3PL news: Old Dominion Freight Line rolls out Vault Logistics
August 04, 2011
Less-than-truckload (LTL) transportation services provider Old Dominion Freight Line (ODFL) is getting into the third-party logistics (3PL) game, announcing this week it has rolled out Vault Logistics, its new 3PL offering.
Company officials said that Vault unites several existing ODFL business units into an independent operating division comprised of warehousing, business solutions, fleet and warehouse dedicated services and truckload brokerage units.
In an interview with LM, Vault Logistics President Michael Venegoni said that ODFL has been providing warehouse, truck load brokerage and TMS (Transportation Management Systems) technology services to a limited degree for several years.
“Today our clients are asking for expanded services and logistics solutions to cope with economic pressures and the demands placed on them by their customer base,” he said. “Many of our customers today are looking for ways to control costs and gain efficiencies in their supply chain. It makes sense for us to partner with our customers to help them achieve their strategic supply chain goals and accelerate their growth.”
What’s more, he explained that in continuing the service excellence, discipline and family heritage that Old Dominion is already known for along with financial stability, Vault’s focus is to really understand its customer business and engineer solutions that are customized to solve specific business challenges. The result of this, he said, is positive financial and operational impact allowing our customers to grow their business, noting that the company has the experience and technology to deliver solid results.
Vault Logistics will provide shippers with various services, including:
-managed transportation- which includes logistics management and TMS Technology;
?-dedicated warehouse and fleet services;
?-warehouse and distribution; and
?-truck load brokerage.
Vault Logistics will kick off operations with a team of 36 staffers and has plans to grow aggressively. Venegoni said that Vault will have a strong—but not exclusive—relationship with OFL’s LTL business, saying that ODFL developed Vault to offer a neutral service that’s designed to best fit its customers’ needs across all modes.
And although Vault Logistics is an independent operating division of ODFL, it will share services including human resources, finance, IT, marketing, and legal.
“We have the advantage of an extremely strong senior leadership team at ODFL where we collaborate for best-in-class business process and leverage buying power for cost controls,” said Venegoni. “We’ll purchase LTL transportation from ODFL or work within the customer’s existing ODFL contracted pricing if it’s in the best interest of the customer.”
In terms of the competitive advantages this expansion brings to ODFL, he said that ODFL has expanded its service to address the real world issues its customers face today by bringing another dimension to its solution set for the ODFL sales team.
“Customers are asking for a broader range of solutions and innovations across increasingly complex and dynamic supply chains,” said ODFL CEO David Congdon in a statement. “The right solutions will drive efficiencies and contribute significantly to their bottom lines to grow their business. Vault Logistics is a significant investment in our future and expansion of our capabilities to help our customers thrive in the new economy.”
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