A New Model for LTL Shipping with Keith Farnsworth

[00:20] Opening / Introduction

[00:39] Can you tell us a little bit about where you work and where you live?

• I am the Senior Director of Carrier Development at MyCarrierTMS. We're based out of Scottsdale, Arizona.

[01:12] Tell us a little bit about how you started your logistics career.

• I started at an LTL carrier working on the dock. I got to see how the operation works from the ground level.
• Over the years, I grew with LTL companies and took on different roles.
• I joined a startup that grew to about $80,000,000 in ten years, and then I went back to the asset-based side.

[03:15] Can you explain what LTL is?

• LTL is less than truckload.
• They pick up a variety of shipments and handle them multiple times throughout their network.
• It gives customers a cheaper option when they're shipping less than a truckload.
• It's a lot more complex than just going from point A to point B, but it offers the customer value.

[07:12] Tell us about the market leaders.

• They include FedEx, YRC, and Old Dominion. Seven companies represent a large chunk of the market.
• Technology plays a huge role in helping carriers to optimize their linehaul.

[09:30] Describe the innovative new model that you like.

• The current model is that you can go to a 3PL and use their services or go direct to the carrier.
• We've learned that the average LTL shipper uses 2.4 different web-based platforms to manage their transportation. It's not very efficient.
• The model that we're working with is using API technology to speed up the process. They can connect to carriers in a matter of seconds.

[11:36] Let's say I'm using a 3PL. If I were to use your model, I wouldn't necessarily need to use a 3PL. What would that look like?

• If you're a small-to-medium sized shipper right now, you don't have access to cost effective technology.
• In the new model, carriers are offering to license this technology on behalf of their customers.

[13:32] In this new model, will it be the same operationally?

• It will be very similar. Obviously, there's not going to be a middleman. You'll be able to interact directly with carriers.

[15:09] How can a small company get good pricing with an LTL company? A lot of times, the 3PL has the buying power that a small company doesn't have.

• We've found that the system and how it connects the carrier and shipper has so many efficiencies built in that the carriers are competitive with pricing.
• Trust plays a large factor. Usually, you have to trust the 3PL and the carrier. If you go direct, you only have to trust the carrier.

[17:16] Describe the new scenario if as a small company, I now go directly to the LTL carriers. Let's say I'm working with five and going into each of their systems individually.

• This technology allows them all to tie their direct pricing into one clean system.
• You can bring in any carrier and still have direct rates.

[22:56] Describe your solution one more time so we have a good sense of how it works.

• Our partner carriers are offering free technology to their shippers and are licensing the cost of that technology on their behalf so that they can continue to strengthen the direct shipper-to-carrier relationship.
• You can manage all your tracking in one convenient location.

[24:45] Any final thoughts to wrap this up?

• It's exciting to see how quick this technology is being adopted. These are really exciting times.

Additional Information

Keith Farnsworth LinkedIn profile: https://www.linkedin.com/in/keith-farnsworth-21b23835

MyCarrierTMS: https://www.mycarriertms.com/landing