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The Custom Companies: Receiving Data Faster with DDC Sync

Summary

A leading third-party logistics provider needed better visibility into near real-time data, sourced from their nationwide fleets.

DDC FPO built and implemented DDC Sync, an enterprise application that improved their data visibility by 6 hours.

Improved access to bill of lading (BOL) data allowed leadership to make more efficient and profitable routing decisions, supported valuable relationships with partner organizations, and helped to streamline back-office operations.

Background

The Custom Companies, Inc. is a full-service transportation company dedicated to meeting shippers’ needs by providing world-class service with a hands-on, personalized approach. The company offers a complete range of transportation services, including less than truckload (LTL) services, in all 50 states.

The Custom Companies had already partnered with DDC for other solutions, including Freight Billing. Now, they were seeking a solution that would enable them to access data faster, build informed contingency plans, and optimize resources in near real-time. DDC offered them an opportunity to try DDC Sync, a new enterprise solution for capturing and transmitting bill of lading (BOL) data.

The Challenge

Prior to DDC Sync, The Custom Companies’ BOL data was not being used in a timely manner. Drivers manually keyed BOL data, which then had to be transmitted to and validated by the back office. This meant that data could only be used for decision-making hours later.

“All it takes is one driver to miskey a zip, and that could cost you thousands,” explains Joseph Klikas, Chief Experience Officer at The Custom Companies, Inc. “You tend to overlook that information just because you don’t have the confidence level that you’d like.”

As a result, The Custom Companies couldn’t confidently provide their customers with the most up-to-date information on their shipments. They needed a technology solution to process BOL data in near real-time and make it available to their in-house analytics team faster.

The Solution

DDC Sync is an enterprise technology solution that contains a native Android app for truck drivers and a powerful web-based portal for terminal administrators and management.

This solution optimizes data flows, workforce management, and logistics planning by empowering drivers to capture BOLs faster with greater accuracy, streamlining cross-team communication, and enabling system interoperability.

This software suite comes with several features that align well with The Custom Companies’ needs, including:

  • Smart mobile capture technology
  • Cutting-edge driver tracking and GPS tagging
  • Secure two-way and group communication
  • Real-time reporting, dashboards, and automated alerts
  • Engaging, adoption-driving gamification

At the time, DDC Sync was still in its development phase, and DDC offered The Customs Companies an opportunity to beta test and provided feedback on the solution.

Results

DDC Sync expedited BOL processing and data transfer rates from the word “go.” The results speak for themselves. From 1,320 BOLs received in the proof of concept, just 41 images were rejected, a real-world success score of 97%. DDC has since corrected glitches in the early versions of the system, increasing the success rate to 98%.

DDC Sync is also easily integrated with The Custom Companies’ transportation management system (TMS), which Carrier Logistics, Inc. manages (CLI). “Because we have our hands on the data earlier, the ability for the labor force to execute — and execute flawlessly — is directly impacted,” says CLI President Ben Weisen.

The Custom Companies was also able to allocate resources in their back office more efficiently. Thanks to DDC Sync, they received fewer calls to customer service looking for updates because up-to-date information was promptly available to end-users in the system.

Most importantly, leveraging DDC Sync resulted in an average six-hour gain in visibility and access to freight data per shipment.

“Prior to DDC Sync, our operations team would create a load optimization plan based only on destination zip code and tonnage from the driver at the time of pickup,” Klinkas says. “Now we can make more efficient and profitable routing decisions.”

Conclusion

The Custom Companies, Inc. looked for a flexible solution to expedite and streamline their freight data processes and turned to DDC FPO to build on their already-successful relationship.

Thanks to DDC Sync, they got the solution they needed — and more. Leveraging DDC Sync has improved internal decision-making, better back-of-house resource allocation, and improved customer experience.

DDC implemented a system that achieves near-perfect performance on BOLs received, so The Custom Companies can feel confident taking action based on their data. In a rapidly changing world, this kind of assurance allows them to be where their customers need them when they need them.

The Custom Companies: Promising Shorter Delivery Times Thanks to Strategic LTL Billing Program

Summary

By trusting DDC FPO with their freight billing, The Custom Companies has seen a multiplier effect in operational efficiency. This has allowed them to keep their customers at the forefront of their customer-centric organization.

After seeing positive results with their freight billing initiative, The Custom Companies is going green and implementing electronic bills and digital signatures. This includes investing heavily in system connectivity for their carrier network and strategic EDI partnerships in order to improve visibility.

Background

Leading Asset-Light Domestic and International Transportation Company

The Custom Companies, Inc., is a “Transportation Company” committed to meeting shippers’ needs by providing “World Class Service” with a hands-on, personalized approach. Headquartered in Northlake, Illinois, The Custom Companies Inc. offers a complete range of Transportation Services including 50 State Less than Truckload (LTL), Domestic and International Air Freight, Dedicated Contract Cartage, Direct Mail Distribution Services, Expedited Ground Services, Hot Shot Services, Intermodal Services, Local Cartage, Logistics Management, Pick & Pack Services, and Full and Partial Truckload Services within North America.

The Challenge

Back Office Staff Retention 

The Custom Companies already had an impressive technology portfolio, but it struggled to maintain back office staff. BPO was a thought the company had entertained, but it wasn’t until he met Chad Crotty, DDC’s Vice President of Sales, when Klikas said he recognized that this was something they should pursue.

The Solution

A More Strategic and Consistent Freight Billing Process

The partnership began with an LTL billing program in January 2020. Despite a production rollout amid the onset of COVID-19, Klikas reported that the onboarding was excellent, as well as the handling of pandemic-induced volume fluctuations.

“DDC was a huge relief for us right out of the gate,” said Klikas. “The balance, the consistency, and the turn around time due to improved accuracy and speed of entry were all immediate benefits we could pass onto our customers.”

According to Klikas, the new speed of entry enabled The Custom Companies to cut hours out of linehaul schedule and enhance service delivery to its customers. “We can now promise customers shorter delivery times,” he said.

“We now average 99.81% accuracy, which allows us to have greater confidence in our information, spend less money and less time on shipment correction, and dedicate more resources to serving our customers. DDC FPO made our company better and allowed us to rethink other pieces of what we do,” said Joseph Klikas, The Custom Companies’ CXO.

 

The Custom Companies Reports Shortened Delivery Time Among Multiplied Efficiency Gains In Partnership With DDC FPO

Full-service transportation and logistics provider expedites delivery and enhances service for customers in collaboration with business process partner DDC

EVERGREEN, Colo., Sept. 9, 2020 — The Custom Companies, a leading asset-light domestic and international transportation firm headquartered in Metro Chicago, is reporting a multiplier effect in operational efficiency, stemming from its partnership with business process outsourcer DDC FPO of The DDC Group.

Known for its world-class service, The Custom Companies started in 1986 with a two-truck operation and now has a network of thousands of carriers of all modes for domestic and international shipments.

“We are customer-centric,” said Joseph Klikas, Chief Experience Officer of The Custom Companies. “Our service to our customers defines everything we do as a company and how we organize ourselves. It’s in our name.”

The company was introduced to DDC by an industry peer who also partners with the BPO provider.

“We weren’t in the market,” explained Klikas, “but we always keep an open mind.” The Custom Companies already had an impressive technology portfolio, but it struggled to maintain back office staff. BPO was a thought the company had entertained, but it wasn’t until he met Chad Crotty, DDC’s Vice President of Sales, when Klikas said he recognized that this was something they should pursue.

The partnership began with an LTL billing program in January 2020. Despite a production rollout amid the onset of COVID-19, Klikas reported that the onboarding was excellent, as well as the handling of pandemic-induced volume fluctuations.

“DDC was a huge relief for us right out of the gate,” said Klikas. “The balance, the consistency, and the turn around time due to improved accuracy and speed of entry were all immediate benefits we could pass onto our customers.”

According to Klikas, the new speed of entry enabled The Custom Companies to cut hours out of linehaul schedule. “We can now promise customers shorter delivery times,” he said.

In addition, accuracy improvements directly impacted resource allocation. “We now average 99.81% accuracy,” Klikas said. “This allows us to have greater confidence in our information, spend less money and less time on shipment correction, and dedicate more resources to serving our customers.”

The efficiency gains set a new standard for The Custom Companies. “They made our company better and allowed us to rethink other pieces of what we do,” Klikas explained.
As well as expanding its partnership with DDC to streamline other back office functions, The Custom Companies is going green and implementing electronic bills and digital signatures. This includes investing heavily in system connectivity for their carrier network and strategic EDI partnerships in order to improve visibility.

“I give kudos to our staff as we have adapted to the challenges of the industry,” said Klikas. “2020 has empowered us to think creatively and make strategic adjustments to ensure we remain competitive, strengthening our product and withstanding challenges.”

On behalf of DDC, Crotty explains that the positive experience is mutual: “Our goal is to always deliver for our partners and exceed their expectations, but working with Joe and the rest of The Custom Companies’ team has been nothing short of first-class.”

About The Custom Companies

The Custom Companies, Inc. is a “Full Service Transportation Company” committed to meeting shippers’ needs by providing “World Class Service” with a hands-on personalized approach. Headquartered in Northlake, Illinois, The Custom Companies Inc. offers a complete range of Transportation Services including 50 State Less than Truckload (LTL), Domestic and International Air Freight, Dedicated Contract Cartage, Direct Mail Distribution Services, Expedited Ground Services, Hot Shot Services, Intermodal Services, Local Cartage, Logistics Management, Pick & Pack Services, and Full and Partial Truckload Services within North America. Our equipment offerings include Dry Vans, Temperature Controlled and Flat Bed Equipment. The Custom Companies Inc. has grown rapidly, thanks to our relationships with our Customers, who have afforded us the opportunity to become Partners in servicing their specific Transportation needs.

To learn more, visit: https://www.customco.com

About DDC FPO

DDC FPO is a strategic business process outsourcing (BPO) partner for today’s leading transportation and logistics providers, including 50% of the top less-than-truckload (LTL) carriers as ranked by revenue.

As the freight-focused member company of The DDC Group – a worldwide network of BPO experts and solutions – DDC FPO is able to serve clients in 40 languages across North America, UK, Europe, and Asia-Pacific. Solutions include data-based, goal-driven back office programs such as Freight Billing, Rate Auditing, POD Processing, Customs Brokerage Processing, and IT Outsourcing, among others. To learn more, visit: ddcfpo.com.

Five Takeaways From Our Interview with Joseph Klikas, CXO at The Custom Companies

In the latest episode of the FreightCaviar Podcast, we sat down with Joseph Klikas, Chief Experience Officer at The Custom Companies, Inc.

He emphasized the role of technology as an element that helps in everyday business and the pride of being presented with a challenge and being able to create a solution for it. Thanks to this, they have made relationships that have supported them throughout the years.

The secret’s in the sauce – a combination of well-trained employees and a suite of technologies at your disposal, put them on top.

Here are the Top 5 Takeaways From Our Interview:

Joe’s staying optimistic and hopes to have a more balanced 2024 in LTL. All in all, he thinks next year will be a good year for all of us.

In Joe’s eyes, tech is an everpresent element in the industry that helps them run their business from day to day. Despite this, he says, it will never be able to replace human interaction.

We learn that The Custom Companies’ growth is attributable to many different factors, one of which is leveraging at least one of their brokerage nature tools.

Joe shares his thoughts on the importance of a handshake and friendship in the industry. In other words- never underestimate the power of direct human contact.

Joe talks about what exactly makes The Custom Companies stand out in the crowd- with a blend of well-trained employees and a suite of technologies at your disposal, this is key to a successful business.

Catch the full episode below or over on Apple Podcasts, Spotify, or YouTube.

The Custom Companies breaks ground on new 225,000-square-foot logistics facility in Northlake

As a developer specializing in transportation infrastructure, CenterPoint Properties has held many groundbreakings, but one on April 17 at 135 Railroad Ave. in Northlake stood out to Brian McKiernan, their senior vice president.

Soon, McKiernan said, a 225,000-square-foot “state-of-the-art logistics facility” will be The Custom Companies’ new Northlake home, describing a “commitment to stay in Northlake and stay with CenterPoint Properties” in “a premier location.”

“I want to thank The Custom Companies for wanting to stay here; for providing the jobs,” Northlake Mayor Jeffrey Sherwin said.

The Custom Companies Chief Executive Officer Perry Mandera said that after 26 years headquartered in Northlake, he knows the local community and is eager to stay as his company grows. The previous Northlake location was at 317 Lake St.

