Podcast Archives | The Logistics of Logistics https://www.thelogisticsoflogistics.com/category/podcast/ 3PL Growth Strategies / Logistics & Supply Chain Training Wed, 10 Jun 2026 21:36:04 +0000 en-US hourly 1 246304397 Is Organized Tech Destroying the Small Logistics Entrepreneur with Nick Antoine https://www.thelogisticsoflogistics.com/is-organized-tech-destroying-the-small-logistics-entrepreneur-with-nick-antoine/ Tue, 09 Jun 2026 21:44:29 +0000 https://www.thelogisticsoflogistics.com/?p=10931 In “Is Organized Tech Destroying the Small Logistics Entrepreneur” Joe Lynch and Nicholas Antoine, Co-Founder, Co-CEO, and Managing Partner of Red Arts Capital, discuss how mid-market logistics companies can leverage emerging automation and strategic "moats" to successfully survive and compete against tech-heavy enterprise giants. About Nick Antoine Nicholas Antoine is the Co-Founder, Co-CEO, and

The post Is Organized Tech Destroying the Small Logistics Entrepreneur with Nick Antoine appeared first on The Logistics of Logistics.

]]>

In “Is Organized Tech Destroying the Small Logistics Entrepreneur” Joe Lynch and Nicholas Antoine, Co-Founder, Co-CEO, and Managing Partner of Red Arts Capital, discuss how mid-market logistics companies can leverage emerging automation and strategic “moats” to successfully survive and compete against tech-heavy enterprise giants.

About Nick Antoine

Nicholas Antoine is the Co-Founder, Co-CEO, and Managing Partner of Red Arts Capital, a private equity firm he co-founded in 2015 – at age 26 – to invest exclusively in supply chain and logistics businesses. A Princeton graduate, Nick began his career as an equity research analyst at Princeton Global Asset Management before joining Ariel Investments in Chicago, where he served as Chief of Staff to the Chairman and CEO of the $17 billion asset manager. At Red Arts, he leads fundraising, research, and investment thesis development, building one of the few Black-founded and -led PE firms in the country and one of the top-performing, ranked #7 on Bloomberg’s 2025 Best-Performing U.S. Buyout Funds. Nick is a member of YPO and a board trustee of The Studio Museum in Harlem and WTTW (PBS Chicago).

About Red Arts Capital

Red Arts Capital is a Chicago-based private equity firm focused exclusively on partnering with North American supply chain and logistics businesses. Founded in 2015 by Nick Antoine and Chad Strader, Red Arts is a 100% Black-owned firm investing across the “supply chain economy” – freight, transportation, warehousing, contract packaging, and related middle-market companies with strong growth potential. In 2023, the firm closed its latest fund oversubscribed at $270M, above its $225M target, backed by institutional LPs including Prudential Financial, the University of Chicago’s Office of Investments, and funds managed by Neuberger Berman. Red Arts pairs a sector-focused thesis with a belief that diversity drives performance – women represent roughly half the firm.

Key Takeaways: Is Organized Tech Destroying the Small Logistics Entrepreneur

  • In “Is Organized Tech Destroying the Small Logistics Entrepreneur” Joe Lynch and Nicholas Antoine, Co-Founder, Co-CEO, and Managing Partner of Red Arts Capital, discuss how mid-market logistics companies can leverage emerging automation and strategic “moats” to successfully survive and compete against tech-heavy enterprise giants.
  • Firm Profile & Focus: Founded in 2015, Red Arts Capital is a 100% Black-owned, Chicago-based private equity firm that focuses exclusively on North American supply chain, logistics, and middle-market infrastructure businesses.
  • Target Investment Profile: Unlike venture capital firms that hunt for speculative “hockey stick” growth, Red Arts invests $50M to $100M+ into established, profitable middle-market companies (typically family-owned with $100M to $500M in revenue) to provide liquidity and operational scaling.
  • Strong Institutional Backing: Validating their sector-focused thesis, the firm closed its 2023 fund oversubscribed at $270M (surpassing its $225M target) backed by premier LPs like Prudential Financial and the University of Chicago.
  • The Concept of “Organized Tech”: Nick defines “organized technology” as a modern third form of power alongside organized people and organized capital. Large enterprise players use their scale and massive resources to deploy tech—and partner with startups for free trials—giving them a distinct, systemic advantage.
  • An Opportunity, Not a Death Sentence: Organized tech is not inherently destroying small logistics entrepreneurs; rather, the risk lies in a lack of adaptability. Because AI and automated tools are becoming rapidly commoditized and affordable, small business survival depends on an entrepreneurial willingness to experiment.
  • Building Defensive “Moats”: To avoid competing strictly on commoditized pricing, successful logistics companies must build defensible moats. This includes high-touch customer service, strong cultural values that lower driver turnover, or geographic asset density (like uniquely zoned cross-dock terminals) that competitors cannot easily replicate.
  • Outsized Returns from Small Tech Investments: Technology adoption doesn’t require a massive overhaul to significantly impact the bottom line. In one LTL case study, Red Arts introduced a simple automated software tool to capture missed, manual accessorial charges, plugging a major revenue leak and yielding massive profit returns.

Learn More About Is Organized Tech Destroying the Small Logistics Entrepreneur

Nicholas Antoine | Linkedin

Red Arts Capital | Linkedin

Red Arts Capital

Bloomberg executive profile

Investing in Supply Chain Solutions with Nick Antoine of Red Arts Capital | Impact Podcast

Black Professionals in PE & Finance spotlight | McGuireWoods

Fund close coverage | $270M, Business Wire

Organized Technology: A New Power Defining The American Dream | Forbes

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to Logistics of Logistics show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is organized tech destroying the small logistics entrepreneur, with my friend Nick Antoine. How’s it going, Nick?

Nick Antoine: Hi, Joe. Great to see you. Thanks so much for having me

Joe Lynch: Yes, it’s great to have you. So Nick, please introduce yourself and your company and where you’re calling from today

Nick Antoine: Sure. So I’m calling from sweet home Chicago and my name’s Nick Antoine, and I run [00:00:30] Red Arts Capital a private equity firm based in Chicago

Joe Lynch: So what do you guys invest in?

Nick Antoine: So we invest in supply chain and logistics related businesses and par- particularly middle market companies. So companies less than a billion of revenue is where we focus our time

Joe Lynch: Yeah, and what’s the minimum size of those companies?

Nick Antoine: So we’ll look at companies as small as 50, 100 million of revenue. And again, we’ll look at businesses much larger than that. But two-thirds of the country is is middle [00:01:00] market or smaller businesses, and so that’s where we spend our time

Joe Lynch: I like it. I like it. So Red Arts Capital, where’d you come up with that name?

Nick Antoine: So my business partner and I came up with that name over 10 years ago, and we, I love art his favorite color is red, and that’s how we got, that’s how we got it going

Joe Lynch: I like it. I like it. So you guys have been around 10 years?

Nick Antoine: Yeah, almost 11 now

Joe Lynch: Nicely done. Nicely done. So for people who don’t do private equity every day, give us the quick history [00:01:30] lesson or the quick, the basics of private equity

Nick Antoine: Sure. Private equity is basically a term used to describe investors who invest in companies that are not publicly traded. You have the stock market, you have big companies like in logistics, like CH Robinson or XPO or Knight Swift. Those are publicly traded companies. But you also have lots of privately owned or privately held companies like Echo Global Logistics is a good example, which used to be public. And [00:02:00] basically private equity, I’m simplifying this quite a bit, but we basically raise capital from institutions and we in- we ra- invest that capital on behalf of those institutions. And the institutions that I’m referring to are organizations like university endowments and the capital that’s raised from them that we invest, the profits are used to invest in universities and, help grow, departments and things like that.

We also invest on behalf of pension plans. And those pension plans have [00:02:30] folks who are, thinking about their retirement. So we provide a service to those types of institutions, foundations as well. And that’s the type of investors we have versus in the public market, it’s individuals’ money oftentimes, usually in a pool of capital

Joe Lynch: Yep. So Nick, if I’m a business owner and I’m trying to grow my business, of course I can go go to the bank and borrow money. Good luck. Not saying you can’t do it, it’s just not easy. I can also just keep reinvesting my profits [00:03:00] or I can go potentially and come to a company like yours and say, “Wanna buy a piece of my company to help us grow?”

I’m assuming that’s one of the things you guys do?

Nick Antoine: That’s right. And, typically, the private equity industry has evolved over the past several decades. And as a formal industry today private equity is seen as not just a liquidity solution, meaning a family member, that owns a company and, their kids don’t want the business and they wanna sell and retire. It’s not just [00:03:30] liquidity, it’s also helping these businesses grow. And so we come in and provide that liquidity solution for families or entrepreneurs that own small businesses or middle-market companies. So they get the liquidity, but we also then focus on helping that business grow and being a great steward for that business, the people in that company. We’re looking to hire more people and grow the businesses so we can get them to the next level. I think private equity historically had a reputation many decades ago [00:04:00] of slashing and burning and cutting headcount, but that’s not what we do

Joe Lynch: Nick, if there’s one thing I’ve noticed, and it’s not just in our business, I think it’s everywhere when it– we, we see private equity or venture capital or family offices for that matter, is the investors what are now… part of the reason I would work with Red Arts Capital is because of where they invest and how they invest.

So they, they can bring you in and you say, “Look, I [00:04:30] understand what’s happening in this market ’cause we already invest in this market, and we can make introductions.” Not only bringing some, some well needed capital, but also bringing expertise, also bringing introductions that are invaluable a lot of times

Nick Antoine: Yeah, that’s right. We– I started the firm with my business partner 10 years ago. And this is all we focus on are these types of businesses. Warehousing companies, logistics businesses, tr- trucking, we’ve invested all across the trucking landscape [00:05:00] distributors infrastructure services. And so we like to think that we’re always learning, but w- this is our area of expertise. And so when we make an investment, we oftentimes bring other folks who have run businesses or maybe are retired. We’ll bring consultants. We will think about org, org structure. We’ll help hire. We are like a partner and l- literally, but also conceptually a partner to help that business grow in whatever way it’s needed.

And so oftentimes when we come to the table the family, and we’re usually investing [00:05:30] in family-owned businesses, are saying, “Hey, we’ve been a $100 million business for, and we’d like to get to the next level, but, we’re having a hard time doing that.” And so we’ll sit down and say, “Hey, based on what we’ve seen how the business operates today, we can be helpful in these areas. Not to mention, we can also provide liquidity to you and your family. Is that something that you’d be interested in?” And if they say yes, then we work towards making an investment in their business

Joe Lynch: I like it. I like it. So we’ll talk more about that in a minute. But first, Nick, tell [00:06:00] us a little bit about you. Where’d you grow up? Where’d you go to school? Some career highlights before you started the mothership, Red Arts Capital.

Nick Antoine: Sure. So I was born in New York, grew up in New York, New Jersey. I went to Princeton University for my undergraduate degree. I actually just had my 15th reunion go Tigers. And I moved to Chicago almost 15 years ago to work at a firm called Ariel Investments, which is a very large, I think they have $15 billion under management or something like that investment firm.

They invest in public markets and private [00:06:30] equity. And I worked on their investment team, and then I went to work for the founder and the CEO at the time, John Rogers, in a chief of staff capacity. And I got to learn not just about investing, but I also got to learn how to run an asset management business. And so I got to learn about fundraising and firm operations. And after I did that for a while, I decided to leave and start my own firm with my own b- my business partner, and that was about 10 years ago. So that’s a little bit about me.

Joe Lynch: So how did you end up investing in this segment? The [00:07:00] warehousing, the logistics, the trucking. Not that it’s not valid, but I think 10 years ago it was probably not the most glamorous place a, a young man could start a firm to support.

Nick Antoine: Yeah. It’s funny. I learned a lot from, uh, from working with John, who is a legendary investor and just a wonderful person. And he’s a disciple of Warren Buffett and as am I and as and of him. Actually, I have a book on my desk, “The Intelligent Investor,” which I crack [00:07:30] open from time to time, which was written by the great Ben Graham a very famous investor from almost 100 years

Joe Lynch: Yeah, and that’s what Buffett kind of always– it’s not his en- entire philosophy, but a big part of his philosophy

Nick Antoine: That’s right. And a big part of it is understanding kind of making sure you have a circle of competence, as Buffett talks about, having an area of expertise. And Ariel also, thought about that. My, my old boss John constantly talked about the importance of focus, and his…

And not just in investing. His whole life [00:08:00] was, organized around being really focused with his time. And so that really rubbed off on me. And so when we started, I knew we should be focused in some area, and then we was looking about where can we build an expertise that’s differentiated, we have less competition we’re not up against 100 other private equity firms saying, “We all invest in software.” We wanted to find an area where we could carve a reputation and be unique. And as we looked across the marketplace, we saw that there was a big, investment [00:08:30] firm focused on supply chain logistics. But in the middle market, we hadn’t seen a lot of institutional investors, and so we decided there, and that was luck is such a big part of life, then COVID hits, and then everyone realizes how important supply chains are. So we, we had good timing too.

Joe Lynch: Nick, I gotta tell you just my own story. I’m an automotive guy originally. I spent most of my career in engineering and product development in automotive, which is very cool. I launched cars all over the world, China, [00:09:00] Thailand, US, Europe. And when I came to this space, which by the way, that I came in 2010 when a company I hoped to buy someday didn’t get paid by Chrysler in the bankruptcy.

And I found myself in this space, and I thought, “I’ll be here for 18 months or two years.” I went to a little company turnaround, and I thought, “I’ll do this and I’ll leave.” And I started to look around, and I was like, “This is a very entrepreneurial place, much more so than automotive.” This [00:09:30] was before Musk started Tesla.

And I thought, “Automotive’s very mature.” Now, at one time a hundred years prior, you might’ve looked at automotive and said, “There’s a hundred different automakers. What kind of market is this?” At some point, the market became the market we know today, where there’s big players and some niche players.

Now you look at logistics and go, “Who’s the leader in warehousing?” I don’t know. There’s a lot of [00:10:00] them, right? There’s no one lead there. And who’s the leader in trucking? I think the biggest trucking company has what? 2% of the market

Nick Antoine: Yeah, it’s a massive space in the United States. And I think that, people it’s easy to not appreciate how much we rely on the efficiencies of the supply chain that exists today, but we also live in a massive country geographically. And then so there’s a lot of road to cover, a lot of rail lines to [00:10:30] cover. It’s just a huge space. And it’s the infrastructure essentially that allows for the quality of life that we have today. And it’s just a, it’s just a really exciting time, particularly right now with some of the technology changes in my opinion, to be

Joe Lynch: And I also, we’ll talk a little bit about this in a minute, but I think there’s a consolidation happening. And when you say our industry I tend to say our industry. Warehousing’s very different than over-the-road transportation, whether it’s LTL or trucking or expedite. It’s very different from the brokerage [00:11:00] space.

They’re all connected. Very different from all the technologies that support our businesses. And then there’s so many specialized services. But I think we can all kinda see this, is there starting to be some consolidation within some of the tech companies, within some of the the bigger players buying smaller players exiting or coming into the business.

Now that the rates are up a little bit in trucking and brokerage, who knows? We gonna see new players? Perhaps. I wouldn’t be [00:11:30] surprised.

Nick Antoine: Yeah, I think, there there’s been a long history of consolidation in particularly in logistics. But I, I do again, I do think we’re at the beginning of some changes. One of the big ways in my experience and what I’ve seen that differentiates logistics businesses from each other is, has been geography or owning capacity.

When I’m, what I mean by capacity is owning equipment or owning something that’s tangible that is very expensive. So like for instance railroads, 120 years ago there [00:12:00] were hundreds of class one railroads, and now there’s only a handful, right? So there’s been consolidation, but it’s very difficult to build across, across national rail line. And so they have competitive advantage that makes them really interesting. But at its core, railroads have been around for almost 200 years, right? And I think there’s a lot going on and technology and geography are differentiating businesses these days. Not to mention the kind of the infrastructure and the capital intensity of those, some of those indus- industries.[00:12:30]

Joe Lynch: Yep. So today’s topic is organized tech destroying the small logistics entrepreneur? So I know what small logistics entrepreneur means. What do you mean organized tech? And by the way, is this is an article you wrote, right?

Nick Antoine: Yeah. So I I published an op-ed in Forbes a couple months ago, I think. But this is a topic that I’ve been thinking about quite a bit and for, actually for years. I’m a big reader. I love to read. And there was a book called Superintelligence [00:13:00] I read about 10 years ago about the rise of AI, and I remember it was a Friday, and I read the whole night. I just couldn’t go to sleep. It was such a fascinating book. And so it’s been really interesting watching the developments of technology, and particularly automation in recent years. Not just agentic AI, but also robotic process automation as well. Um, and so in taking a step back, y- the idea is two-thirds of the United States is small business.

Not just middle market. And there are [00:13:30] companies that are much smaller than 50 million of revenue as well. But that’s where most of the jobs are, most of the revenue and i- is in these smaller businesses. It’s easy to think about companies like Google or today SpaceX or Nvidia or things like that, but our country is powered by the millions of people that work in transportation and logistics and other s- smaller businesses that power our economy. And technology is shifting so quickly. There’s a lot of data [00:14:00] out there that’s showing, increases in compute power and things like that every year. It’s very hard to contemplate how quickly that will change. It’s like going from, a blue screen IBM computer that, my mom was a computer programmer in, in the ’80s to having an iPhone in 70 years.

It’s just an incredible change, and I don’t think that people fully appreciate that. And the big companies have the resources and oftentimes the experience to invest in these [00:14:30] areas in an organized way, where I think smaller businesses, and because we invest in them, I get to see that, don’t necessarily have the resources to do that or the know-how.

And so the article was, is really about encouraging small businesses and owners and families to think about creatively and entrepreneurially, but how do, how can they use these tools? So that was the idea behind the article.

Joe Lynch: Yeah. And it’s interesting because before we hit the record button, we were talking about this is I talk to a lot of bigger companies. I talk to [00:15:00] smaller companies too, but what I’ve noticed with the bigger companies, they’ve a lot of money to invest relative to their smaller c- competition.

They’re spending a lot of money on AI. And now I’ve worked at very large companies in the past. Sometimes they make investments that don’t work. That’s the nature of the scale they have is they don’t– The it’s a little less valuable. You don’t have the founder’s, you don’t have the founder’s hand there.

But I see the big companies making big investments in AI and starting to show [00:15:30] real progress. Not so long ago, I think just a couple months ago, I think CH Robinson said, “Every day we get all these requests for quotes for a lane. We used to answer 60% of them.” Now they said, “We are answering 100% of them with AI.”

Now, it’s also people behind AI, but that’s a big deal. And now granted, they’re CH Robinson, so they have a whole bunch of deals that they were– not deals. Opportunities that they just, they walked [00:16:00] past because they didn’t have enough time. Most small businesses say, “I would never. Anybody who sends me an email, I quote.”

But we’re seeing those announcements and I was talking to my friends over at Trimble. They’re using AI in a big way. I just talked to Descartes. Descartes’ using AI in a big way. And what all those firms will say is, “We’re using in- internally first, and then we’ll start pushing it out to our customers.”

So in some ways, you could [00:16:30] say, “I don’t see it. I don’t see. What is Descartes doing? What is T- Trimble doing?” And both of them said the same thing to me, which was, “It’d be inappropriate to ask our customers to use it before we’re using it fully internally.” And so I think in a lot of ways, some people could fool themselves in saying AI’s not moving as fast as I thought it was.”

It’s moving. You just don’t– the bigger players are waiting to, to the right time, and I think we’re already [00:17:00] starting to see them push that out to their customer base.

Nick Antoine: Yeah I completely agree. And, part of my job is doing research and trying to understand how systems work, how industries work, mapping out the different constituent components that go into making an industry or a business work, right? And the kind of the economic driver of that, uh, of that business. And, My perspective is I’ll tell a quick story. My, my father was loved the game Monopoly, and he, in Monopoly he talked [00:17:30] about you, you wanna know the rules of the game. And the purpose of the game was during the Depression was also, political comment around, around society and capitalism. But the rules were, such that there was a winner, and you win eventually by bankrupting everybody else.

And there were different places on the map, on the board, that you could play where there was statistically a higher chance of winning. And m- the point about that anecdote is that’s how business works, right?

Compounded interest of [00:18:00] your capital, it allocating the capital in the right places makes a big difference over time. Just so happens that this technology’s moving quickly, so you may not see it right away, but over time, you start to see the big improvements. And I think there’s a big debate right now about whether or not you all the capital, that’s being built into data centers and all this is gonna yield return. The there’s some obvious things that are going on that I think that people are not accounting for. So for instance, take which, is a [00:18:30] self-driving car. Now it’s not exactly, pure play logistics, but I think it’s one that people can consider. Bond Capital put out this was a, and a research firm, put out a very long, it’s like a 300-page memo that I read, um, a couple years ago, or maybe about a year ago, that showed that Waymo went from 0% market share to almost 30% market share in the San Francisco market in a year and a half with only a couple hundred cars.

And on the road in San Francisco during the day, [00:19:00] there’s about 5,000 to 6,000 cars on the road, s- taxis, Ubers, Lyfts, et cetera. And they captured 30% market share nearly with only a couple hundred cars. Now, that was a couple years ago. Waymo’s rolling these cars out in Chicago, I see them, I know they’re in Miami, Atlanta, Phoenix. Their constraint is really building out the cars and actually implementing it, road by road. But the data shows pretty clearly that within the next 10 years we’re gonna see [00:19:30] massive market share of self-driving cars in every tier one city in the United States. Now, people can debate the timing of that, but I’m not sure anyone’s really debating whether n- anymore whether or not that’s going to happen, right?

And that’s my point, is because the There may be over capital spending in technology and you don’t know which tech tool isn’t, is gonna work and which one’s gonna be the winner and the loser. Doesn’t mean it’s not gonna transform how we live our lives. And the big companies have [00:20:00] the resources to make mistakes, and so they can invest and I’ve seen this with public companies and big companies that I talk to and their tech teams. Not only are they investing in these technologies, they’re also getting some of them for free. ‘Cause the big– startups are saying “We we wanna have a partnership with you, so we’ll offer you our tool for free.” And then they get to try it out and take what they like and not, and create partnerships. That’s what scale allows. And so if [00:20:30] over time that system allows for organized technology to benefit the bigger businesses, what about the middle market? What about the smaller companies? And that’s where we focus, that’s where we invest. And I, we– I talk to entrepreneurs literally every day, almost every week, I was to say every day. But just yesterday I was talking with an ent- an entrepreneur, an extraordinary entrepreneur in the Southeast, started basically with nothing and, is extremely wealthy and built this large business. Um, there’s lots of [00:21:00] stories like that. It’s the American dream, and I just think that the American dream needs to also incorporate how do we s- make sure that the rules and the system allows us to continue to play. And that’s my goal is to help these businesses continue to grow and continue to play

Joe Lynch: Yeah, I you mentioned that Waymo story. I thought about this I got my hair cut the other day. And first off, I’ll say a few years ago, I interviewed Tom Walker over at DroneUp, and he was delivering stuff via [00:21:30] drone, and he was doing it for Amazon. I think they got bought by Amazon now.

I’d have to double-check. But anyway, I remember saying to Tom, I go, I just don’t envision I go for a walk and I live by a lake. I walk around the lake. I don’t wanna see a whole bunch of drones flying by. I don’t wanna see a flock of drones.” I go, “I live in Michigan. I just feel like out in the we’re gonna shoot those down, man.

This is…” And he said, “No, we ne- we’ve never had anything shot down.” And he says, and he explained, how many shipments it [00:22:00] would be into my subdivision. Anyway, he kinda convinced me, and I was like, “Oh, this is cool.” And they had hundreds of thousands of shipments by that point. And I remember telling some friends this, and they’re like I don’t see it.

I don’t know.” I go it’s already happening.” But, w- I didn’t see it. Then I was at the barbershop the other day, and a guy says, “A drone came by, flew over my neighborhood. It was delivering something.” And I thought… And you go what do I care about drones?” If you’re a delivery company right now, and you’re [00:22:30] delivering to– You say, “Oh, we work with Amazon or Walmart,” or whoever you’re working with, and you’ve got 20 trucks, and by the way, you’ve built a nice little business.

You don’t see the risk in one drone flying by one day. But as there starts to be deployed on a a higher volume, you’re all suddenly at risk. And do you have the money to make that switch? Most likely not.

Nick Antoine: And I think that small businesses do, right? The t- one of the things about AI [00:23:00] that I’m noticing is that i- it is, particularly like in logistics it is becoming commod- commoditized. It’s not that expensive relatively speaking to have access to some of these tools. Again, there are startups that are trying to figure out how they build a relat- the right relationship, so they’re giving great trials. But it’s also mental, It j- my ar- my argument to this, Arpad, was just can we help people think about let’s experiment entrepreneurially about these things? For [00:23:30] instance there’s a number, and you and I have talked about this already, before, before the call. There are a number of tech companies that are, startups that have extraordinary tools.

I’ve seen these demos and, they’re doing appointment-based, um, deliveries for, for freight where it’s completely automated. It’s a robot that sounds, an AI tool that sounds like a human being calling a driver, a human, a real human being, asking their delivery time, putting into their ERP system, booking it. This has hap- [00:24:00] and this is, this was like a year ago. And that’s a small company. Now, obviously CH Robinson or Echo, my, my friend Doug Wagner, who we, we’ve talked about before, is great guy, very entrepreneurial and technology savvy. Those companies do stuff like that too, but small businesses can do it as well. And so I think part of it though is just being aware that, hey, it’s not something to be afraid of, but we can be part of this too. We can be part of this next chapter of the American dream, which is this powerful tool that’s being deployed across our [00:24:30] country, and we’re just not seeing it yet. So I that’s 100%, I’m aligned with you on that

Joe Lynch: This might be a place where the private equity… So they, when they’re making investment, they become your, not just your figurative partner, they’re your literal partner now. And that’s where, they’re bringing hopefully some capital and and maybe the encouragement to say, “Hey, other companies like you are using these technologies.

Let’s [00:25:00] improve our investment by using these technologies.” And again, you mentioned the entrepreneur from the Southeast. A lot of these, a lot of s- entrepreneurs in our business just keep consuming m- the new ideas and incorporating them. But sometimes people get, you say, “I’m 55 years old.

I don’t know what I’m… I want to grow. I know I need the n- the next generation of tech, but I’m running out of energy.” And that’s where maybe a partner comes in and says, “You got a great business, and here’s what’s the next frontier for you, and we’re here for you.”

Nick Antoine: [00:25:30] Yeah. And that’s basically our pitch, right? And, not everyone is gonna want that kind of partnership. But we oftentimes like the owners to retain some ownership in the business, even if they’re selling the majority part of their business to our firm. And then we also early on, I think it’s really important to lay out expectations, right? So here’s what we think, can be done, and here’s how we think we can help this business grow. And then you- the goal is to live up to those expectations [00:26:00] versus not talking about it and then later making changes that they didn’t expect.

That’s not, from a cultural perspective, that’s not how we like to do business. I think at the end of the day, the culture piece of it is so important ’cause w- we talk about technology, but it’s still being run by people, and people have to decide to opt into this. And so the cultural alignment is really important.

Values around not just can we use technology, but transparency and communication, all those things are really important. And a [00:26:30] partnership is like a marriage. And you’re gonna– we’re gonna be partners for many years in helping this business grow and, helping the employees adopt tools and grow and hiring more people, all those things come back to culture.

So that’s another important piece of all this as well for us, is we’re investing in an organization of people. And it just so happens that we invest in, in that in those types of organizations in logistics and supply chain,

uh, related issues

Joe Lynch: It has to be a good f- it has to be a good fit. You guys are gonna be partners with these guys. Now, [00:27:00] so back to it, today’s topic: Is organized tech destroying small logistics entrepreneurs? So first off, one more time, what is the organized tech as you see it? And then is it actually killing them, or do they have a, an opportunity to be successful because of it?

Nick Antoine: Organized tech is a, is a play on… There, there has been some, um, kind of economic theorists who think that there’s kind of two forms of power historically. There’s [00:27:30] organized people, and then there’s organized capital. And I presented this idea that there’s organized technology as a third form of power in society. And I don’t think that it’s destroying small business. I think it’s an opportunity, a very attractive, exciting, powerful opportunity. But I do think that if small businesses do not experiment in these areas, I do think that there’s risk that the big players who have the resources, who made those investments, who are willing to be flexible and try things out, I do think that they [00:28:00] will become incumbents many times, many instances where it becomes harder and harder to compete against them. And so that’s the idea, is not that, that they’re being destroyed, but this is the time to start thinking about that earnest, in earnest. And so that’s my perspective. Now, maybe that changes in a couple years

Joe Lynch: Yes, you said organized people. Is it organized companies?

Nick Antoine: Yeah, so organized organized people, organized capital, and organized technology

Joe Lynch: Okay. I like it. I like it. By the [00:28:30] way, you mentioned this competition. One of the things I noticed this, if you’ve ever listened to freight brokers or carriers, they’ll always say, “We’re a, we’re a commodity market. The lane rate is this much from Chicago to Atlanta.” That’s just etched in stone.

There’s two companies, and I’m gonna remember one of ’em. Oh, Brenny Joyce Brenny up in Minnesota, and then she has a trucking company, and then [00:29:00] Ruan Trucking out of Des Moines. Both of them said on my podcast, “We win business because our our values align with the people we work with. So they work with us because they like the way we think.

They know we’re like them.” And they aren’t competing on price. So Ruan would always say, “We’re not the cheapest for any lane. Are we the safest? We think so. Do we train our drivers better? Do we retain our drivers better? [00:29:30] Yes, we do all those things. We have great trucks. We have great relationships that go 90 years back.

So yes, this is the way we work, and we’re not interested in competing in this commodity red ocean, so to speak.” And Joyce said of Brenny Trucking they move higher value stuff. They move monuments and stuff stuff carved from marble, but they also move oversized stuff. And she said, “Our drivers, we take really good care of them.

They’re in [00:30:00] fantastic health relative to the rest of the trucking world. And people love that about us, and they work for us. They work with us because of those reasons.” So I think we’ve, we almost default to, “This is just the economics of my business,” and it’s not necessarily true.

Nick Antoine: Yeah, I, so that again, that’s back to the type of work that I do with my team when we’re, where we’re doing research on industries, right? Which is what are the economic [00:30:30] drivers of that business, right? So when I hear this story about Ruan and saying we’re not just taking anything, trucking is commoditized

Joe Lynch: Of course. Yeah

Nick Antoine: Company A with an international and company B with an international, what differentiates them if they both can drive from point A to point B? Um, but within that what I hear is they’re saying that there’s a service component and a relationship component tied to that service that’s different from others. So service is where you might be able to compete. They’re available, they’re [00:31:00] responsive, they’re on time, they don’t damage freight. That’s very important. And then the other part of the business what I heard in that story was how they treat their employees, right? So they take care of their drivers, they’re healthy. They are also proud to be owners and, or, employees of the businesses. That’s important too because in truckload for instance, turnover is a big risk for stability and abil- and your ability to get, match, the freight that you’re hauling with [00:31:30] the miles per, the cost per mile of that truck. You’re constantly turning over drivers, you can’t get that quality of service. So they’re– what I hear translated into economic terms is w- the way in which we operate based upon our values and our culture means that we have better service and that differentiates us. And the, and then the way to look at that economically is to look at the returns on their assets, the returns on the invested capital that they have in their business and say, “Is this return [00:32:00] compared to my peers better?” So it’s, there’s a kind of a forensic part of that analysis that we like to do. Um, and then part of that is also how we think about businesses and one of the types of industries we like or I like, I’m liking more and more are capital intensive businesses where there is CapEx, but it’s very difficult for an- just any old body to buy, a specialized piece of equipment

Joe Lynch: Give us an example of that

Nick Antoine: A really easy example of that [00:32:30] would be rail, right?

So we don’t invest in rail today, though we invest rail adjacent. We have, we do some transloading in one of our businesses. But the rail space, rail, tr- trains have been around for almost 200 years. S- so there’s not differentiation between, th- this, this train or this kind of rail car and that rail car necessarily. But it’s very expensive

Joe Lynch: It’s a, you got a moat.

Nick Antoine: Yes. Yeah, just as Buffett talks about or Ben Graham talks about is, a [00:33:00] differentiable competitive advantage that’s sustained over time because of the burdens of of the cash that’s needed to build that out. So there’s geography that can be an impact, right?

If you have… You mentioned the other one, the other company that invests in a region where they’re moving something very heavy. Heavy stuff is very expensive to move over far distances by truck. If you have market share in an area and you have the right equipment that is designed to handle moving very heavy freight, [00:33:30] it’s hard for new competitors to come in ’cause there’s only so much heavy freight in that region.

So that’s the type of thinking that we think about. We’ve had great success. We made investments in less than truckload many years ago, which is now part… We sold to Knight Swift AAA Cooper. We had great success

Joe Lynch: I didn’t know that. Oh, congratulations

Nick Antoine: yeah and implementing that idea. Um, and so we look for areas where we can differentiate ourselves as investors in businesses that have some kind of sustained competitive stability [00:34:00] and advantage.

And that’s why I come back to technology, because technology is changing and it’s creating some advantages that may be sustained, and it’s also an interesting exercise of what’s gonna stay the same if technology is changing so many of these industries or has the potential over time to do that?

Joe Lynch: Yeah. Yeah, I like it. I like it. You mentioned just one of your investments. Could we go through– You don’t have to mention the name of the company unless you want to, but take us through some of your case studies, ideally some of your success stories.[00:34:30]

Nick Antoine: Sure. I mentioned we, we invested in less than truckload space for many years. So a number of carriers in the Midwest that were, um, had built these kind of competitive m-moats in regions that were hard to replicate. And many of the East Coast carriers would prefer to have marketing partnerships like that when they owned LTL would partner with our companies in Nebraska or South Dakota, North Dakota. And those businesses [00:35:00] had, um, again, going back to our analysis, they’d had built out this competitive advantage because of regulation. Before 1980, as we know, from 1935 to 1980, trucking was regulated for a variety of reasons. And so you couldn’t, any- not any old body could get into the space. Um, and so over that 50-year period, essentially, you had companies that built, really deep entrenched relationships with very capital-intensive network of trailers, trucks, cross-dock terminals in regions [00:35:30] where it was just too hard to compete.

We’d rather partner together. So that was the thesis there. So we had great success making investments in

Joe Lynch: Yeah. And it’s, it takes, I think there’s 25 LTL companies, maybe it’s 20 now, that have 90% of the market. And I’ve talked I think I was talking to Ben Gordon about this down over there at Cambridge, and I remember him saying, he said, “Joe, it’s incredibly hard to build the density that you need to be a profitable LTL carrier.”[00:36:00]

And he said “And same with small parcel.” Now we’re seeing small parcel ex- explode in the last decade, but getting that density has been really hard. And once, but once you’re part of the club, so to speak, and you say, “Yep, we got it. We- we’re in the right region,” or some are super regional now and some are even national, but that’s really hard.

I think there’s only probably two or three national LTL carriers. Am I right to say that?

Nick Antoine: Yeah there’s I think Transport Topics has a list of the LTL [00:36:30] carriers. But the big ones like Old Dominion have, massive market share in LTL. It’s not quite like rail, but you do have infrastructure-like components to LTL in which, they have massive cross-dock facilities in areas that have now been zoned where you can’t rebuild or, someone couldn’t buy property and then build competing cross-dock facility in that area. So it, it’s a one-of-one property, and then with that, they have network effects in that region ’cause they can get– they can provide service in a shorter, [00:37:00] faster, more efficient time period to that region than anyone else can. Um, that’s the kind of the idea behind it

Joe Lynch: So when you guys made this investment in AAA Cooper and then eventually– So did you buy the whole thing and then sell it?

Nick Antoine: No just to clarify, we sold our businesses to AAA Cooper

Joe Lynch: Oh, okay. Got it. Okay. But I got it. So what did you guys do with your, with the company you bought to i’m assuming there was some investment on your part and then you’ve sold it to AAA

Nick Antoine: Yeah. So some of the things that [00:37:30] we did in that investment for instance we did bring in technology to help with something called accessorial charges where they had been done manually, right? So an LTL shipment comes to to the dock and it’s put on the truck, and the driver gets to the destination.

It’s not another dock, it’s actually a ranch, and they have to take it out, and they have to deliver it, or they have to do some kind of install. You have to charge them for that extra service that wasn’t originally [00:38:00] booked, and that’s called an accessorial. And the idea behind it is if it’s manually done, sometimes the drivers miss it or it’s not booked properly.

But with technology tools, you can automate some of that process. And that was an extraordinary investment. And it w- wasn’t a m- a, a big investment from us, but the return on that in terms of profits were massive, right? So there’s things like that

Joe Lynch: And then they, that, that business is notoriously difficult, the, with the accessorials. And none of us here [00:38:30] invented the LTL pricing with the… and it is notoriously difficult, but they’ve improved it quite a bit over time. And I gotta tell you the upgrades in technology are significant. So I always remember visiting USF Holland, no longer around, but they were showing me the s- they had these electronic guns that were measuring density.

And they said, “Yeah, each one of those guns makes us, in the hand of a, an operator, makes us a million bucks a year.” [00:39:00] Because ba- basically people are saying, “Hey, this is class 50 s- f- class 50,” when it was really class 80, and they were missing that for many years

Nick Antoine: Yeah. That’s exactly right. And so there, there’s– that was a, all these pieces you learn as you go as an entrepreneur as well you piece them together and then it comes up with these realizations. And so that was a, an aha moment for me the power that technology can have in terms of making a business more profitable.

And then when they’re more profitable, you have those, the [00:39:30] resources to then reinvest in the business. And that going back to the technology idea is, if you can increase your margins, by using some of these tools, and not cutting heads, but redeploying that, so instead of, for every hour I have X return, now for every hour I have Y return because I don’t have to spend my time doing some of this, this paperwork, what have you, it gives the team more ability to sell or to generate revenue, is very powerful. [00:40:00] Um, another investment that we had that came out of LTL is a business called Flex Logistics, which is a warehousing business that we invested in we still are investors in almost five years ago. And that’s a business that focuses on middle market, again, sm-smaller businesses, but middle market. We, though we do have some large cap customers today. But middle market companies that need access to inventory, storage in major metro areas like Chicago near the Port of [00:40:30] Elizabeth, New Jersey, Los Angeles, Dallas. And that, in that business we, we believe that by being able to provide a comprehensive geographic service across the United States, not just in one region, we can provide the same quality of service, as you mentioned with Ruan, to middle market customers that don’t need a million square feet in each location, but they may only need fifty thousand square feet. But they need all the value add services that come with that, the packaging, the kitting, the assembly, logistics, [00:41:00] drayage, brokerage, anything that comes along with that tied to managing that inventory in tho-those regions. So that’s been a really experience. We have a great CEO who’s running that business, Stefan Freeman, who worked at Coca-Cola and Dr Pepper Snapple in warehousing and logistics. And he has built an extraordinary company by acquiring, other businesses from, from families, and they’ve all come together and the business is now called Flex Logistics. So that’s been a great one for us as

Joe Lynch: I, I li-, I like it. It’s interesting [00:41:30] prior to Amazon and the same-day, next-day that we all live with now, if you’re going to have a warehousing company, you might say, “We’re just gonna have one, and it’ll be somewhere near Chicago or Indiana, somewhere where you can reach two-thirds of the population of the US in one day.”

Now we look and say, “I need multiple nodes around the country.” But what’s also so different about warehousing is if you walk in a warehouse today, they’re clean, they’re lit [00:42:00] they’re high-tech facilities. They weren’t high-tech a generation ago. So we more or less, just in the last 20 years or so, upgraded the whole industry, and the ones that didn’t upgrade, didn’t invest in the technology, I think they’re probably struggling to compete.

And I think there’s also, there’s s- so– this is the nature of capitalism, all these businesses popped up to say, “Hey, you’ve got empty f- you got empty space in your warehouse? Let me fill it.” [00:42:30] And not making enough money? Let me help you out. You need more funding? There’s just business after business that I talk to about warehousing that is helping make it a much better business than it ever was before.

And let’s face it, we as consumers are, We’re demanding. I want same-day, next-day in some cases, not all cases. But also the s- the retail environment, and the wareh- the auto makers and all the m- industrial companies, we no longer [00:43:00] want to waste money on ex- excess inventory, and our warehouses become the the nerve center for making sure I don’t have extra money invested in inventory.

In the past, it was like, “Oh, we got extra inventory? Ship it to the store and put 50% off on it.” Not anymore. Not anymore.

Nick Antoine: Yeah, I, so– and it’s funny too, a-again, talking about technology the principles of logistics really have been the same for [00:43:30] a very long time. So agai-examples like Amazon’s like the Kiva robots that they bought, 15 years ago, what have you, that moves inventory, in a, in their warehouse to the picker, who then puts it into a box or assembles it in some way and puts it in the box for fulfillment for e-commerce. That idea is based upon management, warehouse management theory. I have warehouse management books, from 30 years ago that talked about how you s- put inventory that you’re holding on your racks in warehouses based upon how far you need to walk, [00:44:00] right? Because it’s all about the labor hours and the time that’s spent and how that, how you think about the cost. So a lot of this is just making the business more efficient on principles that already exist. So Amazon, they invested early in areas that made them more efficient. And I think what Amazon’s supply chain– ’cause I think, see, if Amazon is like a logistics business as well as like a consumer tech business and a data business now. But the logistics business, they– it’s like a loss leader that allows them to [00:44:30] then, uh, provide the quality of service to the customer of same day, next day, by offering really attractive rates for massive volume. Um, so they figured that out. And so that’s basically, again, we have rolled out technology to help us think about how to s- you know, how to measure and how to store things properly more efficiently. So there are ERP systems that allow that to be more efficient versus Excel spreadsheets or [00:45:00] things like that. So there’s basic off the, off-the-shelf stuff that you can do as well before you even get to robots or automation. But I will say that’s coming too.

Joe Lynch: Yeah. Before I forget Nick, I’ll make sure I put a link to your LinkedIn profile, link to your website link to that article that you wrote for Forbes, if you send it to me. And any other links you want to go to market team send me. I’ll put those in the show notes so people can reach out and talk to you.

So what kind of investments interest you right now? What areas are you [00:45:30] really looking hard at?

Nick Antoine: Yeah. So we focus on the same space. I really like infrastructure-like assets that you know… Let me take a step back. What makes us interested in investing are areas where are stable. So the sectors are stable, the end markets are stable. And we like food-related logistics, we like healthcare-related logistics, we like infrastructure services like waste. No mo- no matter what’s going on in the world or the economy, we know that those industries, there’s gonna be [00:46:00] demand for that regardless if it’s COVID or not, or, there’s a war, God forbid, or not. We know that those areas are gonna be required. So then there’s logistics that serve those spaces that we like. I also do like areas where capital intensity or geography can differentiate that business and make it more competitive. Because to your point, a lot of logistics is commoditized. There’s no difference between company A and company B delivering the same thing. If company A has spent a [00:46:30] bunch of money and no one else can really catch up to them, and there’s only so much volume in that space and they have the market share, that’s essentially a differentiable positions.

We like infrastructure, or I like infrastructure-type stuff that can be enabled by technology, right? Those are the types of businesses that I like. I think that’s, if you look at other successful investors in the space, either public or private, I think that they’ve moved that way. Of course, there are folks who invest in just technology, and of course we’ll look at those kinds of companies.

[00:47:00] But for us, we’re looking at businesses that we know are gonna be around for a long time because they have something that’s differentiable

Joe Lynch: Nick, I probably should have asked you this upfront but I know some number of people will say, “Oh, okay Nick is a venture capitalist,” ’cause I’ve heard that term. But Nick is not a venture capitalist, he’s a private equity guy. Please talk about the differences between what you guys are looking for and what the venture capitalists are looking for

Nick Antoine: Sure. I think we like to categorize to make it easier to understand. So venture [00:47:30] is, I would think of as businesses that are starting, from scratch. They’re going from zero to one. And I think of private equity as more investors who are helping established going concerns grow. That, that would be how I would simpl- I would, again, really simplify it. I think at the end of the day, there, there’s very famous investor who passed away recently the late great Sam Zell, who said, he’s a professional op-

Joe Lynch: He’s a Michigan grad.

Nick Antoine: Yeah. There you go. He’s a professional opportunist, right?

It’s, that’s [00:48:00] the, that’s what he is as an investor. And I think that good investing is tied to that idea of you have to be thinking about opport- opportunities when they present themselves because the world changes. It doesn’t stay the same. But you’re trying to think about how do I get stability within that environment that may be changing

Joe Lynch: Yep. And I the way I’ve always thought about the private equity guys is they’re more likely to say, “Hey, we’re gonna buy your grandpa’s firm because n- no one knows, the next [00:48:30] generation isn’t interested,” or there may be the family wants a liquidity event, whatever, or we need a partner that’s gonna help us grow.

And I don’t know that you guys do, but sometimes you’ll see private equity invest in companies that need help, turnarounds even. You usually, with a venture capital, they’re just saying, “We want hockey stick growth.” And I think of that also in a new market where you say, “This market is brand new, and we’re going to become the leader, and we can’t do it bootstrap, so [00:49:00] we need to spend big money to become that market leader.”

And maybe that market is a mirage, maybe it’s not. You don’t know yet. And venture capitalists are willing to make those investments, where private equity is gonna say, there’s no return. I don’t even know how to look at this,” right?

Nick Antoine: That’s right. And so for instance I think a venture investors is making lots of investments not knowing which one is going to necessarily hit because it’s so much unknown about that idea, um, where they [00:49:30] may make, particularly early, early stage $500,000 investment or a million dollar investment.

But we’re making, 50, 60, $100 million investments in one business. And so that that’s the difference, right? So we have to have a lot of conviction that investment is going to do well before we make that investment. So it’s just a different, it’s a different exercise, but the idea, the principle is that you’re still trying to find a way to make an investment.

The dollar that you invest is gonna return, two or more dollars, basically.

Joe Lynch: And it’s interesting you mentioned Warren Buffett. [00:50:00] I think about some of the things he said about investing. For– Anytime there’s a company that’s growing, their stock price is going up, like Amazon, people would say, “I– Did you invest in Amazon?” He goes, “They aren’t making any money. I don’t know how to invest in a company not making money.”

He says, “Other people do. I just don’t, I don’t invest outside of my knowledge.” And s- and then I think at some point people were asking about the same with Apple, and at some point I think he became an investor in Apple and Amazon after they were making money and he felt like their stock price was [00:50:30] undervalued relative to the value.

So he was in ear- he wasn’t early. At some point he came in when he felt like, “Okay, now I understand this investment.” And you said it right up front, y-you can’t be everything to everyone. You guys have your niche, and it’s a fairly large niche which is our business. But Warren’s the same way. He says I only invest in businesses I understand.”

Nick Antoine: Yeah. And there was, when I worked at Ariel from with John, he was friends with a very famous legendary value investor, Bill [00:51:00] Miller at Legg Mason. And Bill would say “We believe invest in what you know, but we also believe that we can learn new things.” I’m paraphrasing. And and I think that’s the same case for Warren, and obviously he had, other folks who were also investing with him and his team these days. But my understanding, again I’m not following the details, but my understanding is he sees Apple as a consumer business now, and they have basically a monopoly on phones. So I, I think that, again, to your point, the m- the dynamics [00:51:30] change, he understands it better because he learned as an investor. There’s some great reading, in his annual letters, I think it’s like 1982 or ’83, I can’t remember exactly what year, where he talks about what makes a great investment, what makes a okay investment. And he’s borrowed heavily from others that he, he’s read. But he summarizes, that you’re looking for something where there is a constraint on supply, and that business provides that [00:52:00] constraint or has an ability to have that constraint for a long period of time. And so that’s what makes them differentiable and gives them a moat, a competitive position. And so I think that’s the idea behind Apple. It’s the same thing with SpaceX, which candidly is, based upon it’s a logistics business. They’re f- they’re putting stuff into space, but it’s enormously expensive and complex to do that, and they fig- figured out a way to do it even cheaper than anyone else can. There’s no competition, right? So they have this infrastructure in place that’s [00:52:30] powered by technology that’ll now… now they’re in the internet business, but that’s the idea, I think, behind

Joe Lynch: I don’t think NASA’s pushing is going to do any more. I think, I’m– I’d have to double-check this, but more or less saying, “We’re gonna let the private sector do rockets, so we’ll we’ll pay them.” And so I think it’s suddenly a business that was traditionally the government now becoming outsourced.

And I see the same thing with Anduril. They’re doing business completely different than [00:53:00] the incumbents, and I think it’s a very attractive model for defense.

Nick Antoine: lots of great places to invest, and I think, again, supply chains and logistics are gonna be the forefront for a lot of these great opportunities. And and so I’m excited to be a part of it of it all, and and it’s been a really run

Joe Lynch: Well, Nick, we’ve covered a lot of ground here, and I will try and summarize it shortly here, and then I wanna get your final thoughts on the topic. So I’m talking to my friend Nick Antoine, and today’s topic is organized tech [00:53:30] destroying the small logistics entrepreneur? And I think Nick’s answer is not necessarily.

You have opportunities you do not have. If you’re a small company, don’t look at all the hype and say, “We’re doomed.” There is opportunity in chaos, and we have a little bit of chaos going on. We had a lot of chaos over the last four years since COVID. God, it doesn’t seem like it’s been four years since COVID, but so you mentioned to start that two-thirds of the business out in the, in our country is [00:54:00] small business.

So we really have a kind of an obsession with the bigger companies that we all follow on Wall Street. But the ma and pa businesses of the world are what powers the country. You talked about this idea of organized tech. So some political pundits in the past have said there’s organized people and there’s organized capital.

You see another column, which is organized tech, and it can feel like it is going to [00:54:30] kill the entrepreneur. There is a lot of technology, but I think every time there’s a new technology company that says, “Hey, we’re gonna, we’re gonna make brokerage digital,” and everyone goes, “Oh, that’s it. That those guys are gonna take over the market.”

There’s always a competitive response where somebody says, “We created technology to let you compete against that digital freight brokerage.” We’ve seen that in the last decade. Every time something pops up where you say, “Oh my God, that those [00:55:00] guys have tech dollars and they can’t be beaten,” somehow there’s a competitive response.

And I think in a lot of cases, that competitive response is gonna be partnering with companies like Ri- Red Arts Capital. You guys are investing in the middle market, less than 100 million in sales. Is that right? 100 million?

Nick Antoine: Yeah, we’ll look at businesses between 100 and 500 million of revenue when we

Joe Lynch: Okay. All right. Good, good to know. And you invest in logistics, [00:55:30] transportation, warehousing. We talked about LTL, we talked about warehousing. Anything that supports the supply chain, you guys invest in. Enough of my blather. Put a big old bow on this one. Final thoughts on the topic, Nick Antoine

Nick Antoine: Sure. I think that I think that in- infrastructure like investments in logistics and transportation where you have differentiable assets that, enable you to compete in a world that’s changing from technology is a really [00:56:00] exciting place to s- spend some time. And and I think also industries where you– we know that there’s gonna be need for food, there’s gonna be need for healthcare, need for defense.

Think that those areas are really interesting, exciting and we’re looking forward to seeing how things go. But it’s been, again, as I said, it’s been a good run and looking forward to the next decade.

Joe Lynch: Yep. And again, I’ll put a link to your LinkedIn profile, link to your website, link to that article if you send it to me, and any other links you and your go-to-market team give me. What [00:56:30] conferences will we see you and the fine folks from Red Arts Capital at? Do you get to any of the logistics conferences?

Nick Antoine: We do. We do. I think partner I write Manifest earlier this year, so I don’t know off the top of my head, but we try to hit ’em all

Joe Lynch: All right. All right, sounds good. Nick, thank you so much for taking the time today.

Nick Antoine: Thanks very much

Joe Lynch: And thank all of you for listening to my show. Your support’s very much appreciated. Until next time, onward and upward

The post Is Organized Tech Destroying the Small Logistics Entrepreneur with Nick Antoine appeared first on The Logistics of Logistics.

]]>
10931
Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain with Joey Evans https://www.thelogisticsoflogistics.com/short-lines-big-impact-how-short-line-railroads-power-americas-supply-chain-with-joey-evans/ Thu, 04 Jun 2026 22:58:43 +0000 https://www.thelogisticsoflogistics.com/?p=10927 In “Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain” Joe Lynch and Joey Evans, Senior Director, Government Affairs & Business Development, TNW Corporation, discuss how Class III short line railroads leverage technology, sustainability, and first-and-last-mile service to keep American commerce moving. About Joey Evans Joey Evans is the Senior Director,

The post Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain with Joey Evans appeared first on The Logistics of Logistics.

]]>

In “Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain” Joe Lynch and Joey Evans, Senior Director, Government Affairs & Business Development, TNW Corporation, discuss how Class III short line railroads leverage technology, sustainability, and first-and-last-mile service to keep American commerce moving.

About Joey Evans

Joey Evans is the Senior Director, Government Affairs & Business Development, TNW Corporation. He is a seasoned rail industry professional with over 20 years of experience, leading TNW’s development and execution of government affairs and strategic growth initiatives. His role oversees legislative strategy, public funding efforts, real estate and industrial development projects, and supports acquisition and expansion activities aligned with the company’s long-term objectives. Joey serves as President of the Texas Short Line and Regional Railroad Association (TSLRRA) and is a member of the TxDOT Freight Advisory Committee. His career spans various leadership roles across the short line railroad industry. Prior to his current position, he led Customer Success for TNW, encompassing customer service, revenue protection, and infrastructure technology. His journey began as a conductor and engineer, where hands-on experience laid the foundation for his transition into management.

About TNW Corporation

TNW Corporation owns and operates three short line railroads — TXNW Railway, TXGN Railway, and TXR Railway — along with multiple rail logistics facilities across Texas, serving as a strategic supply chain partner to industries, shippers, fleet managers, and Class I railroads. With more than 40 years of transportation logistics experience, TNW delivers the efficiency, reliability, and customer service that keep North American commerce moving. TXNW Railway, operating in the Texas Panhandle since 1982, is a One-Stop Supercenter and boasts the largest privately owned railcar storage capacity in the United States. TXGN Railway, also a One-Stop Supercenter, has served central Texas since 1992, operating approximately 67 miles of storage and loop track with Union Pacific interchange. TXR Railway, based in Brownwood, serves the Camp Bowie Industrial Area and interchanges with BNSF Railroad. TNW’s full suite of services includes rapid interchange, transloading, railcar storage, repair, cleaning, scrapping, warehousing, and rail-served industrial development.

Key Takeaways: Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain

  • In “Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain” Joe Lynch and Joey Evans, Senior Director, Government Affairs & Business Development, TNW Corporation, discuss how Class III short line railroads leverage technology, sustainability, and first-and-last-mile service to keep American commerce moving.
  • Revenue, Not Track Length, Defines Railroad Classes: Railroad classification is strictly determined by annual revenue, not physical distance. Class I railroads (the “interstates” like BNSF and UP) exceed $1 billion in annual revenue, Class II regional railroads fall between $1 billion and $47 million, and Class III short lines—where TNW Corporation operates—fall below $47 million.
  • Short Lines Serve as the “First and Last Mile” for Rural America: While Class I railroads excel at long-distance freight movement, North America’s 615 short line railroads provide essential first- and last-mile service to industrial parks and rural communities. Operating in smaller towns (often under 15,000 people), short lines keep vital agricultural, manufacturing, and petrochemical hubs connected to the national rail network.
  • Lowering the Barrier to Entry with Truck-to-Rail Conversions: Because one railcar holds the equivalent capacity of four trucks (4:1 ratio), TNW launched a dedicated logistics and transloading business. This allows smaller regional shippers within a 50-to-100-mile radius to enjoy the economic benefits of rail by breaking bulk rail loads down into local trucks, without requiring a massive capital investment in dedicated track infrastructure.
  • High-Volume Commodities and Major Public-Private Infrastructure Investments: Short lines primarily handle heavy, bulk commodities like petrochemicals, plastics, lumber, agricultural yields, and construction aggregates (rock). To support these loads, short lines reinvest a massive 33% to 50% of their annual revenue into infrastructure, a timeline accelerated by federal CRISI (Consolidated Rail Infrastructure Safety Improvement) grants to expand track fluidity.
  • Transitioning from Rail’s Historic “Black Hole” to High-Tech Visibility: Spurred by rising post-COVID consumer expectations (the “Amazon experience”), TNW developed a proprietary digital portal called My TNW. This tool eliminates the historic visibility “black hole” of rail shipping by providing customers with complete data transparency, allowing them to track cars across both TNW property and intersecting Class I networks.
  • Embracing AI and Autonomous Infrastructure Safety: The rail industry is heavily adopting AI, autonomous railcars, and automated track inspection tools. These automated systems travel the lines to instantly pinpoint structural micro-cracks, gauge misalignments, or railcar defects. Removing the human error factor from these tedious inspections helped the rail sector chart its safest operational year in its 200-year history in 2025.
  • Meeting Corporate ESG Targets Through “Clean and Green” Operations: Rail remains one of the most inherently sustainable modes of land transportation, moving a ton of freight roughly 500 miles on a single gallon of fuel. Beyond fuel efficiency, TNW helps shippers meet strict corporate environmental goals by certifying all properties under Operation Clean Sweep, which enforces strict handling frameworks to prevent plastic pellets and commodities from spilling into local ecosystems.

Learn More About Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain

Joey Evans | Linkedin

TNW Corporation | Linkedin

TNW Corporation | Instagram

TNW Corporation | Facebook

TNW Corporation | YouTube

TNW Corporation

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to the Logistics of Logistics show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is Short Lines, Big Impact, how short line railroads power America’s supply chains, with Joey Evans. How’s it going, Joey?

Joey Evans: I’m doing great, Joe. Thank you for having me

Joe Lynch: I’m excited to talk to you about railroads today because I feel like I don’t know enough.

W- before we hit record, we were talking about that. I always assume that my audience is similar [00:00:30] to me and go, “Yeah, I kinda, I understand what a railroad is. Have one rail move.” But so hopefully you can educate us today. So Joey, please introduce yourself and your company and where you’re calling from today.

Joey Evans: Yeah, Joey Evans Senior Director of Government Affairs and Business Development for T&W Corporation. And I’m calling out of Dallas, Texas

Joe Lynch: So what does TNW do?

Joey Evans: Yeah. So we are a transportation and logistics company that specializes in [00:01:00] short line railroads based here in Texas Dallas to be specific with short line railroads positioned around the state generally in rural communities

Joe Lynch: Yep. So I’m gonna keep asking basic questions all day today. You kn- you know that. So we have class I railroads, and those are the big ones. And then there’s the class II railroads. By the way, is there anything beyond that, or is it just class I and class II?

Joey Evans: Yeah. So there’s three different, three different tiers of [00:01:30] railroads. You have the Class I railroads, which you just mentioned, which are your big Class Is, which are BNSF, Union Pacific, CSXT,

Joe Lynch: We all see those. They dr- they go by hundreds

Joey Evans: Everybody sees those, right? And so then you get into your Class II railroads, which are considered your regional railroads, which more common like Florida East Coast Railway, Iowa Interstate, and then you get down into the short line railroads.

And so what separates those is not the [00:02:00] length of the track that someone has. It’s based on revenue or annual revenue. So for instance, it’s been adjusted every few years for inflation, but the number right now is just over a billion dollars in annual revenue makes you a Class I rev– or Class I railroad. When you get between one billion and forty-seven million, that is a Class II railroad, and then below forty-seven million that is what is considered a Class III or your typical short line [00:02:30] railroad.

Joe Lynch: Yep. And we talking about class two or class three today

Joey Evans: That’s correct. Yes, sir. That’s what… class III is where T&W Corporation, that’s where we fall as far as annual revenue goes. And we are, we don’t have any class II railroads

Joe Lynch: Yep. It’s interesting to me, I said this to you the other day. Railroads sometimes and you go, “Where’s that? I never see a train on that one.” And until I started this podcast, I used to drive by this one rail railroad tracks, and I’d [00:03:00] go, “Oh, that’s like an abandoned train. I wonder what, I wonder where it used to go to.”

And I didn’t ever think of class two or class three railroads. What are their purpose? I get the big ones. They go cross-country. Give– what are the shorter ones for?

Joey Evans: Yeah. Great point on seeing the big railroads go across the the highway per se is I relate it to the interstate highway system that moves east, west, north, and south. And so those, the big railroads they [00:03:30] really thrive in moving trains at a long distance. When you get into the short line railroads, what we serve is the rural communities that the first and last mile. And we talked about the six big railroads. There’s 615 short line railroads scattered across North America, uh, which generally all fall into rural communities. For instance, when you look at, when you look at our properties located in Dumas, Texas, [00:04:00] Brownwood, Texas, and Gonzales, Texas, those are just small communities, less

Joe Lynch: No pro sports teams there.

Joey Evans: Costcos

Joe Lynch: Not yet. Texas will eventually get ’em in every city

Joey Evans: And generally towns of less than 15,000 people, and these are the blue-collar workers of America that are making the goods that we use every

day

Joe Lynch: So these short lines, what’s their purpose? I’m, I’ve seen some, they tend to be in industrial areas. What are [00:04:30] they doing?

Joey Evans: Yeah. So they are the first and last mile of most of the products that you’re utilizing today. So as you see these manufacturers and smaller businesses that are making a product or distributing a product out to the community, we’re the guys that are offering the white glove service to these communities and serving what would otherwise be an abandoned rail line.

You, you talked a minute ago, Joe, about, driving by these railroad tracks for so many years and not seeing, a- activity on, [00:05:00] on them. What happened in the early ’80s with the Staggers Act was these Class One railroads, they realized that they had a real niche of being able to move, long distances and doing it very well. And so when you had these underutilized communities that needed goods to the national network or coming into their local communities, these short line railroads spun off. And so w- what it allowed small business owners to do was to come [00:05:30] in and to really figure out how they could serve their local communities and provide a service that was otherwise missing

Joe Lynch: Yep. Where does TNW fit in this?

Joey Evans: Yeah. We, as I mentioned, we’re a short line holding company here in Dallas and our three properties, we’ve been in business for 44 years now, going into 45 next year. And we started with our key railroad, which is TX&W Railway in Dumas. Started as just a small railroad that [00:06:00] served just a couple of customers. Since then, we’ve been able to invest in not only our infrastructure, but also into the community and help grow that single railroad into having the largest rail car storage facility in North America, and we’ll talk more about that as well.

Joe Lynch: who are your customers?

Joey Evans: Yeah. So it varies. And so when you look at, when you look at a majority of our customers in the northern region, which is Dumas, it’s a lot of agriculture and a lot of [00:06:30] petrochemical. So from a refinery to your grain elevators that are moving product either to the Gulf Coast or from the Gulf Coast or out of the Midwest to serve the local farmers. When you look in like Gonzales, which is located in the, what we call the Golden Triangle of Dallas, San Antonio, Houston, Austin area, a lot of that is plastics coming out of the Gulf Coast. But then you also have a lot of agricultural products coming in and out as [00:07:00] long as aggregates

Joe Lynch: So obviously all of the stuff you guys move has to be moved, and it could easily, I’m assuming, be moved by trucks also. But they choose rail because I’m gonna I’m gonna s-say my layman’s version of this. They’re picking rail because it’s a certain type of freight that, that’s conducive to rail. Not everything is.

But if it’s a lot of volume [00:07:30] it, it works. If it’s not a lot of volume, it’s probably not a good fit. There’s no less than truckload or a version over there in your business

Joey Evans: Y- that’s a, that’s such a great topic to talk about ’cause y- yes, for the most part, and I would go back to work, we’ll call it 10 years ago, that was really the case. You moved a lot of volume. It was conducive to rail longer distances, generally over 100 miles. But back in 2016 and ’17, we took a [00:08:00] look at that space and figured out that there were probably a lot more customers within a 50 to 100-mile radius that didn’t necessarily have the volume that would be conducive to rail, but they had a need for it. And when you look at truck-to-rail conversion, it’s about four to one. So for every four trucks, that’s one rail car. So We then spun up our logistics business at that point in time, where we went out in that 100-mile circle and we talked to the different farmers and different people that still [00:08:30] had a need, but maybe not the volume. And thence our our logistics business was born. So what we do on that side of our business is they’ll bring in a product, generally we’ll call it one rail car every now and then and then we actually perform the work for them. So we’ll offload the product into the trucks of their choosing, and then they’ll truck it out to, within, their 20 mile, 50 mile radius, whatever that looks like. And so what that allows them to [00:09:00] do is not to have to invest the capital into steel in the ground infrastructure that may be a little bit out of, their financial means, but they can still get product to that area. And that’s been a great business for us over the last 10 years.

Joe Lynch: come back and talk more about this in a minute because I think there’s some exciting things happening in the rail business. And the reason I say it that way is the business has always been hidden compared to the rest of the logistics business. The logistics business is, [00:09:30] very sales driven.

They’re chasing you down. You gotta call a few times usually to talk to somebody on the railroad. And I think I was talking to somebody about this a year or two ago and they said we kinda know what freight moves on our on our systems well, and if it doesn’t, then we’re not interested.”

So they’re not looking for everybody. Where v- trucking companies, for the most part, say, “If it moves, we’ll move it.” So it’s a it’s a specific kind of f- solution. [00:10:00] But it’s a great solution for the stuff. And again, there’s a sustainability angle and there’s a get the trucks off the road angle, which I think is we love our truckers, we love our trucking companies, but we don’t like, love congestion.

Joey Evans: And you– to your point, when you look at the truck and rail industry, a lot of people see the competitiveness in between the two, right? Of always trying to work to look at how do we remove trucks off of the

highway.

Joe Lynch: it? Yeah

Joey Evans: And that’s a big piece of it, but [00:10:30] also too, trucking really complements our business really well. And so we look at how do we form those relationships with the truckers to pull some of the product off by rail, but then to give the truckers a shorter haul, that way they can be more fluid in their business as

well

Joe Lynch: I like it. I like it. So Joey, tell us a little bit about you. Where’d you grow up? Where’d you go to school? Some career highlights before you joined the mothership, TNW

Joey Evans: Yeah, so I grew up in a small town in South Georgia, [00:11:00] Sylvester, Georgia and had the normal, age of growing up, playing high school sports and always had these dreams that I was gonna be a Major League Baseball star. Obviously, that didn’t work out very well if you and I are talking about railroading today. But I, out of high school, I realized pretty quickly that college probably wasn’t gonna be for me long term. Sports was not gonna be an option anymore. And so I had a buddy of mine that worked at the railroad as an engineer [00:11:30] and he talked about how good of a life he had. He said, it’s a lot of travel, a lot of being away from home,” but it was a really a long-term investment into your career. And so I said I wanna sign up.” And so about 25 years ago, I started my career as a conductor at Norfolk Southern. I worked my way through being an engineer and into management, uh, and then got introduced into the short line world [00:12:00] after, for me being gone all the time just was not something as my kids were growing up that I just, I wanted to do.

So got introduced into the short line world where it really is a more family-friendly lifestyle to where you’re home a majority of the weekends and at night. And so in 2000 and 2008, I made that jump into the short line world, uh, and moved around a little bit until I found my [00:12:30] home here at T&W almost nine years ago. And it’s just a such a remarkable company that I can grow with and that I can help others customers and potential customers succeed at

Joe Lynch: Yep. You’re not the first one to say, “I joined the railroad because I wasn’t sure what I wanted to do, and I didn’t think I wanted to go the college route.” And I think, I’m trying to think of the na- guy’s name ’cause it’s been a few years, but I interviewed a guy who’s either president or CEO of one of the one of the class one [00:13:00] railroads.

And he said, there’s a progression.” And he said “‘Cause I started at the bottom at the railroad company.” He goes, “And I just kept moving up.” And he said “It’s a nice life.” And I think his… I think he said his son was joining the railroad. And he said, because he goes, “It was attractive to him.”

Joey Evans: Yeah. It’s not uncommon, Joe, to see in our industry fourth and fifth gen- fifth generation railroaders. We have several people within the company that are, second and third people, or second and third generation [00:13:30] railroaders

Joe Lynch: There’s a musician Sturgill Simpson, and I heard him talk on I think it was Joe Rogan’s show. This is years ago. And he was talking about how he was working, and he goes, “I worked at the railroad,” and I wor- I forget which one. And he said, “I had a nice life. We had a nice life, my wife and I.” And he said he goes I kept thinking I, I wanna take a shot at this music.”

He goes, “But I had opportunities there, and I could see a very nice life for us there.” And he said, “So it was really tough to say, ‘Okay, I’m gonna quit the day job [00:14:00] and go do this full time.'” Obviously, it worked out for him, but not for everyone. Anyway we have a whole bunch of things I wanna talk about.

So we’ve talked about Class 1 railroads, and those are the big ones that I think, the– when you get stopped at the rail crossing, you see those. So those are the ones that you mentioned earlier, the BN- BNSF, Norfolk Southern, all those. We see those, and those are Class 1 railroads. And those I’m assuming they go [00:14:30] thousands of miles across the country.

Now, the short lines, they’re, the, whether it’s Class 1 or Cla- whether it’s Class 2 or Class 3, those aren’t classified by how long they are. They’re classified by revenue. Not su- not super important to us as shippers, but when I look at these Class 2 and Class 3 are they five miles? Are they 10 miles?

Are they 100 miles long? How long are these short line railroads?

Joey Evans: That’s such a great question, and it [00:15:00] completely varies. When you look at I talked about our properties that we have, our TSR Railway in Brownwood, Texas, is only six miles long. So that’s what most people think of when they hear the term short line railroad. They think, “Oh, it’s just very short.” But then you also take the same short line railroad as Rapid City, Pierre & Eastern, which is a Genesee & Wyoming railroad, and it’s 600 miles long. So there, there’s no variation you know

Joe Lynch: 600, [00:15:30] miles of Wyoming, you might only bump into what? Three, four people.

Joey Evans: It if you look at, if you look at the RCPE Railroad, for instance that one and Genesee Wyoming is the holding company, but it stretches the entire state of South Dakota,

right? And

Joe Lynch: so those states, there’s a lot of extraction, there’s a lot of agriculture. So anything that comes out of the ground, I’m assuming is a really good fit for rail. Agriculture’s a good fit for rail. Now are these class two, [00:16:00] class three, are they moving oil also?

Joey Evans: There are some movements of oil. We move a lot of petrochemical products out of our TS&W Railway in Dumas down into the Gulf Coast out of, comes out of a refinery in Dumas and goes down into the Gulf Coast in different regions and down into Mexico

Joe Lynch: the other day I was stopped as a railroad stop and I was just paying attention to all the the different types of cars and a lot of them were [00:16:30] tanker cars. And somebody said to me the other day, I think they said, “Oh, that’s 40% are tankers cars.” I don’t know if it’s that high on all railroads, but I thought that’s, that– And that speaks to it being some sort of chemical

Joey Evans: That’s exactly right. And y- and I would say that number’s probably pretty accurate. I think when people look at those tank cars, they always generally try to associate it with hazardous materials, and that’s not always the case. There’s a lot of [00:17:00] non-hazardous, even agricultural materials like palm oil and beef tallow that move in those cars, corn syrup and so forth. And, You look at hazardous materials just for a minute, talking about these tank cars, one staggering fact is 99.9% of all shipments that are moved by rail, hazardous materials are moved safely across the network with no interruptions, no issues at all. And, that’s a staggering number when you look at the [00:17:30] number of rail cars that move across North America

every year

Joe Lynch: This is a little bit of an aside, and if I can find the article, I’ll put a link to it in the show notes. By the way, I’ll make sure I put a link to your LinkedIn profile, link to y- your website, any other links you and your go-to-market team give me, I’ll make sure I put those in the show notes so people can reach out and talk to you.

I saw an article, I th- I wanna say it was in Forbes, and it said, “What’s the best way to move oil?” And I know we’re not talking about moving oil here today, but they said you can move [00:18:00] it by rail, you can move it by truck, you can move it by barge. You can also move it by pipelines. And so somebody wrote the article, “What’s best?”

And they said, “Depending what best means.” And a pipeline’s pretty efficient if you say this is gonna be going for a while. Now, are they always safe? I think the– I think we can make them safe, but what’s interesting about it is I remember, I forgot which [00:18:30] pipeline it was, where they said, “Oh, we shut down this pipeline,” and every…

Not against the environmentalism, but the, it’s can get a little silly in that oil is pumped out of the ground. It is going to be transported to market. Do you want it to go by pipeline? No. Okay, we shut the pipeline down. Good. It’s going by barge or truck or rail. They’re not throwing the oil away.

They’re not pumping it. It’s getting pumped out of the ground. Somebody paid a lot of money to get it pumped, and they had approval to get it [00:19:00] pumped, and they still have the approval to pump that oil. So if I can find that article, but I thought it was very interesting when they said, “What’s the best way?”

You go, “Depends what best means.”

Joey Evans: That, that’s exactly right. And it, it also depends on what the market’s doing at the current time. As you just talked about, as they’re pumping, they’re gonna continue pumping it out of the ground. I think, one of the, one of the things when you look at the rail industry as a whole, when you look at the fluctuating markets and, is there a geopolitical [00:19:30] event going on in the world

Joe Lynch: Yes, there is.

Joey Evans: That that, that’s causing certain fluctuations in the market, is you look at, and you can take any one of the major plastics companies, refineries, whatever business you wanna choose, they’re not gonna shut their production down just because of an event going on.

What they have to do is they have to figure out what’s– how do they become flexible during that time? Because I can guarantee you it costs them a [00:20:00] lot more to shut production down for a single day than it is for them just to continue producing and figure out, “Okay, am I gonna store this product somewhere during that timeframe, or what does that look

like?”

Joe Lynch: It’s interesting. So I remember talking about a pipeline with a friend, and I said, “Yeah, they’re no, no longer pumping that oil through the pipeline, but it is going in on trucks or rail.” And I said, “So if, God forbid, there’s a flipped over truck with oil, that’s [00:20:30] obviously a bad thing. It c- but the oil is still coming out of the ground.”

Anyway so the other day we met and I asked you, could you put together some points ’cause I’m not smart enough to talk about short line railroads with you. So you were kind enough to put together five t- topics to talk about today. So the first one, first topic is why short line railro- railroads matter more than ever.

Joey Evans: Yeah. Yeah, so first point. Yeah so first point goes back [00:21:00] to the conversation we had earlier about being the first and last mile and being able to serve those communities and just kinda give you a brief overview of kinda how T&W works at and, through my business development role. As we’re out meeting with potential opportunities the ability for us to be flexible and agile with these customers and potential opportunities is far more superior than a lot of a lot of larger companies can just because there, there’s a very short [00:21:30] distance between my office and the CEO of our company, Paul Triangan’s office. And so as we’re out meeting with those opportunities and we’re sitting down our first question is always, “What does success look like for you?” Which is a breath of fresh air for a lot of these companies that they generally don’t, they don’t hear. And so we work backwards, and once we figure out what their long-term goal and success looks like, we take that back and figure out a plan. How can we [00:22:00] land them on one of our properties? How can we scale them up to where they need to be? and and that is what all short line railroads are all about,

right?

Joe Lynch: so Joey, give me an example, and you don’t have to use a name. If you can use a name, great, but if you can’t, give me an example of what they’re moving and where they’re moving it. What’s point A? What’s point B for them?

Joey Evans: Yeah. So when you look at, we’ll use Texas in the Gonzales region, for instance, where our TSGN Railway is located. We have a new brick-and-mortar [00:22:30] customer that just came online. That was a a process of getting them onboarded, but they’re moving lumber out of the Pacific Northwest. When you look at, when you look at that Gonzales-Austin market, we use Austin as the kind of everybody knows where Austin is at. There’s so many new home starts that are happening in that region that all of that lumber’s coming out of the Pacific Northwest or either East Coast Pines coming out to build those homes. So all of that product’s [00:23:00] funneling into us, and they’ll

Joe Lynch: And where do you pick it up at?

Joey Evans: So we get our products specifically, at Gonzales location, Union Pacific is our class one railroad that we interchange with, and so we interchange with them.

Joe Lynch: in all cases?

Joey Evans: Nope. Ju- just for that specific short line. Uh, BNSF is a partner to us up at T, S, and W and at Brownwood, and then we have Union Pacific at TSGN. So we’ll pick that up from Union Pacific five days a week, and then we’ll haul [00:23:30] it about 12 miles into Gonzales to our different customers around what we call town. Uh, and then we’ll spot ’em every day, and we’ll pick ’em up and take ’em back to the national network

Joe Lynch: So this stuff’s coming out of the Pacific Northwest on which railroad?

Joey Evans: Union

Pacific I’m assuming it gets t-taken from some sort of lumber facility to a rail yard, rail head, whatever you wanna call that. They load that into the rail cars. How long does it take to get from up there down to [00:24:00] Texas?

Yeah, so generally what I see is somewhere between four and seven days

Joe Lynch: So it’s a little longer than truck, but it’s also you’re getting four times,

Joey Evans: That’s right

Joe Lynch: four time- if four truckloads fit into one rail car. So if it’s super, if you’re moving something, it’s obviously not an expedite, it’s obviously not n- there’s a lot of things that’s not, but what it is high volume.

So you could fill a whole bunch of trucks, I’m sorry, a whole bunch of cars with [00:24:30] and then haul that down there. So s- you pick it up somewhere in Texas at your short line. Now how does that, how does that– What’s the handoff look like? ‘Cause I’ve, I understand short line, I understand nice… Is this one of the things where they do the r- the rail exchange?

How does that mo- how does that work?

Joey Evans: Yeah, so it, it’s called an interchange. And so generally they’ll bring it in the Union Pacific will use them in this example. They’ll bring it in to a specific track. [00:25:00] They’ll set off a group of cars for us and then they’ll pick up a group of cars from us that’s going back

Joe Lynch: So they drop this off. It’s not like a live load. They dropped it off and when you guys are ready, you pick it up

Joey Evans: That’s correct. Yeah. So and generally for us, just as a specific example, they’ll drop off their rail cars to us at about five AM, Monday through Friday, and they’ll pick up that afternoon or either right then depending on kind of what that looks like, and they’ll take back to San [00:25:30] Antonio and distribute out. and and that kind of leads into when you ask about the specifics of an interchange. Up until about five years ago, we had some challenges at our interchange because it was a single track, right? So if you think about it, if I go put cars out there for Union Pacific to pick up there’s nowhere for them to bring us our cars. And What we’ve done through some government grant programs, which is called, it’s called CRISI for short, [00:26:00] C-R-I-S-I, Consolidated Rail Infrastructure Safety Improvement. Through that grant program we were awarded, uh, the opportunity to then spend that funding to build out our interchange.

So we created two interchange tracks. We lengthened them. Uh, we worked on some bridges, and now we have two tracks that can be interchanged to and from UP to make it more fluid

Joe Lynch: Yep. So when you pick it up, where are you taking those things to?[00:26:30]

Joey Evans: Yeah, so we take it into our no matter w-which railroad we’re talking about, we take it into our serving yard where we will then classify those rail cars by customer, by commodity

Joe Lynch: Thinking back to that lumber example, where do you take… So you gotta, you go, you said 12 miles or however many miles. Are you taking it to lumber distribution companies, or where, who are you taking it to?

Joey Evans: Yeah, so in that specific case, it’s going to a truss manufacturer. Their [00:27:00] name is Synergos. They are based out of Arizona located,

Joe Lynch: they’re do- so they’re building a lot of the houses prefab in a way.

Joey Evans: That’s correct. Yes, sir. That’s correct.

Joe Lynch: It’s not really prefab, I guess they’re just doing some of the assembly i- in a facility rather than at the job site

Joey Evans: That’s correct. Yeah, they’ll bring in the lumber, make the truss, and then it will– the truss will get trucked out to the sites

Joe Lynch: Okay. Very nice. Very nice. Obviously you can move[00:27:30]

lumber by truck also, but they’re choosing to do it this way. I know you’re not trying to convince somebody not to do it with rail. What would be a reason they wouldn’t do it with with rail? What doesn’t work for you guys? ‘Cause I know there’s lumber moving, you see it on the highway.

What wouldn’t work for you? Or, and when I see it on the highway, is that more likely to be short runs?

Joey Evans: Yeah, that’s exactly right. So I think when you look at what doesn’t work for us and there’s, uh, there’s nothing that won’t work for us from a rail perspective. It’s really what is gonna be feasible [00:28:00] for the customer. And, I use an example recently of sitting down with someone that was looking to potentially bring rail into one of our railroads. And as we sit down and looked at the mathematics and realized that the run was just gonna be too short for them, it was only like 37 miles it didn’t make, it didn’t make financial sense for them to try to do that, or from an operations standpoint for them because the rail cars, if they got [00:28:30] loaded, would have to go to San Antonio or Amarillo to then get distributed back to us, and by that point in time, they could have moved a number of trucks. And so o- one of the things that we’re really good at is being okay with telling the customer, “Hey, w- we don’t think this is gonna help you be successful.” And so we’re comfortable enough in the services that we do offer that we can tell a customer, “Hey, it’s probably gonna be better for you to ship by truck.”

Not [00:29:00] ideal for us, but more feasible for the customer, and they will remember that long

Joe Lynch: Yep. So what are some of the typical products or commodities that you guys are moving?

Joey Evans: So petrochemical plastics you’ve got lumber, you’ve got aggregates, a lot of agriculture whether it be wheat,

Joe Lynch: Now when you say aggregates, that could be like potassium and stuff like that?

Joey Evans: G-generally when we talk about aggregates, we’re thinking in more terms of rock. So [00:29:30] obviously when you look at Texas, everything is under construction at all times. And so there’s so many unit trains of rock aggregates that are moving for these highway projects. And again, complement to trucks and highways, right?

So we bring in the raw material, they’ll load it out and take it to the site itself where they’ll finish out a construction project.

Joe Lynch: Yep. Yeah, so the, so what we’re talking about these chemical plastic aggregates. This is, I– This makes [00:30:00] sense ’cause I’ve seen all that stuff roll down the ex- the, on the highway. And again, I can understand where this is a big advantage if I’m bringing, let’s just, grain or corn or something to market that, that’s a com- a commodity that we’re gonna load up a truck with and lo-load a car with.

I’m so used to talking to trucking people. No, I get it. This makes a lot of sense. One other thing, and please elaborate on this. Am I right to say railroads are [00:30:30] paid for by the railroad companies?

Joey Evans: In, in some cases, yeah. So you have a number of different ways that you can get paid, right? So you have what we call interline settlement or Rule 11. I believe truckers are familiar with that process as well, to where you have a single entity, like the origin railroad is billing for the entire route of that rail car traveling, and then that money gets distributed to all the parties that handles it

Joe Lynch: what I what I meant is the [00:31:00] actual rail, rails that you see. When you guys build the rail, you build the railroads, right?

Joey Evans: Yeah, so generally those are all purchased from Class I railroad. So when we talked earlier

about this

Joe Lynch: the actual tracks, someone put the tracks down. You guys paid for all those, right?

Joey Evans: That, that’s correct. Yeah. So

Joe Lynch: that’s unlike the expressways, which we pay for and then the trucking company– I’m not complaining, it’s just it’s a little different. So the infrastructure, you guys paid for it all. And you– instead there’s [00:31:30] some grants, and I think the reason I ask about that is there’s a lot of economic development that comes from what you guys are doing.

It’s like a port. If you open up a port, it is n-not just any old business. It’s a business that drives trade, and that’s the same with railroads. They drive trade.

Joey Evans: Yeah. When you look at talking about the infrastructure, the– when you look at the public or the private investment that we make back into our [00:32:00] infrastructure, and so when you think about the majority of short lines that get purchased, and I-I’ll stick to short lines specifically, those railroads were sold for a specific reason, generally because infrastructure was outdated, it was old.

Some of that infrastructure that railroads are still operating on is over a hundred years old. And so when we purchase those railroads that are sometimes neglected, it takes a lot of private [00:32:30] money going back into that infrastructure to build it up. When you look at you look at the gas prices from nineteen ninety-seven to today, the increase that you’ve seen, you take that same measurement and you look at the inflation of building infrastructure. Short line railroads like ourself, we’re putting thirty-three to fifty percent of our annual revenue back into new infrastructure, whether it be new build-outs and investments for our customers or whether it be maintenance projects. [00:33:00] And so that’s where that public partnership of these CRISI grants they come into play because what it allows us to do is to speed up that infrastructure investment by about fifteen years which is something that typically we couldn’t do until I’m gonna call it five years ago, is where when the CRISI really got guaranteed and the IAJA allowed short line railroads to just really build out infrastructure at a quicker

rate.

Joe Lynch: And [00:33:30] we had at the ports during COVID, we had we had issues obviously there, front page news. And I imagine you guys were just swamped because everyone was trying to get stuff out of those ports. The railroad, I’m sure those guys were struggling because if– with those rail, those things come off of the boats, they’re a lot of time getting onto a probably class one railroad.

But during that time there was some issues and we had the we had the [00:34:00] feds get involved and create some changes at the port on detention and demurrage. We learned some lessons, our supply chains worked pretty darn well. None of us it was a difficult time for a lot of families, but pretty good for a lot of trucking companies financially.

But we found some brittleness. What, what went on in your business? What did, what lessons did you guys learn from COVID?

Joey Evans: So I, for us, we learned a lot of different things, and number one was to continue or [00:34:30] try to learn how to be even more agile and flexible than we were before. Customer demands changed during that time. People had a lot more time at home to where I, I’m gonna call it a re- a refreshment of the workforce and here’s what I mean by that. If you look at the average American spending 30 minutes to an hour in the car every morning commuting to work and then back home, that’s two hours of their day that is out of the office. [00:35:00] What I found during COVID specifically was that more people were willing to learn dive into their work, read more books, study more things because they had

Joe Lynch: Oh, pod- podcasts really took off during that time.

Joey Evans: Right

Joe Lynch: Yeah and by the way, I don’t know if this is true, but f- I think a lot of the podcasters I talked to saw such growth during that time, and then it all went back to

Joey Evans: the the norm.

Joe Lynch: yeah

Joey Evans: And and then also too, you look at like Amazon, for [00:35:30] instance, during COVID, and you look at the amount of packages and the amount of growth that Amazon had. And so people got used to what I call the Amazon experience. And so they then took that back to work and said if I can know where my package is, and I can know exactly when it’s 10 stops from my house and so forth, I wanna know the same thing about my rail car.” And so the questions really changed after COVID

Joe Lynch: But do you guys have visibility tools like similar [00:36:00] to Project 44 or MacroPoint or all those tools that we use on the over-the-road stuff?

Joey Evans: We do. So back in r- during COVID and coming out of COVID, we developed our own tool in-house called My TNW which is powered from a company called Four Thirty Six Software. And so we built out this tool that allows complete transparency back to our customers. And so

Joe Lynch: That’s brand new ’cause I, my assumption, and this is the wrong way to say it, but I feel [00:36:30] like rail is rail. When it gets picked up, it moves from Los Angeles to Chicago, and when somebody says can you tell me where it’s at?” Kinda. It left LA, usually it gets here to Chicago on this day.

Y- it’s a, there’s a timing, and if somebody says oh, it’s two hours away,” it kinda doesn’t matter in a way. It’s gonna get there when it gets there. There’s no expediting once it’s on that rail.

Joey Evans: It, it used to be it used to be called the black hole, right? With where’s my [00:37:00] railcar at? It’s somewhere between Los Angeles and Atlanta. That’s all I know. But coming out of COVID, as those c- as those, questions changed, we went to work to try to figure out how can we give our customers a better experience? And so our customers today, when they log on to our portal, they can not only see the railcars that are on our property, but they can also see the railcars on other whether it be class one properties, and we can give them accurate dates of when the cars [00:37:30] are gonna be at our property.

Um-

Joe Lynch: One other thing, and this is probably more of a class one problem than it is– perhaps it’s a class, perhaps it’s a short line problem, too. I’ve seen a lot of videos where people are stealing from these rail cars, and it’s a problem we have in the over-the-road trucking industry.

Cargo theft went from opportunistic to more strategic. And I was in Port of Long Beach for a [00:38:00] conference, the IANA conference, highly recommend it, and I was talking to a guy and he said, “A lot of the people know,” he was talking about theft, he says, “They know the containers that it got off the boat, and they know what cars it’s getting on, and they know, and they’ll follow it.”

If it’s an ex- if it’s a product, and again, I’m thinking drugs or electronics, they might say, “Yeah, we’re willing to follow that. We know where that truck, we know where that rail car is going, and we know they’re gonna stop [00:38:30] at some point.” And d- do you guys, are you seeing theft in a an uptick in that?

Joey Evans: Y- we don’t see it specifically at our properties, and we’ve done a good job. The way that we have our security system set up at all of our properties w- between cameras and different people that are monitoring our properties, we’ve eliminated any opportunity for someone to come onto our properties and steal product from us. Because that’s one of the requests and one of the demands of our customers. They were like, [00:39:00] “We need to ensure that when we send a rail car to you, that it’s gonna be safe.” So we pivoted, you know, years ago and said, “Okay, if this is important to you, it’s now important to us.” And so we continuously look at how technology can help us to monitor our rail yards and to be able to provide that comfort and transparency.

Joe Lynch: about stealing something, the commodities where it’s chemicals, plastic, aggregates, agriculture, you’re like, “Oh yeah, there’s a whole bunch of corn. I’m gonna take my pickup truck and we’re gonna steal all…” [00:39:30] It’s not– You really would have to be very strategic about it, but let’s face it, this stuff is all valuable.

And I think as much as anything now, we’re worried about tampering. So if you’re moving corn or grain, you wanna say, “I’m delivering that to someone who’s gonna make food from it, so it has to be it has to be safe from the time I pick it to the time it gets to your table.” That’s the f- the food safety standards kinda require that of us.

Joey Evans: That’s right. That’s

Joe Lynch: And by the way, similar with chemicals. There can be no [00:40:00] contamination in your c-chemicals. I guess with your rocks, I don’t know. I don’t want anyone messing with my rocks. I don’t want ’em ruined.

Joey Evans: When you look at, when you look at the commodities like corn you use, for instance, that’s why it’s so important for us as we are, hauling products or whether we’re transloading it for specific customers, each one of those rail cars and compartments have seals on them. So as we’re getting ready to unload a product or we’re inspecting a train, is we’re checking for those seals to [00:40:30] ensure that the product is safe and secure. And if it’s not, then we then reach out to the customer and say, “Hey, this car arrived to us, and we noticed there’s a seal that’s been tampered with. What do you want to do?” And so it’s all part of, again, that’s that short line mentality that we offer back to customers is ensuring transparency, safety, security. And we, going back to our broad overview is we have such a large footprint at each one of our properties that [00:41:00] we can hold multiple products during any kind of uptick or downtick in the market for someone, uh, which is not something that a lot of people can do.

Joe Lynch: Nobody seems to have extra cars anymore. That’s the same with I’m an automotive guy originally, and I always remember you would see in factories and you go, “What are those 10 trucks sitting out there for the last month?” And they’re like, “Oh, y- adds a little bit of this, a little bit of that.

And I was a I did [00:41:30] lean facilitation, so we would always go are those acting as a warehouse?” Because that, we don’t like that. But y- it’s also, you used to see every time you go to any industrial facility, you see a con- shipping container and I go, “Do you own that?” And some of them are decommissioned, I understand.

They may- maybe you bought it. There was a buddy of mine, he owns a, business not too far away, and I was taking football tickets over to his, and I go, “Dude this shipping container belongs to this company.” And he goes, “Yeah. They didn’t come [00:42:00] get it, so we started storing stuff.” And I go, “Y- at some point, you’re gonna get charged for it.”

Joey Evans: That’s right “

Joe Lynch: You better call them. S- they’re w- th-they’re they’re gonna find it eventually.” But a- anyway it’s nice that you guys can if, so if somebody has, says, “Hey, don’t ship that yet,” you can say, “We’ll wait. We’ll wait a week on this.” Not everyone’s got extra rail cars. So one of the other things I wanna talk about is sustainability.

People come to you ’cause they’re moving this kind of product, and they [00:42:30] said, this is a less expensive way to move our product.” But it’s not just less expensive, it’s also more sustainable. Please elaborate.

Joey Evans: Yeah. Goes back to the service, right? When you look at the, when you look at the cost and, not always is it always cheaper to ship by rail. And while, w-while some of those decisions that get made are s- are strictly based on finances, for us, what we see for sustainability [00:43:00] is being able to provide that service, that same service over and over again.

And I’ll elaborate on that for just a minute. So T&W, we’re a very metric-driven company. Everything that we do is built around a operating plan that has metrics that help hold us accountable to get better. Prime example of that, uh, back in 2017, when we established our metrics and three of the metrics that you see across the [00:43:30] rail industry as a whole is what we call dwell. How long is a car sitting? Right car, right train, which is did my car make the right train that it was supposed to be moved to the next location? And how long did it take you to spot the car at my facility? And so that’s from a customer standpoint. So when we started that in 2017, we had these numbers that we thought were still really good numbers, and they were. But what we have done [00:44:00] now is we’ve shortened that timeframe in such a manner to where our customers can rely on that. And so they know that their business will be sustainable day in, day out. And yes, it, and not from our standpoint, but from the cost of shipping a piece of product from the Pacific Northwest down to Gonzales. We don’t dictate what those rates are in between those two points, and so there may be ups and downs on those. But [00:44:30] they know, “Hey, it may cost me a little bit more to get a car into this specific location,” but T&W’s gonna handle that with transparency, security, and that a- that, that allows them to be sustainable year after

year

Joe Lynch: What I was thinking, and I appreciate that, ’cause it’s not just always going for cheaper. This, there is a certain convenience with saying, “Hey, I have I have an approach that is sustainable.” What I’m talking about is rail is cleaner and greener than [00:45:00] trucks. So I’m assuming certain companies are looking at rail for their supply chain and saying, “Is this a way for us to meet our sustainability targets?”

Because every major, every big company, the Fortune 500, all of them have sustainability goals. And we’re getting cleaner with trucks every year every year. I just spoke to some guys about renewable natural gas engines. Even the regular diesel ones are [00:45:30] getting cleaner and greener, but rail is cleaner and greener

Joey Evans: And that’s sustainability, and yes, you’re right. And I would also mention too that it really kinda depends on the administration that’s in office on what’s important as far as sustainability goes, right? So you may see the current administration that is less focused on green items as compared to the previous administration and so forth. But, that’s another one of the services that we offer [00:46:00] is we are, at all of our properties, we’re Operation Clean Sweep. And so what that means is these plastics manufacturers, they need to know that to, to be environmentally compliant, that those pellets aren’t getting on the ground. So we went through a process to become Operation Clean Sweep compliant that provides a framework of what happens when those cars come on our property. Whether or not it be end- showing that there’s a pellet leaking out of a [00:46:30] car or pellets that have been found. So that’s another one of the things that we help customers meet that sustainability.

Joe Lynch: What I was getting at is putting f- four, the equivalent of four truckloads into one car, and then a rail going across country uses less energy than trucks. So

Joey Evans: one, one gallon per every 300 miles on a rail car. That’s the typical

Joe Lynch: And I’ll also say this, forget what the silly folks in Washington are doing. I know you have to visit them [00:47:00] as part of your job, but regardless of who’s in office, the major Fortune 500 companies almost across the board say, “We value sustainability.” And so they’re gonna have their green goals. And c- and the reason they’re, they have it isn’t because of Washington.

They have it because their customers say, “Hey, is this sustainable?” And by the way, w- if you go to the store today and you’re buying something and it says, “Hey, this is 100% recycled w- whatever,” and this one isn’t, you’re like, “Oh, I’ll pay an extra 20 [00:47:30] cents. What do I care?”

Joey Evans: You’re 100% right. It

matters.

Joe Lynch: so all these major– By the way, I remember years ago when I was still in moving logistics rather than just talking about it, I was moving solar panels, and we were moving solar panels to all the Walmarts around the country.

And you go why does Walmart care about that?” Walmart has really dove into being sustainable. And people are gonna say yeah, it’s not sustainable. They have all these stores.” We’re going to those stores. [00:48:00] But they’re doing the best they can. Their trucks, they have a lot of trucks, and they have, they’ve been one of the leaders in green transportation to the extent you can be green when you’re moving a truck.

So anyway, I know there’s been a lot of upgrades in the rail business, and I think, it’s the same with the transportation over-the-road stuff. We were w- I’m not saying it wasn’t like it was unprofessional, but it was more casual. I think there was a sense that “I’m [00:48:30] p- no one’s gonna steal from me.

No one’s gonna do this. No one’s gonna defraud me.” Now I think we, we know that we can be victimized by the bad people. I think we also realized during COVID the importance of supply chain and everything upgraded since then. So what do you see as the future in your business as and don’t just talk about class short lines, but also the class ones?

Joey Evans: Yeah, I think what you’re seeing now as far as [00:49:00] how, what the future looks like in rail is you’re seeing AI. Everybody talks about AI nowadays. You’re seeing that really creep into all of the railroads. And whether that be, most people when they think of AI, they think, “Oh ChatGPT.” That, that’s a small piece of it that I think is really helping different pieces of the rail business. But when I look at AI, I look at, how are these autonomous rail cars [00:49:30] being, made today? There’s some companies out there that… I was in DC a couple weeks ago or about a month ago, and this company, Parallel Systems, has created this autonomous

car.

Joe Lynch: those guys

Joey Evans: Yeah. So you have them, you have another customer GLID out of Texas that is getting into that market. And I say GLID because I can’t remember if they pronounce it glide or glid

But A a great company out of Texas that [00:50:00] is working towards that same same feature. Those are the kind of things that I think are really gonna change the landscape year or long term in our business

Joe Lynch: this idea of autonomous for rail because obviously it’s going to stay on the rail. So if you said that, that thing’s gonna run all night maybe it takes off time. Obviously a human driver has to stop and there’s safety standards required. But if you say that, that rail car moves across the country the same way all the [00:50:30] time.

Now, autonomous trucks, we’re gonna get there, but it’s a little scarier because we’re driving on those roads. Nobody’s driving on the rail railroad that day.

Joey Evans: Joe, when you also think about just the, what we’ve talked about some maintenance of the infrastructure. When you look at, 10 years ago, when temperature gets to a certain degree either high or low, people are out manually walking and riding to look at that infrastructure to see if they see any breaks, any cracks in the infrastructure is the [00:51:00] gauge out what does that look like?

And so with today’s technology, now you have these autonomous track inspection tools.

Joe Lynch: Oh, that’s crazy.

Joey Evans: So they’ll go out and do the work for you and be able to identify, okay, am I out of gauge? Is there a small crack somewhere? Is there… And it’s monitoring not only that track, but it can monitor rail cars. So it’s looking to say, “Hey I see this rail car here has [00:51:30] a piece of material protruding off of it,” or, “I see this that is wrong with the internal pieces of the rail car.” So it, it’s gonna continue to make for a safer rail industry. W- when you look at, when you look at last year, 2025, we finished out the year as having the safest record across the entire rail industry in its existence, in 200 years. So we had– And so it’s only gonna continue to get better as we [00:52:00] move to taking the human factor out of certain things. We’ll never replace people, but it will help

Joe Lynch: Yeah it’s When you talk about rail track, r- the railroad track inspection or the truck inspection, that is a job that is not good for a human. If you and I were res- responsible for walking a mile down a track and saying, “Yep, everything’s good,” we might be like, “Ah, this is my seventh mile today. I…

Yeah, it all looks good to [00:52:30] me.” Much better to have a machine that, with sensors, go down that rail- railroad track. Anyway, I’m gonna wrap this bad boy up, then I want to get your final thoughts on the topic. I’m talking to my friend Joey Evans, and today’s topic is Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain.

I ask a lot of very basic questions of you today. I appreciate you hearing me out and answering my questions. The big railroads that we all know of the Class One, the [00:53:00] BNSF, Norfolk Southern, many others that you mentioned, those go the long distance. You call those the kinda the expressways of of the rail business.

But there’s these other ones, the short lines, which would be Class Two and Class Three railroads. These are the ones that kinda are the connectors. So these might be five miles long, it might be 600 miles long, but a lot– what they’re serving is a lot of this, these commodities that are big, bulky stuff that it’s [00:53:30] usually more cost advantageous to move this stuff via rail.

A rail car is four times as big as a tr- a truck box. It’s moving chemicals, it’s moving plastics, it’s moving aggregates, agriculture stuff. And we talked about the role of the Class Two and the Class Three, the short lines. We talked about, when you have these rail- railroads, whether they’re the Class Ones, Class Twos, or Class Three, these are similar to a [00:54:00] port in that it drives trade for a region.

So if you all of a sudden have a Class Two, Class Three that’s coming into an area that means you’re gonna be able to have certain types of businesses that you couldn’t have otherwise. And that’s why when you’re in an industrial park, sometimes you’ll go, “Why is there a railroad here?” There’s a railroad here because they weren’t gonna build that industrial park unless they got that railroad.

And because cer- certain stuff, it’s just… let’s face it, when you’re talking about agriculture, that’s a [00:54:30] very difficult business. You can’t pay extra for your transportation, plain and simple.

Joey Evans: Very thin margins

Joe Lynch: Yes. So a lot of economic development driven by the railroads. We talked about some supply chain lessons learned.

I think you talked about scorecards and visibility tools. I don’t think we would’ve had that conversation five, seven years ago. The world has changed since then. We talked about sustainability. A lot of companies are looking for a way to save on environmental impact. This is [00:55:00] one good way to do it.

You gotta have the volume, you gotta be the right fit. That’s why you gotta talk to the railroad people. I think you said it a few times, much more open to what makes sense. And if it doesn’t make sense, they’ll be quick to tell you, “No, we can’t help you.” They’re not gonna, they’re not gonna do your l- your final mile to delivering groceries, but there’s a lot of other good places they fit.

Let’s see. What else did I miss here? I think that’s it. Anyway, put a big old bow on this, Joey Evans. Final thoughts on the topic.

Joey Evans: [00:55:30] Yeah. What I would tell anybody that’s out there that’s looking to solve their supply chain challenges, T&W Corporation, we’re– we focus, primarily on short lines and operating those short lines. We’re open to moving and working anywhere in the country. We just happen to be headquartered in the great state of Texas. But we’re here to solve challenges for you. So if you’ve got a problem that needs someone that’s really gonna offer that white glove service to you and is really gonna [00:56:00] focus on safety first and foremost, and then at that point is gonna talk about how to drive your long-term success, whether it be through your typical freight haul or transloading or different ancillary services related to rail, we’re here to be your, we’re here to be your solutions provider.

We’ll always put your focus first and foremost. We will make you to where it provides a scorecard and a baseline for you at your other locations as [00:56:30] well. So you can find us at www.tnwcorporation.com. Uh, and myself and the other team members, we’re happy to help you solve any challenge you’ve got

Joe Lynch: Yep. Sounds good. Sounds good. So what I’ll do is I’ll make sure I put a link to your LinkedIn profile, link to your website, any other links you and your go-to-market team give me. If you guys get case studies or anything, we’ll put those in the show notes. And I’ll look for that one article I talked about, which was what’s the best way to move oil?

And I not that it was a [00:57:00] big part of our conversation, but I think it’s interesting because there al- there’s alternatives and there’s a good fit. And I think over time we’re figuring out where stuff belongs. This is the nature of our supply chains becoming more and more efficient. 25, 30 years ago, you might say, “I’m picking that up in LA.

I got a truck.” Now, a lot of times people say is it better for a truck or is it better for rail and pick it up in Chicago?” We’re figuring those things out and it’s it’s why we have [00:57:30] the inexpensive products that we have. I know everyone’s saying everything’s too expensive. Our world has become very cheap compared to our grandparents and great-grandparents.

Joey Evans: Sure. I would say, Joe the best way to move anything is T&W Corporation.

Joe Lynch: Exactly. Exactly. Anyway, thank you so much for taking the time.

Joey Evans: Thank you, Joe. It was my

Joe Lynch: Oh, be-before I forget, what conference are you guys going to this year?

Joey Evans: Yeah, so next week I’ll be at Railway Interchange in Omaha, Nebraska. It’s the largest railroad conference there is, [00:58:00] about 4,000 attendees. I– you can always catch me at American Short Line Regional Railroad Association Railroad Day on the Hill, their annual conference, or any one of the Association of Rail Shipper conferences, and any other conference that you think I need to be at, don’t hesitate to reach out and I’ll join you there.

Joe Lynch: Yeah. It was, you should definitely get over to Manifest. That’s the– I always call that the Super Bowl of supply chain. Everybody’s there.

Joey Evans: All right, I’ll check it out

Joe Lynch: Thank you so much for taking the time, Joey.

Joey Evans: Thank you, Joe. I enjoyed

it.

Joe Lynch: me too.

Joey Evans: [00:58:30] Thank you so much

Joe Lynch: And thank all of you for listening to my show. Your support’s very much appreciated. Until next time, onward and upward

The post Short Lines, Big Impact: How Short Line Railroads Power America’s Supply Chain with Joey Evans appeared first on The Logistics of Logistics.

]]>
10927
 Breaking Bulk Logistics Data Silos with IntelliTrans and Matt Everson https://www.thelogisticsoflogistics.com/breaking-bulk-logistics-data-silos-with-intellitrans-and-matt-everson/ Thu, 28 May 2026 23:03:38 +0000 https://www.thelogisticsoflogistics.com/?p=10893 In “Breaking Bulk Logistics Data Silos” Joe Lynch and Matt Everson, Senior Vice President of Sales & Marketing at IntelliTrans, discuss how unifying multimodal freight technology eliminates operational blind spots and optimizes bulk supply chains. About Matt Everson Matt Everson is the Senior Vice President of Sales & Marketing at IntelliTrans. He brings more

The post  Breaking Bulk Logistics Data Silos with IntelliTrans and Matt Everson appeared first on The Logistics of Logistics.

]]>

In “Breaking Bulk Logistics Data Silos” Joe Lynch and Matt Everson, Senior Vice President of Sales & Marketing at IntelliTrans, discuss how unifying multimodal freight technology eliminates operational blind spots and optimizes bulk supply chains.

About Matt Everson

Matt Everson is the Senior Vice President of Sales & Marketing at IntelliTrans. He brings more than 15 years of experience driving growth and building strong customer relationships in the transportation and logistics technology industry. He leads the company’s sales and marketing efforts with a focus on delivering measurable value and long-term partnerships that help customers succeed. He leads the commercial and customer engagement strategy that connects shippers with technology designed to simplify logistics complexity and deliver measurable value.

About IntelliTrans

IntelliTrans, a business unit of Roper Technologies, delivers multimodal transportation management solutions built by experts to simplify freight complexities for bulk and breakbulk shippers. By combining real-time data, predictive risk management, and expert support, IntelliTrans provides insights to help shippers reduce costs, prevent disruptions, and deliver with confidence. IntelliTrans’ mission is to keep the world’s goods moving by giving transportation professionals the clarity, confidence, and control to deliver every time. Established in 1992, IntelliTrans is headquartered in Atlanta, with offices in Arkansas, London, and Sweden.

Key Takeaways:  Breaking Bulk Logistics Data Silos

  • In “Breaking Bulk Logistics Data Silos” Joe Lynch and Matt Everson, Senior Vice President of Sales & Marketing at IntelliTrans, discuss how unifying multimodal freight technology eliminates operational blind spots and optimizes bulk supply chains.
  • Serve the Core Bulk and Breakbulk Sectors: Focus technology and operations on shippers of heavy, raw commodities—essentially “anything that comes out of the ground,” including oil, gas, chemicals, plastics, metals, agriculture, and forestry products.
  • Dominate the North American Rail TMS Market: Establish market leadership by processing 40% of all North American railcars (excluding intermodal) on any given day and maintaining direct data connections into 95% of Class II short-line railroads.
  • Unify Multimodal Freight to Break Data Silos: Eliminate operational blind spots for large Fortune 100 shippers by combining rail, truck, yard management, and barge data into a single comprehensive execution platform.
  • Leverage Historical Data Cleanliness for AI Readiness: Utilize decades of specialized operational expertise and human-verified data cleaning to build high-quality datasets, positioning the platform to deliver highly accurate predictive insights as supply chain AI evolves.
  • Optimize High-Value Asset Utilization and Fleets: Provide advanced forecasting and analytics tools that calculate a shipper’s exact fleet size requirements, ensuring optimal lease management and minimizing idle railcar costs.
  • Mitigate Overcharges and Prevent Demurrage Fees: Protect shippers from costly detention, storage, and demurrage fees by deploying automatic alerts, verifying car placement data, and actively auditing carrier invoices.
  • Track Scope 3 Emissions for ESG Compliance: Help shippers meet modern environmental compliance standards through certified state-by-state tracking of mileage, weight, and CO2 emissions across all transportation modes.

Learn More About  Breaking Bulk Logistics Data Silos

Matt Everson | Linkedin

IntelliTrans | Linkedin

IntelliTrans

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to the Logistics of Logistics Show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is breaking bulk logistics data silos with Intellyx Trans and Matt Everson. How’s it going, Matt?

Matt Everson: I’m doing well. How are you doing today?

Joe Lynch: Doing great. Doing great. So Matt, please introduce yourself and your company and where you’re calling from today

Matt Everson: Yeah, hi Matt Everson, Senior Vice President of Sales and Marketing at IntelleTrans. We’re based out of Atlanta, Georgia. I’m actually [00:00:30] out of Nashville, Tennessee. And yeah, we are a shipper TMS. We work in the bulk and break bulk logistics arena, so mainly with organizations and shippers that have a lot of commodity-driven raw materials inbound and outbound from their f- facilities

Joe Lynch: Yep. So Matt, you guys are a different kind of transportation management system, and I didn’t understand it. But tell us the transportation management system that, the type of customers and the type of commodities or products you’re moving.

Matt Everson: Yeah, so [00:01:00] think about it like this. Anything that comes out of the ground, that’s the easiest way I can explain it. So you think oil and gas aggregates, right? Or copper. We have cop- copper customers, gold customers wheat, soybeans, anything on the agriculture side trees, right?

Lumber before it’s made into building products

Joe Lynch: M- I- I’m assuming it’s also milk and stuff that is liquid

Matt Everson: Yeah. Yep. Milk, food grade it, definitely gets moved. But the thing about milk is it’s mainly milk runs. That’s where the term milk runs

come from. And so it’s more lo- more [00:01:30] local than it

is, International I guess all around North America. So we don’t typically see milk on rail cars or, tanker trucks cross-country.

But it can happen. Yeah

Joe Lynch: Yep. And I think most of us are familiar with s- products that can go in shipping containers, containerized freight. And by the way, th- not to confuse it too much, but I know some commodities are traveling in containerized freight or containers right now. But [00:02:00] when you see those railroad, railroads roll by and there’s the tankers they’re all sorts of chemicals, oil, I don’t know what the liquids are.

But I just stopped at a train the other day and I thought, “I’m gonna get out of here. This one’s gonna be too long.”

And I sat and I watched for hearsay, Matt, ’cause I was like, “I know I’m gonna talk to those guys.” I think more than half of the cars were tankers, and we don’t usually think of that type of, [00:02:30] I don’t know is it just called bulk?

Is that what you guys call it?

Matt Everson: Yeah, it’s bulk. It’s bulk and that’s exactly what it is. These so 40% of all North America rail cars, excluding intermodal, come through our system on any given day. So we are the market leader in rail TMS, and it gives us a lot of good data, and we’ll, I know we’ll talk about that a little bit later.

But yeah, that’s exactly what we’re talking about. So there are different types of rail cars, gondolas hoppers box cars, flat cars tanker cars. There you see it on the railroad. There, there’s probably at [00:03:00] least those chains of 100, there’s probably about 40 of them that are running through our system at any given time

Joe Lynch: Yep. So if I’m using the IntelleTrans TMS, where does this start? Where does it stop?

Matt Everson: Yeah. So it’s a full-blown TMS, right? And you think of a TMS, it does everything from, managing the planning, the rates on the front side through the execution, the bill of lading documentation the tracking of the shipment, which is pretty, pretty much the most popular a-and needed function of rail.

And then you’ve got the invoices that come [00:03:30] into you and the reporting analytics. So we’re a full-blown TMS. We do it all. On top of that, though we have modules that are very important to it- rail’s gonna be different than over the road, of course, but on the rail side, it’s managing your fleet, right?

So managing your lease, fleet sizing analytics tool to make sure you, you have the right size of fleet. Yard management is a big piece of what we do, right? So a lot of customers who have the rail yard out in the next to their mill or plant, are gonna have to manage those cars and, separately and individually.

Yeah.

Joe Lynch: Y- yeah. So we’ll [00:04:00] get into that. Those are the class, what, class B, class… Is that what they call them,

Matt Everson: y-yeah, class ones, class ones,

Joe Lynch: oh, I’m sorry. Cl- there’s class ones are the… Class ones are the cross-country ones, and then the,

Matt Everson: The short lines, yeah. We just

call them

Joe Lynch: short

lines are the class two. Is that what you call

Matt Everson: Class two short lines. Yep, exactly. I used to call them class A. I was a military guy so I used to, I used to– Uh, when I first got in, I called them class As, and I was like, “Wait that’s our, that was our uniform in the army.” But

Joe Lynch: I call the class two [00:04:30] railroads the ones that you think are abandoned

Matt Everson: Yeah. There, there sh– there usually– there’s over 500 of them in America these

Joe Lynch: Although it’s critically important and it seldom comes up on my podcast. I’m gonna do a an episode in a f- week or two on it. You- we know about the class one railroads that are going along the expressway and you see the usual names on those. And then there’s these class two that might just go 50 or 100 miles that go [00:05:00] to pick up aggregate stuff, that goes pick up the bulk stuff.

And it’s a fantastic solution if you have volume and certain types of product. And if you don’t, you can call those guys all day. They don’t even answer the phone. I swear they– I, I’ve said to you before we hit record that’s a group that you have to find them and then beg them to, to work with them.

A- and I think part of it is because not everything’s a good fit for them

Matt Everson: Yeah. Yeah. And they are selective on, on [00:05:30] the type of c-commodities and types of customers that they want on those rail lines. But you’re right. There, there’s some two short lines that are five miles, two miles, right? And they’re just going back and forth between a quarry, and the main line.

But it’s a much needed move, right? The thing about rail is unlike truck you can’t just steer off and go off into the corner, and pick something up. You gotta be within the rail.

Joe Lynch: Yeah. It’s it’s a critically important part of logistics that sometimes gets missed, and this is usually not the end [00:06:00] product that you might be receiving from China. It could be the raw goods that are being sent to be processed. The United States, somewhere along the line, we lost the manufacturing, the production, and the processing piece, but kept the agricultural and the I don’t know what you call it, mining mining, d- drilling, all that piece we kept here.

And we know this is a country that is filled with natural resources, so there’s good reason [00:06:30] to do it, and we’re really productive at that. So that is an area that we excel at

Matt Everson: Absolutely. Yeah. It’s it’s a good, it’s a good business to be in, honestly. It’s niche, right? But it’s definitely What people don’t realize is there’s so many nuances within rail, unlike truck that you need to understand about your shipments, right? And so we really help e-evolve the shipper into understanding that it’s, managing your assets and managing your, your the visibility of your shipments in a very tight [00:07:00] format can actually save real hard dollars.

And, we connect into 95% of those class twos. The hard part with those class twos is they don’t they don’t all have the the IT teams or the, the technology, to get data to where it wants to go. But we’ve done a very good job. We’ve been around since 1992, so 34 years of connecting with those class twos, and so we’re at 95% of all the class twos we connect into today

Joe Lynch: Yep. So what who are your customers? Are they the class II railroads? Are they class I railroads? Are they shippers? Who gets, who buys [00:07:30] Intellitrans?

Matt Everson: Yeah. Yeah. Our customers are the biggest customers in America, right? We’re talking the Fortune 100 companies that,

Joe Lynch: the ship, so generally the shippers

Matt Everson: The shippers, yeah. Yep. The shippers, sorry. Yep.

Joe Lynch: I look at the world now as shippers and people who move stuff.

Matt Everson: That’s right. That’s right. So think of the biggest oil and gas companies, think of the biggest chemical companies. Tho- those are our customers

Joe Lynch: So oil and gas anybody who’s got bulk stuff, right?

Matt Everson: Chemicals, plastic, even the forestry [00:08:00] lumber, some of the biggest in North America are with us there.

Joe Lynch: do a-, do you do ag?

Matt Everson: Yeah, egg, some of the biggest egg companies. Yep,

absolutely

Joe Lynch: right. All right. Sounds good. We’ll get more into that in a minute. Matt, tell us a little bit about you. Where’d you grow up? Where’d you go to school? Some career highlights before you joined Intelletrans, and why did you join Intelletrans?

Matt Everson: Yeah. Yeah. Hey, thanks for asking. So I grew up in South Dakota, middle of cornfields and wheat fields America. I know I’m a kind of a unicorn out there, not many of us around. But I,

Joe Lynch: now what happened when you left and moved to Nashville? That must have [00:08:30] been devastating to the state.

Matt Everson: I s- I had a couple stops in between, right? But you’re right, yeah. My family’s still back in South Dakota, so I love going back to visit. I went to school at the University of Minnesota. I actually was a wrestler there.

Joe Lynch: To get out of the cold?

Matt Everson: Yeah, you gotta cold. Yeah, a little chillier, a little chillier there. But no I was an athlete there at Minnesota and got… W- when I was done with school, I had a little stint in the military over in Iraq where I actually, fu- funny enough, I was in logistics there, so we were doing convoy [00:09:00] escorts. So

Joe Lynch: That’s the real, that’s real logistics where p- people, we think our business is life and death. Your business was life and death, and you had to do it while people were shooting at your customers and you

Matt Everson: Yeah. It was definitely a different experience. And, I never, I kinda look back at how I got into logistics and transportation and, y- somewhere along the line, I think, God pointed me in this direction. But it really did start back I was still in college, but when I was over- overseas helping transport trucks from the southern part of Iraq to the [00:09:30] northern part of Iraq through Baghdad and through through that.

And that was in 2007. So that was quite a while ago. But but yeah, I got back from finished school, got back from Iraq, and my first job out of college was at a software company, and I didn’t really know what I was talking about in the beginning. It was at Infor. It actually was called Lawson at the time.

Joe Lynch: Oh, great company

Matt Everson: Yeah. We– I was at Lawson when Infor bought us, and that was down- downtown St. Paul. Was there for a little bit longer before going to Oracle. That’s where I got my first taste in tech- [00:10:00] transportation technology, s- selling Oracle Transportation Management amongst some other edge products.

But started learning that. Met a gentleman there that brought me over to a different company called AFS. I was at AFS for a couple years learning LTL, so different part of, very specific to small package parcel LTL. Left there went to another TMS called, I don’t know if you’re f- familiar with Sterling TMS. Remember the old Sterling TMS?

Joe Lynch: No, I don’t know that one. There’s so many.

Matt Everson: There are so many. Yeah. Sterling got bought by IBM, and [00:10:30] then they–

Joe Lynch: Oh, wow

Matt Everson: then IBM divested it to a company called Kiwe that was based out of Europe. And at Kiwe for just a short period of time, and I was there when they bought Lean Logistics. So Kiwe bought Lean Logistics, so what everybody knows,

Blue

Joe Lynch: that name

Matt Everson: yeah, so Blue J Solutions right, really is Lean Logistics and Sterling TMS together. And and so the Blue J was obviously got sold to E2 open in later years. But I was actually went to a startup company. So I was a a co-founder, um, [00:11:00] of a company called Freightwise out of Nashville, Tennessee, which is what brought me to Nashville ul-ultimately. Uh, so we started the business back in twenty fifteen.

I unfortunately wasn’t an owner but I was definitely one of their very first employee, was there from the very beginning. And so that was an LTL small package parcel business that we grew a lot. In twenty nineteen, we were the second fastest growing company in America- Okay

according to Inc. Five thousand. So we had rapid growth, and I’ve seen, what a [00:11:30] TMS does. So you count the TMSs I’ve seen, the number of them and, you know, we saw it, it was a f- it was a fun period of time, right? And then the business got sold to a PE firm in twenty twenty-two which you was about my cue to start thinking about doing something different, right?

And so I never really got into bulk and break bulk logistics until twenty twenty-four. I’d heard of it. I’ve had conversations with customers, of course, about it, but didn’t really dive deep into it, until I came over to Intelitrans, and that was in late twenty twenty-four. So I’ve only been at Intelitrans a y- almost two years [00:12:00] now. But

Joe Lynch: So what made you join IntelliTrans? You obviously are a TMS veteran and a expert. W- what did, what appealed to you about IntelliTrans?

Matt Everson: Yeah. So IntelliTrans has great technology, and I feel like it’s the TMS that most people haven’t heard of. And honestly, when I talk to our customers, they love it. They love the system, what the– its functionality, what it’s capable of doing. And I really saw that as a diamond in the rough, right?

A really valuable [00:12:30] execution-ready platform that is only gonna grow and enhance. And, th-there’s been– we’re owned by Roper Technologies. And so Roper organization, also owns DAT. Um, so DAT’s our sister company, which I saw as an opportunity. But we, are– worked with Roper, but we’ve got a pathway forward here.

We’re investing heavy into the product and that’s what opened my eyes. I’m like, “Hey, if we’ve got the capital to go make changes and, y-do [00:13:00] something, better than, that IntelliTrans has ever done, and n-having the, leadership team with the insight and foresight to do then let’s do it.

Let’s, Hey, I’m all on board.”

Joe Lynch: Yeah. Matt I definitely have heard about IntelliTrans. I looked it up or said the word and for the last, I don’t know, month or two, I’ve just seen nothing but IntelliTrans commercials on YouTube. And I was like, so I’m hoping this

Matt Everson: That’s from me, Joe. I think I, I think I launched that campaign.

Joe Lynch: I, and I’m just gonna tell you I’m not gonna buy it.

I’m not a, I’m not a [00:13:30] large shipper of oil, gas, bulk, or chemicals. I’m just not.

Matt Everson: Yeah, I have to tweak who who all receives that a little bit, but,

Joe Lynch: I used to see there’s a local jewelry store and it’s got their stuff forever. And I remember I said I’m not getting engaged. Why am I getting all these engagement?” And then a friend of mine goes, “Maybe you are getting engaged. Google knows better about what you’re doing than you do.” I was like, “Oh, you– Good point.

Good point.” I wanna get some definitions from you. I– people hear the term break bulk all the time, and we put that in our title here, say break bulk br- breaking [00:14:00] bulk logistics silos. But first, what is break bulk?

Matt Everson: Yeah. So y-you think of bulk the whole container, right? So the bulk is everything that goes in a tanker truck or tanker car. It can’t really be broken down. But break bulk is s-similar to bulk, it’s just it can be broken down, right? Break bulk would be, “Hey, I’ve got all this rice, and I can take this rice and put it in this bag.”

That’s a break bulk, right? I can take the, all of these chemicals and put it in this tote. [00:14:30] That’s a break bulk, right? ‘Cause you’re breaking it from the bulk

Joe Lynch: So I have a huge t- so I have a huge tanker. At some point it has to become totes of chemicals or bags of rice.

Matt Everson: Or So or yes. Yeah, exactly. Or even on the lu- lumber side, right? You can– it’s bulk when they’re all together, but as one log from the trailer comes off of the bulk, it’s now break bulk, right? So it’s just breaking the bulk into multiple,

um

Joe Lynch: Which is ultimately how we’re [00:15:00] all gonna consume it. We’re not– I’m not buying the entire tanker of oil. I’m gonna buy

Matt Everson: E-exactly. So if you say break bulk, it goes into the same conversation as bulk in most people’s definitions

Joe Lynch: Yep. And you guys say breaking bulk logistics data silos. So we have a huge issue in our business, and it’s not just in this side of the business, it’s everywhere. When companies created transportation management systems, by the way you’ve been in from the [00:15:30] beginning, but I haven’t. I remember the first time I saw one, I was like, “Oh, wow, this is so cool.

We need– I wanna work at this company ’cause they have a TMS.” And when you brought it to shippers, they were like, “Oh, wow.” It was just like, it was fantastic. It was the silver bullet. But what we realized after a while is that we somehow have to connect that to the ERP. For a long time, that was, that integration was expensive and timely and not timely, time-consuming, and you [00:16:00] had to find an expert, and they cost a fortune.

So I, when I worked at a 3PL, they would always say, “Can you connect directly to our ERP?” We would say, “Yes,” and it was like 20 grand or 10 grand or something, and no one ever did it. Now we’re able to connect much easier, much faster, which is good. In the meantime, we have warehouse management systems, and we have some of our data over there, and then we have visibility platforms like MacroPoint or [00:16:30] P44.

And then we also have all sorts of systems that track and see if this is a reliable carrier. We just have all these different systems and all of our information in it, and I think, the big shippers in the world, they want flow for their supply chain, and we gave them a whole bunch of siloed, silos, which doesn’t allow for flow.

And I think now the whole industry is saying, “How do we get to a place where I can see all my data in one place, [00:17:00] so I can actually make decisions without opening 16 screens?”

Matt Everson: For sure. For sure. And it’s definitely evolved even the last y- 16 years that I’ve been in and out of TMS systems, right? It’s evolved y- you know, big time. And you’re right it’s about the data, and there’s so many silos within the data that make it very hard for a shipper to consume and understand, right?

And you might say what do you mean by that?” First of… So inbound logistics is very heavy in bulk, bulk logistics, [00:17:30] right? So inbound logistics is think raw materials coming in for production. And if you, i- if you miss a or delivery’s late and you have what’s called unplanned downtime, that could be a very huge cost to the organization, right? And those are things that y- from a macro level, people understand pretty well, but from a micro level, how is it managed? You’d be alarmed at how many companies, big companies have unplanned downtime in, each year or every other year, right? It’s actually a quite an alarming number. So having visibility is a very key component, and that’s [00:18:00] largely what people have been looking for. But the… What’s interesting and I’m gonna shift a little bit to the truck side here because, some on the road. But when you look at carriers that are able to get commodities to you or even pick up and deliver to your customers, what oftentimes overlooked and I think of TMS as downstream from the WMS, right?

Because you got your WMS order, the order gets converted to a shipment, and you might have multiple orders on a shipment, you might have multiple, et cetera. But from that execution piece on TMS, You ha- you have to understand a lot about your carrier. So there’s a thing called total cost of [00:18:30] ownership from a carrier perspective that, that really needs to be understood. And it’s not just what does my carrier cost me for this particular shipment? It’s what does my carrier cost me amongst the cost of that shipment, but also on-time pickup, on-time delivery, right? OTIF metrics rejection rate percentages. What– how often are they, our loads?

At what time? How quickly, right? All of these start building a carrier performance scorecard that needs to be measured. And, prior to [00:19:00] even most recently with the use of AI and with everything that’s coming in purview there, it was very hard for a shipper to understand all of those metrics, right? With- especially without a TMS, but when you think of what a TMS connects to, it connects to the DAT for benchmarking rates. It connects to, the visibility platforms such as MacroPoint or FourKites or P44 trucker tools, right? And so holistically, you’ve gotta have all of these different data points coming in to help you make a decision based on what is the total cost of [00:19:30] ownership for a specific carrier.

And I think that’s what shippers have been hungry for a long time, and we’re finally starting to get there.

Joe Lynch: Yep. And am I right to say that, I know you, you described probably this five or six different transportation management systems you’ve worked at in the past. Most of those would not be appropriate for people shipping bulk

Matt Everson: The so yes, that is a fair statement. Most TMSs can handle most mo- all modes of transportation. It’s just when you get into the [00:20:00] nuances of requirements within those carriers and the carrier types that you’re the equipment types that you’re trying to connect into, they differ from industry to industry, right?

So CPG and distribution, they have different metrics. On time in full I’d mentioned, right? Versus, somebody on bulk and break bulk that doesn’t have that. There’s metrics that are gonna be important from yeah, so the, from a ca- the type of carrier that you’re moving with, right? So let me, so sorry, I lost my train of thought there, but I got it back [00:20:30] now. Sorry about that. Sorry about that. But, um, when you have equipment type as a very important aspect of your shipment, you wanna make sure you’re connecting to carriers that you have enough data from those carriers, right?

Before you do it. So bulk break bulk carriers are gonna be in a different pool than your dry van carriers. They’re just gonna be different. And so you wanna make sure you have those connections. They’re able to use the system and communicate back and forth with your users.

Joe Lynch: Yep. I remember the, a TMS I was using, and we would do mostly less than [00:21:00] truckload, but also truckload. And we did well with that. That w- the system was made for that. And and then every once in a while, we’d end up doing some ocean shipping, and my team would just make it work. And then every once in a while, someone would say, あ。 they, we had some parcel shipments in there that just didn’t– the system wasn’t meant for it.

And so I always remember thinking like, “Hey, you…” I know s- the nature of transportation management systems to say, “Yes, we can add those fields. [00:21:30] All we have to do is toggle those fields on.” And and r- and by the way when you think about drayage, I know there’s drayage transportation management system.

For those of you who don’t do it every day, drayage is just usually going from the port to a rail head or maybe to a warehouse. They’re the sh- short runs 50, 100 miles no more than that usually. And they’re, sometimes older trucks, and sometimes they’re just picking up a container and d- dropping it off, so it’s a chassis usually, or a flatbed.

And the [00:22:00] drayage TMS companies, and I’m not even gonna dispute this because I don’t know, they would say, “You need a unique drayage transportation. If you’re a drayage company, you need something unique.” And when I talk to other transportation management systems, usually the newer ones say, “Joe, all you gotta do is add these five fields.

When we c- have those five fields, just t- toggle them on.” And it’s it’s a pro- it’s a problem, and it’s always the problem with software. I’ve dev- developed software in the past where people go, that’s [00:22:30] a perfect engineering tool. That’s it. T- but if you added these six fields, it’d be good for manufacturing, too.”

And then as soon as manufacturing starts getting into it, they’re like, “We need this,” and then you say, “Oh, we got a hodgepodge tool again.” And I think it’s really hard to keep a roadmap that makes complete sense and is completely aligned to your ideal customers.

Matt Everson: Yeah. Yeah. And adding to that I agree. I think somebody who’s not deep into the details on how developing technology, yeah, [00:23:00] it’s easy. You have these five fields, it’s simple, right? But it’s the– it’s more than that. And you think about TMSs, they usually start in a single mode and they expand to another mode, right? But the fields needed on- in the database behind it are very different, and the nomenclature is different, right? And so you can’t use the same fields. You gotta add fields, and then how does it interact with each other, and how do you make sense of the data when you’re trying to make sense of it in reports?

And you can’t, you gotta isolate the reports. And so yeah, it’s, it is, it’s very difficult. But I’ll use your drainage [00:23:30] example. I– it’s fun-funny I know this story too well actually. Uh, but it is, you’ve gotta add the, the fields that are needed to bring the containers in the first, the the s- the sail dates, right? When you gotta get, you know, it to, to the port and back and forth, et cetera

Joe Lynch: How many days you have to pick it up, that’s something

Matt Everson: And then you got, and then you got, street drops, street hooks, dropping hooks, right? And so the rates though, now you start thinking about the rates. The rates are usually an all-encompassing rate for both moves. And so do you… Does, is it a multi-stop shipment now? Or do [00:24:00] you stop and then pick it up and send it back?

And so you got live loads, and so it, it gets to be a little bit more nuanced, to where it’s not as easy as adding five fields, and that’s part of the problem because everyone wants to grow. In order to do that, you gotta be able to be smart with how you manage the data

Joe Lynch: Yep. So g-getting back to this, you guys are working with some of the largest shippers in the world, and it is the bulk stuff. It is not you’re not delivering stuff to Target. You’re not delivering [00:24:30] stuff to an assembly plant. You’re more the raw goods that’s came out of the grounds, whether it’s oil or gas or agriculture.

And they have the same issue that the rest of us have, which is we have a whole bunch of data silos, and I’m trying to make good decisions, but my information is in multiple places. How does IntelliTrans help me get all my information in one place so I can make the right decision for me and my customers?

Matt Everson: [00:25:00] First and foremost, I think there’s there’s a lo- lot of TMS systems out there that are either rail or truck, right? When we look at some of our competitors, they don’t have both truck and rail. And truck and rail, especially on the bulk side are very closely related, right? The, the– it’s the same equipment type. One, one has wheels and one has a track. Uh, But it comes down to how much weight you can put on a rail car. It’s usually about four times what you can put on a truck, a regular truck over the road, right? You got weight limits on the road, [00:25:30] and you have much higher weight limits in, in rail. So the decision matrix on whether I should take this amount of qu- this quantity of commodity and inventory, do I put it on rail?

Do I put it on truck and… and what about the days in transit? And then not only what are the days in transit for what we expect and what the carriers tell us, but what are the actual days in transit that all of our customers consolidated together are, are– that we’re seeing in our system.

What we do is we do dynamic ETAs based on what we’ve seen in the [00:26:00] market, as early as l- yesterday or the last week. But we’ll see congestion in Chicago. We’ll see congestion in Houston and say, “Hey, if you’re in there, add another four days because that’s what it’s taking to get out of there right now.”

And so that kind of information is valuable when, c- ta-take it up a level, the decision tree needs to be made at a higher level

Joe Lynch: Yep. I’m gonna ask some more basic questions because again I talk to over the road guys all the time. So I have these class one railroads that go back and forth across the [00:26:30] country. What are some of the names of those big companies?

Matt Everson: BNSF, CSX NS

Joe Lynch: So we all see those Norfolk Southern, CSX, we see all those. But then there’s these, as you call them, class two railroads, which could be very short line. These are the short lines that deliver stuff to the class ones. And they, I, I– there’s one not too far from my house, and I used to always say, “Wonder what this rail, where this rail line went?”

And never, it never made sense. I was like, I [00:27:00] never understood. I would call it abandoned, and then I started this podcast and I go, “Oh, no, it’s one of those class two.” So probably a few days a week when I’m not there, somebody’s moving up and down that class two railroad, and it’s most likely moving to something that is an aggregate, whether it’s a quarry or oil or some sort of processing something.

So we have visibility tools that we use for over [00:27:30] the road, and I can s- I’ll tell you where that driver’s at right now. I can tell you where that load’s right now. I can tell you where that truck’s right now. Do you have the same visibility when it comes to rail?

Matt Everson: Isn’t the answer yes? Yes. So what a lot of people don’t know is rail cars have an RFID reader. All of them have it, and it becomes their license plate for that rail car. And so all across North America, there are readers that are on the tracks that read your rail car as they go past them. And so the, this is owned and maintained and operated by Railinc [00:28:00] actually.

The rail carriers the rail carriers push the information to Railinc, and Railinc is a function of all of the class ones

Joe Lynch: So is RailLink your visibility platform for the rail?

Matt Everson: No. It is the source of it, right? And I think that’s one key component. There’s a lot of companies out there who do some rail TMS through EDIs that come from Railinc. It’s called CLM, Car Location Master, right? That’s the EDI form. But, getting the data isn’t hard.

It’s what– it’s making sense of the data that becomes difficult, right? And take that [00:28:30] data and, not all the time does the carrier update the data. Sometimes something, a car gets what’s called constructively placed next to where it needs to be unloaded which is when it’s called ac-actively placed. And so CP and AP are events within the rail shipment, right? And sometimes when the carriers don’t update the CP data, it can throw off all of your dataset. It can throw off how long is my transit time, right? How when is– what does my turn time look like? How [00:29:00] long does it take to get unloaded, right?

All of those things are very important metrics. But what we do is we actually take, we have some technology to do it, but we also have a team of people that inc- that are included as part of our software that, that go in there and clean the data for all of our customers. And we’ve been doing that since the inception of IntelleTrans, which, now we’re entering the era of AI.

And boy, do we feel lucky because we have a lot of clean data for years and years of all of our customers, all industries, so we can really help understand what is the actual transit time? What actually… And [00:29:30] so it, it really p-projects on to our customers real live insights on what they need to know about moving their fleet cars at any point in

Joe Lynch: So where do the data silos show up in this business?

Matt Everson: Yeah. So I think it’s a lot of different places, right? You’ve got your leases you gotta manage. You know, you’ve got–

Joe Lynch: Leases of what?

Matt Everson: Of your rail cars. Yeah. So it’s common in, in the rail industry for shippers to either own or lease their rail cars. So not un- unlike truck, truck is where, you [00:30:00] basically are renting a car, to come pick up and then take it to its final destination, and then it’s done.

It’s o- you’re over with it. Rail is all about visibility of your fleet, right? And because you have your own fleet, it’s yours. Um, there, it’s a two-way trip down, loaded, back, empty. And so how long does that take, right? In, in the transit time that, that, that does take impacts how many cars you actually need, how many cars you have to go lease, how many cars you have to go buy. And so it’s the [00:30:30] measuring, everything from, all right I mentioned a few of them. Transit time, turn time, how many fleet, your leases, when they’re expiring. When do I have to have maintenance on my own cars? When do I have to have maintenance that is scheduled for even my leases? It all plays a role, right? And so you can see how, if one data point’s off, it really throws off your entire supply chain and what you can move and when and how often

Joe Lynch: Yeah, I can see where if I have to manage leases of rail [00:31:00] cars that’s having my own fleet of c- of trucks, but it’s not exactly, obviously, because of the… I was thinking about this as we’re talking. A truck is going down the expressway, and if if there’s a jam up, an accident in Chicago, you go, “Oh, I’m gonna go around Chicago tonight.”

But with rail cars that are going from New York to LA, I don’t think there’s a whole bunch of just choices where you go, “I’ll just get off, I’ll just get off here and jump on 94 and go that, take it out.”

Matt Everson: So that’s right. That’s [00:31:30] right. And I’ll tell you, you usually have three options or four options, right? You– it’s either, NS to, CPKC to BN or, NS to CPKC to, Union Pacific, UP. Or you– my point is there’s not a lot of carrier s- options that you can take to get it there

Joe Lynch: So I think there’s also, I’m, I’m– correct me if I go astray here. The nature of it is there’s not a lot of players who are these Class 1 railroads and there are not a lot of options on the Class 2. If [00:32:00] you’re at the end of one Class 2 railroad, you’re not at the end of it for two. So I know they somehow have fairness in these agreements because, you’re not gonna ever see a s- Norfolk Southern or CSX say, “No, we’re not taking you out west or out, down south because we want…”

They’re gonna be able to hold you up. How do they manage kinda to k- stay competitive and fair in this business?

Matt Everson: Yeah, I think there there’s governing laws against, monopolies. And you’ve seen a lot of [00:32:30] y- rail carriers try to merge and haven’t been able to. And so it’s, it– they’ve gotta, they’ve gotta be honest with with their rates as per, what the trucking market’s doing, honestly.

Because if it’s cheaper to go truck, then people would do it. And so I think that’s usually the kind of the starting point. And then they– there’s all kinds of interchanges within these rail carriers too, and usually you’re paying for the mileage within those interchanges.

So carriers are still looking for ways that they can get the load versus [00:33:00] having to go a different route on a different carrier, right? So it’s they’re still competitive with each other, but there’s some government laws that kinda keep that– them from collaborating. And of course, the truck market plays a large role in it

Joe Lynch: Yeah, it’s interesting because not everything in the truck market, it’s it’s obviously not apples to apples. The only thing you can move on rail, or not the only thing, you have to have very high volume or it’s not worth it to come over to the rail cars. And I’m also gonna assume that it’s, the trains run when they run and they’re pretty good, [00:33:30] but they don’t want to be– I’m assuming they don’t want anything to do with just in time for any facility just because of the nature of the business.

Matt Everson: And honestly, the the big thing is inbound pipeline on rail too. You gotta know when those cars are arriving so you can get them unloaded. And the quicker you can get them unloaded, the less you’re gonna have to pay for demurrage. If you’re holding onto a system car or a customer’s car or a pool car for too long, you get hit with demurrage fees or detention fees, right?

Joe Lynch: Works just just, it works the same way as if you’re at the board

Matt Everson: Yep, exactly. [00:34:00] Exactly. There’s some things to monitor, and obviously that’s what our system can do and super exciting

Joe Lynch: Yep. So again, you work with large shippers. They’re moving bulk commodities. And I know one of the things I wrote down to talk to you about is sometimes they’re getting– those shippers are being overcharged. O- over– and they don’t have that, they don’t have the tools to say, “Wrong, we shouldn’t have p- we shouldn’t be paying that.

It arrived at this time rather than that time.” Please talk about how you guys help your [00:34:30] large shippers avoid those overcharges, or overpayments I should say.

Matt Everson: Yeah. Yeah. We do a couple different things. Fir-first, we update the events in our system, w- as they become available for us to look at. We u- we have some flags in our system to say, “Hey, why did this event come before that event? And that doesn’t look right, so let’s go back in the system and identify what’s really true.”

So we have a team, an operations team in Conway, Arkansas, a large group of them that’s really managing the data within our [00:35:00] shippers’ platform, like their version of our platform, our, their system, and making sure everything is accurate. And if we can find out that a date that the carrier’s claiming or maybe customer’s claiming that you held onto a rail car that’s not true because we have those dates in our system, that’s one way we can combat it. But we have services too that are above and beyond just cleaning the data. It’s we’ll we’ll go and we’ll go to the carriers on your behalf and fight demurrage charges for you, right? We’ll manage those costs and make sure that you’re [00:35:30] not being overbilled for anything that, that you shouldn’t be billed for

Joe Lynch: Yep. And I’m assuming that’s a big issue because anytime where there’s this many handoffs, there’s always a, it’s m- not just one company. And we ran into this with the ports, especially during COVID, where you might be charged and you say, “I couldn’t pick up my container,” and you w- y- it’s under 30 other containers and, you’re s- or 10 other containers, and you’re telling me that I’m being charged [00:36:00] because I didn’t pick it up.

I can’t pick it up. It’s not ready to be picked up, and yet you’re charging me. And and I think it’s also one of those things where, you know when the the feds got involved, they said, “This is critically important to keeping our competitiveness in the country. We can’t have our ports become a problem where people say, ‘I don’t know what the price is coming in.

I’m I might– I was billed this much, but I think I might be charged 30% more. [00:36:30] I can’t do business with them anymore.'” And there’s not that many… there’s lots of ports, but I’m assuming the same thing is going on here, where you say, “This is a critical resource to the country’s competitiveness.”

Matt Everson: Yeah. Yeah. You gotta make sure that you can get your assets when you need them, right? And a lot of our customers have their own yards where they can manage their own assets. It sometimes does go into storage, and you gotta pull those cars at the right time because the longer it sits in one location, the, the– you’re gonna hit, get hit with [00:37:00] storage fees.

So how are you managing the time in, time out of those assets from a specific location? So we provide services that help you with that. But also our tool does a really good job of saying, “Hey, watch out. You’ve been there 30 days,” or whatever it is. “You need to move this.”

And those alerts are something we set up within our system to help cu-

Joe Lynch: So this is, so you’ll help them with their asset utilization, and you’ll tell them if they say “I’ve got 20 of these cars,” and you say, “Joe, you only need 18. You’re just not using them [00:37:30] properly right now.”

Matt Everson: 100%, right? So d- I think there’s two, two points you made there. The first is you gotta use the assets that you already have right? and you gotta keep them in rhythm. Because if you have– if you’re using the same one over and over and over again, the ones that’s, that are sitting idle are gonna be collecting fees, right?

And so that’s one point. The second point is how many cars do you truly need, and so we have tools in our system that help you forecast, based on our sales forecast and based on turn time and transit time by this location [00:38:00] and this type of car and this kind of commodity, how many cars do we need, in this lane over the next 12, 24 months?

And so we forecast that out for our customers as part of one of our tools that really gives them the… l- I always say it’s the Goldilocks effect. Just, just right, too much, not enough, right? And either, either-

Joe Lynch: Am I also assuming that if I have an asset, let’s say one of those cars, and it’s, I’m leasing it, and maybe it’s either not being used or it’s in the repair yard too often, and you say, [00:38:30] “Okay, Joe, t- time to get a new one. This one’s co- this thing’s costing you money, not making you money.” And if you’re not using your assets properly, you’re gonna need more of them.

That’s just, that’s the problem, and I think that’s where you need kind of network optimization, which you can’t do without a TMS. I guess you can. It would be really hard.

Matt Everson: Yeah, but it is hard. And, you see a lot of customers, that, that try to do it on spreadsheets and they end up like, “All right, I just need help,” right? ‘Cause it’s, it gets convoluted

Joe Lynch: [00:39:00] There’s a lot of moving pieces, and you’re not able to control everything. You’re a cog in a big machine. And so you need outside, outside insights or you’re not gonna be able to make it happen. Yeah this is very valuable, very necessary. And again, I think I, I asked so many basic questions today because I talk to over-the-road guys all the time.

I even talk to the drayage guys a lot. I talk to the rail guys very seldom. And we should also mention while we’re talking [00:39:30] that moving stuff via rail is cleaner and greener and cheaper than, in, in a lot of cases, than moving over the road. And I’ve said this before on my podcast, as I go through, if I go to Chicago and you’re driving on 94 and you go, “God, there’s every truck in America is right here with me.”

And sometimes I go, “Wouldn’t it be nice if they had their own own expressway?” Then you look over, there’s that expressway, the rail right by it. I think that [00:40:00] is a great option that we don’t often think of. I m- I imagine if you’re moving bulk, you have no choice. But even containerized freight’s a good deal for some of this.

Matt Everson: Yes. Yes. You, you don’t have a lot of options over the on, on the rail. That’s truth. But from a CO- from a CO2 emissions tracking standpoint, there, there’s– I’m gonna hit on that with the ESG governance because as companies are starting to pledge, the CO2 emissions, over the last few years, and these laws are [00:40:30] coming into place in California right now I forget, SB 592. I don’t… Are you familiar with that, Joe?

Joe Lynch: No, I’m familiar that they have a smog problem and they’re always trying to do better.

Matt Everson: Well, Illinois is not behind it. New York’s not far behind it either. They have their own initiatives coming up. But ultimately shippers, carriers, they’re gonna have to sub-submit to the state how many miles they’re traveling and how much CO2 emissions that they’ve let off in that state during specific shipments. [00:41:00] And so our system, we are Scope 3 certified for CO2 emissions tracking. And so for almost transportation, rail and truck even ocean, we can track how many emissions you have based on commodity and weight and mileage and all those things. And we even track it by state.

So if you only did 30 miles in this state and 200 miles in that state we’ll tell you how many you did per state. Um, But it’s definitely, yeah, worth noting that you can get four, four truckloads in one railcar. And a railcar doesn’t really let off any emissions.

It’s the one it’s the [00:41:30] lead train

that does it all

Joe Lynch: Yeah, it’s three, th- 300 cars on that on that

Matt Everson: Exactly. Exactly. So it’s a fraction. Yeah, a fraction. So we’re hoping, that, some of these shippers will see that maybe it is a viable solution to do rail, right? Because of that

Joe Lynch: Yeah it’s a great fit for the right stuff. And the others, you’re never gonna deliver to homes. You’re ne- the, you’re, you don’t necessarily wanna be attached to just in time or anything like that. But for the right, right commodities, it’s perfect

Matt Everson: Yeah. Interesting enough I’ll make this note. Beer. Beer gets shipped on the rail, like canned [00:42:00] beer.

Joe Lynch: Oh, can you tell me specifically which ones?

Matt Everson: in America. I don’t know if I can tell you our customer’s name but I can say it’s they put it

Joe Lynch: Just let me know where it’s driving by.

Matt Everson: Yeah, refrigerated boxcars, and they’re delivering to the distributors, and so that’s a, that’s one– an example of a CPG that is being traveled on rail just because of the bulk, right?

Because of the volume

Joe Lynch: If you’re a big shipper and you’re spending millions of dollars a year, it’s definitely worth the conversation to say, “Should we [00:42:30] consider?” Now, I was moving I was a- advising a company that was moving stuff from way 12 hours south of the border in Mexico and all the way to the northeast here. And I remember we started saying, “We should look into the rail.

Just why not? It’s a long way.” And it was a viable solution. Now it’s, it’s not as easy as saying I called a trucking company and they’re gonna go pick it up tomorrow, and this is the rate.” It’s much more involved, but if you’re spending millions of dollars, then this [00:43:00] is this is a way to look.

And y- also, it is greener, it’s cleaner, and sometimes there’s just expectations. Sometimes people say on my podcast, “Oh with the new administration come in, they said it doesn’t matter, whether we have– meet the environmental standards.” Forget Washington. It… you’ll feel better if you do.

Matt Everson: Yeah, that’s right. Yeah

Joe Lynch: Regardless of what any the Democrats say or the Republicans say, it doesn’t matter. What matters is the biggest [00:43:30] companies in America, and probably the world, are saying, “We have… We have a mission to be cleaner and greener, so let’s go.” And that doesn’t change president to president, they don’t care.

And the reason they’re doing it is ’cause their consumers want that. That’s what the end customers want. And most of us, if you go to the store and it says, “Oh, 100% recycled whatever,” you’re like, “All right, it’s an extra 15 cents, what do I care?” So we are buying that way. Your great-grandparents would’ve said, “One penny extra?

Hell [00:44:00] no. What do I care? I don’t– I’m not feeding my kids.” We’re a wealthy country. Doesn’t always feel that way, but we’re a wealthy country, and people will spend a little extra for a product that they think is more environmentally conscious

Matt Everson: Absolutely. They will. They will. And that’s ebbs and flows, I think everybody’s interested in it, but it’s how important is it today versus all the other tasks that they have on their plate. That’s the

Joe Lynch: There’s been not a lot of good options for a while. And by the way, I’m a big believer, I say [00:44:30] this all the time, I’m gonna say it one more time, I love key performance indicators, KPIs minimum, right? So you should have one that is on ti- so you mentioned carrier scorecard. So you have your carriers there, and then it says on-time performance.

That’s simple enough. It’s– And then the next thing you put is some sort of cost measure, then something about damage, and then I like to measure billing accuracy ’cause billing’s sometimes way off. And I always say add one more, which is some measure of [00:45:00] your environmental impact. And we might not be 100% there on measuring that, but get directionally correct.

That’s how it begins. And if you can say, “This is the type of truck that moved us, this is the rail that moved us,” you guys will get very accurate information. Trucking companies increasingly are getting good at that

Matt Everson: Yeah. And I’ll, and I guess I’ll I’ll leave that with this note. CarrierPoint, I don’t know if it… Fun fact our TMS, our truck over the road TMS is called CarrierPoint, and it was made for [00:45:30] carriers originally. And it got transitioned to a shipper TMS when shippers found out, “Oh my gosh, I can work with my carrier so much easier that way.”

But that is the strength of our TMS because we do give good, strong carrier scorecards and KPIs. Because if you think about the other TMSs, I say other TMSs the bigger ones that do a lot of CPG retail dry vans there’s millions of dry van carriers out there. It’s hard to keep track of them all, right?

Especially when you got brokers and stuff. In the bulk world, there’s not a lot of brokers. You don’t need brokers, so it’s all carriers. And so when you have and [00:46:00] manage pretty much all the bulk, break bulk carriers in North America already in our system, you have a really good data set to understand which carriers are performing well across a lot of different customers and industries

Joe Lynch: Yeah. I’m gonna, I’m gonna try and summarize this again. This might be a little weak on my summary here just ’cause I, I’m still under- trying to understand your business completely. But I do know this. There is a TMS that is specifically for people who are shipping bulk, and bulk is not containerized.

So [00:46:30] when you think about an ocean shipping or you think about a rail car that you can physically go in and take product out, that’s not what we’re talking about. We’re talking about those containers that might be a tanker, it might hold grain, might be some sort of chemicals. These– What’d you say?

It’s 40% of all the cars are filled

Matt Everson: Yeah, 40% of all rail cars, yeah, come through our system on any given day.

Yeah

Joe Lynch: Yeah. And so this is a different animal and it d-doesn’t [00:47:00] necessarily… matt has worked in a whole bunch of different transportation management systems. When he says those don’t work for bulk, I believe him. So there’s a reason some of the biggest shippers in America are working with you guys.

And again, when we think of bulk, it is usually the stuff coming out of the ground, whether it’s oil or gas or agriculture, some sort of chemical. This is the stuff that is going to be processed into the goods and services we get. It’s not the stuff that we’re delivering to homes. So a lot of the, what we talked about today is the class one railroads, the very [00:47:30] biggest railroads that are going all the way across the country.

Then there’s the other, the class two railroads. Those are the guys who might be going, as you said, maybe five miles. I think the longest one might be 100 miles. And those are usually going to some sort of processing facility or somewhere where they are offloading the gas onto those rail cars. And those rail cars, they move back to the class one so they, this stuff can be moved across the country.

It is an intricate [00:48:00] dance that’s going on because you’d have limited, It’s like you, you, like you have one road going all the way there. It works really well if you have high volume. That’s what that, this is what we typically are working on. And so you guys have built a unique transportation management system, which is IntelleTrans, and it is really going after companies that specialize in this.

So if you’re in metals, agriculture, chemicals, ag this will help you eliminate those blind spots [00:48:30] across rail truck and barge, and also get to those when it gets to the port. It- this is a tool you’re gonna need. S-separately, they have the same issue we do with the rest of the business, which is these data silos where all of your information’s not in the same place, so you can’t easily make decisions.

IntelleTrans pulls that information in and increasingly– You’ve always cleaned it up manually, and now you’re starting to use AI to clean that up. Hallelujah. Also, in this difficult [00:49:00] business, there are a lot of overcharges, overpayments, and you don’t wanna be paying extra, especially if it’s can’t be proven.

If somebody just says, “Hey, it’s an extra $1,500.” You’re like, “Why? What did we do?” They can help you with that, and they’re gonna get the, they’re gonna do the au- Do you guys actually do the audits, or you just give them the tools so they can do the

Matt Everson: Oh, we audit?

Yeah, we audit. Absolutely. Yep. Yeah, we’ll audit the invoices and everything. Yep

Joe Lynch: I love it. And then optimizing asset utilization. So you’re leasing these rail cars that might come to [00:49:30] your facility or to your vendor’s facility, and those assets they’re expensive. So it’s just like having a truck fleet and you say, “Hey, I got 30, 30 of these cars.” And Matt and his t- Matt and his team say, “Geez, you only need you only need like 13.

You guys are really not using them properly.” And let’s face it if you’re in one of those yards, you might get in the m- mindset of you never know, right? That one I’m using for parts. They– [00:50:00] Who knows what mentality you’re bringing to the party. But we’re all trying to get more efficient, and so if you can say “Matt and his company helped me get rid of a few cars,” I’m assuming it’s gonna more than pay for the IntelliTrans investment.

Anyway, also rail, we should mention cleaner and greener. If you’re trying to meet your environmental impact goals, you should be considering rail. Anyway, Matt Everson, put a big old bow on this one. Final thoughts on the topic

Matt Everson: Yeah, [00:50:30] no and I appreciate it. That was a great summary. We think the expertise we have in these industries is outstanding, right? We’ve been around a long time, and so if you’re having a problem with any additional charges or, maintaining data in a way that you wanna make sense of it, in these bulk and break bulk shipments and, within these industries we discussed, we can help, right?

And we’ve done so so many times and, if you’re not tracking it, you’re not managing it, right? Let us help you. We can help you

Joe Lynch: Yep. Man, I didn’t ask [00:51:00] this, I probably should have. When people come to IntelliTrans, when they finally call you or your team back, finally say, “Okay, Matt,” what is the final straw? Are they coming from like a, “We’ve been using Excel spreadsheets,” or are they using a TMS that wasn’t built for this? What tool are they moving from when they move to IntelliTrans?

Matt Everson: Yeah. Great question. One of two is pr-pretty much most common. First we call them greenfield, not using a system, mainly spreadsheets, mainly emails. That’s, that’s–[00:51:30]

Joe Lynch: Oh, that’s a painful thing right

Matt Everson: That is a painful thing. And the other piece of it is if they’re only using a rail TMS for tracking, right? Um, ’cause there are rail TMSs that do a decent job of tracking the shipment without much insight, of course.

But, um, a full rail TMS should do everything from managing leases, as we mentioned, and maintenance, repair, and your yard and, um, giving you insights on what to do with

Joe Lynch: They’re coming from a little less comprehensive tool

Matt Everson: Yeah, exactly. Yeah. Those are pretty, pretty common

Joe Lynch: [00:52:00] Yeah. Matt, I’ve said this many times on my podcast like a broken record. For a long time, we just wanted visibility, and then when we got visibility, we realized I want to stop I want to stop what’s going wrong. I don’t wanna just see it going wrong. When you see, “Hey, that, there’s gonna be an accident over there,” no, you want to be, the ability to stop that accident, stop that overpricing.

And that’s why you need the comprehensive tool that IntelliTrans brings.

Matt Everson: Absolutely

Joe Lynch: Anyways what conferences will we see you and the fine [00:52:30] folks from IntelliTrans at?

Matt Everson: Yeah. So this year, we go to all the Association of Rail Shippers shows, the NERS, the SWARs, the all of those. But on the truck side, the DAT, our sister company, we’re gonna be at the DAT Shipper Con coming up in September. We’re in the Breakbulk Americas

Joe Lynch: Wait, where is the DTA conference at this year?

Matt Everson: It’s in Atlanta. Atlanta this year

Joe Lynch: Ve-very nice. And that’s in September?

Matt Everson: I believe September, yeah. Yep.

Joe Lynch: I would like to get to that

Matt Everson: Usually early September if I, if memory serves me [00:53:00] right. So yeah, coming up. I just got back from Gartner, the supply chain show last month.

That

Joe Lynch: Oh, very nice. Very nice. How was it?

Matt Everson: It was good. It was good. A lot of good insight but yeah. And then we’ll, there will be like the concrete show, steel show, all those industries that we serve

Joe Lynch: Yeah, if it’s b- big and bulky, you’ll be there

Matt Everson: We’ll be there. That’s right

Joe Lynch: Matt, I’ll make sure I put a link to your LinkedIn profile, link to your website, any other links you and your go-to-market team give me, I’ll put those in the show notes my my audience can reach out and talk to you. Thank you so much

Matt Everson: Thank [00:53:30] you so much. Really appreciate it, Joe

Joe Lynch: All right.

And thank all of you for listening to my podcast. Your support’s very much appreciated. Until next time, on on- onward and upward

The post  Breaking Bulk Logistics Data Silos with IntelliTrans and Matt Everson appeared first on The Logistics of Logistics.

]]>
10893
From Strategy to Scale: The ODW Logistics Approach to Growth with Phil Schmidbauer https://www.thelogisticsoflogistics.com/from-strategy-to-scale-the-odw-logistics-approach-to-growth-with-phil-schmidbauer/ Tue, 26 May 2026 22:25:44 +0000 https://www.thelogisticsoflogistics.com/?p=10886 In “From Strategy to Scale: The ODW Logistics Approach to Growth” Joe Lynch and Phil Schmidbauer, Vice President of Solution Design at ODW Logistics, discuss how middle-market brands can scale by optimizing their entire supply chain network rather than just chasing low freight rates. About Phil Schmidbauer Phil Schmidbauer is the Vice President of

The post From Strategy to Scale: The ODW Logistics Approach to Growth with Phil Schmidbauer appeared first on The Logistics of Logistics.

]]>

In “From Strategy to Scale: The ODW Logistics Approach to Growth” Joe Lynch and Phil Schmidbauer, Vice President of Solution Design at ODW Logistics, discuss how middle-market brands can scale by optimizing their entire supply chain network rather than just chasing low freight rates.

About Phil Schmidbauer

Phil Schmidbauer is the Vice President of Solution Design at ODW Logistics, where he specializes in creating optimized transportation and integrated supply chain strategies. A dynamic and innovative leader, Phil brings extensive industry experience focused on driving process efficiencies, eliminating waste, and delivering significant value to clients. Recognized as a top industry innovator—including being named a “Pros to Know” award winner—he excels at building strategic bridges across complex supply chain networks. Phil works closely with businesses to align their comprehensive logistics frameworks with overarching financial and operational goals. His expertise spans advanced supply chain analytics, cargo security, and network optimization studies, making him a trusted authority in helping growth-minded brands design custom-engineered solutions that reduce complexity and successfully position their businesses to scale.

About ODW Logistics

ODW Logistics is a top-tier, integrated third-party logistics (3PL) provider dedicated to enabling collective growth for its clients, associates, and the industry. With over 50 years of experience, ODW Logistics delivers end-to-end supply chain solutions that combine strategic warehousing, distribution, and advanced transportation management. The company serves a diverse range of industries, including food and beverage, consumer packaged goods, health and beauty, and industrial manufacturing. As an approved consolidator for major retail networks, ODW specializes in retail consolidation, strategic inventory load planning, and automated workflows that control costs and improve on-time delivery. Driven by core values of respect, trust, team, and opportunity, ODW Logistics operates as a seamless extension of its customers’ businesses, providing the technology, infrastructure, and continuous innovation necessary to scale operations effectively.

Key Takeaways: From Strategy to Scale: The ODW Logistics Approach to Growth

  • In “From Strategy to Scale: The ODW Logistics Approach to Growth” Joe Lynch and Phil Schmidbauer, Vice President of Solution Design at ODW Logistics, discuss how middle-market brands can scale by optimizing their entire supply chain network rather than just chasing low freight rates.
  • Integrated 3PL Solutions for Middle-Market Growth: ODW Logistics leverages over 50 years of experience to provide end-to-end warehousing, distribution, and managed transportation solutions, operating as a seamless extension for middle-market companies that lack the internal resources to manage complex supply chains alone.
  • A Consultative, Total-Network Focus: Rather than just chasing the lowest transaction rate on a truck lane, Phil Schmidbauer emphasizes a consultative approach that designs and optimizes the entire supply chain, aligning warehousing and transportation around each other to reduce hidden costs, fines, and lead times.
  • High-Frequency Retail Consolidation: ODW specializes in retail consolidation (serving major networks like Walmart and Target) by combining smaller multi-pallet shipments into full truckloads. This ensures high-frequency deliveries, which reduces lot sizes, minimizes inventory requirements, and drives better overall service.
  • Mitigating the Cost of Stockouts: Keeping products on shelves is critical to brand survival. Stockouts cause severe financial penalties and permanent brand-loyalty loss when consumers switch to competitors—making consistent supply chain execution vital for sales growth.
  • Managing the Hidden Costs of Excess Inventory: Influenced by his background with Toyota’s world-class manufacturing processes, Schmidbauer highlights that excess inventory carries heavy hidden liabilities, including high warehousing fees, multiple touchpoints, and obsolescence or shelf-life expiration risks.
  • The Power of a Dual-Node Network: ODW operates 27 facilities nationwide, utilizing a highly efficient dual-node setup between Southern California and Columbus, Ohio. This center-of-gravity strategy allows brands to easily meet next-day delivery demands for a massive portion of the U.S. population.
  • Bridging the Omni-channel Divide: As retail and ecommerce models increasingly blend, ODW supports brands navigating both channels, helping companies scale and transition their operational structures from online-only to brick-and-mortar retail fulfillment seamlessly.

Learn More About From Strategy to Scale: The ODW Logistics Approach to Growth

Phil Schmidbauer | Linkedin

ODW Logistics | Linkedin

ODW Logistics

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to the Logistics of Logistics show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is From Strategy to Scale: The ODW Logistics Appro- Approach to Growth with my friend Phil Schmidbauer. How’s it going, Phil?

Phil Schmidbauer: Hey, good afternoon, Joe. Doing great. How are you?

Joe Lynch: Doing great. Doing great. So Phil, please introduce yourself and your company and where you’re calling from today

Phil Schmidbauer: Yeah. So I’m Phil Schmidbauer. I am our vice president of solution [00:00:30] design at ODW Logistics, and I’m calling from Cincinnati, Ohio. And I handle our transportation solution and design work for our company. I’ve been here about 10 years now

Joe Lynch: So what does ODW Logistics do? Who do you guys serve?

Phil Schmidbauer: Yeah. So we’re a warehousing and transportation provider, so we like to call it full s- full-service solution supply chain 3PL. And we service a lot of middle-market companies, and we do a lot of retail warehousing and distribution as well as the transportation management. And our real goal is to design a supply chain, [00:01:00] not just a logistics network, but a supply chain that works for our customers all the way from distribution through transportation and delivery to their end customers

Joe Lynch: Yep. Now you, where you guys where’s your headquarters?

Phil Schmidbauer: So we’re headquartered in Columbus, Ohio and then we have our transportation head offices in Hamilton, Ohio

Joe Lynch: Yep. It’s interesting. They’re– You guys are a top 100 logistics provider, and there’s a whole bunch of top logistics companies kinda nestled down there in [00:01:30] Ohio. Just, I don’t think people realize how many

Phil Schmidbauer: Yeah, you don’t. And you don’t always drive through the industrial parks either to see where all these people are. Nobody really realizes when you’re walking through a grocery store where all that stuff comes from or through Home Depot. Where does everything come from and where is it stored and distributed from?

You don’t really think about it, but there’s a lot in Ohio, that’s for sure.

Joe Lynch: Yeah, and I say this all the time in a lot of ways when you’re part of the Midwest, especially when they call us the Rust Belt, people don’t realize that Chicago might be the freight hub, [00:02:00] but the supply chain was born and raised right here in Michigan and Ohio and still to some extent is based there

Phil Schmidbauer: Yeah. There’s a lot of traffic going down 75 and across 70 and through that corridor. So yeah, certainly a lot of freight moving in this direction

Joe Lynch: Yep. So what kind of customers do you guys serve?

Phil Schmidbauer: A lot of middle market customers looking for a lot of different industries, but our managed transportation solution is we can handle transportation for just about anybody. But we service a lot of middle market companies, and we really [00:02:30] focus on optimization and trying to drive efficiencies into their supply chain.

Our warehousing is the same. We have some larger customers we do a lot of dedicated buildings for. We also have some shared buildings we put customers in. And we really try to focus on delivering that integrated logistics solution for customers where we do warehousing and transportation and help them optimize both and planning warehousing and transportation around each other so that we can really optimize the supply chain for customers and deliver the fastest, highest quality, lowest cost, and the shortest lead time is really the goal.

Joe Lynch: [00:03:00] Yeah. We spoke the other day, so I have some notes that I’ll go reference back to. But when we talked, you said, you wanted the title to be the “ODW Logistics Approach to Growth.” So you– normally my first thought is how are you helping these companies grow? And so you guys had a good answer for that.

So I’ll ask you, when somebody says: What do you mean? I need sales to grow. Why do I need ODW to grow my business?

Phil Schmidbauer: Yeah. If you want your sales to grow, you want your customers, end customer to be happy, right? So your product needs to be on the [00:03:30] shelf, which means you need to get it to the distributor on time or the retailer, whoever that is. You need to get it there on time in the right condition and you wanna lower your cost, right?

So the more cost-effective you can be in your supply chain and deliver top-level performance, it’s really about we try to make the supply chain work in the background so that our customers don’t have to worry about it, so they can worry about marketing their product, manufacturing their product. They give it to us, and we take care of that part of getting it to the end customer.

And really it’s about having your product in the right shape on the shelf for the customer so that they can be happy. [00:04:00] Because you and I both know if products aren’t on the shelf, customers aren’t happy, and then you don’t sell more products. So that’s what it’s about

Joe Lynch: Yep. And it sounds also we touched on this again the other day, which is you’re not coming in saying, “Hey we’ll we’ll get you a better price on your truck.” It’s, “We’re gonna build you a supply chain that is optimized to the extent that it should be,” because let’s face it, not everything needs to be optimized so much that it becomes, inflexible

Phil Schmidbauer: Yeah. Sometimes chasing the bottom dollar on a truck is– I shouldn’t say [00:04:30] sometimes. Most times chasing the bottom dollar on a truck isn’t good. We just saw a Supreme Court case that, that cost a a very large broker in our environment a lot of money because they were chasing the bottom dollar.

And really what it’s about is sometimes a better rate is more about the, what you’re paying in the total supply chain, so fines, fees. And as you and I know, again, you go back to is your product on the shelf or not? Forget about all the fines and fees, but if your product’s not on the shelf, people can’t buy it, and then they’re gonna go to another product, and then they’ve built brand loyalty with somebody else.

So I, [00:05:00] I often feel like too many companies are focused on a lane rate instead of focusing on optimizing the entire supply chain. And that’s really what it’s about.

Joe Lynch: I wrote an article, and I’m gonna have to pull it up here when we’re done, and I’ll send it to you. But it was basically seven reasons why you want to pick a partner as opposed to pick a price. And I always remember and I’m sure this is true over there at ODW. I remember when I was at this little 3PL, we had customers, and they’d call and say, “Joe, that had to be here today, and I don’t think it’s gonna [00:05:30] get here.”

And they’d be angry, and I was like, “Oh, no, we already expedited it.” And they’re like now you’re gonna charge me an expedite?” I was like no, that’s our fault. We screwed up, and I’m gonna pay for that.” They’re like, “Oh, when’s it gonna be there?” I was, “You already– You should have an email in your inbox.”

And they’d be like, “So you’re not charging me for expedite?” I was thinking, “No, of course not.” Now meanwhile, if somebody had called our office and said “You’re the lowest price. You can have that lane this one time,” and [00:06:00] we screw up, whatever, it’s not gonna make it on time, and they go, “Are you gonna expedite it?

You willing to pay for that expedite?” And they say, “No, it’s your fault.” I’m like, “We’re not working together.” I’m thinking, “I’m not working with you going forward.” I’m– I don’t have any sort of commitment. I, I– To a long-term relationship, I’ll make that investment. There’s give and take, right? And I used to say to a certain customer, I remember one of my customers moved some flatbed moves without us.

We did thousands of [00:06:30] shipments with them every month, and they go, “Yeah, we just used a guy down the street for that flatbed move.” So I was like, “I would do those flatbed moves for free if you brought them to me.” They’re like, “Why would you do that?” I was like, “I don’t want you working with anyone else. First off, it screws up my metrics.

Like now how do I put that into my metrics? My KPIs are screwed up.” Yeah, there’s so many more things you will go above and beyond for a relationship that you won’t for a transactional

Phil Schmidbauer: Yeah. [00:07:00] And I think it’s important to be able to, I believe that we should push our customers and our customers should push us to get better, right? And I think there’s that working relationship with the right customer and the right partnership where you’re all in– we’re all in this together.

We’re all delivering the same thing. We’re trying to provide a service to our customer who’s trying to provide a product to their customer, and it’s really all about working together to get better. And it doesn’t mean at all costs. It doesn’t mean that we’re gonna charge an arm and a leg for the service we provide.

But the less you’re talking about dollars and cents [00:07:30] on transactions and the more you’re talking about building a more fluid supply chain, getting the right service level. There might be some customers that don’t want high service and they just want low cost. That’s fine. There’s customers that want low cost and high service.

There’s a balancing act. You don’t get both. You don’t buy the cheapest carrier on the block and expect really high service, right? So it’s really a matter of working with that customer and having a collaborative customer that will work with you. And we can come up with some really creative ways to save money that people don’t think about.

And really our goal is be a con– take a consultative [00:08:00] approach to making the supply chain a weapon for smaller organizations or middle-sized organizations that don’t have the resources to do it themselves. That’s really what it’s about.

Joe Lynch: Yeah. There was a guy I did a little consulting project helping a very large shipper select a 3PL, and it was fantastic to be on that side. And I remember as we would visit all these different 3PLs, we visited a lot. I won’t mention all the names, but some great companies. Any one of them would’ve been an upgrade over what they [00:08:30] had.

And I remember he would say, “We’ve done a horrible job with our logistics. We have not suppo- we– First off, we picked the wrong one, and we didn’t support them e- either way. So even if they were doing a good job, we weren’t supporting.” He says, “But here’s where we’re headed. We’re going to become a world-class logistics organization.

Can you help us get there? And we’re gonna push you, and you’re gonna push us. I insist that you push us. If we’re doing [00:09:00] something that’s preventing us from getting there, let us know. I don’t wanna be, I don’t wanna be sitting here telling you to be world-class when we’re not world-class.” And I love that whole idea that we’re gonna become world-class, and I’d love to work with you, Phil, but if you don’t think you can get us there, if we’re not the right fit, send us along the way.

Phil Schmidbauer: Yeah. In the infamous words of Jim Harbaugh, “Iron sharpens iron,” right? And so

Joe Lynch: I love it. I love it. You can’t say that in Ohio.

Phil Schmidbauer: So

Joe Lynch: Yeah. [00:09:30] Anyway so tell us a little bit about you, Phil. Where’d you grow up? Where’d you go to school? Some career highlights before you joined the juggernaut, ODW Logistics, and why did you join ODW?

Phil Schmidbauer: Yeah. I grew up in Grand Rapids, Michigan. I moved around a little bit when I was younger, so I

Joe Lynch: fantastic city

Phil Schmidbauer: Yeah, it is. My family still lives there. I I think I was about five when we moved there. And so I grew up there. I went to Central Michigan University. I’m one of the very few people that I know with a logistics management degree.

Most people are– did something else [00:10:00] or are in supply chain management, but I had a logistics management degree, graduated. My first job out of college was actually doing a lot of work, a company called Trans Freight, who’s now part of Penske, but did a lot of automotive work. Did a lot in for Toyota.

I started at the Toyota Indiana plant. I loved it. I got such a great experience working there

Joe Lynch: That’s world-class

Phil Schmidbauer: Yeah. It was. And out of college I took that job specifically because my professor, Dr. Cook, who’s no longer with us, he passed away a number of years ago, but he said, he’s “You will not get, Schmidbauer, you will not get better experience than [00:10:30] going to working at Toyota and learning from those people.”

And it was phenomenal. I worked at that company for about six years or so. I moved around a couple times. I had a couple offers, went and worked at a couple other locations. Worked at Conway Freight for about three years prior to their purchase. So I got into the LTL world for a little

Joe Lynch: They got Popeye XPO

Phil Schmidbauer: Yep, when they got bought by XPO, correct. At that time I was actually calling on ODW Logistics and they reached out and they were actually obtaining a customer that they were doing some network we now, we were doing some network analysis for. And I’d done a lot of [00:11:00] network and logistics design work in my past.

That’s what my education was in, weirdly enough. And I did a lot of that at Toyota when I was at Trans Freight. And then I’m like, “Yeah let’s give it a shot.” So I came here and I’ve been at ODW for the past 10 years and grown with the organization. I’m now our vice president of solutions for the transportation segment of our business.

And, it’s the people I work with. John Ness is our owner and he’s a great guy a mentor of mine. But it’s the people I work with on a daily basis that like I told him, I said, “We’re retiring here, boys,” ’cause I don’t know that I’ve worked at a [00:11:30] lot of different companies and, like, when you have people that you can get in the room and challenge each other and you’re growing every day and you’re pushing each other to get better there’s never a better feeling.

And we have a great product that we deliver to customers. And I tell people all the time I’m biased, but I’ve worked at logistics companies for most of my career and I have never been more proud of a product and more confident. What I put on a piece of paper and deliver to a customer, what my team puts o- puts down, our operations team is gonna go knock it out of the park.

And we literally [00:12:00] measure our results. What we told you on a piece of paper, we measure those results for the first 90 days to make sure we’re on track to deliver what we told the customer we’re gonna deliver. And so the transportation solutions and the connectivity we have with our operational team is second to none.

And that’s, to me, that’s just fun. It’s just fun to be able to tell customers we’re gonna do something, deliver it, and then they’re happy with it. And the, since graduating college in 2002 now, in December of 2002 is when I graduated, I’ve been working ever since. I just I couldn’t be happier with where I’m at and the [00:12:30] kind of team we’ve built here and continue to grow.

Joe Lynch: I was just just traveling and I bumped into a guy, he had this massive ring and he said– a-and it was a Florida State ch- National Championship. And I was like he’s wearing it ’cause he wants somebody to say something about it.” So I started talking to him. He goes he’s a football player, and we’re at the airport, and he said, “Joe, ever since I was on that team, I know what a great team is.”

And he [00:13:00] goes, “Once you know that,” he said, “you can never go anywhere else.” And I said you can. That’s the problem.” And I played Little League sports. I was never playing at a high level, not like that. But I played hockey and football. My dad used to– my mom and dad signed me up for everything. I grew up in Dearborn, where I said I thought it was the law that you had to play s-sports year-round.

I remember my dad’s “Oh, yeah after your hockey game, you got a lacrosse game.” I go, “I don’t even know how to play lacrosse.” He’s “You’ll figure it out.” But [00:13:30] when I was on one or two teams in Little League that were just great, for Little League, great teams, and you forevermore, I bump into those guys 50 years later and go remember when we got five shutouts that year on defense?”

W- of course, it gets better every year. Probably a lot, for a lot of you, 20 shutouts that year. But that’s different. And once you’ve been there, you can’t– It’s really it’s stupid to leave. You can leave. It’s stupid to

Phil Schmidbauer: Yeah. Yeah, I tell people that sometimes the grass looks greener on the other [00:14:00] side of the fence, but it might just be because the neighbor’s dog is pooping it, so you gotta be careful what you wish

Joe Lynch: There’s that other one which is, hey the grass is greener where you water it, so water it, man

Phil Schmidbauer: Yeah, that’s right. That’s fair to you, yes

Joe Lynch: I wrote some down some notes the other day, so I wanna talk to you about these. So this whole idea of, okay, I’m a mid-size, I’m not a, I’m not a huge enterprise yet, but I wanna be, and it’s, I’m assuming it’s a brand of some sort that’s going to retail.

Is it beyond that? We work with auto suppliers [00:14:30] too?

Phil Schmidbauer: Yeah, we don’t discriminate as much. We have a large freight consolidation that is designed around retail. So we do a lot of Walmart consolidation, a lot of Walmart, Target, a lot of the big brand retailers. We do consolidation into there. So we have a lot of smaller customers in our Columbus campus and they might each ship two, three, four, five pallets, and we consolidate those and ship in full truckload, right?

So that consolidation is really an a form of optimization for retailers. But we have other customers that we’re shipping directly out of their plants and we’re building multi-stop truckloads, or [00:15:00] we’re doing pool deliveries out to the West Coast from the Midwest. So our mindset as an organization is all about optimization and driving the right metrics for our customers.

We might have some customers that, “Hey, we get an order today at noon, it’s gotta be out by two o’clock.” Okay there’s some things you can and can’t do to optimize that cost. And so our goal is really to work with our customers to define what they want to measure and what they– what defines success for them, and then help them deliver that.

And there’s creative ways to do it. We do have some customers that are in industrial products. We have some [00:15:30] customers, a lot of customers that are in retail. We do some customers that are food others that are just CPG products. So we do have a wide breadth of customers we work with.

Somebody once asked me this when I went and I took a job with with Aldi Corporate Logistics for a year, and they said none of your experience has been with refrigerated trucks.” And I’m like they still operate with round wheels that move over the road, and I wanna make sure there’s as much product on them as possible,” right?

So it, it’s still logistics. We’re still moving things around. I’ve done projects where I’m doing internal internal conveyance inside of [00:16:00] plants, right? It’s still logistics, it’s still moving things. So it’s still the same principles apply. It doesn’t matter what you’re moving, we can handle whether it be flatbeds or whatnot.

It’s all about optimizing the network to meet certain goals of the customer

Joe Lynch: So if I was to talk about somebody’s listening, a big shipper, m- mid-size shipper who says– m-maybe somebody who says, “We’re trying to, we’re trying to grow to be that enterprise shipper, but we’re not there yet. We’re still working on our sales.” What are the things that are going wrong right now for those brands that say, “I gotta [00:16:30] do something different”?

What would– ’cause, besides calling ODW back there’s a last straw. What are the things that are going wrong with those supply chains that make them call your team back?

Phil Schmidbauer: Yeah I think supply chains if I think about what’s going wrong, I’ve seen some customers come through where they’re distributing out of five different locations and they don’t understand the complexities of five different distribution points. And that could be a mid-size. Some smaller people come to us because they can’t grow.

They might be in a [00:17:00] facility that can only do e-com well, and they’re starting to get into retail and they don’t know how to do retail very well or vice versa. They’re in a retail environment and the people that they’re working with can’t do e-com, right? So everyone’s got a little bit different of a challenge, I would say, in their supply chain.

Some people just don’t know who to use or what– don’t understand transportation in general, and they’re trying to do it themselves. And we’ve got one guy sitting at a desk and he just doesn’t have the time or the resources to go out and figure out how to make it happen. We get customers come to us that honestly are doing a great job on their [00:17:30] own.

We validated, “Hey you have pretty good costs. If you’re okay with your process, like we may not be the best people to work with or it might not fit us.” And I’ve done network studies before for people to understand where should they distribute from. It may or may not fit our current network today, and that’s okay.

But I think everybody’s got a little bit different problem that they could come up with. But in general helping those people find what is the right answer to that problem is really what’s fun about this industry.

Joe Lynch: So one of I’m just, I’m thinking like a brand for a minute. So a stock out. [00:18:00] If I have– If I’m a, if I’m a new brand or a big brand for that matter, and I say I have lots of stock outs and I-I’m s- I’m– we’re doing great on sales, we’re doing great on marketing, but we’re not going, doing well at keeping our stuff on the shelves or supporting the factories that we support, whether it’s automotive or industrial, those stock outs are painful.

So please talk about those for a moment.

Phil Schmidbauer: Absolutely. If your product’s not on the shelf, and we’ve discussed this, if your product’s not on the shelf, people can’t buy it, right? And there’s a couple ways to improve. [00:18:30] And I go back to my days at Toyota. We had delivery routes that were delivering 14, 16, 18 times a day. And those delivery routes were designed to show up, and we had milk runs, so we were probably picking up at three or four suppliers on those routes, and we were delivering multiple times a day because we had to make sure we were feeding the assembly line, and Toyota didn’t wanna hold a bunch of inventory.

It’s the same thing with your retailers, right? You’re delivering to retail stores. If you only deliver to a Walmart or Target distribution center once a month from the time that stuff gets delivered to the time it gets [00:19:00] on the floor and then you reorder and you’re only replenishing once a month, you’re gonna have stockouts because you can’t– you’re not perfect at guessing what customers are gonna buy.

And we were talking about this recently as a podcast or something I was listening to where we were joking about pesky consumers. If we just actually bought stuff on a consistent basis and it was the same thing over and over as a consumer, this job would be a hell of a lot easier,

Joe Lynch: Joe, you were supposed to buy milk yesterday. Where you at?

Phil Schmidbauer: Yeah. So I think what what really drives stockouts is you [00:19:30] gotta understand the right frequency of delivery because the more f- we have customers that go in once a week to Walmart.

That gets pretty good delivery service. But we’ve got other customers that go in three times a week to Walmart. Guess what? Their on-shelf presence is amazing because if on Monday they couldn’t deliver something because they didn’t have a product, there’s another order delivered on Wednesday, right?

And so high frequency, lower lot size is all about helping to make sure, A, your inventory can be lower and your your stockouts are gonna be less. And so there’s a couple different ways to handle that. I believe that our freight consolidation when it comes to retail [00:20:00] really helps people do that because we help smaller and medium shippers ship in full truckload and it gives them better service, not damaged when it gets there delivered on a consistent basis.

Those are some of the advantages we give to the smaller shippers through that consolidation from that level of

Joe Lynch: Yeah. And since you support many other brands with– to Walmart or Target and all the other big boxes, you know what they expect. So if a brand comes to you and says, “Hey, we need to deliver to these stores,” you’re like, “We already deliver to those stores. We get it.” [00:20:30] Now one of the things you talked a little bit about the inventory, and this keeps– this sticks in my mind a lot these days is I did a podcast many years ago called Inventory is Everything.

And in the olden days, I’ll say pre-Toyota. Toyota was one of them who said, “We just are not gonna carry excess inventory.” The– everybody in automotive followed suit. And the reason you can’t hold inventory if you’re Toyota is there’s constantly part [00:21:00] updates. So somebody says, “We made these, this quality improvement,” and sometimes it’s a safety issue.

“We fixed this safety issue.” And that’s every auto, not just Toyota. This, it happens. And you say, “Hey Phil, did you get that stuff delivered?” “Yeah.” Go back and take it.” That stuff’s gotta… or it’s gotta be scrapped. And you go– then go get another truckload. And that’s an automotive. I used to ship automotive stuff to China that would go obsolete on the ocean.

Phil Schmidbauer: But we had one customer

Joe Lynch: so I would call and [00:21:30] say, “Yeah, open the, open that container,” and half of it’s gotta be disposed of

Phil Schmidbauer: We had another automotive supplier I worked for and did a consulting project for about two years on. They had painted parts that were painted in Japan and put on a container at their plant in Japan because it was cheaper by piece price to just paint them over there in Japan. Guess what happened when they came over and they weren’t done in the same paint shop and the color didn’t

Joe Lynch: Ah, yeah.

Phil Schmidbauer: And I’m like you got a paint shop right over there. [00:22:00] Why didn’t you just bring those in without being painted?” It’s just cheaper to have them painted in Japan.” I’m like doesn’t seem cheaper anymore.” So just things like that. You’re right, whether it goes obsolete. We’ve got customers that have shelf life on food.

So if you don’t, if you don’t sell that food in a certain timeframe, now you’re throwing that stuff away. And even every product has a shelf life

Joe Lynch: Oh yeah, sweaters. I bring sweaters up all the time ’cause we’re– I’m in the Midwest, you’re in the Midwest. So y- y– today it’s 60. Yesterday was 85. But you’re not gonna sell a lot of sweaters in the Midwest [00:22:30] after April because we kinda know it’s… it might snow again, but most likely it’s gonna be hotter for the next six months.

And we used to carry way too much inventory. I think all retail is trying to carry less inventory, be smarter about inventory. And I say this all the time, but I think it’s very relevant. You mentioned Aldi. Aldi’s the fastest growing grocery store, fewer SKUs. Costco. Costco is my favorite store. If they had condos, I would live there.

And [00:23:00] Costco has very few SKUs. Trader Joe has very few SKUs. Now we go to those stores for certain reasons. We also love to go to Meijer, and we love to go to Walmart, and those guys have every SKU under the sun. And of course, I expect when I go to Walmart that they’re gonna have everything under the sun.

I know they do. And so it’s a lot harder, but they also do an incredible job at managing inventory. And the businesses that don’t, and I’m from Michigan, so I saw Kmart. [00:23:30] Kmart and Target and Walmart and Meijer all started in 1962. Kmart’s not there anymore because they didn’t manage inventory well.

That was one of their big issues, and they’re gone. And one of the you might remember the blue light specials. Now everything goes on sale. Everything’s on sale. The problem with that sale is I don’t know how many I’d really sell without the sale. And co– at Walmart, every day low prices.

What does that allow you to do? [00:24:00] Manage your inventory. So I know on March 15th, I sell many– this many beans every year in this store. And,

Phil Schmidbauer: yeah, and I don’t think that people truly understand the hidden costs that come with inventory. And without going down a rabbit hole of inventory, like it’s expensive to transport inventory. My, my nephew is a, is in procurement at a large company, and I won’t name him, but he procures small items from overseas, bolts, nuts, whatever that is from overseas.

And I asked him, I said, what do you allocate for when you’re looking at the cost of it? What do you look at [00:24:30] in regards to like inventory carrying costs? How do you look at that?” He’s “Uncle Phil, I don’t look at that stuff.” Like he’s I just, he’s “I’m just looking at piece price and transport costs to get

Joe Lynch: needs ODW. They’ll look at that.

Phil Schmidbauer: that’s the operations. That’s somebody else’s problem to look at.” And I’m like, cost of inventory, cost of obsolete inventory. You gotta warehouse that inventory. You gotta touch that inventory. It’s all a cost. And so does it really make sense to buy cheaper from overseas? Or I think you see some people that are buying more local because they’re like, “You know what?

I can hold less inventory. I can get better…” Now, there are some things that make sense to send over there because of [00:25:00] production capacity and cost, but the cost of inventory is expensive and the cost of handling it is just as

Joe Lynch: Yes. So you mentioned supporting a Toyota plant, and they get three, four deliveries from a company in a given day. And what that tells you is they don’t want to pay for a week or a month’s worth of inventory. They did the math, and they said transportation cost is cheaper than inventory. And I think we miss that.

This is what you miss when you are looking at just transportation [00:25:30] costs or just warehousing costs. This is why, I’m not saying this to be salesy, this is why you need somebody who is a supply chain provider, like an ODW, who says, “We’re looking at the whole process from order to cash.”

Phil Schmidbauer: Yep, absolutely

Joe Lynch: One other thing, we talked about stockouts, and we talked about this before we hit the record button.

When you have a stockout, you get charged some sort of bi- bill, and you s- you call your logistics provider and say, “You cost me $1,500 by not having it on the shelves.” [00:26:00] But we also just touch-touched on it. There’s other issues related to that. So please talk about those other issues.

Phil Schmidbauer: Yeah. Yeah. So stockouts that you might get charged for being late on a delivery or late for that. But really where the pain is gonna be is if your product’s not on the shelf, the consumers won’t buy it. And if a consumer can’t rely on your product being on the shelf, they’re gonna go build brand loyalty somewhere else.

And to me, it’s really the lost sales and the lost brand loyalty that hurts people, and it’s really hard to measure. You’re gonna measure it in lost sales or not increasing your sales, but[00:26:30]

Joe Lynch: there’s reputational damage too, ’cause that Walmart or Target’s gonna say, “Why the hell are we working with these guys? They can’t keep– if they can’t bring it here, we can’t sell it. We don’t make any money, and they don’t make any money.”

Phil Schmidbauer: Right. And the buyers have to, or the company sales people have to go into the buyers and say, “Hey, we’d like more shelf presence, and we’d like to get on the, on a little bit higher shelf.” And we can’t keep you there because your on-shelf presence is terrible.

We’re not gonna give you prime space when you can’t keep your product on the line.” So that, again, that just goes back to us helping companies grow, and that’s really what our goal is. How do we [00:27:00] get… How do we help them hit those right goals? And to be honest with you, Joe, the hard part sometimes is getting customers to share the data with you.

Like, how do we know what their on-shelf presence is? How do we know when there are problems? And companies are so siloed that sometimes it’s hard to get, “Hey, can you share with us your metrics you’re getting from the retailers so we can see are we hitting the mark? Are we missing the mark?

What can we do to improve?” And then if somebody says, “Hey, we need to go into this location weekly instead of every other week.” “Okay, here’s what it’s gonna cost. You guys do the analysis, but we’re here to help. We’re here to help understand [00:27:30] some of that stuff.”

Joe Lynch: Phil, I’m a Diet Coke addict, and when you go over to the soda aisle and pop aisle, there’s a few aisles, and there’s all this, all those drinks, sports drinks, Gatorade, all that. You’ll notice a lot of those are vendor-managed inventory now. And so basically Coca-Cola knows how many units you sold, so how many are on the shelf.

So they get that information directly. So when you’re at the store, you go, “Oh, I see the Coca-Cola guy [00:28:00] or the Pepsi guy,” or… And so the very best brands are very knowledgeable of sales in that store on an up to the minute, up to the minute basis. So they say, “Okay.” And it becomes at some point a route because they know how many they’re selling.

But they do really well on that stuff, and I think that’s what we all need to aspire to

Phil Schmidbauer: Yeah, and it’s funny, that’s what my wife does for for Keurig Dr Pepper. And

Joe Lynch: Okay, so she’s doing that. By the way, I heard Dr. Pepper is the number two drink now. It beat [00:28:30] Pepsi.

Phil Schmidbauer: Yeah, so she’s

Joe Lynch: Coke versus Pepsi. Now, not anymore

Phil Schmidbauer: Yeah. So she works for works for them and sells into Kroger here, so I’m highly intimate with the details behind what that, what the challenges are with that. But you’re right, it’s all about are you on shelf? Do you have the product in the store? Especially because it’s direct store delivery.

It’s not much different when you’re going into retailers. It’s all about is your product in the right place at the right time in the right quantities? It’s the same thing. They teach us in school, but they’re dead on. It’s have your stuff where the consumer wants it

Joe Lynch: Yep. You talked a little bit about [00:29:00] ecommerce versus retail. Somebody said not too long ago to me, and again, I’m not dealing with it day-to-day. They said retailers are becoming almost like ecommerce companies in the way they manage inventory and the way they look at the world. Is that true? Do you see some of that?

Phil Schmidbauer: They’re getting it. You think about what, you think about what Amazon has done, and Amazon is competing with the likes of Walmart and Target and Kroger and all of the big retailers because you can buy food on Amazon, and they’ll deliver it to your door, [00:29:30] right? And so you look at Kroger, and I know they’ve gone around a little bit with some of their Ocado facilities and what the strategy looks like there.

But Walmart, they’ll do walmart.com deliveries right from some of the stores, right? So they’re trying to use inventory. So everybody’s really chasing the Amazon effect when it comes to retail, when you think about e-com versus retail. If it’s something that we can get delivered to the door, do we really need to drive to Walmart to get it or to Kroger to get it if it can be delivered to our front door and it’s just as cheap, right?

So when you think about [00:30:00] logistics, there’s really a battle going on right now of that e-com versus retail and what’s the best method. Shipping smaller quantities directly to somebody’s home is a lot more expensive than just shipping it into Walmart’s distribution center, right? So there’s a lot there, there’s a lot of challenges there with where is the consumer gonna go, and where is the consumer gonna allow these retailers to play and, do we wanna go shopping at the store, or do we want it to just show up at our front door?

Joe Lynch: Yeah. My, my feeling is if we leave to go to a store, it [00:30:30] has to be more of an experience. I always joke that Amazon started with books ’cause we all hated going to bookstores. No, we all hated going to buy garbage cans at Home Depot. No, no offense, Home Depot. I don’t like going to get garbage cans.

And I keep thinking they, they took books on, and right now you’ll notice a whole bunch of, I think Barnes & Noble is growing their retail footprint, and it has to be unique. I think what they’ve also done is [00:31:00] they said every store is different in terms of what they carry ’cause there’s different interests places.

And I keep thinking if I leave the house to go shopping, it should be something you go, “Yeah, I love going to that store.” Not monotonous, not, “God darn it, I gotta go over there and get this.”

Phil Schmidbauer: Yeah

Joe Lynch: Costco’s that way for a lot of us. I love Costco. You go over there, there’s always something new. It’s too crowded sometimes, but you go, “Oh my God, they’ve got free food.”

There’s a lot of great things to go to Costco [00:31:30] for

Phil Schmidbauer: It could also be that people like me who just wanna get away from the five teenagers in the house for an hour. I got no problems going to the store.

Joe Lynch: Exactly. Exactly. I always remember when my kids were young, arguing with the wife whether, “No, it’s my turn to go to the store.” You’ve mentioned– we talked about ecommerce. Do you guys manage ecommerce for a number of brands, and do you also do the retail for those, or do they not have retail in all cases?

Phil Schmidbauer: Yeah we have customers that do both. We have customers that will do e-com and retail, and yes, we do manage that. [00:32:00] Sometimes it’s kinda separate operations, right? Because if you’re case picking it’s gonna be a lot different than e-com, where you’re pulling each’s out or a specific product out and putting one product in there.

So a lot of times it’s somewhat of a separate operation, I’ll call it because you don’t run e-com in the same type of environment you would run a retail environment. But yes, we do both for customers. We have the capability to do that and set that up for customers. And it’s interesting, some customers lean more towards the e-com and some lean more towards retail.

We have a customer that started as ma- [00:32:30] mainly retail, or sorry, e-com, and now they’re kinda pushing into retail and distributing into some of those, so we’re helping them make that conversion. Now, where that balance lies is gonna be different by customer, by product, but it’s kinda interesting to service customers and kinda see how that flows for them.

Joe Lynch: Yeah, so I think it’s Warby Parker. They had glasses that were– They were online initially, so they were all e-com. Then they started opening stores. And I think there’s certain brands, I think I’d have to double-check on if they continued, but Purple started selling [00:33:00] mattresses online. One of my daughters said, “Oh, I bought this mattress online.”

And I was like, I just can’t see that for myself. I’m sleeping every night, so I gotta go lay down. I, I– Last time I bought a bed, I was at the mattress store once a week. I think they thought I was trying to move in. I was over there constantly trying out all the beds. I can’t imagine myself buying a, an online mattress

Phil Schmidbauer: That’s why Costco doesn’t have condos because they don’t want you sleeping there.

Joe Lynch: Exactly. So if, so those Purple mattresses, they started being in stores, and I think [00:33:30] they even opened up their own retail

Phil Schmidbauer: Yeah, I have seen them in stores. I actually have one. I bought one online a number of years ago, and I love it. But you’re right, like a lot of people like to go see it, feel it, touch it. I’m that way with clothes. I

Joe Lynch: On that way with the laptop too I wanna go touch the laptop before I buy it. I bought plenty online, but I prefer going in. Sometimes it’s just the, what is the weight? If somebody says, “Oh, it’s two pounds,” I need to know what that feels like in my hand. So it’s an interesting, it’s an interesting thing because we saw tradition- not traditional.

We saw [00:34:00] ecommerce stores, ecommerce brands that became retail, whether on their own stores or in the big box stores, and I think everybody’s trying to learn where they belong. And I think consumers want to buy it from wherever they wanna buy it. If they wanna buy it from the TikTok shop or from Facebook, you gotta be able to support every one of those channels.

Phil Schmidbauer: Yeah, that’s right

Joe Lynch: You mentioned before we hit the record button that you guys have warehousing facilities all over the [00:34:30] country, and some of them, I don’t know if you can mention names, but you guys were opening up stores that were Or not stores warehousing and distribution centers that were basically for some of your customers.

Phil Schmidbauer: Yes. Yeah. So we have we do warehousing for different customers. Some of them we’re out in Redlands, California, and Chino, California. We have, And I think we’ve shared this online, so I don’t think it’s very secret, but we run a warehouse for Haribo of America when they brought their manufacturing up to Wisconsin.

And so

Joe Lynch: a cult.

Phil Schmidbauer: we support some gummy [00:35:00] bear manufacturing plant up in– Yeah and I didn’t know this before we started working with them but, like, all gummy bears used to be manufactured overseas, and it’s like they couldn’t keep up with demand over here in the US. And gummy bears are one of those things that, again, another interesting fact I learned from Haribo they’re recession-proof though, because you can always buy a really small pack, and even during a recession, people want sugar candy.

And so gummy bears, like they don’t, they’re not– They’re recession-proof. And yeah we support them out of Wisconsin. We have a facility up there, manufacturing [00:35:30] support. We have other customers that we do dedicated facilities for them in Jackson Jackson, Tennessee. And then we have another facility down in Memphis.

We’re actually getting ready to upgrade for a customer there. But then we also have shared facilities and dedicated facilities in Columbus, Ohio as well. So

Joe Lynch: Before we got to the ecommerce era, if somebody said, “I need distribution in the US,” you would say it’s gonna be somewhere between, I’ll say Columbus and Chicago. And there’s just a ton of [00:36:00] distribution centers that popped up in Indiana. Not so much Michigan, that’s a little too far, but definitely around Chicagoland, definitely in Indiana, definitely in Ohio.

And then all of a sudden same day, next day hit. And so if… You can probably support, what, two-thirds of same day, next day from Ohio just because most of the people still live on this side of the Mississippi

Phil Schmidbauer: Yeah, I do a lot of network analysis. Just did one for a customer this morning actually and sent one off. But yeah, when you think about Columbus, it’s very [00:36:30] well positioned to where your next day all the way to the East Coast of New York City where a significant population, you can get to Chicago.

So when you think about Columbus, it’s a good center of gravity to not only touch that New York City, Chicago area with- within a day or day and a half or two days max

Joe Lynch: too. We still count.

Phil Schmidbauer: We can’t leave, we can’t leave Detroit out. But yeah, Columbus is a really good center of gravity location. And I say we were probably kinda lucky in where we land as an organization because it just happens to be a really good spot.

And then when you [00:37:00] couple that with Southern California, that dual node between Southern California and Columbus covers so much of the country, it’s it’s really a good setup for us, so

Joe Lynch: Yeah, and I think one of the other challenges is if you get– there’s a lot of large warehousing companies, and a lot of them are tech-centric where they have a shared technology and they say these are individually owned warehouses. So they say, “So we can get you four or five s- warehouses around the country,” and maybe that’s appropriate.

Sometimes it’s [00:37:30] appropriate. One of the issues you run into, though, is again, back to inventory. Do I want to have to– what level of inventory do I wanna be able to have at every facility? And if it’s newer product, you don’t know exactly, so you put a bunch of them in there. And I think this is where SKUs matter, and I think this is what we’re all– you mentioned the Amazon effect.

One of the things Amazon learned is we can’t have anything that sits on the shelf. If you wanna sell through amazon.com, this is [00:38:00] not a, this is not somewhere where you’re gonna store your product at our facilities. It either moves or it’s gone.

Phil Schmidbauer: Yeah. Yeah. And inventory is key, and people don’t often realize the hidden costs of inventory and the amount of locations of inventory you’re managing and how difficult it is. Some of my– One of my most fun projects that we worked on for a customer was they were in five different locations, deliv- distributing from five different locations.

And that’s great. Your outbound cost you think is really [00:38:30] good until you realize how much wasted transfers you, how many wasted transfers, how much wasted inventory because you can’t ever have the right product at the right place. When you’re in one node, it’s a lot easier to do that. So I’m not suggesting everyone should be in one node, but I think everybody needs to understand the right size for them and just how much waste is in the network.

And a lot of that depends on your suppliers and where the product’s coming from and reliability. So it’s definitely an artwork, an art form. There is no clear-cut answer for anyone, but network design is an art form. And I think people often say [00:39:00] can you just give me the one answer?” I said, “There is no one answer.”

There’s a lot of it depends here, right? And I can’t give you that. Now, you build your strategy, and I can help you build your strategy, but you have to execute it. And so I think it’s really important for people to understand. That’s where I think a lot of people fall down, is really understanding the strategy they wanna go with and why they’re doing what they’re doing.

Joe Lynch: Yes. And I’ve also heard people say this about I don’t know if you use this term, but I’ve heard people say, “We’re e-com and we sell maybe through walmart.com, amazon.com, our [00:39:30] website, TikTok, whatever, and each channel has its own demands. So we’re fencing off product so I don’t all of a sudden have a run at walmart.com and then I disappoint Amazon my own website,” because you get dinged on these websites.

If you don’t do well, you get– don’t get to sell. And that’s why, by the way, that’s why we shop on walmart.com or amazon.com ’cause when I buy it, I know it’s there. There’s [00:40:00] nothing worse than saying, “I have two of those,” and it says, “You have none of those.” I’m like

Phil Schmidbauer: Yeah.

Joe Lynch: ‘Cause a lot of times when I’m buying something, I’m just going to repeat.

I was like, “Look at my last order. That’s what I’m buying.”

Phil Schmidbauer: Yep, yep

Joe Lynch: Yeah. And so do you guys end up fencing for your customers or is that not necessary in ombre case?

Phil Schmidbauer: Every customer’s gonna set their own strategy. But yeah, sometimes they will. Sometimes they’ll set aside inventory for a certain customer. And, sometimes

Joe Lynch: speaks to the one node. That’s why I would want one node bec- if I c- I [00:40:30] want minimum nodes because

Phil Schmidbauer: It’s easier to manage them

Joe Lynch: if I have 10 locations, how would I keep that much inventory everywhere?

Phil Schmidbauer: That’s right. That’s right. It’s, it’s– Look, simple is easier to manage. Now, you still have to make sure that you can do the outbound delivery and the lead time, right? Amazon’s not gonna get away with one node because they have too many picky customers that want product same day or next day or

Joe Lynch: that’s all of us.

Phil Schmidbauer: but that’s right. So it’s got… You gotta understand your business and your end customer, but generally speaking, like one node is just easier to manage. So we do retail deliveries out of one node [00:41:00] today with very good success for customers

Joe Lynch: Yep. I wanna wrap this up, but before we wrap this up talk about your services one more time. What are your services? What problems are you solving for your customers? And then who are your customers typically?

Phil Schmidbauer: Yeah. So we, a lot of middle market customers that are, retail is a large sector, but I would say that mid-market customers that don’t really have the resources to go manage their own transportation and distribution network themselves and we try to help [00:41:30] optimize the entire supply chain.

I don’t like to say we just do warehousing and transportation, right? Because there’s more than that. We’ve given customers recommendations on “Hey, go to your shippers and instead of– if there’s 50 cases on a pallet, tell them not to sh- give you an order for 47. Give us an order for 50 so we can ship the whole pallet instead of case picking all,” right?

So there’s little things we do that we try to take a consultative approach to delivering a more efficient supply chain for our customers. We are w- w– like I say, I like to say we’re [00:42:00] consultants to our customers and we want them to push us as well to get better and think differently and think outside the box.

So we do warehousing and transportation. We do transportation only. We do warehousing only. Our best value is when we can pull that all together for a customer and help them make an efficient supply chain.

Joe Lynch: Th- when you s- when you said this the other day, you used the term, “We’re not a logistics company, we’re a supply chain company,” and that speaks to that. And I also have written down here, you guys have t- 27 warehousing [00:42:30] locations? So you’re pretty much everywhere.

Phil Schmidbauer: Yep

Joe Lynch: And again, I think this is the opportunities between the boulders.

When somebody says, “Oh, warehousing is here, manufacturing’s over here, transportation’s over here,” the handoffs are where we oftentimes drop dollars on the ground

Phil Schmidbauer: Think about a relay race. Like you drop that baton and you’re cooked, right? So yeah, it’s just like a relay race. Like how do you make a really good connection, a really good relay to make sure the supply chain is flowing?

Joe Lynch: [00:43:00] Yep. So I’m gonna do the best I can to summarize our conversation. Then I want your final thoughts on the topic. So I’m talking to my friend Phil Schmidbauer. We’re talking about from strategy to scale, the ODW logistics approach to growth. And cool, we talked a lot about some of the problems.

So stockout being one of the big problems. And again, this is harder than ever because we’re trying to do it with less inventory than ever. And the reason we’re doing it with less inventory is because managing inventory is really difficult and it’s [00:43:30] expensive. We learned during COVID how bad that was.

Actually, we learned it again this year with the tariffs when somebody said the tariffs are going in effect, bring me a ton of inventory and then we won’t buy anyone for the rest of the year.” It sounds like a good plan. It’s not easy. It doesn’t work as we think it’s going to. There’s a lot of unintended consequences to this.

Stockouts mean I upset the br- if you’re a brand, you upset the retailer you’re sending it to or [00:44:00] maybe you upset the factory. You know this, Phil, if you worked at Toyota, if you stop an assembly plant in any automotive facility, they threaten you, in a way that is scary. They– I hear people say, “We’ll chop your head off.”

I’ve heard that many times.

Phil Schmidbauer: I never saw anyone get injured, but based on the reaction

Joe Lynch: they always say, you owe… I re- I’ve done it. I’ve shut the plant down. That was when I was in engineering. They say it’s a million dollars a minute. They bring in these enormous numbers. Stock-outs [00:44:30] are a huge problem, but so is e- extra inventory. So it’s it’s a balancing act.

We talked about the difference between ecommerce and retail a little bit, what the retail customers are expecting, and retailers becoming more and more like e-com and e-com becoming more and more like retailers. But to manage e-com, you have to be, usually it’s in by 2:00, in, ordered by 2:00, it goes out that night.

I just heard this big re- big big company, I’m gonna talk to them [00:45:00] soon, told me, “If we get the order by 5:00 PM, it goes out that night.” And again, that’s a Fortune 500 company. That’s crazy. But those are the expectations that go higher and higher every day. And I think not every warehousing company says yes to ecommerce because they go, “We’ve been doing it this way.

We understand LTL many times a week to these retailers. We don’t get the 8,000 orders it, that came in [00:45:30] at 1:55 that have to go out at, by the end of business.”

Phil Schmidbauer: a lot, yeah, a lot of times automation lets you do that, but yeah, it’s complex. It’s complex

Joe Lynch: Yep. And we’re all picky end consumers. I just said this on one of my recent podcasts. I ordered something that said it’ll be there in a week, and I was like, “They’re just saying that. It’ll come today.” I was like, I, I– even when they managed it, they were trying to manage my expectations, I was like, “No, it’s coming today.”

And there was a knock at the door, I was like, “See?” I was [00:46:00] like, “It’s here.” And it wasn’t. But I keep thinking that same day, next day, we drove that, and it’s the same with retail. We expect when I go to Meijer or Kroger or wherever we go, that these products are always there. We talked about warehousing in the nodes, so important, but also the more nodes you add, you have to manage the complexity.

And this is where you need a partner who says, “We manage that complexity every single day for dozens and dozens of [00:46:30] companies just like you.” So when you say, “I think I need eight locations,” you might say over at ODW, “We got you. It’s actually four locations. Let me show you what four locations you need, ’cause we’ll do the network design for you.”

And that’s a higher level of service than saying, “Let me save you 50 bucks on that shipment.” And again, you’ve made the point over and over throughout this conversation is that where ODW fits best is for a company that knows they’re leaking money [00:47:00] and that is trying to grow, but they’re being prevented from growth because they haven’t designed their supply chain, and they need help with that.

Enough of my blather. Put a big old bow on this one, Phil. Final thoughts on the topic

Phil Schmidbauer: Yeah. Look, at ODW our goal is to really allow our customers to focus on their core business. There are logistics providers across the country for a reason. It’s because it’s not easy, there’s a ton of complexity, and every day is different. Our goal as an [00:47:30] organization is to let our customers go focus on their core business, focus on manufacturing and selling their product, and we will focus on the delivery to the customer and an efficient logistics supply chain.

It’s a consultative approach we take. We are not right for everybody, and everybody’s not right for us, and that’s okay. But we are really good at what we do when it comes to delivering ideas, delivering solutions for customers, and helping them achieve their goals. And so I think that’s what it takes, is finding the right partner, somebody you fit with, where your goals align as organizations, where geographically you align [00:48:00] from a setup standpoint and then, find somebody you can work well with.

It’s kinda like a dating game and finding the woman of your dreams, like you find the right partner and it can be a lot of fun. So that’s really what we’re about is finding the right partners in supply chain and helping deliver supply chain solutions so they can focus on their core business.

Joe Lynch: Yep. I love it. I love it. Phil, I’ll make sure I put a link to your LinkedIn profile, a link to your website. Any other links you and your go-to-market team give me, I’ll make sure I put those in the show notes so people can reach out to you. If you guys have any webinars or white papers or case studies we’ll [00:48:30] have– we’ll put those in the show notes if you give them to us.

What conferences will we see you and the fine folks from ODW Logistics at? That’s where I met you guys. I met John over at TMSA, which is coming up. TMSA is coming up. That’s Transportation Marketing & Sales Association coming up here in Colorado this year. Hallelujah. I can’t make it, but I wish I was.

There’s nothing better than Colorado in summertime

Phil Schmidbauer: I love it. So John Meyer keeps a list of all of those locations. I personally, I go to [00:49:00] SMC SMC3 Conference, and then I’ll go to the FreightWaves conference in Chattanooga usually every year. So Joe and I will attend that Chattanooga conference. Our sales team goes to a lot of conferences.

They’re almost– They’re gone a lot. And I don’t– I know we were at Manifest,

Joe Lynch: yeah. You guys are at all of the conferences. I go to the… I go to a lot and I see you guys there.

Phil Schmidbauer: Yeah. I’ll be at Chatteno- I’ll be at Chattanooga and I’ll be at SMC next year. I may be at Manifest next year as well. We’ll see

Joe Lynch: Yep, me too. Yeah, there’s a lot of great conferences coming up, so I’m gonna– I’ll just mention the ones I’m going to. [00:49:30] I’m going to the Trimble conference, which is coming up here in September. It’s in San Diego. God darn it. And then I’m going… I forgot the name of the conference, but I’m going to Rod Lentz from…

There, there’s a investment banker conference coming up in Chicagoland, so it’s always good to get the Chicagoland one because that’s where seems like about a quarter of our business lives.

Phil Schmidbauer: Yeah. Yep. Okay

Joe Lynch: Any- anyway, thank you so much. I I really enjoyed talking to you, and again, I’ll make sure I put a link to [00:50:00] all of those good things so they can reach out and talk to you.

Phil Schmidbauer: It was my pleasure. Thank you, Joe. Appreciate

Joe Lynch: Yeah, thank you for your time, and thank all of you for listening to my podcast. Your support’s very much appreciated. Until next time, onward and upward

The post From Strategy to Scale: The ODW Logistics Approach to Growth with Phil Schmidbauer appeared first on The Logistics of Logistics.

]]>
10886
The TRAFFIX Report: The Strategic Forecast for North American Freight with Alex Fuller https://www.thelogisticsoflogistics.com/the-traffix-report-the-strategic-forecast-for-north-american-freight-with-alex-fuller/ Tue, 19 May 2026 22:10:12 +0000 https://www.thelogisticsoflogistics.com/?p=10878 In “The TRAFFIX Report: The Strategic Forecast for North American Freight” Joe Lynch and Alex Fuller, Sr. Director of Revenue Management & Solutions at TRAFFIX, discuss the end of the freight recession and how rising rates, nearshoring, and market volatility are reshaping North American supply chains. About Alex Fuller Alex Fuller, Sr. Director of

The post The TRAFFIX Report: The Strategic Forecast for North American Freight with Alex Fuller appeared first on The Logistics of Logistics.

]]>

In “The TRAFFIX Report: The Strategic Forecast for North American Freight” Joe Lynch and Alex Fuller, Sr. Director of Revenue Management & Solutions at TRAFFIX, discuss the end of the freight recession and how rising rates, nearshoring, and market volatility are reshaping North American supply chains.

About Alex Fuller

Alex Fuller, Sr. Director of Revenue Management & Solutions at TRAFFIX, focuses on understanding market trends and helping customers grow through customized supply chain solutions, technology, and AI integration. Passionate about supply chains and business growth, Alex earned his undergraduate degree in Supply Chain Management from BYU before beginning his career with a CPG company managing imports from China and distribution across the United States. He later completed his MBA at the University of Virginia and went on to build extensive industry experience with UPS and UPS Supply Chain Solutions prior to joining TRAFFIX. Outside of work, Alex is a former professional triathlete and recently completed the Boston Marathon, reflecting the same discipline and endurance he brings to his professional career.

About TRAFFIX

TRAFFIX is a leading North American 3PL that has been delivering customized supply chain solutions since 1979. With a customer-first approach, TRAFFIX partners with shippers to create flexible, scalable logistics strategies tailored to their unique business needs. The company offers a full suite of services, including truckload, flatbed, intermodal, drayage, expedited, LTL, managed transportation, and specialized government solutions. Backed by experienced logistics experts, TRAFFIX provides real-time visibility, optimized freight management, and agile solutions that help customers adapt to changing market demands. With U.S. headquarters in Chicago, IL, TRAFFIX employs more than 840 logistics professionals across the United States, Canada, and Mexico, helping businesses improve supply chain performance through customized supply chain optimization.

Key Takeaways: The TRAFFIX Report: The Strategic Forecast for North American Freight

  • In “The TRAFFIX Report: The Strategic Forecast for North American Freight” Joe Lynch and Alex Fuller, Sr. Director of Revenue Management & Solutions at TRAFFIX, discuss the end of the freight recession and how rising rates, nearshoring, and market volatility are reshaping North American supply chains.
  • The 2026 Market Inflection: Following a brutal, multi-year freight recession post-COVID, the North American freight market has officially turned. As of mid-2026, contract rates have climbed 10% year-over-year, while spot rates have exploded by 40%.
  • The Tariff & Pull-Ahead Wrench: Volatility in 2025 trade policies forced shippers to radically alter inventory strategies. Many pulled massive volumes ahead to beat tariffs, briefly spiking intermodal demand, before aggressively pivoting back to lean, just-in-time supply chains.
  • Fuel Cracking the Budget Dam: Skyrocketing diesel rates in early 2026 acted as a major catalyst for rate hikes. Unlike previous years where carriers absorbed fuel spikes, tight capacity means these costs are hitting shippers directly, forcing corporate CFOs to expand logistics budgets.
  • The Nearshoring Reality: Shorter, responsive supply chains are replacing long-distance sourcing. A massive wave of nearshoring to Mexico is underway, trading complex ocean freight for direct, highly automated cross-border trucking networks.
  • Immediate Capacity Threats (Q2 2026): Roadside inspection events like DOT Week, combined with driver pullbacks over Memorial Day weekend, are actively squeezing summer capacity. Spot rates are projected to remain highly elevated for the next 9 to 12 months as a result of these seasonal disruptions.
  • The Death of the Annual RFQ: High market volatility means annual freight bids are breaking down. Savvy shippers are shifting to agile 3-month and 6-month mini-bids, allowing 3PLs to price lanes accurately without adding heavy risk premiums to the rates.
  • TRAFFIX Corporate Profile: Established in 1979, TRAFFIX is a premier North American 3PL operating across the US, Canada, and Mexico. As an asset-light partner, they leverage mid-market agility, cross-border expertise, and on-demand warehousing to protect shipper capacity in volatile cycles.

Learn More About The TRAFFIX Report: The Strategic Forecast for North American Freight

Alex Fuller | Linkedin

TRAFFIX | Linkedin

TRAFFIX | Facebook

TRAFFIX | Instagram

TRAFFIX | X

TRAFFIX | YouTube

TRAFFIX

TRAFFIX Trends Q2 2026

TRAFFIX Bi-Weekly Market Update

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to the Logistics of Logistics show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is the Traffix report, the strategic forecast for North American freight with my friend Alex Fuller. How’s it going, Alex?

Alex Fuller: It’s going fantastic, Joe. I’m glad to be here.

Joe Lynch: I’m glad you’re here too. So Alex, please introduce yourself and your company and where you’re calling from today.

Alex Fuller: Absolutely. So Alex Fuller, and I’m with Trafix. We are a [00:00:30] North American third-party logistics company. We’ve been around since 1979, and we really focus on helping shippers solve shipping problems. So we like to dive in, find solutions for really nitty-gritty things maybe think outside the box, come to the, come up with different solutions for how to move freight.

What really differentiates us is that, we’ll sit down, we’ll walk through, we’ll map out supply chains, we’ll talk through here’s [00:01:00] opportunities and then we really pride ourselves on high service- Yeah … which is becoming a bigger issue in the market today, which is what we’re talking about today.

Joe Lynch: Yes. I should point out that this is Traffix with an X at the end, not a C. So some people might be thinking we’re saying traffic. We’re saying Traffix. And Traffix is one of the biggest logistics companies in America, right?

Alex Fuller: Yeah we’re about 800 employees. We have offices across US, Canada, and Mexico. We do a lot of cross-border freight. And yeah, Trafix with an [00:01:30] X ’cause we fix problems. Exactly.

Joe Lynch: like it. So do you guys have some areas of specialization, verticals that you work in a lot?

Alex Fuller: Yeah we’ll work with all kind of different industries, but we’ve especially found a lot of solutions for energy companies, so either solar, oil and gas, that kind of thing as well as high tech, aerospace, electronics, and manufacturing.

Joe Lynch: Nice. Nice. It’s interesting because I’ve said this sometimes on my podcast as of late, we have all sorts of i- [00:02:00] issues facing our industry, and we’re gonna talk about some of them right now in a minute. But I believe that we’re seeing a lot of the volume move to the top companies, and I think there’s a reason for that.

I think the larger companies are able to bring the resources, whether it’s people or technology or just the a- the ability to invest. Because I think I used to think, “Just get me a truck,” right? “Alex, I call you, you get me a truck.” Now I feel like when I talk to [00:02:30] Alex, I’m saying, “Alex, I need you to bring me– I need trucks, I need a scorecard, I need technology, I need data.” It’s starting to be, “I need a partner,” rather than just, “Get me trucks.”

Alex Fuller: Yeah. It’s absolutely. If I just have one truckload to move, yeah, you can call anyone, you can move it. But when you start getting more and more complex, you have deadlines hit, you have hundreds and thousands of loads, that’s when, yeah, you’re shifting away from [00:03:00] just find me a truck to we gotta build this whole system to keep it flowing.

Joe Lynch: Yeah, and it’s– if you’re a smaller shipper and you got two shipments a week, yeah, it probably doesn’t hurt that you’re working with a mom-and-pop broker. You might prefer that. But as soon as you get to a certain scale, you need somebody who can be a true partner. And I think it– I think in the past, you would look at a big shipper would pull their brokers or their carriers, pull them along “Hey, we need this, we need that.”

Now it feels like the [00:03:30] bigger companies, like the Traffics of the world, are starting to lead and say, “Here’s our solutions,” and show up with a lot more than they did in the past.

Alex Fuller: Yeah, and we try to fit that, that middle spot where, there, there are some giant companies out there that maybe you’re just a number, and if you need help, you’re gonna get a 1-800 number. You have the mom and pops that maybe have a limited scale of resources. We try to fit right in there where we have all the technology, we have all the solutions, but there’s also a whole team ready to help you

Joe Lynch: [00:04:00] Yep. We’re gonna also talk about the challenges that are going on. So for the last– you’ll give us the context in a minute, but it seems as if if you’re a shipper, you’ve had the wind at your back for a while, the really inexpensive rates. And by the way, I don’t believe all shippers are looking and saying, “Hallelujah, we have cheap rates and all the carriers and brokers are going away.” I think most of them want you to make a fair buck. But now it seems as the market’s shifting, and we’ll talk about that in a minute. But first, Alex, tell us a little bit about you. [00:04:30] Where’d you grow up? Where’d you go to school? Some career highlights before you joined the juggernaut that is Traffics.

Alex Fuller: Absolutely. So yeah Alex Fuller. I’m passionate about supply chains. I love logistics, all that kind of stuff. And I like helping companies grow. I also have a marketing background, so I’m all about how do we use supply chain to drive that top line. About me, I grew up in Kansas City.

I went to undergrad at Brigham Young University out in Utah. I spent a few years at a CPG company managing a warehouse, importing [00:05:00] stuff from overseas driving a forklift, managing a team, running RFPs for freight. So I spent a lot of time on the shipper side. From there, I went and got my MBA at University of Virginia.

Spent a few years with UPS and UPS Supply Chain Solutions learning freight forwarding, air, ocean, domestic air freight. And then I found Trafix, and I’ve been with Trafix for the last couple years.

Joe Lynch: So what impressed you about Traffics? You obviously had some options with your background.

Alex Fuller: Yeah. I was excited about [00:05:30] their position in the market and their adoption of technology. So there’s a, it’s very, Even though we’ve been around for 40-plus years, we don’t have a lot of the baggage of these huge legacy systems. We can be right on the cutting edge and adopting AI with smarter decision-making and better solutions.

So that was really attractive, as well as just the team. It was great people to work with. They’re all down to earth. You have a lot of people from the Midwest and from Canada and and just some good, salt-of-the-earth people that are [00:06:00] fun to work with.

Joe Lynch: Yeah, you guys have– you guys are cross-border specialists too, which the the– I know you specialize in a lot of

things. I bring that up because, you know, that’s been s- top of mind lately. It’s not everybody is good at getting stuff in and out of Mexico and in and out of Canada. Before we hit the record button, we were talking about the Gordie Howe Bridge, soon to be open here in the– between Detroit and Windsor. We’ve always had the Ambassador Bridge, which I think is the– I think that Windsor-Detroit [00:06:30] border is the busiest border in, in the world. I wouldn’t be surprised if Laredo passed them, but it’s still wildly wildly busy, and I think the new Gordie Howe Bridge is state-of-the-art, and it’s gonna make it a lot easier to get stuff over the border. That’s another topic for another day,

Alex Fuller: I did a couple years with customs brokers and customs brokerage, and yeah, that, that’s a whole world where it’s great until you have a problem, then it’s a big mess,

Joe Lynch: oh, yes. Yes. So before we get [00:07:00] into into the topic today, which is we’re gonna get– talk about the f- the freight market here in North America, talk about s- Who are– what are some of the areas of specialization you guys w- have?

Alex Fuller: So definitely cross border. We do a lot with a lot of US, Canada, US, Mexico. We do a lot of work with companies that are… They’re looking for additional solutions. Hey, I’m my, my carriers aren’t picking up, or I’m running into [00:07:30] issues, or, if we could just do X, Y, Z, we could unlock a lot of savings in different parts of our company, or we could gain additional sales.

And so that’s where I get really excited and we, it’s a lot of fun to sit down and say you thought these constraints always existed. We actually have options. We have capacity that might open doors to you that unlock savings or unlock growth.” And that, when they’re, when a shipper’s growing and we’re growing together, that’s what’s really exciting.

Joe Lynch: So before we get into the freight market in, which by the way, you guys are big enough [00:08:00] that you can tell you, you actually can see what’s happening in the market. You’re large enough, you have enough freight. Um, but give us some context. Take us back to the olden days, pre-COVID, and walk us up to today.

Alex Fuller: Absolutely. And honestly, this context is really good because there’s a lot of people that are probably new in their position that haven’t seen a freight cycle, or at least, haven’t seen one- It feels like we haven’t had one. I know. Yeah. They’ve… and the last big, run up in rates was [00:08:30] COVID, and that was a whole…

Now that, that’s, there’s always an asterisk on that’s, it’s a little different from other freight cycles. If you’re two, three years in a job, this is all new territory. So- … going back typically in a cycle you have prices rise as demand rises, and then you have drivers and carriers enter the market to, the supply comes in to meet demand.

It levels out, and then you get an oversupply of capacity, demand decreases or at least stays the same, you have rates go back down. So over, two, [00:09:00] three, four years, you have this wave of prices up, prices down. Boom and bust. Exactly, yeah. And, it can be frustrating for drivers of, “Hey, I’ll go drive truck for a couple years, and then maybe I’ll go find a construction job or whatever.”

Joe Lynch: Yeah. And if I could add something to that, it’s, it’s very predictable what happens, these kind of these up and down cycles. And if you owned a, let’s just say you own a small trucking company and I own a small trucking company. We don’t even know each other. And the market’s heating [00:09:30] up and some of my customers say, “Hey Joe, we have more business, uh, than we can handle.

Can you get a could you get another truck?” And I might, maybe I go find an owner-operator, maybe I hire somebody, might g- maybe I get a new truck. You’re doing the same exact thing. We’re both being completely normal, rational people. My customer has more freight. They ask me to help, so I bought a new truck or a used truck, or I got an owner-operator.

You’re doing the same thing. And maybe I’m pulling people who used to, as you mentioned, maybe they’re [00:10:00] working as their warehouse manager and they say, “Hey, rates are really going up. I’m gonna jump in.” And then at some point, it just goes the bus cycle happens and trucks leave the, leave. Maybe the oldest trucks are no longer needed. Some of the drivers who say, “This isn’t worth it anymore for this life is very tough. I’m gonna go back to the warehouse I used to work at.”

Alex Fuller: Yeah, exactly. and-

Joe Lynch: Nobody’s being irrational on this

Alex Fuller: Yeah, and it sounds hypothetical, but the- there’s a mechanic that works on my car. I called [00:10:30] him a month ago, and he says, “Oh, actually I’m not a mechanic anymore. I’m driving a truck.” And it’s oh, I’m s- I’m seeing the market in action right here. So y- so yes, this happens. It’s happened many times over the last 20, 30 plus years. And it happened again in COVID. Now, that… There’s an asterisk on that, and it exploded ’cause there was so much demand for things. And so we had a super bull market. Not bowl, bull. Yeah. So y- lots and lo- you know, rates skyrocketed ’cause everyone wanted to ship things.

Joe Lynch: Oh, and [00:11:00] everybody, I bet you had the same thing I did. People called me and said, “Joe, how about you and I buy a truck?” I heard somebody get 18 grand to move something from California to Saskatchewan. I was like, “As soon as we buy a truck, the rates are gonna bust.”

Alex Fuller: Yeah. And, yeah, exactly. 2021, you had all the… They were hearing those stories, and people were doing it, and, and then 2022 kinda came around, and you it started to crest. ’23, ’24, that’s when you hit that bust where, quarantines ended. The demand for [00:11:30] physical goods, it didn’t…

It declined. So freight declined. And over the past three, four years We’ve had this whole correction where there’s less freight demand, and so rates went down. There was an oversupply of drivers, oversupply of capacity. Rates have come down, and we’ve been in this freight recession for two, three years, which has been tough for drivers and carriers, tough for brokers.

It’s been great [00:12:00] for shippers.

Joe Lynch: And if I could add something into that, and I’d love to hear your two cents on it. During COVID, um, there was also– people started getting money from the government. So that’s why a lot of people were buying stuff like, “Hey, here’s a check from the government,” and maybe you lost your job, maybe you didn’t, but a lot of people got a lot of money.

Companies got a lot of money. And, So they invested in trucks or they put it in the bank or whatever they did with it. But there was also these really high rates. So a lot of companies might have [00:12:30] been bolstered by the high rates and the government check, and they just may have said, “Hey I got six trucks.

I’m gonna hang on to them, and if there’s a bust cycle, I’ll survive it.” So it’s, so it might have extended the long… Basically what we needed is armies to leave the field, and they didn’t leave because they were a little flush from COVID. I was I don’t… That’s hard to

Alex Fuller: No,

Joe Lynch: nail down with statistics, but I believe that’s some of what happened

Alex Fuller: absolutely. Yeah. And, [00:13:00] they… You invest in trucks, you invest in these businesses, and because you have so much financial backing, you’re able to r- you know, you’re able to push off paying the bills or going under for longer. And so you hang on there. Absolutely. That wa- that was definitely part of it.

Joe Lynch: Yep. so we’ve had this long period since COVID, And I think a lot of people,

I’ve felt on my podcast two, three years ago said, “Joe, we hit bottom. And we hit bottom, and we just stayed at the bottom. We didn’t seem to come back out of [00:13:30] it.” And everybody would say the end of 2023. Just feel it, beginning of 2024, and then people stopped even saying anything. When I’d ask people on the podcast, they’re like, “Who knows?” Like it’s– we’re in no man’s land. We’ve never had this long period where rates were down and it felt like nobody could invest in the space. By the way, wrong way to say it. The top companies like Traffix and the other top 100 logistics [00:14:00] companies, they gain ground during these kind of times, ’cause they’re saying, “Yeah we’re capitalized.

We, we have resources. We will continue to grow,” while some of the smaller companies maybe can’t do the same.

Yeah. Oh, you’re the hero. You’re the hero over there,

Alex Fuller: as a shipper, I can get low rates, I can get high service And if any provider comes to me and says, “Hey, we need to increase your rates,” I can just say there’s 30 other guys knocking on my door that don’t need a rate increase.” And so that that’s part of the dynamic as well [00:14:30] of why for several years there– Because there was so much capacity, rates were able, they were basically at breakeven level for a long time.

Joe Lynch: So Alex Fuller, you’ve told me that you’re, you guys are starting to see rates go up. The market is reversing finally, or changing, whatever you wanna call it. We’re moving into a new cycle. Talk about that

Alex Fuller: Absolutely. Over the past couple years, you’ve seen a couple false starts, which is probably why some of your guests have been like, “All right it’s gonna happen.” This is [00:15:00] it. And, I was almost convinced by, I was convinced that 2025 was gonna be it. Everything was pointing to it.

Then you had the trade policy uncertainty come in. Oh, the tariffs probably hurt. Yep. It threw– That threw a curveball that extended it, another year. And then we came to peak season 2025. So November, December 2025 we saw demand a lot stronger than I think we anticipated, and I think capacity was a lot lower [00:15:30] than the trend had put it.

And some of that come, carriers are constantly going under from, as rates stay low, you have carriers drop out of the market as financially doesn’t make sense. So economics was pushing carriers out. But then end of 2025, you also had a lot of carriers leave because of enhanced enforcement of English language rules and immigration- those kind of things that probably pushed more carriers out than just eco-economics would.

Joe Lynch: Yes. Yes. And by the way, I’ve ha- talked to Jason Miller from [00:16:00] Michigan State on the podcast, and I’ve– By the way, if you’re not following Jason Miller from Michigan State on LinkedIn, you’re doing yourself a grave disservice. Jason is of the opinion that to come out of the bust cycle and get into the boom cycle, you sometimes need an external thing for the market, which sometimes is the housing boom, where it says, “Hey,” all of a sudden rates are low enough that a whole bunch of builders decided to build houses. It might also, I think Craig Fuller from, [00:16:30] no, no relation to you, Craig Fuller fr- from FreightWaves, he recently posted that we’re starting to see a whole bunch of stuff move, uh, in the manufacturing space here. So s- we’ve talked about reshoring and nearshoring and all that. Stuff is moving back here, and we might be coming into a manufacturing boom. Um, it– Some people say this is just simple supply and demand. Others say we need an external factor. Who knows? It’s just whatever’s happening, you [00:17:00] guys are seeing the beginning of rates going up

Alex Fuller: Yeah. And I think the last– the first four months of 2026 tell a really interesting story that, that probably relates to both of those of, some kind of dam being broken. December rates jumped quite a bit and we’re like, “Oh, this, this is a bit more than the fla- past few years.”

But, we’ve been tricked several times. It’ll go back down- Oh my God, we have … just like it has before. And so then you come to January, you had a few weather events. Again, hey, we’ve seen this [00:17:30] before. Rates are still high, but we know after the storms it’s gonna come down. Then we got to February, rates were still high, and it’s hey something’s different.

Something’s not following the pattern we’ve seen in the last three, four years. We’re seeing rejection or EDI rejection rates. So that’s companies, shippers saying, “Hey, I need someone to pick up an order,” and carriers saying, “Oh, I don’t– I can’t pick that up. I don’t have a truck for you.”

Joe Lynch: Those are the tender rejections, right?

Alex Fuller: Exactly. Tender rejections.

Joe Lynch: those are going up.

Alex Fuller: [00:18:00] Tho-those jumped up in January, February quite a bit above 10%. So 13, 14%. Anything above 10% is usually inflationary territory. That’s gonna drive up rates. Meaning, if I’m asking for 10 trucks, I’m only getting nine, that… that’s a lot of issues that supply managers have to jump on.

Oh, shoot, I gotta find a truck that, I’m– the, my routing guide’s starting to break down. So you get to February and a lot of shippers, [00:18:30] and frankly the whole market, was maybe still in denial of, “Hey we keep thinking rates are gonna go up.” I keep being able to say No, like I’m, I keep telling my providers I’m not gonna accept price increases.

But around the February timeframe, that’s when everyone across the whole market started to say, “Hey, there, there’s something different here. Th- this isn’t like ’25, this isn’t like 2024.” And that’s the point or the inflection where companies started to [00:19:00] realize, “Hey we actually do need to do something because we– the spot market is jumping and a lot of trucks aren’t picking up at those contracted rates, so we probably need to do some renegotiation on contracts.”

Joe Lynch: Yeah, and you did touch on tariffs. The tariffs put a lot of indecision into shippers where they started just saying, it just slowed things down. And that was like the last [00:19:30] thing. By the way, the idea of the tariffs, which is let’s kind of force manufacturing back to the US. I think most everybody’s “Yes, we would like, especially the strategic manufacturing back here.” So I think the robots we use are gonna be made here. I don’t have a robot yet. I’m sure you have a few, but I don’t. The robots are gonna be made here. I think more cars are gonna be made here. Um, and when I say here, I think I should have said also Canada and Mexico. That’s why you need somebody [00:20:00] who can move the freight over the border. Um, I think all the data center stuff, that’s a high security thing. I think we realized during COVID there are strategic goods that we want manufactured here. We don’t ever wanna find ourselves again in a place where you say, “Oh, the stuff we need to survive is across the ocean, and the ocean is jammed up with boats.”

Well,

Alex Fuller: Yeah. No I’ve met a lot of smarter than me people that, [00:20:30] that’s a lot of people. A lot of people that are very smart on trade policy, and the more I talk to them, the more I realize that’s not my wheelhouse. But yeah, I totally agree that it created a lot of indecision and it created some unique circumstances in 2025

Joe Lynch: they were pulling stuff ahead,

Alex Fuller: there- Let’s pull up ahead.

Let- hey, let’s br- you know, in April, in May, let’s bring in a whole year’s worth of inventory and let’s draw it down. And then because we have these higher tariff costs, let’s switch our inventory [00:21:00] strategy to more just in time. Maybe we’ll hold less inventory. So in 2025, you saw intermodal volume jump up because I’ll, I bring it on the boat and then I, I have no more room.

Sure, let’s throw it on a train and it’ll take an extra week. That’s good news for me. I save money and I don’t have to store it as long.

Joe Lynch: Yeah you talked about pulling it ahead. So what was happening, now just–

Alex Fuller: Yeah.

Joe Lynch: What was happening is thought if there’s gonna be a tariff, so I was– I’m gonna have to pay more for that good that’s coming [00:21:30] from Indonesia,

so let’s say. And so I buy it before the tariff changes. So there was a whole bunch of– There was some good volumes m-months there because of the pull ahead, and– But people didn’t wanna carry that excess inventory. And again I’m of two minds. I just want supply chains to work well, and I want us to do well. I Want everyone to do well. And I think it makes sense that we do bring stuff back. Some manufacturing belongs here. It go– It’s [00:22:00] shocking not that I care that we do textiles here, but it was shocking when they said, “We need to buy masks,” and no one makes masks.

You’re like, “Nobody makes a mask here? It doesn’t s- this isn’t rocket science.” But we got really good at outsourcing stuff mostly to China, some to Mexico. Mexico, we can get our stuff if it goes down there. Right now, I think labor costs are cheaper in Mexico than they are in China. So what we’re seeing is a repositioning of supply chains.

I think we [00:22:30] also recognized, especially during COVID, but even before COVID, that we want shorter supply chains. And a lot of stuff is moved to automation. So a factory that might have left Ohio in 1988, moved to China whenever they were making, let’s just say, some sort of manufacturing good, might have been completely automated in China.

Now, when it moves back here, it’s not gonna be the same 300 guys in that factory. It’s going to [00:23:00] be an automati- automation. But we do want shorter supply chains, which tend to be cleaner and can be more responsive.

Alex Fuller: Yeah and that’s– there’s just been a huge wave of nearshoring to Mexico o-on that same point of, if we can automate it, sure, let’s build in the US. If it is still labor-intensive, how do we build up the infrastructure in Mexico to, to at least, when we need it quickly, we don’t have to wait for a boat or pay extra for a plane.

We can just throw it on a truck and drive it up

Joe Lynch: [00:23:30] Yeah. Yeah. Get- guess my point, put a sharper point on this is I think most of us are like, “Yes, let’s bring certain industries back to the U.S.” But the tariffs really put a wrench in the freight market because we all thought we’re gonna see a recovery. I think when the new administration got in there, they did cut a lot of regulations. There was also a push to push out some of the people who shouldn’t be driving for us. So we all thought, “Oh, this is it. This is it. We’re gonna, we’re [00:24:00] gonna see a boom.” And we didn’t really.

Alex Fuller: There’s a couple big enemies for supply chains. It’s, unpredictability and volatility. Yep. And so we had to wade through some of that. I think a lot of that settled down in 2026. Yep. But again, it’s also the economics driving this of we’ve had capacity reduced quite a bit, and demand is at least flat, maybe [00:24:30] rising in some areas.

And so that’s why in March, in April, and now in May, we’re seeing huge jumps in both contract rates and spot rates for trucks. So contract rates, on average up 10% year over year, spot rates up 40% year over year. That- that’s massive gains that we haven’t seen at all for the past three, four years.

And reacting to that, a- again if you’re new to your position and you haven’t seen one of these freight [00:25:00] cycles, and e- even if you weren’t around during COVID, it’s a new paradigm where suddenly I can’t have service and price. Sure. I start need to doing some- … some comparisons.

Joe Lynch: You mentioned volatility, and I say this too much in my podcast,

so I won’t go too deep into it, but years ago, I read a book w- by some Navy SEAL, and he used the term– It was during COVID, and he used the term VUCA, which is stands for volatility, uncertainty, complexity, ambiguity. It’s a business term originally, but the military kinda took it over [00:25:30] because they felt like, especially in the Middle East, there was a lot of VUCA, meaning this is a volatile situation, a lot of uncertainty, the c- there’s complexity here, and it’s ambiguous.

And I think, boy, when you say VUCA to a supply chain logistics guy, we go, “That is our world. We live right there.” VUCA is a big part of our world. We didn’t touch on it yet, but obviously there’s stuff going on in Iran and the Strait of Hormuz. How has that impacted, uh, freight markets?[00:26:00]

Alex Fuller: So I’m gonna avoid any geopolitical talk, but I will- Let’s avoid that … I’m gonna talk about diesel rates. ‘Cause I think diesel rates are very interesting and very important. So normally, or not normally, but be- when diesel rates spike- That doesn’t always get passed on to freight rates.

So if we look back a couple years ago- … there were times when diesel jumped, but freight rates stayed, like the carriers just had to absorb that cost. That didn’t get passed on to shippers. [00:26:30] When diesel rates jumped in late February, early March, suddenly we have a, an understandable reason that a shipper can go to their CFO and say, “Hey, I need a bigger logistics budget this year.”

Like it, there is an u- there’s an underlying supply-demand issue with carriers, but then we’re throwing gasoline, or I don’t know, that’s a bad pun. We’re throwing fuel- That’s okay … on the fire- … of increasing rates with [00:27:00] skyrocketing diesel rates. And so I think overall, the economics were pushing rates up, but then you add the Iran conflict you have diesel rates jump dramatically very quickly, and suddenly, everyone understands, “Okay, I know why our supply chain department needs a bigger budget.

That makes sense. Okay we’ll, let’s figure that out.” And I think that’s one of those dams being broken, where shippers are able to understand internally, “Okay I see why the market’s [00:27:30] changing and I need to raise rates.”

Joe Lynch: Alex, am I right to say this, that more and more shippers are saying, “Okay, I wanna know what the truck and the driver costs, and then separately I wanna know what the fuel costs, ’cause I wanna make sure, I just want transparency into it. Because I, um, you’ve seen this too, where somebody says, “Oh, fuel rates went up, so my broker and carrier are making more money.”

And I’m like, “Why are they making more money?” The same truck you got last week, why are you making more money? Gas went up.” [00:28:00] And wait a sec, that, that can’t be right.

Alex Fuller: No, yeah and that, that’s a best practice that we encourage, and I’d say the vast majority of shippers, i- if not all, it’s hard to come up with examples that don’t do something with that, of some kind of fuel table, fuel surcharge, even breakthrough fuel where, you know I get it, like when fuel goes up, we’ll pay that, but let’s figure out the freight by itself.

So that, that’s absolutely best practice. But I think what it does, so yes, like a responsible [00:28:30] supply chain manager has that in place, but that responsible supply chain manager can also internally go to his leadership team and say, “Hey, my, my budget’s going up because of fuel.” It’s also because of these other economic factors that are driving rates up

Joe Lynch: Yeah, you mentioned Breakthrough. I had them on the podcast not so long ago. And what they’re saying is we’ll… And you see them, I’m sure you see their name in s- contracts now. A lot of shippers are saying, “Hey, this is– We just wanna make sure p- fuel is passed [00:29:00] through.” I do believe our industry is getting much more comfortable with that kind of transparency, where you say… And if you’re a big shipper and you’re working with a great company like Traffix, they don’t want you guys going out of business. You’re a great resource to them. So they’re saying, “Hey, Alex, I wanna make sure you guys are making a buck, but I just wanna kinda know, did the, when I’m paying you more money, was it because of gas or was it ’cause of trucks or drivers?

What’s driving it?” Because if you’re spending a lot of money, you gotta explain to your boss and your boss’s [00:29:30] boss, and big companies don’t like

opaque.

Alex Fuller: No, yeah, absolutely. It becomes, yeah. Having that transparency and knowing what portion of it goes to fuel, it, I think it makes sense across the board. And it’s- Sure … a huge fan of that, and I think it makes sense for everyone involved.

Joe Lynch: So we’re talking today it’s March. March? Listen to me. May 6th. Feels like March 6th some days here in Michigan. It’s not qui- we’re not quite to summer yet. It’ll be 90 in a week or [00:30:00] so. That’s how it always goes, from 45 to 90. But what do you see for the rest of the year? So we-we’re, we’re midway through we’re in the second quarter.

What do you see for the rest of the year?

Alex Fuller: Absolutely. Quarter one rates are up. Quarter in, toward- towards the end of Q1, you have fuel, et cetera, sub, accelerating that. In Q2, there’s a few things coming very soon that are very important. So the second week of May, so May 12th through the [00:30:30] 14th, you have DOT Week, and that’s gonna be a very interesting week.

What is-

Joe Lynch: for people who don’t do this every day?

Alex Fuller: Absolutely. So DOT Week is a week where there is enhanced inspections of carriers. It’s like a blitz over 72 hours of regulatory agencies stopping trucks and, looking at logs, looking at equipment, making sure it’s all safe, making sure all the, a- all the rules are being followed, which is great.

I wonder why-

Joe Lynch: I wonder why they do that in a one week. It just seems like [00:31:00] it should be a surprise inspection to me, but I get it. Th- they must be doing it for a reason. I’ll give them credit for that.

Alex Fuller: And that’s the thing. Because it’s announced ahead of time, because everyone knows it is, you might have…

Joe Lynch: Everyone get in order. It’s a

Alex Fuller: truckers might say, “Hey I’m not gonna drive that week.” And it’s not even for nefarious reasons. It’s more like- Just-

Joe Lynch: hassle factor.

Alex Fuller: yeah, I don’t wanna be stopped on the side of the road for, or at a way station for, a couple hours.

