The Logistics of Logistics

Today's topic is Why Chattanooga is the Silicon Valley of Trucking and I will be talking with Craig Fuller. Craig and his company, FreightWaves is one of the reasons, Chattanooga is called the Silicon Valley of Trucking. [01:04] Tell us a little bit about you and your company. I am Craig Fuller, founder and CEO of FreightWaves, which is based in Chattanooga, TN. I grew up in a trucking family and worked in my dad's company. FreightWaves is the leading Freight Intel provider, offering current digital intelligence and context to the freight community on a central platform. [03:50] Your content at FreightWaves is so insightful. I've noticed that to write about logistics, you have to know logistics. We tried to get the traditional trucking press to write about what we were doing, but it was apparent that they didn't understand the content. Out of frustration, we decided to write our own content. Our writer was on vacation, so I once wrote about a hurricane under his name. That's when the site exploded. We actually do hire a lot of great writers that don't have experience in the space and combine them with market experts. [08:54] Why and when did you start FreightWaves? The business started in 2016, but we didn't get our first venture funding until 2017. I didn't want to go back to work in the family business. I wanted to do something on my own. My brother is the CEO of that business now, but my father is still active in it. I'm sure that my brother faces difficulties because the vision was created for him. We have to report to our board, but they're very supportive which gives us room to do things how we want. [15:05] Steve Case has a venture fund and tour called The Rise of the Rest. Tell us about it and why he named Chattanooga the Silicon Valley of trucking. His theory was that he could go find startups in smaller cities to pitch to touring venture capitalists. FreightWaves won the tour's stop in Chattanooga. This city has more people connected to logistics per capita than any other city in America, so it was only natural that Chattanooga become the Silicon Valley of Trucking Steve wrote a book called The Third Wave which deals with a deep understanding of how industries work. At FreightWaves, we've combined our tribal knowledge with influencers who are connected throughout the industry. Creating credibility has been the key to our success. [21:27] We're educating kids to leave our cities to go be successful in Silicon Valley. A lot of venture capitalists promote staying in your own city now. Money goes a lot further in places like Chattanooga rather than Silicon Valley. I think the next generation of venture capital will be in places like Detroit, Des Moines, Houston, Cleveland, etc. Investors are shocked that we pay our employees about the same as companies in Silicon Valley. It helps us attract and retain talent. We don't have to worry as much about an employee leaving us in a few months to work for another company down the road. [27:48] For many generations, kids have gone to school in places like Chattanooga and then left to work elsewhere. Now, they don't have to. 45 out of our 130 employees in Chattanooga have moved here from other cities. It's great to have a combination of homegrown employees and ones that were willing to relocate. [30:00] You mentioned tribal knowledge, so expand on how it helped make Chattanooga the Silicon Valley of trucking. The machine that produces carpet was invented in Chattanooga and Dalton, Georgia (just south of here), and that carpet needed to be hauled. Those businesses created a lot of organic knowledge in Chattanooga, but they didn't recycle capital. In the early 2000s, a guy at C.H. Robinson decided to build a brokerage business inside a brick business owned by the father of his frat brother. They founded Access America, and it grew to about $600 million in revenue in 2014. It merged with Coyote, and Coyote was acquired by UPS. A lot of the talent ended up leaving, but they were young. They started tech businesses and made investments. This created a lot of trucking companies. [35:41] Are there companies that are moving to Chattanooga because that's where the logistics community is? FreightWaves started in Fort Worth, Texas, but we moved here. Others include WorkHound, Reliance Insurance, and Bellhops. There's a ton of industry energy around the space that's being guided by people who have a deep understanding of how the market works. [36:58] Is Tennessee a business-friendly state? It is. There's no state income tax and the capital gains tax is being phased out. There are very low real estate taxes. I pay about one sixth of what I paid in Texas. The more money you can get into your employees' hands, the better quality of life they'll have. [38:44] In Michigan, we used to look down on The South because so many people moved away from it to work in Detroit. During the 1930s, people didn't have electricity and plumbing until FDR created a new deal. That spurred the initial stages of economic development. The South and Canada have a lot in common; effectively the same population and economic size. That's pretty astounding. [41:21] This has been great. Why don't you give us a little summary? I love talking about these trends. Not because I think Chattanooga is the best city in the world, but there are things that have made us successful that can be applied in other places. We've got FreightWaves Live in Chicago in November. It will be a vibrant event with lots of really good speakers. We're launching FreightWaves TV soon. Our spirit at FreightWaves is that if we do something, we do it well. [45:09] Tell us a little bit about your SONAR project. People call it the Bloomberg of freight. It is the leading freight market dashboard, aggregating billions of data points from hundreds of sources to provide the fastest data in the transportation and logistics sector. [47:10] Let's say I'm a little trucking company or freight broker. What problem do you solve for me? If you're a freight broker, it's about price and capacity discovery. Also, identifying volatile markets. Most of the data that has been available to freight brokers is weeks old. We're speeding that up. For trucking companies, it can let you know which markets to move trucks to. It's bad to make decisions with data that is so old, and we fix that problem. Learn More: Craig Fuller LinkedIn profile: https://www.linkedin.com/in/incab/ FreightWaves: https://www.freightwaves.com/ FreightWaves SONAR: https://www.freightwaves.com/sonar FreightWaves FreightTech Conference - Chicago: https://www.freightwaves.com/live-chi The Third Wave by Steve Case: http://www.thirdwavebook.com/ Chattanooga is the Silicon Valley of Trucking: https://www.freightwaves.com/news/freightwaves-chattanooga

[00:44] Tell us a little bit about you and your company. I am Brad Seaman, founder and CEO of MonsterConnect, which is based in Indianapolis, Indiana. MonsterConnect is sales enablement / lead generation service that help sales teams become 6-8 times more productive. [01:14] Tell us a little bit about your background. I grew up in Indianapolis. I went to Olivet Nazarene University in Illinois near Chicago to be a youth pastor. While I was doing some landscaping at the family call center business, they fired the chief operating officer and I got the call to run the place. [03:01] When and why did you start MonsterConnect? The family call center business did lead generation for a mortgage company. Before the housing crash, we started seeing the writing on the wall, so we diversified the business. We brought in a new guy to build a new division. We eventually spun that out from the business, but it became difficult to staff and hire with our quick growing rate. Two things gave us the idea for Monster Connect: the difficulty in scaling and the subjectivity of the business. This made me immerse myself in call center technology, and things changed in the industry to allow our business model. With our software, our agents navigate through phone prompts and gatekeepers. Then, when the prospect answers, the salesperson is connected. [09:20] Cold calling is still used a lot in logistics, but it is much maligned today and there is a lot written about the end of cold calling. Please tell us why cold calling still works. The more effort you put in, the more results you get. Very rarely do you see a strong effort followed by a lack of results. There's a tendency to lean into either inbound or outbound, but I think you need to do both. I understand why cold calling gets so much negative press. It's tough work. Prospects are harder to reach now because they can screen their calls and there are a lot of robocalls that nobody wants. Salespeople have always wanted to find better ways, but if you need to sell something today, the phone is still the best tool. The web has brought a lot of great ways to get sales leads, but they take time. Ultimately, the salesperson who talks with the most prospects sells the most. [14:50] To be a good cold caller, what do people absolutely need to do? The first thing is that you need to have good contacts. There are tons of tools that exist to do that. At MonsterConnect, we even search on job boards for companies that are looking to hire people to make outbound phone calls. Then, we already know that our technology would be useful for them. You need to have a good message; some type of differentiator. It needs to be compelling. The phone gives you the opportunity to build a relationship with someone. Some brokers get phone calls from different people who deliver the exact same message. [20:41] What else do people need to be successful at cold calling? Discipline and focus. Specifically, I know someone who landed a huge deal because he was religious about prospecting regularly. He dedicates one or two hours per day to cold calling. One day, he was about to log out but decided to do one more call instead. The rest is history. It's a lot like working out. Doing it regularly is very beneficial. Lack of lead gen typically comes from a lack of effort. [27:23] If the only things people need to be successful at cold calling are great contacts, great messaging, and discipline, why do so many people struggle? I think it comes down to it being inefficient, difficult, and unpredictable. If you remove the inefficiency of dialing and not getting somebody on the phone, that can really impact your success. When you get one or two people on the phone each day, that's not very productive. It's also natural for salespeople to turn down their lead generation efforts when they land a few clients. It's unpredictable. Building and maintaining a good prospecting team is a constant challenge, since sales is so volatile. [32:31] How can your company help with these three issues? The first thing is we have some built-in accountability. You have a scheduled time on the platform, and we'll help you make sure that you show up. It's efficient because there's no delay. We'll connect you to a prospect that is ready to talk. [34:58] How many hours a day do people work with your company? It depends on their desire. Some people think they'll use it for eight hours a day, but really, that would be like going to the gym for eight hours a day. It's hard to do. Somewhere between one and four hours is ideal for most people. In J.B. Hunt's first week with us, they saw a 900% increase in productivity. [36:06] A lot of companies are now moving to sales development reps. How would you guys compare to them? We can be a great help to SDRs. We don't replace them, we make them more productive. Learn More: MonsterConnect: https://monsterconnect.com/ Brad on LinkedIn: https://www.linkedin.com/in/brad-seaman-3ab4a049