“When you see the news and hear about last mile” and other trends, that’s what The Custom Companies does, McKiernan says.

Truck, rail and air transportation is “the economic engine that’s driving how we get what we do,” McKiernan said, adding that he’s honored to “help Northlake retain a great client; a great citizen like The Custom Companies.”

Sherwin described the history of the site, which was a golf course in the 1930s and an electronics manufacturing center in the 1950s.

“Our motto is ‘your success is our success,’ ” Sherwin said, so when companies choose Northlake, “our building department gets you going right away.”

Mandera said that Sherwin and others made the decision to grow in Northlake an easier one.

“His history, his legacy of what he’s created in Northlake is incredible for business,” Mandera said. “It’s easy to do business in Northlake.”

As the length of trailer trucks increased from an average of 40 feet to 53 feet, Mandera said their new warehouse will be designed for the present and the future.

“The new configuration of the warehouse is going to make us immensely efficient,” he said, bringing about 500 full-time and more part-time jobs.

Mandera anticipates a fourth-quarter 2019 move into the new facility, which is located near O’Hare airport, railroad lines and three major highways, he added.

CenterPoint Properties hired Premier Design + Build Group to create a facility for The Custom Companies’ future.

Executive Vice President and Director of Construction Mark Melone also described Northlake as “very helpful, very collaborative in their approach and very timely in everything they do,” creating a “positive dynamic.”

Melone said Premier Design + Build already has experience redesigning the nearby modern facility for the Dr Pepper Snapple Group in Northlake.

Now, more than 200 construction jobs will be created.

“This building is designed to accommodate modern trucking in terms of the dock positions,” Melone said, with “137 dock positions to bring in trucks quickly.”

Modern design features ensure that “there’s substantial improvement in the energy efficiency of the building,” Melone said, such as light-emitting diode (LED) lighting. Over time, Melone said this results in “a return on the investment with long-term savings for the facility.”

Brokers Darwin Realty and Cushman & Wakefield, architect Cornerstone Architects, and civil engineer SPACECO Inc. are also partners in the building efforts.

Originally Published: 

How The Custom Cos. uses tech to raise the bar

The Custom Cos. employs a wide suite of management tech and business process services to handle thousands of shipments each day.

“Comprehensive” is how The Custom Cos. describes its wide range of transportation solutions, which seems to be an apt description.

Consider, for example, that the company offers less-than-truckload and truckload services across North America, along with an array of expedited service options. The full-service transportation business also has leveraged various technologies to streamline service offerings and improve customer experience and satisfaction.

“The Custom Cos. has been at the forefront of technology in the transportation industry for three decades,” said Joseph Klikas, its chief experience officer. “Those capabilities are what allow us to continually raise the bar for customer service.”

Bringing that approach into focus is the LTL division of The Custom Cos., which handles thousands of shipments every day. It has a dedicated fleet for its linehaul operation and many company drivers at facilities in Chicago and Los Angeles. The LTL division fields 140 over-the-road tractors, 130 day cabs, and a mix of trailers.

“Technology is the backbone that connects our fleet and drivers to our dedicated customers,” Klikas said. “Manual processes remain within trucking operations. With systems and services that drive efficiency, we make things easier for customers and drivers and have the ability to grow without adding expenses.”

See also: Diesel surges again, rising 9.3 cents to $4.633

Business process outsourcing is one way The Custom Cos. improves its service to customers. The company began using DDC FPO Customer Care services to handle requests for general customer support such as setting up pickups and sending rate quotes. The relationship was then expanded to include administration of ground and air freight operations, accounts payable processes, and dedicated account support.

“The customer support services from DDC FPO are improving the way we serve shippers and help them achieve their goals,” Klikas said. “Outsourcing enables us to find and retain quality talent for specific initiatives while having the ability to quickly scale our business and remain a major employer in our key markets.”

The Custom Cos. also uses the DDC Sync mobile data capture solution. “Like most LTL carriers, we struggle to obtain full shipment detail early enough within the shipment life cycle,” Klikas explained. “With DDC Sync’s image capture capabilities, we can digitize the bill of lading and optimize schedules to make the best use of drivers and equipment.”

Drivers at The Custom Cos. use DDC Sync in conjunction with Acordex mobile technology on tablets, and both solutions are integrated with Carrier Logistics’ FACTS freight management software.

