carrier. Presenter Bart
Thedinger, president, Mastio & Company, released
the results from the 3rd Edition LTL Industry-Wide
Customer Value Benchmarking Report exclusively at
the summit. The report, entitled "Which Carriers are
Providing the Best Value in the Eyes of the Customer,"
measured 20 attributes most important to customer
satisfaction, loyalty and other value factors. One of the
highest ranking regional carriers was in attendance at
the meeting - Stan Vander Pol of Peninsula Truck
Lines. Congratulations on the outstanding ratings his
company achieved. Joe Dohrn of Dohrn Transfer, a
longtime CLI customer in attendance as well, also
received very high ratings.
||Dinner Speaker: Ken Hoexter, Merrill Lynch
A private dinner in the elegantly appointed Garden
room at the Biddle House Mansion provided a
splendid setting for a speech by Merrill Lynch's senior
Airfreight and Surface Transportation analyst, Ken
Ken shared his views of the transportation industry,
including the current state of economic affairs. This is
the fourth year that either Ken or his associate from
Merrill Lynch has spoken at the dinner. In fact, he
referenced some of his predictions and thoughts from
past events. Ken also discussed the effects of
economic trends on the LTL trucking industry - for
example, the increasing use of holiday gift cards
instead of merchandise gifts has reduced the usual
seasonal peak for freight transportation. After a lengthy
Q&A with the group, the program wrapped for the
evening. As usual, this was a conference highlight.
||Day Two Sessions
Developing a Sustainable Supply Chain
This year, we were honored to have Patrick C.
Penfield, assistant professor and director, Supply
Chain Executive Management Programs, Whitman
School of Management at Syracuse University, join us
as a speaker. Pat kicked off Friday morning with an
energetic presentation on the topic of sustainability.
Noting that being environmentally friendly is not only
good for the earth but good for business too, Pat gave
examples of how forward-thinking companies are
using the environment to their advantage. Smart
companies are using the concept of sustainability as
a strategic weapon. Pat took the group through a
four-step process to implement a sustainable supply
chain, handing out Syracuse basketballs to audience
members as they contributed to the discussion.
The View from the Other Side
After a series of interactive roundtables on the topics
of employee retention, Canadian/International issues
and outsourcing, the group reconvened to hear "The
View from the Other Side: How to Really Sell Value to
Increase Sales" by Joe Conoscenti, director of North
American transportation operations, Nice-Pak
Products. With over 30 years experience as a shipper,
Joe's frank and honest remarks to the attendees were
particularly credible. He told the group to "stop beating
each other on the heads -- there is more to a
shipper/carrier relationship than price alone." He
asked attendees to really consider the difference
between value and cost.
Joe also said, "If you
compete with the big guys technologically, you really
can't compete." This closing session offered a unique
opportunity to take a peek inside the mind of the
shipper, and the audience took full advantage by
peppering Joe with questions on topics ranging from
how to maximize a sales call to what he looks for in a
carrier. This was a great closing session, capping
two days of almost non-stop information.
||Thank You Sponsors
CLI would like to thank and recognize this year's
Leadership Summit sponsors. We appreciate
Progress Software for sponsoring James Welch's
travel and expenses, TCG for sponsoring the opening
reception hors d'oeuvres, SMC3 for sponsoring the
opening dinner wine, EBE Technologies for
sponsoring the second night's reception and finally
KonaWare for sponsoring the roundtables.
CLI is proud to partner with these "best of breed"
organizations and invites you to visit their websites,
which are listed below.
||Save the Date
CLI is pleased to announce that it will be hosting a
Webinar based on the very well received "Measuring
ROI" session at the Leadership Summit. Jeff Keller
will lead the webinar entitled, "Think Before You Leap:
Determining True ROI" on Wednesday, December
12th at 2:00 pm EST.
Please mark the date on
calendar and look for your invitation with details in a
||Calendar of Events