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.
image

Marcus Smith, manager of transportation procurement

By John D. Schulz, Contributing Editor
October 08, 2010 - LM Editorial

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

Industrial truck sales hold steady, mirror U.S. economic indicators.

The money is for maintaining America’s deep-draft navigation channels and harbors and is as part of the U.S. Army Corps of Engineers’ fiscal 2014 funding bill.

WASHINGTON, D.C.—According to the Council of Supply Chain Management Professionals’ 24th annual State of Logistics Report released today, logistics and supply chain managers are continuing to drive inefficiencies out of the business transportation system.

It’s the season for general rate increases in the LTL industry—those annual hikes for non-contract shipments that hardly any shipper in the nation pays.

Diesel prices dropped for the fourth straight week, with the average price per gallon falling $0.8 to $3.841 per gallon. This represents the lowest average price per gallon since the week of July 30, which was $3.796.

Article Topics

Features · 3PL · Transportation · Logistics · All topics

Comments

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


© Copyright 2012 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA