NASSTRAC’s Carrier of the Year Awards recognize those providers that have demonstrated excellence in transportation. Here’s a look at this year’s winners.
The supply chain disruptions caused by the coronavirus outbreak have only emphasized what most supply chain professionals have long known to be true: having a strong relationship with a highly skilled transportation provider can save a shipper in times of trouble.
Every year CSCMP’s sister organization, NASSTRAC (National Shippers Strategic Transportation Council), recognizes those transportation providers that have excelled at creating such partnerships with its Carrier of the Year awards. The goal of the program is to help shippers identify carriers that are the “best of the best” in terms of performance and value. As such, the program aligns well with the association’s focus on helping its members navigate the current challenges in transportation and create strategic partnerships with providers.
When it was founded in 1952, NASSTRAC was designed as a shippers association for transportation and logistics professionals who manage freight across all modes. The association, however, has two types of members: 1) regular members, which include shippers, receivers, shipper associations, and third-party providers, and 2) associate members, which include suppliers of transportation services, warehousing, or technology services and providers of other logistics-related products and services.
Regular members of NASSTRAC who are qualified buyers of transportation services receive ballots for the Carrier of the Year awards each year and grade candidates on a quantitative scale in five key areas: customer service, operational excellence, pricing, business relationship, and leadership/technology. To win, a carrier must be a member of NASSTRAC and/or CSCMP.
For this reason, Gail Rutkowski, executive director of NASSTRAC, also sees the awards as a way to recognize its carrier members.“Our motor carrier members have been great supporters of NASSTRAC, working with our members to continue to provide good service at fair prices,” she says. “We feel it is important to celebrate those supporters who day-in and day-out work with our members to keep our supply chains moving.”
This year’s winners are:
National Less-Than-Truckload (LTL) Coverage: YRC Worldwide Inc.
“Many of the winners this year are repeat winners,” Rutkowski says. “Year after year, they continue to work with our members and with us on challenges and on providing solutions.”
What makes a winning transportation provider? To answer this question, Supply Chain Quarterly's Managing Editor Diane Rand spoke with: Derek Leathers, president and chief executive officer, at Werner Enterprises; Pat Martin, vice president of corporate sales and strategic planning, at Estes Express Lines; Geoffrey Muessig, executive vice president and chief marketing officer, at Pitt Ohio; and Mike Gamel, chief executive officer, at Mexpress Transportation.
(National LTL Coverage winner YRC Worldwide Inc. was unable to participate by press time.)
National Truckload winner:Werner Enterprises
Represented by Derek Leathers, President and Chief Executive Officer
What attributes or aspects of your business do you feel led to Werner Enterprises being named Carrier of the Year?
The dedication of our professional drivers and office associates is what sets us apart and makes us an industry leader. I often tell our drivers and associates that average is for other people, and when I look around Werner, average is nowhere to be found. Our innovation in transportation and our ability to provide global transportation solutions definitely gives us an edge.
What does winning this award represent to your company?
Customer service and satisfaction are always at the forefront of our strategic planning. To receive an award that is shipper-selected based on our excellence in performance and results is very impactful. It validates that our innovation in transportation technology and focus on customer service are producing results that are in alignment with customer expectations.
What are some of the challenges that the national truckload sector is facing, and how is your company responding to these challenges?
Of course, the COVID-19 crisis is the main challenge everyone is facing right now. We have been responding to natural disasters as an industry for as long as the industry has been around, but not to this magnitude. Keeping our drivers safe and ensuring they have the necessities they need while out on the road is our top priority. Every decision we make and every action that we implement will be done by being logical, rational, and above all, compassionate.
How do you plan to weather the COVID-19 pandemic and the economic repercussions?
Werner has had a pandemic plan since 2009 when the H1N1 outbreak occurred. We were well-prepared throughout our network. Werner has always been financially stable; we accomplish this by having a diversified portfolio and keeping debt very low. Because of this, we are well-positioned to weather these uncertain times.
What are some of the biggest accomplishments that your company has achieved in the past year?
We were very honored to have been the recipient of 10 customer awards in 2019. In addition to being recognized by our customers, we also received many industry awards including the SmartWay Excellence and High Performer Awards from the Environmental Protection Agency for the third consecutive year. Werner also earned two 2019 Quest for Quality Awards from Logistics Management in the truckload and van line carriers and third-party logistics (3PL) service providers categories. Other significant awards we earned were Top Company for Women by the Women in Trucking Association and several Military Friendly awards from VIQTORY. We were also extraordinarily proud to have been able to assist the State of Nebraska in its efforts to source and deliver critical medical supplies for hospitals and public health agencies across the state in the fight against COVID-19.
Represented by Geoffrey Muessig, Executive Vice President and Chief Marketing Officer.
What attributes or aspects of your business do you feel led to your being named Carrier of the Year?
Pitt Ohio provides reliable and dependable service within and between the Midwest and the Northeast regional LTL markets.
What does winning this award represent to your company?
We at Pitt Ohio appreciate the fact that the NASSTRAC award is based on widespread support from shippers in many industries.
What are the challenges that the LTL sector is currently facing, and how is your company planning to respond to these challenges?
Rising operating costs in the form of increased labor, benefits, equipment, and tolls are a challenge for all LTL carriers across the nation.
What are your plans for the upcoming year?
Pitt Ohio has enhanced our service offering by providing shippers with next-day service lanes to the Greater Toronto area, western New York, and parts of New England.
What are some of the biggest accomplishments that your company has achieved in the past year?
Pitt Ohio is focused on lowering our costs. To this end, we are digitizing our administrative functions by working with our customers to transition from paper bills of ladings to digital bills of lading.
Represented by Pat Martin, Vice President of Corporate Sales and Strategic Planning
What attributes or aspects of your business do you feel led to Estes Express Lines being named Carrier of the Year?
As the largest privately held trucking company in America, we have the size, scale, and flexibility that customers are looking for. We are also passionate about our customers, willing to “think outside the box” to get things done, and always try to do the right thing.
What does winning the Carrier of the Year award represent to your company?
Being recognized by NAASTRAC is really an honor. We are humbled to be named Carrier of the Year and will continue to do everything we can to live up to the faith and trust that the shipping community has put in us.
What challenges are LTL companies facing, and how is your company responding to these challenges?
Estes is made up of six regions and has a vast nationwide network. This means our success isn’t just dependent on a single person or team. Every day, we are relying on many different people, across many different locations, to make the right choices. And because of this, our biggest challenge is often fitting the right people to the right positions. This isn’t an easy task with a network as large as ours, but we’re in the people business. For us, that means we are committed to creating an environment where our employees feel valued for their contributions and want to come to work.
How do you plan to weather the COVID-19 pandemic and the economic repercussions?
All businesses are facing a challenge today with COVID-19, but we are very fortunate (and humbled) to have so many loyal customers who continue to put their trust in us during these uncertain times. We are lucky to be privately held and debt-free, so we are in a great position to weather the storm. As the economy begins to open up, we will all have a better understanding of the “new normal.” Then it will be back to the business of rolling up our sleeves and growing our company like we’ve always done.
What are some of the biggest accomplishments that your company has achieved in the past year?
Customers rewarding us with business is always our greatest accomplishment. This only happens when we deliver a quality product to the market. In fact, our commitment to quality is what’s driven us to spend the past year enhancing many of our tools and systems to provide an even more efficient, user-friendly experience for our customers. And it’s always fun to watch the people of Estes step up and grow, too.
Specialty LTL winner:Mexpress Transportation Inc.
Represented by Mike Gamel, Chief Executive Officer
What attributes or aspects of your business do you feel led to your being named Carrier of the Year?
We feel that Mexpress Transportation has been named Specialized Carrier of the Year for the fourth time because we continue to provide a service to the logistic marketplace that no one else provides. Our service is unique in that we provide a “borderless” LTL and full truckload (FTL) road feeder service to and from Mexico that fills the void between your regular truck service and air freight. Mexpress has been providing a “borderless” road feeder service between the U.S. and Mexico for 22 years, and we are still seen as a new service. We are way ahead of our time!
What does winning the Carrier of the Year award represent to your company?
I have been a member of NASSTRAC since its inception. I attribute most of our success in this industry to what we’ve learned through our association with NASSTRAC as well as the friendship and unwavering support of NASSTRAC members through the good times as well as the bad times.
What challenges is the industry facing today, and how is your company planning to respond to these challenges?
As near shoring becomes more prevalent and with the passage of the new USMCA [United States-Mexico-Canada Agreement], trade with Mexico has increased in both directions. Just in time [deliveries] and keeping down inventory of both raw materials and finished goods has intensified. With our set schedules and committed transit times, clients from around the world have moved air freight into the U.S. and turned the shipments [over] to Mexpress at our various drop stations for immediate departure and overnight or second-morning service to Mexico. We are now seeing a big increase in freight from the U.S. to the manufacturers in Mexico, but the U.S. customer doesn’t understand the logistics between Mexico and the United States. We are here to help them from A to Z.
How do you plan to weather the COVID-19 pandemic and the economic repercussions?
Our focus has been on the health and safety of our team as well as on strengthening our infrastructure. The COVID-19 epidemic put in the forefront how much of the raw material and finished goods that Canada, the U.S., and Mexico depend on come from Asia (in particular China). Companies that were contemplating moving their production back to a USMCA country have sped up the evaluation process—not only in an effort to meet the United States’ new country of origin rules but also because they now realize the importance of manufacturing in the region. The changes in the supply chain taking place is good for Mexpress because we link the United States, Canada, and Mexico with our unique LTL and FTL road feeder service.
