Subscribe to our free, weekly email newsletter!


Armstrong Brings Transportation Back In-House

After outsourcing its transportation functions to a 3PL in January 2007, the 150-year-old manufacturer brought it back under its own roof to tighten controls, establish carrier measurement, and rack up the savings. And that bold move earned Armstrong the 2010 NASSTRAC Shipper of the Year Award.
By John D. Schulz, Contributing Editor
October 08, 2010

Sometimes it’s best to control your own destiny. Just ask the transportation team at Armstrong World Industries, a 150-year-old flooring, ceiling, and cabinet manufacturer based in Lancaster, Pa.

After outsourcing its transportation functions to a major third-party logistics provider (3PL) in January 2007, the logistics department of the $2.8 billion company quickly realized—in less than a year—that the new partnership was not going to pan out. In short: The arrangement was not meeting Armstrong’s established cost and service goals.

“The biggest flaw was that our 3PL took a one-size-fitsall approach,” says Marcus Smith, Armstrong’s manager of transportation procurement. “We have specialized needs, especially in truck equipment. We use flatbeds, dry vans, driver-assisted vehicles, and short, straight trucks in and out of New York City. They didn’t appreciate the complexity of our business.”

About the Author

image
John D. Schulz
Contributing Editor

John D. Schulz has been a transportation journalist for more than 20 years, specializing in the trucking industry. He is known to own the fattest Rolodex in the business, and is on a first-name basis with scores of top-level trucking executives who are able to give shippers their latest insights on the industry on a regular basis. This wise Washington owl has performed and produced at some of the highest levels of journalism in his 40-year career, mostly as a Washington newsman.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

While many market conditions are working against shippers, the most recent edition of the Shippers Condition Index (SCI) from freight transportation consultancy FTR shows that things may be improving, albeit slowly.

Newsroom Notes takes a look at some of the biggest stories and themes in logistics for 2014.

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

Article Topics

Features · 3PL · Logistics · Transportation · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA