32 FEATURE
The Multi-Billion Dollar LTL Opportunity
By Andrea Obston Director of Public Relations , CLDA
First and last mile providers that find ways to partner with LTL carriers are opening the door to significant opportunities .
That was the message that was delivered loud and clear by four executives of LTL carriers at the CLDA Annual Meeting . These executives gave conference goers a front row seat on the potential for LTL / last-mile provider partnerships .
Moderated by Jim Bramlett , former SVP Business Development for uShip , the panel looked at ways that first and final mile delivery companies could work with LTL carriers . Panelists described their operating models , who they partner with , why they partner with them and what it takes to gain access to millions of dollars of revenue opportunities .
Moderator Jim Bramlett explained his company this way : is the industry ’ s only neutral marketplace . We match the needs of those in the LTL industry with last-mile providers .”
The panelists who represented the LTL industry included :
• Rick Mathews – VP , Specialized Services , YRC Freight
• Steve Selvig – VP , Sales & Marketing , Reddaway
• Thomas Nagel – President / CEO Clear Lane Freight Systems
• John Kenneally , Vice President of Transportation , Roadrunner Transportation Systems .
The LTL sector is a $ 40 billion , consumer-focused industry . Bramlett compared the match of LTL and final mile carriers to a Reese ’ s Peanut Butter cup . “ Those of you in the customized logistics and delivery business are like the chocolate ,” he said . “ You are flexible and go with many things . The LTL carriers are the peanut butter . Together we can create Reese ’ s . And like the individual components of that sweet treat , together we can make more than if we went it alone .”
YRC executive Rick Mathews echoed that sentiment asking for a standing ovation for the partnership idea . “ The reason I came to this meeting is to look for those partnerships ,” he said .
YRC Freight offers standard , accelerated , time-critical , and logistics solutions services throughout North America . YRC Freight ’ s 20,000 employees operate a network that supports approximately 10.7 million shipments annually . Their network includes approximately 8,500 tractors and 32,000 trailers operating in over 250 facilities with over 13,000 doors . The average YRC Freight shipment weighs approximately 1,200 pounds and travels 1,300 miles .
Among the opportunities he sees for partnerships with CLDA members are in the areas of :
• White glove residential deliveries
• Home deliveries the require quick responses to e-commerce demands
• Reverse logistics
• Freight that moves between distribution centers .
Reddaway ’ s Steve Selvig added to Rick Mathews ’ comments . It was his first time at a CLDA conference . “ I am impressed with what I ’ ve seen at this meeting ,” he said . “ I love the entrepreneurial spirit all of you have . That ’ s what makes an economy grow .”
Reddaway is a leading Western States LTL carrier . “ We are primarily next-day for deliveries that are , on average , 500 miles or less ,” he said . “ In today ’ s environment being nimble is so important , especially in this space . Our customers have distinct needs for early-morning deliveries and they will pay more to make that happen . They want their goods on the retail floor as soon as they open their doors .”
Among the opportunities he sees for partnerships with CLDA companies are in the areas of :
• Residential and white glove deliveries
• Deliveries that require unique experience and / or equipment
• Deliveries of on-line orders .
“ One of our biggest e-commerce customers is a home improvement chain . Their on-line orders are up
Customized Logistics and Delivery Association | Fall 2016