What are some of the biggest accomplishments that your company has achieved in the past year?
Besides winning this coveted award from NASSTRAC, we feel our biggest accomplishment is the team of experts that Mexpress has put together within the company to assist companies or clients with any logistics issue to or from Mexico even though it may not be in our service matrix.
The practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."
Even as the e-commerce sector overall continues expanding toward a forecasted 41% of all retail sales by 2027, many small to medium e-commerce companies are struggling to find the investment funding they need to increase sales, according to a sector survey from online capital platform Stenn.
Global geopolitical instability and increasing inflation are causing e-commerce firms to face a liquidity crisis, which means companies may not be able to access the funds they need to grow, Stenn’s survey of 500 senior e-commerce leaders found. The research was conducted by Opinion Matters between August 29 and September 5.
Survey findings include:
61.8% of leaders who sought growth capital did so to invest in advanced technologies, such as AI and machine learning, to improve their businesses.
When asked which resources they wished they had more access to, 63.8% of respondents pointed to growth capital.
Women indicated a stronger need for business operations training (51.2%) and financial planning resources (48.8%) compared to men (30.8% and 15.4%).
40% of business owners are seeking external financial advice and mentorship at least once a week to help with business decisions.
Almost half (49.6%) of respondents are proactively forecasting their business activity 6-18 months ahead.
“As e-commerce continues to grow rapidly, driven by increasing online consumer demand and technological innovation, it’s important to remember that capital constraints and access to growth financing remain persistent hurdles for many e-commerce business leaders especially at small and medium-sized businesses,” Noel Hillman, Chief Commercial Officer at Stenn, said in a release. “In this competitive landscape, ensuring liquidity and optimizing supply chain processes are critical to sustaining growth and scaling operations.”
With six keynote and more than 100 educational sessions, CSCMP EDGE 2024 offered a wealth of content. Here are highlights from just some of the presentations.
A great American story
Author and entrepreneur Fawn Weaver closed out the first day of the conference by telling the little-known story of Nathan “Nearest” Green, who was born into slavery, freed after the Civil War, and went on to become the first master distiller for the Jack Daniel’s Whiskey brand. Through extensive research and interviews with descendants of the Daniel and Green families, Weaver discovered what she describes as a positive American story.
She told the story in her best-selling book, Love & Whiskey: The Remarkable True Story of Jack Daniel, His Master Distiller Nearest Green, and the Improbable Rise of Uncle Nearest. That story also inspired her to create Uncle Nearest Premium Whiskey.
Weaver discussed the barriers she encountered in bringing the brand to life, her vision for where it’s headed, and her take on the supply chain—which she views as both a necessary cost of doing business and an opportunity.
“[It’s] an opportunity if you can move quickly,” she said, pointing to a recent project in which the company was able to fast-track a new Uncle Nearest product thanks to close collaboration with its supply chain partners.
A two-pronged business transformation
We may be living in a world full of technology, but strategy and focus remain the top priorities when it comes to managing a business and its supply chains. So says Roberto Isaias, executive vice president and chief supply chain officer for toy manufacturing and entertainment company Mattel.
Isaias emphasized the point during his keynote on day two of EDGE 2024. He described how Mattel transformed itself amid surging demand for Barbie-branded items following the success of the Barbie movie.
That transformation, according to Isaias, came on two fronts: commercially and logistically. Today, Mattel is steadily moving beyond the toy aisle with two films and 13 TV series in production as well as 14 films and 35 shows in development. And as for those supply chain gains? The company has saved millions, increased productivity, and improved profit margins—even amid cost increases and inflation.
A framework for chasing excellence
Most of the time when CEOs present at an industry conference, they like to talk about their companies’ success stories. Not J.B. Hunt’s Shelley Simpson. Speaking at EDGE, the trucking company’s president and CEO led with a story about a time that the company lost a major customer.
According to Simpson, the company had a customer of their dedicated contract business in 2001 that was consistently making late shipments with no lead time. “We were working like crazy to try to satisfy them, and lost their business,” Simpson said.
When the team at J.B. Hunt later met with the customer’s chief supply chain officer and related all they had been doing, the customer responded, “You never shared everything you were doing for us.”
Out of that experience, came J.B. Hunt’s Customer Value Delivery framework. The framework consists of five steps: 1) understand customer needs, 2) deliver expectations, 3) measure results, 4) communicate performance, and 5) anticipate new value.
Next year’s CSCMP EDGE conference on October 5–8 in National Harbor, Md., promises to have a similarly deep lineup of keynote presentations. Register early at www.cscmpedge.org.