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June 11 2018

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June 11 2018 | The Journal of Commerce 47 www.joc.com PL Midyear Review and Outlook Cover Story Special Report In today's global market, it's crucial to have an expert supply chain partner. That's where Yusen Logistics comes in. Our origin cargo management solutions, combined with our global transportation network, will enhance your ability to meet your customers' unique needs. Find out how we can keep your supply chain running smoothly. www.yusen-logistics.com WHAT WOULD IT TAKE TO KEEP YOUR GLOBAL SUPPLY CHAIN RUNNING SMOOTHLY? J85199 Yusen Gen Ad JOC_4.625x7.375.indd 1 5/21/18 5:32 PM Logistics's sta has grown in that short span from one 10-person team to more than 400 employees in Austin and Chicago. Last year, Arrive recorded $145 million in sales, and it's on track to reach more than $320 million by the end of 2018, according to the (privately owned) company. Meanwhile, in the fi rst quarter of 2018, distinguish themselves from one another, apart from o ering lower pricing, Castle said. For a large 3PL like C.H. Robinson, which has always been "mode-agnostic," with no asset base of its own "to defend," the current focus is on fi guring out what supply chain strategies each shipper should consider to enhance its fl exibility and reduce its overall logistics spend, rath- er than tactically reduce its costs. The dynamics of how customers ap- proach their supply chains today are much more complex than they were 20 years ago, Castle said. The value-proposition of leading 3PLs is, thus, much more ambi- tious: "Technology now allows shippers to tackle that complexity by generating a lot of usable data and analytics that put all the di erent pieces together" in one strategic view that is "very dynamic." Another 3PL with especially strong results is Total Quality Logistics (TQL). In 2017, TQL recorded growth of 26 percent in its gross revenue, registering $2.93 billion, compared with $2.32 billion in 2016, the company announced. All of that growth was organic, said Kerry Byrne, president of TQL, who credited its unusual business mode for much of its success. TQL has a relatively fl at organizational structure, he said, noting that its C-suite of senior executives accounts for less than one-half of 1 percent of the company's personnel. Each TQL shipper (customer) relies on just one dedicated logistics account executive to meet all of its business needs from TQL, from initially booking a load to fi nding out about the current status of its invoices. To do that, TQL has been spending heavily on developing advanced technologies that match those of its competitors, Byrne said. TQL has inte- grated GPS location tracking with its load management software, so that its account managers access data on exactly where its carriers are in transit, in order to "identify problems and secure solutions right away" that fi t the needs of each shipper. TQL has developed TQL TRAX, a pro- prietary web portal and mobile app that is integrated with its internal load-manage- ment software in real-time. "The environ- ment in 2017 was obviously volatile with capacity becoming very tight throughout the year," Byrne said. "But we now have the scale that enabled us to leverage our investments in people and technology," so that TQL could raise its revenue by $613 million (26 percent) in a single year. Other outstanding performers in 2017- 2018 include Arrive Logistics and Expeditors International. Founded in 2014, Arrive Expeditors' gross revenue increased 20 percent to $1.9 billion, and its net reve- nue grew 21 percent to $636 million. Both its air freight tonnage and ocean container volume increased 5 percent, Expeditors reported, even as rates increased. JOC email: alanfield0@gmail.com

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