Designed for asset-based LTL carriers, FACTS includes customer shipping tools, dispatch and driver management, a rate engine, and a full back-office suite. The company also utilizes the CLI Dock Management System with its handheld scanners to help ensure the freight is moved accurately and efficiently and enable communication without paper notes or verbal instructions.

Technology integrations with FACTS include the Royal 4 Systems warehouse management application. “The warehouse management system provides visibility from the time we receive a shipment,” Klikas related. “In coordination with the CLI DMS, it ensures freight flows smoothly.”

The combination of solutions in place at The Custom Cos. enables employees to provide real-time information about every shipment to customers. Most of that activity occurs on the company’s customer-created website. Site features include quotes and pickup requests, real-time shipment tracking, customized reporting, and analytics that can cover shipments by destination and customer for any period of time.

Customer satisfaction is a crucial measure for The Custom Cos. when it comes to determining the value of its investments in technologies and services, Klikas noted. With outsourcing, for example, the company is addressing the challenges that come with growth and labor availability. “We also find that the right solutions help us attract and retain drivers because they streamline processes and reduce steps that add friction,” he added.

“As a family-owned company that’s been in business for 37 years, we’ve always taken great pride in providing a world-class customer experience,” Klikas said. “We are blessed with great employees and our services and technology provider partners, so we’re able to do that and continue to grow.”

Fleets Persevere Through Down Market With Care and Creativity

Trucking Companies Survive on Lower Rates as Overcapacity Persists

With an overabundance of freight-­hauling capacity, weak rates and higher operating costs all contributing to a challenging market for trucking companies, fleet operators have been increasing efficiency, embracing technology and collaborating with shippers to survive.

“I can’t ask customers for more pennies right now. If I can find ways to save pennies, it is the same thing,” said Royal Jones, CEO of truckload carrier Mesilla Valley Transportation. “Every penny a mile is $150,000 a month.”

From the surge in freight demand during the economic rebound from the COVID-19 pandemic to the ongoing market downturn that took hold in 2022, trucking hasn’t had a normal freight market for the better part of four years, said Dean Croke, principal analyst at DAT iQ, the freight data operation of DAT Freight & Analytics.

Conditions today feel similar to late 2018 and 2019, with a prolonged period of low demand, he said.

“Shippers still have pricing power. They’re still driving down contracts on [requests for proposal] because there is still capacity in the market,” Croke said.

Spot rates, meanwhile, are nearly identical to where they were in 2019.

“We’re seeing soft demand for manufacturing, food, chemicals and steel. Even though housing starts were up, still not enough demand to move the rate needle,” Croke said. “There is a lack of confidence because we don’t know when the market will turn. That all supports a very soft freight market that is oversupplied on capacity.”

The total number of motor carrier authorities spiked during the pandemic as an influx of small carriers entered the industry. While some of those new businesses have since exited the market, a significant portion remain.

“On the supply side, the general headline is we still have more trucks than loads at a market level,” Croke explained, adding that carriers made unprecedented profits during the economic rebound from the pandemic, allowing them to survive in today’s weaker market.

However, there have been several notable carrier bankruptcies during the ongoing downturn, including less-than-truckload giant Yellow Corp. and Arnold Transportation Services.

Lindsay Bur, senior economic analyst at American Trucking Associations, said there was almost a 7% increase in the number of carriers leaving the industry from December 2022 to December 2023, but that rate is ­slower than it had been in previous downturns.

“It is happening, but it is prolonged and will probably take the rest of 2024 to see those carriers exit the market,” Bur said while speaking at an industry event.

Part of the reason capacity is leaving ­slowly has to do with banks that own the liens on equipment and their reluctance to repossess that equipment. During the recovery from the pandemic, buyers paid a premium for Class 8 tractors at a time when freight demand exceeded industry capacity.

That equipment factor also is contributing to those carriers’ willingness to take whatever loads they can get.

“They have to run hard at lower rates just to pay their financial insurance,” Croke said.

If used Class 8 truck prices go up, ATA’s Bur said she expects to see a significant number of exits due to bank repossessions.

Higher Costs and Lower Rates

Carriers are not only dealing with low rates but a significant increase in operating costs. Wages, fuel prices, insurance premiums, equipment costs and interest rates have climbed in recent years.