[00:52] Please introduce yourself. I am VP of Sales at Tactical Logistic Solutions. Tactical has locations in New Jersey and California, and I'm based in New Jersey. Tactical is an end-to-end provider of supply chain logistics. We go from our client's overseas manufacturing location via air, sea, and land to their warehouse, our warehouse, or to Amazon's warehouse. [01:36] Tell us a little bit about your background. I grew up in a Monsey, New York, a small town in Rockland County. I attended high school in Monsey and Israel. I'm a husband to a wonderful wife and father to two beautiful children. [02:10] What was your first job? My first job was working as a customer service representative for a bulk candy company that had an online store and 4 retail locations in New York. The candy company had previously sold candy on Amazon, but they were unhappy with the results I was given to opportunity to relaunch candy sales on Amazon and after a few struggles, we reached $1,000,000 per year in sales. After my success with selling candy on Amazon, I launched a gift basket company which has done very well. [04:21] When did you join tactical? Since my gift basket business was seasonal, I outsourced the fulfillment, which gave me a lot of free time. I realized that I had the opportunity to help more people, so I joined Tactical in 2017. I had two goals: 1.) share my Amazon knowledge and experience with Amazon sellers and 2.) open a new service offering, Fulfillment by Amazon within Tactical. [06:41] Explain what Fulfillment by Amazon is. When you buy something with Prime on Amazon, 99% of the time that's a product that has been shipped right from an Amazon warehouse instead of from the seller. About two thirds of products on Amazon are FBA. Using FBA allows you to offer quicker shipping to the whole country without destroying profitability. It was a piece of cake to sell on Amazon in the early days, but now it's getting harder and harder. [10:51] What is the first mistake you see from sellers who use Fulfillment by Amazon? A lot of sellers don't realize that every single space in the warehouse is allocated. I always tell FBA sellers to get their suppliers to do the labelling for them instead of doing it themselves in the US. You can even get your freight forwarder to do it, because some sellers are afraid of their supplier becoming a competitor. [14:53] What is the second mistake you see from sellers who use Fulfillment by Amazon? When you use Amazon-partnered carriers, it's very appealing because they're crazy cheap. When you do that, it takes two or three days for Amazon to pick it up from your warehouse. They then schedule a drop off time that is chosen by Amazon. The problem with that is Amazon will only accept deliveries during the daytime. I recommend getting a 3PL or local trucker to deliver your shipment to Amazon. [21:16] What is the third mistake you see from sellers who use Fulfillment by Amazon? There's a lot of sellers that import product from China that have it palletized. They think that if they don't have it palletized, it will get damaged. In my experience, very few cartons get damaged because they make sure to fill the container to capacity. You lose roughly 30% of space if you put your product on pallets. It's a little bit more expensive to deliver, but it's still way cheaper than using pallets. [24:21] What is the fourth mistake you see from sellers who use Fulfillment by Amazon? In the last two years, Amazon has really decided they're not in the storage business. They're in the selling business. If you don't sell, they make you get out by charging additional storage costs after certain periods of time. Keep your stock in your own warehouse until it needs to go to Amazon. Replenishing monthly is a good approach. [28:00] What is the fourth mistake you see from sellers who use Fulfillment by Amazon? Amazon has a performance index that goes from 0 to 1000. Under 350 is in the red. If you go below 350, you get limitations of what you can send to Amazon. The factors that affect your score are excess inventory, sell through, stranded inventory, and in-stock inventory. These affected me because I'm a seasonal seller, and my score would be red when Christmas came around. I went to Amazon to discuss alternatives. [34:03] Any closing remarks on these topics? If you're worried about damage from not palletizing in China, you can get insurance for very cheap that will cover you. If you do everything correctly, you'll be on the fast track to sales. Learn More: Ephraim Ausch LinkedIn profile: https://www.linkedin.com/in/ephraim-ausch-a6a88ab2/ Tactical Logistic Solutions website: https://tacticallogistic.com/

[00:37] Please introduce yourself. I am head of the department of expediting at Virnich Corporation in Chicago. It's a full-service 3PL and carrier company. [01:01] Tell us a little bit about your background. I grew up in Serbia and I earned a mechanical engineering degree before moving to the USA. I never used that degree, because shortly after graduating I moved to Alaska to be a cook in a national park. When the season ended, I decided to move to Chicago and my friend suggested I become a truck driver. [03:36] When did you become a broker? After three years of driving, I was burnt out. I was thinking about working as a dispatcher, but I wanted more of a challenge. I approached the company that I'm still part of and they taught me how to be a broker. [04:40] What is expediting? It's a branch of logistics where shipments need to be picked up and delivered as fast as possible. [05:36] What kind of equipment do you use in expediting? The most common assets being used in expediting are straight trucks and Sprinter vans. Smaller box trucks and Sprinters are not regulated, but it's still important to use teams and be safe. Straight trucks start at 12 feet and go up to 26 feet. [08:45] What is the first key to effective expediting? Carrier vetting. In recent years, we've seen a huge growth of carriers in the expediting market. When I started, companies didn't have to be as competitive. There was more honesty and integrity. We see a lot of things to be careful of, like underbidding. Some companies will do anything they can to get the load even if they can't fulfill the promise. [11:49] What is the second key to effective expediting? Communication. It's a pretty broad term. Here, I mean paying attention to details. I see a lot of companies that will do anything to not communicate with the driver. I always communicated with brokers that reached out to me when I was a driver. It's good to under promise and over deliver. [17:27] What is the third key to effective expediting? Knowledge of assets, such as expediting equipment. A lot of newcomers in the industry haven't been trained or haven't had a chance to feel the equipment. You always want to work with someone who has a history of dealing with assets directly. A lot of companies say they're an expediter, but they're trying to be a jack of all trades. [20:50] What is the fourth key to effective expediting? Having personal values. It's about how people perceive you besides as having great customer service. We always do the right thing for the customer. That involves saying yes when we can and no when we can't. I see a lot of people taking freight without even thinking about if they can make it happen. [23:06] What is the fifth key to effective expediting? They are even more important in expediting than in the regular truckload business. It's very efficient when you know what the customer wants before they even tell you because your relationship is so strong. Using the same drivers and equipment is important. [26:46] Do you have any final thoughts? If you're looking for an expediter, my advice is to take your time in choosing the right one. Focus on building a relationship. I've realized that being an expert in all fields makes you an expert in nothing. Learn more: Virnich Corporation: https://www.virncorp.com/ Alex Pavlovic LinkedIn profile: https://www.linkedin.com/in/alexpavlovic22/

Ann, please give us the Cliff Notes (condensed) version of your career Ann has been an executive coach for the past 10 past years Prior to beginning her coaching practice, Ann was a speech pathologist who worked with brain injured patients for 25 years Ann earned her bachelors and masters in speech pathology at The University of Michigan Ann and Joe Lynch have a sales coaching/training program that helps transportation and logistics professionals sell more services Please explain the term "bring your A game" The term "A game" is typically used in athletics and it means bring your best game, the right attitude, a winning, focused, positive mindset "A game" is now used broadly and refers to the attitude, effort, and skills required to slay the moment What is the first way to bring your A game to sales Leverage your experience with similar clients / similar type of companies Specialize in a certain market segment like e-commerce or hazardous materials transportation, which will make you an expert in the industry Research a specific industry and build your knowledge base so that you can feel very confident and comfortable when calling on someone within that industry What is the second way to bring your A game to sales More opportunities/more sales leads create a feeling of abundance and confidence Lots of sales leads helps salespeople feel like they are "on a roll" (positive momentum) Lots of opportunities brings a certain swagger to a salesperson Fill up the pipeline and you will feel like you have a margin of error Having lots of sales leads is like "fresh air" – another chance to make a sale What is the third way to bring your A game to sales? Knowing your blind spots – areas of low awareness that may trip you up Understanding your blind spots is important, but even more importantly, you must have strategies for addressing your blind spots Strengths and weaknesses are often very closely related People often have a weakness that is the flip side of their strength Example: Joe is a good communicator which is helpful (strength) unless he talks too much which becomes a problem (blind spot) Strengths will get you most of the way there and blind spots will prevent you from winning What is the fourth way to bring your A game to sales? Being aware of your emotional state and how it is affecting you positively or negatively is very important People wrongly assume that emotions can be ignored or buried, but your emotions will impact your sales performance so it important to get in touch with your emotions, especially the negative ones When you recognize the underlying cause of the emotion, you can take action to address the problem or at least accept/cope with it What is the fifth way to bring your A game to sales? Get comfortable (and prepared) when you are not "feeling it" - when you feel tired, uninspired, fearful, intimidated or overwhelmed In difficult moments, athletes rely on what they practiced, soldiers remember their training and good salespeople will follow their process (if you need a process call Joe Lynch at 517.375.0631 😊) Waiting for the right moment, when you feel fully inspired and brilliant is a recipe for failure If you want to feel confident, act confident and your heart and mind will follow your outward actions Ann, any final thoughts on ways to bring your A game to sales? You must find ways to act even when you are not feeling confident and positive Your A game doesn't come like a lightning bolt from the sky, you must learn to create your A game when you need it Learn More: Ann's Twitter: https://twitter.com/annholmnet Ann's website: http://www.annholm.net/ Joe Lynch's LinkedIn: https://www.linkedin.com/in/josephlynchjr

