Trucking: Schneider National set to take over transportation operations for Emerson
Jeff Berman, Group News Editor -- Logistics Management, 11/19/2009
Schneider National Inc., a provider of transportation, logistics and intermodal services, said this week it will be assuming operations of the transportation division of St. Louis-based electronics manufacturer Emerson.
Schneider said it will provide Emerson with a dedicated
fleet comprised of roughly 300 drivers, with many of these drivers working as
two-person teams.
"[We] will be providing approximately 125 teams and 25 solos
to Emerson initially," said Todd Jadin, senior vice president/general manager
at Schneider. "There is an opportunity for growth beyond the size of their
current private fleet once we get the existing freight transitioned
successfully. That amounts to roughly 150 trucks and 275 drivers given the
predominance of teams. In addition to the drivers, we will have an office staff
of approximately 12 individuals assigned to the Emerson business."
Jadin also noted that at this point, Schneider National's
relationship with Emerson is to replace their existing private fleet. Its
primary function, he said, is to become the transportation provider for Emerson's
most time sensitive freight and work closely with their distinct business
units/plant locations.
"We expect to grow the relationship beyond the initial size
of the private fleet award," said Jadin.
Schneider officials added that the company plans to hire
drivers who previously worked for Emerson. Emerson's transportation division
was established in 1962 as the company's private fleet, and it maintained 170
trucks in 29 U.S.-based locations.
Under this arrangement, Schneider National's Dedicated
Services division will handle Emerson's transportation operations. This
division, according to Schneider, specializes in giving companies all the
benefits of a private fleet (control, visibility, superior service) without the
capital investment, financial risk and liability associated with maintaining
regulatory compliance, safety training, equipment maintenance and other
potential costs. Schneider Dedicated Services also offers distribution
center-to-store and specialized equipment capabilities.
"Schneider National's Dedicated Services division has a
proven reputation for reliability as a global logistics and transportation
leader," said ," said Greg Fromknecht, Emerson vice president of Global
Logistics, in a statement. "This was a key factor in selecting them to handle
Emerson's domestic U.S.
full truckload operations. Their commitment to excellent service and preserving
the integrity of the supply chain is critical for meeting the demands of our customers."
An Emerson spokesperson told LM that the company is constantly reviewing its operations to make
the best use of the assets available to best serve customers' needs and still
remain competitive.
"Eliminating the Emerson Transportation Division makes the
most business sense, due to the changing economics of the freight business,"
said the spokesman. "Schneider can provide us with freight services at a
competitive cost."
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