“A new truck today costs so much more than it did five years ago, and with interest being so high, your cost per month on a 60-month loan is $800 to $1,000 a month more than it was,” said Jones of Mesilla Valley Transportation. “The costs that went up didn’t go down because rates went down.”

In some cases, broker are offering rates that are about 20% to 30% lower than carriers’ costs, Jones added.

Mesilla Valley Transportation, which ranks No. 73 on the Transport Topics Top 100 list of the largest for-hire carriers in North Amer­ica, turns down freight daily because rates are too low.

However, Jones said his company will sometimes accept lower rates on broker boards if it helps move trucks to where they are needed for contract freight.

“Thank God for us we have 70% contract,” he said. “If I was running 100% spot, it wouldn’t work.”

Amid a soft freight market, fleets such as A. Duie Pyle emphasize the importance of carrier performance to overall transportation costs. (A. Duie Pyle)

John Luciani, chief operating officer of less-than-truckload solutions at A. Duie Pyle, said pricing is both an art and science.

The carrier will pass on a piece of business if the rate is too low but tries to figure out a way to say yes.

“We’re looking for customers to give us supply chain data, and then we’ll create a solution,” he said.

Nonetheless, every customer needs to contribute to profitability.

“At the end of the day, if we’re not profitable, that isn’t good for anybody,” Luciani said, adding that customers need to think about the “real cost outside of the four corners of the freight ­invoice.”

That includes not only freight rates but also carrier performance.

“We are 98% on time and our claims ratio is about 0.26% of revenue,” Luciani said.

  1. Duie Pyle ranks No. 57 on the for-hire TT100.

Chris Kelley, senior vice president of operations at Old Dominion Freight Line, said it is important to educate customers on the total cost of transportation.

“Sometimes, there is an initial move to a lower-cost option rather than looking at the value,” he said.

Chargebacks, damages and delays all can impact the total cost to the shipper.

“We have a value calculator to talk about some of the things we do to take into account the cost of transportation and how to maximize every dollar you’re spending,” Kelley said.

Old Dominion ranks No. 8 on the for-hire TT100.

When pricing pressures are not sustainable, it is better to pass on an opportunity rather than accept a margin that will not allow for a reasonable return, said Kent Williams, executive vice president of sales and marketing at Averitt.

Fortunately, the best customers understand the value of a stable partnership.

“They stick with us even when market conditions could allow them to seek more competitive rates elsewhere,” he said.

Carriers like Averitt may become more selective when market conditions call for a higher emphasis on margins. (Averitt Express)

One of the biggest operational challenges for carriers in a down market relates to maintaining profitability through shipment density, Williams added.

“As the geographic area a car­rier serves remains constant, when market conditions slow down, a carrier’s density decreases, which can negatively impact efficiency and margins,” he said.

In slower markets, it can be difficult to sustain the usual level of hours and miles that professional drivers can expect during busier times.

Williams said Averitt reallocates resources from slower markets to those with more activity to keep drivers moving and associates employed, which ensures the carrier is prepared when market conditions rebound.

Averitt ranks No. 25 on the for-hire TT100.

Boosting Efficiency

There are two ways for transportation companies to save money — cut costs or create efficiencies, said Josh Allen, chief commercial officer for ITS Logistics, a dedicated carrier and supply chain services provider.

“We’ve focused on creating efficiency through technology, network optimization and improved asset utilization,” he said, adding the company increased its load count 40% year-over-year in the first quarter.

Mesilla Valley Transportation has reworked its fuel optimizer and has eliminated one stop per truck per month, which adds up to 1,700 ­fewer stops monthly.

“We are increasing our miles per day per truck by minimizing stops. We paid less for fuel, didn’t stop as much and cut down on incidents — 60% of incidents occur at a truck stop,” Jones said. “Every time you stop, you waste an hour. That is 60 miles. I’d rather put those 60 miles on the odometer.”

The carrier also has used technology to calculate the return on investment of using toll roads.

“In the hustle and bustle, we were spending $30,000 to $40,000 on tolls roads,” Jones said. “We started looking at how many minutes difference it was to avoid a toll. In some cases, it was three minutes.”

Mesilla Valley Transportation now avoids tolls if there are only minimal time savings. Toll charges in the Dallas area alone have been cut in half, Jones said.

