operations summit
TRANSCRIPT
POWERED BY:April 14-16, 2015 | Louisville, KY
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The Rise of Regional Carriers – What’s Driving It?
Paul Steiner, VP Strategic Analysis Spend Management Experts
Mark Magill, VP Business DevelopmentOnTrac
John Janson, Director of Logistics & TransportationMWI Veterinary Supply
POWERED BY:April 14-16, 2015 | Louisville, KY
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Regional Carrier Services• Overview• Partial list of providers and locations covered
– OnTrac: West Coast– Eastern Connection: East Central, Northeast (Partnerships with Pitt-Ohio)– Pitt-Ohio: Midwest (Partnerships with U.S. Cargo and Eastern Connection) – Spee-Dee: North Central, Midwest– Lone Star Overnight (LSO): Southwest– LaserShip: Final mile delivery East Coast– Hackbarth: Final Mile delivery Southeast
• Regional carriers have coverage of approximately 85 percent of the United States
• More recent shift from B2B parcels to B2C, last-mile delivery• Increase in Regional business
POWERED BY:April 14-16, 2015 | Louisville, KY
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Rising popularity of Regionals
• What are the factors behind the shift?– Improved rates
• Freight Rates• Accessorials/Surcharges• Dimensional weight
– Improved service levels• Faster time-in-transit
– Later pickup times– Reduced damage claims
POWERED BY:April 14-16, 2015 | Louisville, KY
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The Regional Carrier Experience
• Which regional carriers is MWI utilizing?• Describe the dialog surrounding the National vs Regional
carrier decisions• Can you walk through the process of some recent
engagements?• How did you develop rate comparisons?• What level of tracking do you have with regionals?• How would you describe the reporting capabilities?
POWERED BY:April 14-16, 2015 | Louisville, KY
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Benefits of Regionals• Reduced Freight Rates
– 15 – 30% LESS than nationals
• Reduced Accessorial/Surcharge Fees– Examples: Residential Delivery Fees, Delivery Area Surcharges, Large
Package/Oversize Surcharges, Saturday Delivery Fees, etc.
• Improved Time-in-Transit• Improved service levels• Reduced DIM impact• Improved Flexibility & Client Service Levels
POWERED BY:April 14-16, 2015 | Louisville, KY
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Transitioning to Regionals
• Understand how much volume can move without losing current carrier discounts.
• What were some of the initial challenges of switching and how did you overcome them?
• What impact analysis can be performed?• What has been the impact to your customers?• What to look out for?
POWERED BY:April 14-16, 2015 | Louisville, KY
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Questions to Ask Carriers• Are the rates negotiable?• What are the minimum volume
requirements for a Regional contract?
• What are the surcharges?• What are the fuel surcharges?• What are your rules for
Dimensional weight?• Are daily pickups provided or is
drop shipping needed?• Are residential deliveries
offered?
• Is a multi-carrier shipping platform required to ship with Regional carriers or can I use the Web?
• How does the package tracking stack up to UPS and FedEx?
• Do you offer insurance?• Do you offer money-back
guarantees? • Are the drivers employees or
Independent contractors?
POWERED BY:April 14-16, 2015 | Louisville, KY
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What’s on the horizon?
• What are some of the upcoming service enhancements?• How have other regional carriers been working with On-Trac
to build larger Regional coverage? • Are there alternative solutions from the Regionals for USPS
related services at par with SurePost/SmartPost/Newgistics & Global Mail?
POWERED BY:April 14-16, 2015 | Louisville, KY
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Questions? Connect with us!
Paul SteinerSpend Management [email protected]
@Spend_Mgmt
Mark Magill OnTrac
[email protected]@OnTrac_Shipping
John JansonMWI Veterinary [email protected]