Joshua, please introduce yourself I am a Joshua Walls, co-founder of Truckpark.com, a phone app that helps drivers find a safe, secure place to park. We developed our phone app as a tool to help truck drivers find safe and secure parking. Ideally, our app will improve the driver's experience and quality of life. Please tell us about your background. Where did you grow up? Go to school? What was your major in college? Grew up in Chicago and I am a big Chicago Cubs fan Earned a bachelor's degree in psychology from Trinity International University Earned a master's degree in organizational leadership, training and development from Lewis University What was your first job out of school? Neiman-Markus tasked with customer experience/customer engagement When and why did you start TruckPark? My partner, Anthony Petitte and I became interested in truck parking because we both had family members in trucking who complained that is was sometimes difficult to find safe and secure parking Joshua, today's topic is "Improving the Driver Experience using Technology" so please tell us a little about the driver experience Joe, I am not a driver so I can't fully describe all the issues facing drivers, but I can tell you what we have learned from talking with hundreds of drivers Also from talking to friends and family who are drivers. My brother is a driver so I have learned a lot from his experience The driver experience is a difficult one There are many challenges facing drivers both professionally and personally All of us worked to achieve a good work/life balance, however drivers have a much harder time because of the long hours on the road Joshua, let's first talk about the professional issues drivers face On the professional side, drivers are also confronted with some unique challenges: First, they must cover a lot of miles – every time I travel any distance by car, I am reminded that drivers do this every damn day Secondly, they must conduct their business from the road Providing updates to dispatchers/brokers Coordinating with shippers – pick up and deliveries Finding their next load Invoicing, accounting, sales, etc. for owner operators Routine maintenance, fuel, etc. Traffic – very unpredictable, yet they must keep on schedule / be on time Weather – rain, snow, dangerous roads, extra time Lastly, they must comply with local, state and federal regulations Federal Motor Carrier Safety Administration Hours of Service / Electronic Logging Device We all try to follow rules, but when you are a driver, not complying means you could lose your livelihood Obviously, the rules are in place to protect the drivers and the general public, but some of the rules like ELD have some elements that are very difficult to manage Joshua, let's first talk about the personal issues drivers face On the personal side they live on the road, which means: Time away from family – getting home for your daughter's game or the school play is a real challenge Living a healthy lifestyle – finding affordable, healthy food, exercise Sleeping in an unsafe/unsecure location Fatigue – not getting a good night's rest for a variety of reasons like Difficult work schedule – fighting their body clock Getting loaded/unloaded late Traffic – running late and running out of hours Can't find a place to park/sleep If you work in an office, being tired is no big deal, but for drivers, fatigue is a life and death problem No wonder there is a driver's shortage, the driver experience sounds rough Personal and professional blurs when you are a driver There are real quality of life issues that must be addressed or the industry will continue to have a driver shortage So, please tell us a little about the apps that drivers use on their phones and tablets First off, drivers are tech savvy, because of their lifestyles, they are connected via tablets, smart phones, laptops, CB radios (?) Productivity tools like email, texting, Voice activation applications are growing GPS, routing software, ELD Matching software to help them find a load home to avoid driving empty miles Tell me about your truck parking app From talking to drivers and our research, we have learned that driver: Spend 54 minutes per shift looking for parking 85% of drivers have experienced theft in a parking lot Our app Reserve spot in real time Safe/secure spot where you can actually sleep (peace of mind) Rating locations – amenities good/healthy food, truck wash, maintenance, etc How do truckers sign up? How much does it cost? The app is available for download from the Apple Store or Google play The app is free to download, and drivers do not pay extra to reserve parking Free to download – free to use Joshua, thank you so much for sharing your expertise, any final words? We need to improve the driver experience, to make it easier on drivers to put in those miles, otherwise the driver shortage will continue Trucking is the backbone of our economy and we need to respect the people who drive those trucks – improve their quality of life Apps like our can lighten the load for drivers, which in turn will increase productivity, safety and profits Learn More: Joshua Walls LinkedIn profile: https://www.linkedin.com/in/joshua-a-walls-ma-43b15032 Truckpark.com app: https://truckpark.com/