Old Dominion works with shippers to identify efficiencies that can reduce costs in the supply chain.

“Partnering to take cost out of our network helps them take costs out of their network,” Kelley said. “Sometimes it can be something as simple as changing the label on products. A small change in packaging might change loadability.”

Old Dominion also encourages customers to use e-manifests and electronic bills of lading, which provide detailed information, increase accuracy and cut down on labor.

Duie Pyle also is finding ways to wring more efficiency out of its operations.

“In a down market, we’re always looking to eliminate tasks that don’t bring any value,” Luciani said.

Employees working in day-to-day operations often have the best solutions, so A. Duie Pyle maintains an email address where they can submit their ideas.

One recommendation to come from the email inbox was an idling policy.

“We have an active idle policy, measure intertrip idle and full-trip idle, and have built a little bit of a competition among the terminal level and driver level,” Luciani said. “It has reduced costs and helped improve fuel consumption.”

The Custom Cos., a ­diversified trucking company based in Northlake, Ill., is working to reduce touchpoints to help cut costs.

“It is amazing when you look at the life cycle of an LTL shipment and how many individuals touch it. In one service center alone, there are five touches,” said Joseph Klikas, the company’s chief experience officer. “That is where we see the most cost.”

Klikas said The Custom Copanies. is talking with shippers and identifying opportunities to deliver freight directly to the market.

Corey Cox of the Tandet Group of companies discusses how early AI adopters are beginning to harvest the latest wave. Tune in above or by going to RoadSigns.ttnews.com.  

“You can bring a lot of value to the client if you touch that freight as little as possible,” he said, adding that the company also focuses on the most profitable lanes. “We find that if you price in order to earn lanes that are most efficient, you net a greater gain there than pricing into areas you’re not necessarily good at.”

Klikas is using software from Carrier Logistics Inc. to help identify costs and streamline loads. Technology allows LTL carriers to get shipment data into their operating system earlier, enabling them to change linehaul schedules proactively, said Ben Wiesen, president of Carrier Logistics Inc. It also helps carriers monitor costs, which can change significantly as freight volumes fluctuate.

“It is one thing to know your costs today, but those costs are ever-changing. It is important to know them as you bid business,” Klikas said. “Even the most minor of shifts in cost can create a great shift in profitability based on the business and volumes you handled at that time.”

Equipment maintenance is ­another area where fleets, truck makers and technology vendors are focused on controlling costs.

Even seemingly minor maintenance problems can become costly if they aren’t addressed early.

“Low-key issues may not be enough to cause a diagnostic trouble code to trigger, but they can still have an impact on the overall fuel efficiency of a vehicle,” said Craig Vanderheide, director of product management for Intangles, a provider of predictive maintenance technology. “This 1-2% degradation in fuel efficiency can have significant effect on a fleet’s cost per mile.”

Investing in the Future

Even in a down market, investing in business improvements and new technologies can be important to drive future profits.

Parcel giant UPS Inc., which ranks No. 1 on the for-hire TT100, is working to enhance efficiency and minimize costs through its multiyear Network of the Future initiative.

“To help achieve our goals, we expect total capital expenditures between 2024 and 2026 to be between $17 billion and $18 billion, which is approximately 5.5% of revenue,” said Jim Mayer, senior director of media relations.

UPS is deploying new technologies, including increased automation and robotics, advanced RFID capability and artificial intelligence, he said.

ITS Logistics also is investing in capabilities and assets that will allow the company to create stronger relationships with customers.

“The rationale is, we’ve already made the investment in ­customer acquisition and support,” Allen said. “The more problems we solve, the stickier our solutions become and the more dollars we drive to the bottom line.”

Recent investments for ITS Logistics include the opening of its 1.1-million-square-foot distribution facility in Fort Worth, Texas, the launch of a Tech Innovation Center in Walnut Creek, Calif., and assets such as trailers, power units and chassis.

“That deeper capability set makes us a better partner for our customers and puts us in a strong position of growth for when the market turns,” Allen said.

Old Dominion also continues to seek out opportunities to gain a competitive advantage through its equipment and facilities.

“Even though things are slower, we can’t stop investing in our network,” Kelley said. “What we have done so well is strategically invest when others might be pulling back to give us capacity. As the market recovers, we always gain market share.”