Partners in Speed (page 2)

-- Logistics Management, 9/1/2005

Page 2 of 3
Communication Pays Off

Making that happen took a combination of smart planning, good communication, and even a little serendipity. (Ames True Temper's original distribution center in central Pennsylvania happened to be in the same industrial park as a Roadway consolidation center.)

The shipper's logistics strategy today centers on the 1.2 million-square-foot distribution center it built four years ago in Carlisle, Pa. The company also operates a smaller facility in Reno, Nev., to serve customers on the West Coast. Ames makes the most of those distribution facilities, and finds that they provide sufficient coverage for customers nationwide. "We use our DC locations to our advantage, given the close proximity to many LTL carriers," Cline notes.

Ames assigns about 300 of its 700 weekly LTL shipments to Roadway. Cline augments that coverage by using several regional and multiregional LTL carriers, including Estes Express, Old Dominion Freight Line, and Pitt Ohio Express. She also works with about a dozen truckload carriers for longer-haul moves.

Because its own customers have so many different delivery requirements, Ames True Temper is not an easy customer to please. "We partner with carriers that can accommodate our needs, such as weekend and night service, drop trailers, and agreement to shipper's load and count," Cline explains.

With so many specific requirements to be fulfilled, having strong relationships and excellent communication with its motor carriers makes all the difference for Ames when it comes to anticipating and preventing problems before they arise.

"What we found works the best is to create a relationship with our carriers," Cline says. "We go to their facility. We take our team and meet their folks. We have them come into our DC. We strategize about it. We make sure their people are on board with us. We don't assume the problem will be resolved on its own. That seems to work for us."

For a motor carrier to understand a shipper's business model, Cline contends, it must be represented on site on a daily or weekly basis—and not merely to deliver service reports. Accordingly, Ames now gets its largest carriers involved in the daily intricacies of its transportation and distribution strategy.

Four years ago, in fact, when Ames decided to build its Carlisle DC, it didn't make that decision in a vacuum. Instead, the shipper invited several of its motor carriers to discuss those plans, peppering them with questions. What would work best for the carriers? Would night deliveries be a problem? Was this the best location? What about congestion? Recalls Cline: "We asked them, 'Are you ready for this? We're going from 10 trailers in our lot to 50. Are you prepared?' "

The transportation manager believes it's important for shippers to consider input from their carrier partners when making major changes in their shipping patterns. "Communication is key," she says. "You don't want to catch them off guard."

Benefits Work Both Ways

Ames True Temper has certainly benefited from its longstanding relationship with Roadway. But the shipper also has worked hard to become a valued customer, tendering freight that's packed correctly and is not susceptible to damage, using efficient dock management techniques to load and unload trucks promptly, and helping the carrier fill trucks when business is slow.

According to Roadway's Craig, tendering loads during the trucking company's slow period creates a negotiating advantage for Ames. "Our business is strong October through mid-December, and then it just drops off," he says. "Cindy's business starts to really pop in mid-December." The benefits accrue to both partners: Roadway has plenty of capacity to meet Ames' needs at the shipper's busiest time, and Ames helps the LTL carrier reduce empty miles. Continued...

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