Tyler, please introduce yourself (your title / company / location) I'm Tyler Hildebrand and I am an account executive at Reliable Transportation Solutions in Cincinnati, OH Please tell us about your background. Where did you grow up? Go to school? What was your major in college? Born and raised in Cincinnati, OH Growing up I worked in lots of warehouses and was very interested in art Attended college at Ringling College of Art & Design in Sarasota FL, where I studied illustration You have had an interesting career path, tell us a little about your story Owned and operated an art gallery As an artist, I was commissioned to create artwork for some iconic organizations like the Chicago Cubs, Notre Dame football, etc. As a freelance marketer, I often worked closely with clients in the transportation and logistics space, so I began to understand the business I joined a university as an art professor, was promoted to administration and was even considered for the president of the university Transitioned to transportation and logistics when a recommended me for an opportuniy Before we dig into the "Five Keys to Cold Chain Success", let's cover the basics. What is the cold chain? A cold chain is a temperature-controlled supply chain for perishable food products, pharmaceuticals, and chemicals in order to maintain their quality and increase their shelf-life A cold chain is essential because it: Reduces food loss due to spoilage Enhances food safety and quality Balances and manages the supply and demand of food Talk a little bit about the Food Safety Modernization Act (FSMA) Biggest overhaul of Food and Drug Administration (FDA) in history Signed into law Jan. 4, 2011 Ensures safety and security of the food and feed supply to protect human and animal health. Significant impact to the food supply chain FSMA applies to: Food transported in bulk, where the food touches the walls of the vehicle (Example: juices) Packaged foods not fully enclosed by a container (Example: fresh produce) Food that require temperature control for safety (Example: beef) Tell us about the cold chain infrastructure It's a lot more than just reefers – the cold chain starts in the fields and ends when the consumer buys it -- Precooling facilities. Precooling is the removal of heat energy from crops after they are harvested. Precooling reduces spoilage and slows ripening. Refrigerated storagerefers to the storing of goods in a reduced temperature atmosphere. Heat is removed from the storage container or room to help keep goods cold. Refrigerated transportis a form of climate-controlled transportation which is designed to maintain a cool or frozen temperature. Packaging is another key component of the cold chain. Cold chain packaging is specifically designed to help maintain a reduced temperature. Cold chain packaging is sometimes insulated and or thermal. Information management systems are transforming the cold chain through: Route optimization WMS, TMS, documentation Hardware - scanning equipment, phone apps Business intelligence & KPIs Real time monitoring and alerts for non-compliance Now that we know the basics, what is the first key to cold chain success? Creating the Right Culture Continuous improvement Risk management Chain of custody Problem resolution Root cause analysis What is the second key to cold chain success? Develop a food safety plan - FSMA Requires it FSMA in a Nutshell Process Summary Written food safety plan Identify potential hazards / risks - Document every potential risk to food safety Implement a preventive control that will minimize or eliminate every risk Monitor controls to ensure they are done Training Documentation The food safety plan should be created with input from the extended team (suppliers, carriers, team members, experts and customers) The food safety plan is a living document that should be updated on a regular basis PROCESS/HAZARD/CONTROL/MONITOR What is the third to cold chain success? Leverage technology To ensure food safety and comply to FSMA, companies should try to use technology to monitor temperature control Real time monitoring and alerts for non-compliance The technology needs to be calibrated / updated Technology doesn't quit or call or sick What is the fourth key to cold chain success? Cold Chain Transportation that is sanitary (regardless of mode – air, road, ship, etc..) Appropriate temperature control during transport. Sanitation, including: Monitoring and ensuring the sanitation and condition of transportation vehicles is appropriate Pest control Sanitation associated with loading & unloading procedures Clean out Prior loads Appropriate packaging/packing of food products and transportation units (e.g., good quality pallets, correct use of packing materials). Good communications between shipper, transporter and receiver. Employee awareness and training. What is the fifth key to cold chain success? Choose supply chain partners who are FSMA compliant and who value food safety as much as your company does Partners should have all appropriate certifications for their industry Update procurement and carrier agreements to include FSMA provisions The FSMA raises the bar on monitoring, data management and processes. Software can make these activities easier. If possible, use sensors and electronic alerts to monitor important functions like temperature, testing and process compliance. Tyler, thank you so much for the education – really good stuff. Please wrap it up for us To ensure that the food supply chain is kept safe, you must do the work There are no short cut in FSMA compliance What's new over at Reliable? Reliable Transportation Solutions is an asset based 3PL specializing in refrigerated food transportation Centrally located in Cincinnati OH In addition to our own fleet (reefers/dry vans) we also have a full service brokerage To Learn More: Reliable Transportation Solutions: https://www.relyonrts.com/#homePage Connect with Tyler on LinkedIn: https://www.linkedin.com/in/tyler-hildebrand-87778829/

[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

[00:20] Opening / Introduction [00:51] Tell us about yourself and what you do in Panama. I was born and raised in Panama and manage a 3PL. My main role is to promote the hub that Panama offers to the world. [02:19] What was your first job in logistics? A relative of mine had a parcel company that got a contract with a multinational. He learned that he needed to serve a different area than he was in, so he called all his friends and family to help him launch. I was one of them. I started delivering parcels for him. [03:52] You're the General Manager of Logistics Services Panama. What type of customer do you serve there? We serve global multinationals, typically US-based. [05:12] Latin America has so much opportunity because of their growth, but they're hard to work with. Panama understands how to work with those markets, which is why the country is so important. Please elaborate. The difference with Latin America is that every country has their own culture and consumer behavior. It's hard for companies to penetrate these markets. We have specialized in enabling our customer's products to pass through tariff barriers. [07:46] You didn't have to work with these smaller companies back in the day, but now it really matters. There are many countries in Latin America that are growing. Panama is becoming more interesting, and not only for the US. [10:40] Tell us a little more about Panama. It's strategically located in the very middle of the continent. Spanish colonies decided that Panama would be a good path to discover new territories because it could be used to cross from the Atlantic to the Pacific in a short period of time. We have about 4,000,000 people. [17:13] What's the first reason that Panama is Latin America's supply chain capital? This is one of the elements you must have to serve your end customer. The Panama Canal is the backbone of the hub. It's about fifty miles from the Pacific to the Atlantic. I can see the Pacific from my kitchen window, and the Atlantic from my office window. We also have very fast internet. [20:45] What is the number-two reason that Panama is Latin America's supply chain capital? Our ports and location. We have developed a really good working infrastructure. We're not only crossing ships, but servicing them as well. We are moving over 7,000,000 containers per year. [23:15] What is the number-three reason that Panama is Latin America's supply chain capital? The time it takes to move a container from Asia to the US and then to Latin America adds a lot of costs. In Panama, you wouldn't have those. The costs will be at least 50% less than doing all the processing in the US. Regarding the new tariffs between the US and Mexico, you don't need to worry about them if you take the product right to Panama. [28:09] What's the fourth reason that Panama is Latin America's supply chain capital? Our economy. It's growing and has allowed us to develop the infrastructure needed for logistics. Panama is the most competitive market in Latin America and the US dollar is used. [31:22] What's the fifth reason? The free trades zones that we have. Long ago the country found a free trade agreement from Louisiana, translated it into Spanish, and implemented it. There's now a free trade zone being developed in the airport. [33:20] What's number six? We're a business-friendly country. There are over 150 Latin American headquarters for multinational companies in Panama. We don't have issues with visas. [35:59] What is number seven? We understand the market. Latin America is a very different place to do business and we know that. We create different labels for different countries. If there's something we can do for our customers, we do it. [40:41] Now in the US, we're expecting to see things we ordered online on our front porch in a few days. Latin American consumers will say the same thing, so we need inventory close to them. The future of Latin American ecommerce is bright. Because everyone lives online, people here will see new products at the same time as the US. The product needs to be available to the end customer. [45:08] What do you have to say to wrap this up? Every day, there are new disruptions in this industry. We need to react as fast as possible. It's no longer the big beating the small, but the fast beating the slow. The ones reacting fast are gaining business, and Panama makes reacting easier. [46:14] What's going on at your company? We want to move more into light manufacturing and assembly. We are getting better every day with our operational excellence.

Understand the 3PL Business Models – Asset based, Non-asset based, Asset light Asset based 3PLs own physical assets like trucks, planes, warehouses, etc. Pros: Since they own their assets, these 3PLs are able to use their own equipment to service customers. Truck availability is not a problem. Cons: Asset based companies typically have a limited service area compared to non-asset based companies that broker shipments through partner carriers. Non-asset based 3PLs use the assets from other logistics companies. Pros: If the 3PL is good at procurement, they can build a large network of partners / carriers. Cons: Since these 3PLs are dependent on their partners, they may sometimes struggle with difficult lanes. These companies also lack operational knowledge because they do not own assets. Asset light 3PLs own physical assets and also partner with other logistics companies similar to non-asset based companies. This is a relatively new model and is considered superior to the other models (asset based & non-asset based). Asset light companies have the best of both worlds – assets and brokerage capabilities. Wall Street values asset light 3PLs higher than asset based or non-asset based companies. Financial Stability Dun & Bradstreet. D&B is a business credit rating service. The most important measure is the Paydex metric. Paydex is a numerical credit score for the promptness of their payments to creditors. Look for a 3PL that beats the logistics industry average. In other words, select a 3PL with a higher D&B Paydex score than their industry peers. Older, more established companies are less likely to have cash flow issues than newer companies. New, fast growing companies burn through a lot of cash, which can cause slow payments. Specialization / Current Customers Specialization. Choose a 3PL that specializes in LTL and truckload. 3PLs that specialize in other services like air freight, sea freight, warehousing, etc. will often sell over the road services as a side business. Similar Customers. Look for a 3PL that has a customer base that has similar requirements as your business. The familiarity will reduce the learning curve and risk during the startup phase. Transactional vs. Strategic. High volume LTL shippers should hire a 3PL that has a focus on strategic shippers. Transactional shippers typically don't ship much and they don't commit to any one logistics company. Transactional shippers almost always pay more than strategic shippers. 3PLs that have transactional shippers are often not use to the requirements of a strategic shipper. Strategic shippers ship more than transactional shippers and they typically require customized solutions and a dedicated team. Customized Solutions. Larger shippers almost always require a customized solution. If you are a high volume LTL shipper, you should pick a 3PL that understands your unique requirements and can customize their service to meet those requirements. Transportation Management System (TMS) TMS capabilities vary greatly. Any system will quote, track, audit and pay for shipments, the best systems do so much more. The best TMS will do route planning, consolidation and optimization, which will save a lot more money than just negotiating good rates. Hire a company using one of the top systems. Also, make sure the 3PL you hire has their own dedicated TMS people on staff. Operational Excellence Operational excellence refers to the best practices and activities that get the desired business results including, but not limited to: Lean Processes Well defined processes to manage the business. A process orientation will enable cross training and continuous improvement. Carrier Network. For non-asset based and asset light 3PLs, the ability to partner with asset based companies is key. Bigger 3PLs will typically have a carrier procurement group and thousands of partner relationships. Service Area Footprint. When considering an asset based 3PL, ask about their service area footprint. Most asset based companies will serve only a few states or a region. Asset light companies use their own assets and partner with other carriers to cover a much larger footprint. Risk Management. A focus on risk mitigation is key. Reducing risk is really important during the transition to a new 3PL. Metrics / Key Performance Indicators (KPI). The best 3PLs use objective metrics / KPIs to measure performance. Canada & Mexico. Hire a company with significant experience in shipping to and from Canada and Mexico. Custom's requirements are ever changing, so hire a company that moves freight daily over these borders. Every Mode / Worldwide. Even if your company doesn't need the services, hire a 3PL that has the capability to ship worldwide and in every mode. Many shippers find themselves stuck with the wrong 3PL, when their business requires additional 3PL expertise. 24/7. Your 3PL should have support available 24 hours a day, 7 days a week. Choose a 3PL that can deal with exceptions, emergencies and expedites. People and Organization Senior Management. The best 3PLs have the best management. Look for companies that have stable, hands on senior management that has been around for at least 3 years. Dedicated Resources/People should be assigned to large accounts. There should be multiple points of contact including: salesman, director of operations, logistics coordinator / analyst and payment & auditing analyst. The 3PL team should become an extension of your logistics group. Solid Organization. Many sales driven companies have grown through far flung franchises / agents that lack adequate ties to the home office. Choose a company with management oversight, accountability and a focus on operations. Experienced team. During the Great Recession, a lot of older, experienced people left the logistics business. Logistics companies now employ younger people, make sure they are well trained and managed. Company Culture Dictates Behavior Every company has it's own unique culture. Look for the following cultural traits when picking a 3PL: Your 3PL should be a trusted partner. An extra phone call or email can prevent a lot of problems. Responsive & Flexible. Able to quickly address new challenges and opportunities. Win-Win Relationships. Communication is the game changer in the logistics business. Ownership of Problems. A good 3PL is always looking to take on new problems from the customer. Whatever it Takes Attitude. Hire a 3PL that will go the extra mile. Reputation & References Check a company's website. If a company has a poor website or none at all, it should raise a red flag. Also search for relevant news about your prospective 3PL. Linkedin is a great way to investigate the people who work at a company. Check References. Talking to current customers will provide good insights to a 3PL's performance. Note: many shippers who use 3PLs are reluctant to discuss their 3PL relationships, so this option is sometimes limited. Statement of Work / Implementation Support The 3PL statement of work (or contract) should be fair, simple and contain the right level of details. The roles and responsibilities of the 3PL and the shipper should be listed. Excessive penalties, legal jargon and clauses are not the right way to begin a relationship. Collaboration and communication during the early stages will save lots of problems in the future. Original podcast episode: https://cerasis.com/3pl-selection-criteria/ Original article: https://www.thelogisticsoflogistics.com/selecting-a-3pl/ Cerasis podcast: https://cerasis.com/category/podcast Adam Robinson on LinkedIn: https://www.linkedin.com/in/markadamrobinson/ Joe Lynch on LinkedIn: https://www.linkedin.com/in/josephlynchjr/ Also, check out my interview with Adam Robinson: https://www.thelogisticsoflogistics.com/gaining-favorable-attention-with-adam-robinson/