So- You’ll have potentially a lot more capacity leaving the [00:31:30] market. That’ll drive rates even higher. And then that’s temporary, right? That’s just for a week. But then right after that- But it-

Joe Lynch: Put– when you lose capacity for a week, it doesn’t go away in a week. It lingers because

Alex Fuller: If leaders… and right after that you have Memorial Day, which typically has been a good barometer of, okay, how sensitive is this market to disruption? ‘Cause there’s a lot of drivers that, especially now that they’re making good money, they’re like, “Hey I wanna go spend that weekend with my family.

I’m not [00:32:00] gonna, I’m not gonna drive.” And so the back half of May, we could see rates jump up even further, at least spot rates jump up even further. That kinda kicks off the summer, where you have beverage demand go up. You have a lot of produce season going on.

Joe Lynch: Automotive launches

Alex Fuller: Yeah, exactly. Like all these, all the fun stuff of summer, that all moves on trucks, and, that’s potentially gonna push up rates, or at least keep them [00:32:30] where they are, keep them elevated. And then, maybe you have some decreases back to school time. But then you’re right into peak once again, 2026. So potentially we could see spot rates where they are now, either stay where they are now above $3 a mile or even higher the rest of the year.

And so a- as we look at it we’re like, “Hey, this isn’t a blip. It’s not a one-time thing.” It’s not hey, by June everything’s gonna [00:33:00] be down to where it was last year. As we look at the data, and because it’s this new cycle, it really looks like, hey, w- this is gonna be a longer term impact probably for the next nine, 12 plus months.

As, we need time for more drivers and more carriers to come into the market. That takes a while before we see rates go back down to where they were the past few years.

Joe Lynch: So over the next couple quarters, rates going up steadily or going up and s- [00:33:30] plateauing or…

Alex Fuller: What do you, what do you- Yeah,

Joe Lynch: sorry to– I know that’s a, that,

Alex Fuller: Very yeah. No, let’s get our crystal ball out and let’s, you know- Okay … if whichever economist you wanna trust. But assuming the economy stays strong and that freight demand picks up, you could be looking for full year 2026 year-over-year freight budgets.

They could be up 15, 20% versus 2025. Yep. If capacity com- comes into the market really quickly, [00:34:00] if maybe freight demand stalls a little bit- Then maybe you’re in the 7% to 12% range year over year for freight costs. But it’s probably double digits for the rest of the year. Not saying it’s gonna go up double digits.

It’s already up double digits where we are now. Yeah. It’s probably gonna stay around that.

Joe Lynch: Y- there’s some interesting things that happen when

you’re slow and then you speed up. So the first thought is, “This is excellent. We got a whole bunch of business.” But what tends to happen I’m an automotive guy, so we have boom-bust cycles when I was growing up. [00:34:30] When there’s rapid growth, what happens is you outrun your cash flow a lot of times.

So a lot of people will struggle. Now, I will say in our business, we’re pretty good with, With the factoring and other options for carriers. So we don’t have that happening as much as we did in the past, but it is something you have to definitely consider because the, the– obviously the bust cycle is bad for certain carriers and certain brokers, and good for the shippers. But also when you start that [00:35:00] rapid growth, it’s exciting and it’s a little heady, and then you realize, “Oh my God, I just put all this money out there and now I don’t have I can’t make payroll. I can’t pay for my trucks.”

Alex Fuller: and, if I’m a, if I’m buying trucks right now, I also need to keep that freight market in mind. And hey, rates are probably gonna be great the rest of the year as a carrier, but, what goes up always comes down. So y- if I’m planning for investments that aren’t gonna pay off for three, four, five years, [00:35:30] then yeah, you can run into trouble that way as well.

Joe Lynch: Yep. Yep. Before we wrap this bad boy up today let’s talk a little bit more about Traffik. You guys have offices all over the US and Canada?

Alex Fuller: Yeah. Yep. Chicago, Toronto, Guadalajara, all over the place.

Joe Lynch: Oh, wow. And are you– you have any assets, trucks?

Alex Fuller: We have a few, but we’re primarily a broker.

Joe Lynch: Yeah. That’s funny because, God, 20 years ago, 15 years ago, I I may remember making phone calls and they– [00:36:00] I worked for a non-asset-based company, which I would call and say, “Hi, this is Joe.” And people would go, “Do you have trucks?”

Alex Fuller: Yeah. Yep

Joe Lynch: “No.” Click. You’re like, “Whoa, wait, what? What just happened?” But I think now a lot of shippers see the brokers and say, “They’re bringing me resources, they’re bringing me technology.

They got me rates that I don’t s- I seemingly can’t get by myself.” So in the past it was like you guys are just a middleman.” I used to say, when I sold freight [00:36:30] services, “I’m bringing you a cheaper price with technology, with a team. You can call me a middleman if you want, but you can’t do it as well without me, and we’re cheaper than you can do it on your own.”

Alex Fuller: Or if you wanna hire your, a whole team that does what we’ll do for you, yeah, you might be able to- … figure it out. But yeah, there, there’s a lot of value add there that beyond just the truck, absolutely.

Joe Lynch: And I think companies like Traffik’s bringing me technology and constantly innovating in a way that I wouldn’t do internally.

Alex Fuller: Yeah, [00:37:00] exactly.

Joe Lynch: And I think what’s also interesting is you guys also I know you don’t own warehouses, but you have relationships with warehousing companies, so you guys aren’t, Even though you’re not taking physical control of these assets, you’re u-utilizing these assets a- for your customers

Alex Fuller: Yeah the warehouse side, we’ve seen a lot of interesting solutions with that, especially with tariffs or short-term needs. So we- Yes.

Joe Lynch: that’s what I was getting

Alex Fuller: Yeah we can do, short-term warehouse solutions, month-to-month type things where, “Hey, I, I [00:37:30] don’t need to go sign a three-year lease. I just have a bunch of stuff I need to put somewhere for 30 days that, that’s without our help, that’s really hard to go to a warehouse and say, “Hey, I wanna sign a 30-day lease.”

A lot of times they want longer term leases. So that’s a sweet spot on the warehousing side where we can provide some short-term support that maybe it’s harder working directly with

Joe Lynch: This becomes particularly important when you’re talking about a company that does a lot of cross-border, because we talk about just-in-time for a moment. So if I– [00:38:00] just-in-time is very difficult if I have to cross a border and that border isn’t consistent for whatever reason. So as an automotive guy, we used to– I was– did lean, and I remember when we would do workshops, we would circle every warehouse and say, “We don’t need this warehouse.” First, that was just like the blanket statement, no warehouses. The only time we– when we’d say we need a warehouse is when there was something coming from overseas or from over the border, and it wasn’t consistent. And then so I [00:38:30] didn’t want to take a big invest– I didn’t wanna see the suppliers that we were doing the lean for take big investments in this stuff. But this is where you guys come in. So you’re– th-this is– and I think this is a big change from what we saw even a decade ago, where you have companies like Traffics. It’s, the lines are blurring between used to be or a transportation, or we’re a warehousing company, or we’re assets only. It’s ev-everybody’s l- the top players just are going where [00:39:00] their customers need them to go.

Alex Fuller: Yeah. We’re, what’s your problem? And we’ll find a solution to it. Absolutely. So it, what, if I’m bringing something in and there’s a hold on it, or I have to avoid demurrage charges, those kind of things it’s a lot cheaper to throw it in a warehouse than to leave it at the port.

And that’s- Yes … that’s, that’s where I get really excited because hey yeah, we’re getting a little warehouse business, but we’re actually saving this customer like hundreds of thousands of dollars of fees.

Joe Lynch: And they don’t have to go pick a warehouse. They don’t have to have that skill set. You guys pick [00:39:30] warehouses, you have warehousing partners, and they don’t have to say, “Yes, I just signed a two-year lease for a warehouse that I need for three months.” Let Traffics get– let Traffics wade into that challenge.

They know how to do it. Stay in the shallow end. That’s where I try and play. I’m gonna summarize what we talked about today, Alex, and then I want your final thoughts on the topic. So I’m talking to my friend Alex Fuller, and today’s topic is the Traffix Report. It’s like traffic, but with an X at the end. And we’re [00:40:00] talking about the strategic forecast for North American freight, and that’s more or less the over-the-road freight. And, You gave us a little bit of a background. So we had COVID. It was a crazy time and a difficult time for a lot of people. Um, y- if you were in the freight business, though, it probably was a boom time. Rates skyrocketed, and we just seemed to– the money was being minted. By the way, we didn’t get into it, but venture capital was investing a lot of money into the space. Some of it in retrospect, [00:40:30] probably foolishly. But that’s the nature of being a venture capitalist. You take big

Alex Fuller: You, you see where there’s money being made, and then maybe you get a- … ahead of your skis a little bit.

Joe Lynch: Yeah. So after COVID, we had a bust cycle, and I– we all thought go a year or two,” like most of these, but it didn’t. It just kept going on and on. And I mentioned to you on my podcast, I asked people, when will we see rates start to go back up?” And it’s just seemingly, I think it’s close to four years.

This is just a, an [00:41:00] unprecedented market, and probably based on what happened during COVID. What you’re, what you guys are seeing from your internal key indicators is that rates are going up and that if you’re a shipper, you should expect your rates to go up over the next couple quarters for sure. And pro- and most likely, we don’t know what’s gonna happen in 2027.

Let’s get through 2026 first. I’ll talk to you next year.

Alex Fuller: About 2027. Yeah. And I, and hopefully it’s not a surprise. I think a lot of rates have already gone up for a lot of [00:41:30] shippers, and it, and then it’s now a decision of, how hard can I push against rates and beat down my providers? Or how do we work together and say, “Hey I need my stuff picked up.

I need access to some reliable capacity. I don’t wanna pay out the wazoo, but let’s figure out a solution we can build together that I can rely on.” Yep. And I think that’s a new discussion that is, because we’ve had low rates for so long, that’s a new discussion for a lot of people.[00:42:00]

Joe Lynch: Yep. I didn’t ask you this, but I should have. Are you guys seeing shippers do, and are you guys, with your customers, are you doing more RFQs, like quarterly RFQs or even seasonal ones?

Alex Fuller: Yeah, there’s lots and lots of RFQs. I work with our pricing team and figure out, what’s our long-term strategies for pricing. And the duration of RFQs has definitely shortened, which I think rightly so before we’d get lots and lots of annual [00:42:30] RFQs, which we still get some, but I think shippers realize that when you’re pricing that far out with us with so much volatility currently, you have to price in a lot of risk.

And so if we do a six-month RFQ or even a three-month RFQ, I’m able to potentially get better rates because less of that risk- … is priced into it.

Joe Lynch: Yeah. And you know this better than I, Alex, you might be competing against someone who says, “I’m gonna be really aggressive and I’m gonna win the business. I’m gonna be f- five [00:43:00] percent cheaper on average than Alex.” Hallelujah. And if rates go up and I can’t support what I bid, I will just call the shipper and say, “Hey, we can’t do this, but I know you guys like us.

Can you raise the rates?” And I think there’s people who do that. I’m the no, no hate. I understand why they do it. The other way is I’m gonna make these, I’m gonna make these rates a little fatter so I can [00:43:30] support this no matter what. No matter what the risk is, no matter what happens, I can support it. Now you look like your rates are the highest. So it is very difficult, and the longer you put it out there the worse the predictions are. So if you’re a shipper, it used to be very painful to get an RFQ out once a year. It took a year to forget what you went through. Now the tools, especially for companies like Traffix

has that says we can do an RFQ.

[00:44:00] You know, maybe, maybe you did it for a season and you said, “These guys didn’t work out, so we’re not gonna– We’re gonna, the seven or 10 lanes that aren’t performing, we’re gonna redo a, just a short one.” It, it’s, it’s– I think it’s better for the carriers. I think it’s also better for the shippers, because I don’t want somebody to commit to something that they’re either gonna lose money on or i- unable to support. That’s not a long-term relationship there. And that’s, I think, most of them are looking for us today

Alex Fuller: It, I think RFQs [00:44:30] can be a lot easier, so it’s, it isn’t this- Yeah … horrible, ordeal. We have new tech. We have new technology for that. Yeah, new technology and, so the pain of RFQ, I think is less But I think the ROI on doing it more often is pretty evident. And you avoid, those unpleasant conversations of “Hey, I know we bid that, but actually, we need to change that.”

So

Joe Lynch: Yeah, I didn’t know, I didn’t know there was a meteor gonna hit the Earth that week.

Alex Fuller: anyway- And so I think the underlying theme [00:45:00] is, with a few of your providers that you really trust, a lot of open communication can probably help you out and save you money. If you’re willing to give more information, that’s an opportunity to maybe mitigate some of these increases.

Where is there flexibility? Where in your s- pickup times or equipment or whatever, where can we find unique solutions so that, y- like the market’s going up, but maybe there’s something we can find to mitigate that. Yeah.

Joe Lynch: That’s moving from different modes to different [00:45:30] times and that’s why you need a partner, and I’ve said it many times on my podcast, but I’ll say it again. When you pick a partner, pick a company like Traffik, you gotta make sure that they are ca- capable of actually being a true partner. And once you commit to them, you gotta make sure you vet the, vet them so you can make a commitment. I think the idea of saying, “Hey, I sent you an Excel spreadsheet with all of our lanes for next week. Bid on them, and then I’ll decide who’s [00:46:00] best.” That’s the old way of doing things. I think now it makes much more sense to say “I don’t want somebody who’s gonna save me 100 bucks on next week’s shipments.

I want somebody who’s gonna save me 5% over the course of a year on all my shipments, and I’m gonna commit to their technology, and I’m gonna commit to their processes, and they’re gonna get to know us, and it’s just better.” I think you make– I think you save money and get better service when you make those commitments to the, a good partner. Now, if you [00:46:30] pick a bad partner

Alex Fuller: and, hey, I don’t need to hire two people to babysit my carriers. That, that’s another cost too. Yeah, absolutely. Having those systems, having someone you can trust, and then a- also allowing your providers to learn your business. They like, if the longer they’re with you, they understand, “Hey, Bob at this warehouse, even though it says 11:00 AM pickup, it actually, it…

He’s a little funny. It’s actually 6:00 AM,” whatever. There’s all these like intrinsic knowledge that- [00:47:00] Yes … you learn over time, and then you’re able to serve them better.

Joe Lynch: Put a big old bow on this one, Alex. I’m gonna summarize one little bit. So we talked about COVID, we talked about post-COVID, and now it seems like we’re finally, if the key indicators from T graphics are starting to show rates have gone up, and I don’t think this is a, this is not news to people in the industry, but I think some shippers are probably saying, “Hey, what’s going on?” And I think some carriers and brokers are saying, “Finally.” But it’s time to [00:47:30] to ask your partner, if it’s traffic, “What can I do? I know rates are going up, but can you help mitigate this in some ways?” And I know they can. You gotta have the right partner. Somebody else who might just pass on and say, “Hey, prices went up.” So what? You guys are meeting with these guys and saying, “Hey, maybe there’s something we can do.” Anyway, final thoughts on the topic. Put a big old bow on this one, Alex.

Alex Fuller: absolutely. It’s it’s a new [00:48:00] market, it’s a new world, it’s a new paradigm, and it’s actually really exciting for Traffix because this is where we thrive. We’re able to meet with shippers, we’re able to map out supply chains, and we’re able to find solutions that other providers can’t give them.

So we can find opportunities to, to reduce the impact of rate increases. We’re able to… Or, “Hey, this service is really important. I need trucks.” That’s where we can really rely on our strategic capacity to help out. So it’s an exciting [00:48:30] time meeting with customers. I get excited with that because we’re able to find savings, we’re able to find service solutions and, we’re just trying to guide through this change because there are new people in this market.

So we have our Traffix trends report that we put out every quarter, goes in a lot more detail of the specific information we’re seeing. We go over specific modes like, what’s going on in the reefer market, what’s going on in LTL. We talk through all that that you can get from our website, but really it’s, how do we help [00:49:00] people be successful in their jobs, get freight to where it needs to be, and make sure everyone’s successful.

Joe Lynch: I love it. I love it. So Alex, what I’ll do is I’ll put a link to your LinkedIn profile, link to your website. Any other links you and your go-to-market team give me, I’ll put in the show notes. And you mentioned the traffic, traffics trends. I’ll make sure I put a link to that. If you send it to me, I’ll make sure I put a link to that in the show notes.

So I really appreciate you taking the time today, Alex.

Alex Fuller: Yeah, Joe, it’s great to be here and I appreciate your time

Joe Lynch: Yep. [00:49:30] And thank all of you for listening to my podcast. Your support’s very much appreciated. Until next time, onward and upward

The post The TRAFFIX Report: The Strategic Forecast for North American Freight with Alex Fuller appeared first on The Logistics of Logistics.

]]>
10878
Why GenLogs is Critical for the Next Generation of Supply Chain with Danielle Spinelli https://www.thelogisticsoflogistics.com/why-genlogs-is-critical-for-the-next-generation-of-supply-chain-with-danielle-spinelli/ Thu, 14 May 2026 21:38:11 +0000 https://www.thelogisticsoflogistics.com/?p=10868 In “Why GenLogs is Critical for the Next Generation of Supply Chain” Joe Lynch and Danielle Spinelli, Director of Partnerships at GenLogs, discuss how visual truck intelligence provides a physical "truth layer" to combat cargo theft and verify carrier capacity. About Danielle Spinelli  Danielle Spinelli is the Director of Partnerships at Genlogs with over

The post Why GenLogs is Critical for the Next Generation of Supply Chain with Danielle Spinelli appeared first on The Logistics of Logistics.

]]>

In “Why GenLogs is Critical for the Next Generation of Supply Chain” Joe Lynch and Danielle Spinelli, Director of Partnerships at GenLogs, discuss how visual truck intelligence provides a physical “truth layer” to combat cargo theft and verify carrier capacity.

About Danielle Spinelli 

Danielle Spinelli is the Director of Partnerships at Genlogs with over a decade of experience in logistics, carrier vetting, and cargo theft prevention. She also hosts the Tell Me Everything podcast, sharing insights on freight fraud, logistics trends, and supply chain security.

About GenLogs 

GenLogs is the Truck Intelligence™ platform that uses AI across a nationwide network of roadside sensors, satellites, and proprietary datasets to track all U.S. commercial vehicle patterns and drive better business outcomes across trucking, logistics, insurance, real estate, finance, and government.

Key Takeaways: Why GenLogs is Critical for the Next Generation of Supply Chain

  • In “Why GenLogs is Critical for the Next Generation of Supply Chain” Joe Lynch and Danielle Spinelli, Director of Partnerships at GenLogs, discuss how visual truck intelligence provides a physical “truth layer” to combat cargo theft and verify carrier capacity.
  • The Power of a “Physical Footprint”: While the industry has long relied on a digital footprint (ELDs and self-reported data) for carrier vetting, GenLogs introduces a “truth layer” through a physical footprint. By capturing 15 million images daily, they provide visual proof of a carrier’s actual activity versus what is reported on paper.
  • Combatting “Chameleon Carriers”: The interview highlights the danger of chameleon carriers—entities that frequently change MC numbers or swap magnetic placards to hide poor safety records or involvement in fraud. GenLogs’ network can track a single truck as it operates under multiple identities, flagging suspicious behavior. *
  • The “Ring Camera” for Highways: Danielle describes the GenLogs network as a “Ring for the highways.” With specialized “Trident” cameras deployed across major U.S. interstates, the platform achieves a 98% carrier sighting rate, providing massive visibility into commercial vehicle patterns.
  • Advanced Cargo Theft Recovery: Beyond just prevention, the platform is an active tool for recovery. By analyzing historical sightings and specific truck markings (like unique mud flaps or bumper damage), the team has helped recover over 5,000 trailers in just two years.
  • Bridging the Law Enforcement Gap: Because local police often lack the jurisdiction or resources to track freight across state lines, GenLogs acts as a critical bridge. They collaborate directly with the FBI and FMCSA to provide the data necessary to prosecute large-scale criminal schemes rather than isolated incidents.
  • Beyond Security: Lanes and Capacity: The data serves a dual purpose for brokers and shippers as “Shipper Intelligence.” It allows users to see which carriers are actually running specific lanes—even those who don’t post on load boards—helping brokers expand their business with existing shippers by identifying untapped capacity.
  • The Future of Integration: The “next generation” of this tech lies in seamless integration. Danielle’s focus is on connecting this visual data directly into TMS platforms, allowing brokers to see a photo of the truck assigned to their load as a final line of defense before the shipment picks up.

Learn More About Why GenLogs is Critical for the Next Generation of Supply Chain

Danielle Spinelli | Linkedin

GenLogs | Linkedin

GenLogs

Tell Me Everything Podcast

Tell Me Everything Podcast | YouTube

Unpacking Cargo Theft: Trends and Solutions with Danielle Spinelli

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to

the Logistics of Logistics Show. My name is Joe Lynch. Thank you so much for Thank you so much for joining us today.

Today’s topic is why GenLogs, is critical for the next generation of supply chain

with my friend Danielle Spinelli. How’s it going, Danielle?

Danielle Spinelli: It’s going good. Thanks so much for having me today.

Joe Lynch: It’s always nice to talk to you, Danielle, even if I screw up the intro. So Danielle, please introduce yourself and your company and where you’re calling from today.

Danielle Spinelli: Yes. So I’m Danielle Spinelli. I’m the director of partnerships here at GenLogs. And at GenLogs, we have cameras all throughout the United States basically taking pictures of trucks and trailers to give you visibility on what’s actually happening on the road to help you with carrier vetting, carrier capacity, and shipper intelligence.

Joe Lynch: Danielle, I know you, you recently joined, and we’ll talk more about where you came from. When I first saw Genlogs, I saw the name a number of times, and then I did see them at a conference last year, and I was this is like a unique animal in our [00:01:00] business and fascinating to me. So you guys have cameras, and I know you won’t– I asked you before we hit record, “How many cameras do you have?”

You said, “That is a secret.” But you have basically cameras everywhere freight moves. And you told me you guys have 15 million images of trucks every day,

Danielle Spinelli: Every day. Yeah, it’s wild.

Joe Lynch: absolutely crazy. But I think most people driving trucks if you asked 10 years ago, “Is anybody taking pictures?” You’d be like, “Uh, probably not.

Why would they?” You guys are capturing every, I’m guessing, the vast majority of trucks moving freight across the country.

Danielle Spinelli: Yeah, I believe we actually just hit ninety-eight percent of carriers we’ve seen out there at least once. So we’re typically seeing almost everybody that’s on the road. And what’s great about that is just those carriers maybe, I know for a while, let’s say with carrier vetting, they’re– people were relying on like inspections to be done in order to say “This is a legitimate company.”

If we’ve learned anything about FMCSA [00:02:00] and DOT inspections and stuff like that, there’s not enough manpower to give everybody an inspection. So this is a way to be able to give some visibility to those, even those type of carriers that maybe haven’t had anything done and kinda prove like, “Hey, these are real drivers on the road.”

So it’s been pretty cool.

Joe Lynch: I know we’ll talk more about your career in a minute, but you are fraud girl, and so I know you are very deep into fraud, um, which we did not talk about so long ago. And I, its first cousin or its sister is cargo theft. Those became enormous issues for us. And it’s not the only thing, not the only problem you guys solve, but if there’s fraud going on, physical pictures tell a story. And you guys are not– It’s just not a picture of, “Hey, that’s a pretty truck. I’m taking a picture of it.” You’re getting, um- the license number, the MC number, the type of vehicle. Then if it’s on the side, you’re getting all the information that we want on that truck. So if somebody was to say, “I can give you this in- this [00:03:00] information,” 10 years ago, most people go, “For what?

What am I doing with it?” Now I think we’re like, “Give it to me. My system wants information. My visibility solution wants more info.”

Danielle Spinelli: Totally. And if you think about this too, like a lot of brokers and carriers and things like that, they’re collecting the information as to who the trucking, who the truck’s gonna show up at the shipper and giving that information to the shipper. But why not also send them a picture of the truck? “Hey, if this, if it’s not this red truck that looks like this and a blue one shows up, give me a ring.”

And before we didn’t have… We would just go off of whatever the driver would tell us. But now we have some more of the actual physical footprint. And even with carrier vetting, as you said, like I’m real, I’m really deep into all this carrier vetting stuff, and I think there’s a big difference between a digital footprint of a carrier and a physical footprint.

You really need both, but to me, the physical footprint of a carrier is really like the truth layer. And what’s really cool is because we’ve been doing this for over three years and we have over three billion images within our network, we’re able to cross, cross-pollinate all these data points in the back end to say “Hey, this [00:04:00] has been this carrier’s footprint throughout the US, and then now they just shifted and now they’re doing something totally different.”

That may indicate a ownership change or something has changed that we’ve noticed on this carrier. So things like that, and even all the topics that everyone’s talking about, like chameleon carriers, we’ve been able to see that on our side, just seeing that network on the backside of this same truck is operating under, 10 different MCs in one week.

Something’s weird here.

Joe Lynch: I’m gonna ask a lot of very basic questions today, Danielle. So first one is, w- what problems do you solve in a nutshell? And then who are you solving those problems for? Who are your customers?

Danielle Spinelli: Yeah, basically the carrier vetting piece any type of like cargo theft that may happen, we e-even give free investigations out. We have a team that does that so trying to make cargo theft recoveries. We’ve been pretty successful with that. Over 5,000 trailers have been recovered within two years, so been trying to help the industry.

Also capacity-wise, so if you’re having a hard time finding a truck that runs A to B, no one’s posted on any load board or whatever, you’re able to see who actually drives these lanes and being able to make [00:05:00] phone calls to those carriers. And then even just as a… I was a broker for a long time, so as a broker, me calling my shipper, maybe I only run these five lanes with them, but I can see, hey, GenLog says that they run actually these 30 lanes.

So I need to call them now and say “Hey, how do I get these other 25 and be able to expand my business?”

Joe Lynch: Yeah. And when somebody’s, like some of it, let’s just say a shipment’s late and it’s very critical and they say, “Hey, don’t wor- don’t worry, Danielle, I’m about 20 minutes away.” And you’re like, “Man, can I ask Genlogs? Can Genlogs tell me, ‘Oh no, you are not 20 minutes away. I see where you’re at, and that is not 20 minutes away.'”

And we have missing trailers. And some of them aren’t stolen, but they’re missing.

Danielle Spinelli: and even safety data, too. Our customer base is we have brokers, we have carriers shippers, and then insurance companies, vetting the type of carriers that, actually would… How do they operate? If I give them a policy, are they gonna, have an accident down the road or more prone to accidents?

And then we’ve been helping government officials all throughout the US in different [00:06:00] departments really honing in on safety. And I know I got two teenage drivers on the road just knowing what we do on our side, it makes me sleep better at night knowing that my kids are out there driving with these massive trucks on the road, but we’re doing a better job to try to keep the roads safe.

Joe Lynch: You got like a side project where you’re like, “I want you to track these two kids too.”

Danielle Spinelli: know, right? We do… Just so that everybody knows, though, we do not take any civilian type of cars. It’s just where they have the things on the side.

Joe Lynch: you use AI to delete

Danielle Spinelli: Yeah, before

Joe Lynch: the drivers except for those two kids of yours.

Danielle Spinelli: Exactly. I wish. That would be great. Yeah, no. But yeah, w- like, very, we’re very sensitive to privacy and things like that, being compliant with everything we can be. But blurring out drivers’ faces, that happens as well. So basically just wanting to have that visibility on who exactly that truck and trailer is.

Almost similar to a Ring camera, right? They collect that information as you drive by a house. But this is the Ring for the highways and interstates.

Joe Lynch: love it. So Danielle, tell us a little bit about you. Where’d you grow up? Where’d you go to school? [00:07:00] Some career highlights before you joined the juggernaut that is Genlogs

Danielle Spinelli: Yeah, so I grew up in Minnesota. I live in Georgia now. Been able to go all over the place with family and stuff like that, travel and kinda grew up that way. But I started in logistics 11 years ago, I believe. And started as a broker, did that for about eight years. Went to MyCarriagePortal.

Kinda like I mentioned earlier, I’m very passionate about cargo theft, and I had to deal with that firsthand with… I shipped

Joe Lynch: That is for people who haven’t already paid attention to that it’s a vetting portal. It’s a vetting tool. And by the way, if you vet your carriers really well, hopefully you don’t have as much f- freight fraud or cargo theft.

Danielle Spinelli: Yeah, and because I had that industry experience and did that firsthand, I was really able, even at GenLog, has been able to take the knowledge that I have and say, “This is how you properly vet a carrier.” ‘Cause we really operate in the gray, in logistics. No-nobody’s really black or white or, yes or no.

A lot of times we’re in that I don’t know type phase. So how do you get past that I don’t know into yes and no’s? And so because I have that [00:08:00] industry experience, I’ve been able to help, MyCarrierPortal back whenever I was working there and then now with GenLog. So it’s been really cool seeing my, my personal career, evolve and just with my…

Who knew that my little brokerage knowledge would lead me to, like you said, be at GenLog?

Joe Lynch: And by the way, probably 10 years ago, Danielle, there probably wasn’t a job for someone who said,

“I’m here to prevent cargo theft and freight fraud.” It was just kind of like, “Well, that’s our broker’s job.” But it, our business, and we talked about this before we hit the record button, our business used to be casual.

I don’t mean unprofessional, but casual in that I talked to my broker or my carrier if I was the shipper, and I had relationships with them. And I’m t- I believe there still is that. But I think as our business got more automated, more digitized, we were all for it and we’re not going back. But one of the things we lost is who’s picking my stuff up, right? And that’s when freight fraud started to become more prevalent because I didn’t know who I was working [00:09:00] with. That’s when cargo theft started becoming more prevalent. Talked to you on this podcast before, and I’ll put a link to some of that episode. Um, when Sammy Hagar and Guy Fieri, I’m sorry, lost that vodka,

tequila, I’m sorry.

Danielle Spinelli: Yeah.

Joe Lynch: was like a million dollars worth of tequila. The guys who were picking it up- didn’t know that they were stealing that tequila. The guys who were loading the truck saying, “Oh, it’s just these guys came and picked up the te- tequila.” I’m not saying that 10 years ago everyone knew everybody, but it was more likely. And so these guys dropped off the tequila at a location that they were told to, and they go, “Another job well done,” having helped somebody steal a million dollars worth of tequila. And if everybody knew everybody like we did the past because we– everything was by phone call or email or text message a little more personal, a little more casual.

Danielle Spinelli: just like you said, that, like that [00:10:00] load for instance, that was a blind shipment that the… Or at least they told the drivers it was a blind shipment. That’s why the delivery was different than the actual address on the paperwork. And so that’s another gray area that we have in logistics that the bad guys have just been able to totally exploit

Joe Lynch: for people who don’t get into that every day, what is a blind shipment?

Danielle Spinelli: Blind ship is basically hiding either the pickup address or delivery address and almost being like a middleman broker, for a product. Instead of having it be shipped from… you saying that you actually make the product, really you’re buying it wholesale from wherever and then routing it over to wherever you need to.

But

Joe Lynch: Yeah, and a lot of distributors would do that kind of thing where they say, “I’m a distributor. I didn’t make that, but I don’t want you going around me, so I’m not giving you the address of the people who shipped it.”

Danielle Spinelli: Exactly. And and but luckily for us, and I think this is important for drivers to know too, is that a lot of times the blind shipment is at that pickup address, not the delivery address. So for, especially with drivers, they really need to be vetting. If you do have a blind shipment, you need to be doing that extra work of vetting, [00:11:00] and even verifying, like, whenever you go pick up a load at the shipper, “Hey, is this is the broker I booked it with.

Is this the broker that it was supposed to be you guys assigned it to?” ‘Cause that’s a way to vet it. But they’ve really been able to exploit that section in itself, and there’s so many other ways that they’ve been doing it. But that is definitely one that we’ve had this big loophole, and we s- we haven’t found a better solution other than a blind shipment, which I’m like, “Why haven’t we fixed this yet?”

But they’re able to do that, and that’s why really we… It’s so important to know on a driver level who you’re working with and who is actually showing up to pick up the load, and then that driver understanding what exactly their job is.

Joe Lynch: So h- approximately how long has GenLog’s been in business?

Danielle Spinelli: Going on three years.

Joe Lynch: So it’s a relatively new company, and again, I’ve told you I’ve not interviewed anyone who does what you guys do. You have not just regular cameras, these are specialized high-tech cameras, and where do you put them?

Danielle Spinelli: Right now we’re basically all throughout the US on major interstates and highways, kinda like main areas that drivers go. So not quite in inner [00:12:00] cities yet. That’s something we, we’re working on, but right now it’s main roadways.

Joe Lynch: So it’s everywhere and getting more every day. But Where, so if I’m… Is it on the side of the road? Is it a, on a, is the camera on a bridge? Where’s these cameras at?

Danielle Spinelli: It’s c- honestly, they’re It depends on where we’re at in the US, but every place that we do have our own, what we call a trident in our cameras is we lease that little section of land of wherever we have it at, and then kinda have it on a pole or wherever, we put it on depending on the area of, with our trident on there.

That way we’re able to get… ‘Cause we’re looking at a couple things. We wanna make sure we have the most visibility on drivers and, let’s say if they’re commonly e- entering or exiting this area, we’re able to see them before they get on or off an exit. And then also making sure we have good signal because we gotta get that data back over to us

Joe Lynch: Oh, so yeah, it needs both, right? Because

Danielle Spinelli: Yeah, which is our biggest challenge.

Right now where we are not the strongest is in the Rockies. Luckily, there’s not a ton of freight that moves in the Rockies, but there is some. And then we’re– [00:13:00] Maine is the

Joe Lynch: have good internet, so you couldn’t, so you could take the pictures, you just couldn’t transmit them. So do you guys have teams traveling around the country putting cameras? Or, and you call them tridents, so these are tridents that wear cameras on top of?

Danielle Spinelli: Yeah, we do. We have technicians that go out there and then even do maintenance on them as well. But we’re deploying more… I don’t know the exact number each week, but they’re– that’s basically all that they do is just deploy more and find those spaces.

Joe Lynch: you get 15 million images a day, so it’s just…

Danielle Spinelli: It’s a big network. They g- they got a big

Joe Lynch: So what do you go through? What do you go through? Just like a million, you, every day?

Danielle Spinelli: I know, right? I know. I have so much fun. L- luckily, because of my presence just with being fraud girl or whatever, people message me on LinkedIn saying, “Hey, I had this load stolen here.” And even I’ve only been there about two, two or so months, and I’ve already made two recoveries just working with my network of people with the information I get from Gen Logs.

So it’s just so cool.

Joe Lynch: So the last

time I talked, I know you were at MyCarrierPortal, which got bought by [00:14:00] Descartes, another great company. And I think you guys did a webinar on freight fraud with the California Highway Patrol. And, I Talked to you about that before you guys did it, and I learned a lot. And it brings it home that w- we can’t count on local police to solve this problem for us.

They’re not, there’s no, they’re not equipped for you. We say, “Hey, it got stolen right here.” They’re like where was it going?” “It was on I-94 heading s- west.” It’s not my jurisdiction I’ll, right now.” And so you can’t call necessarily the state, you can’t necessarily call the feds on this. I think we’re gonna have to solve our problem.

Now, we do want law enforcement at the federal level, I believe, to put the proper punishments in place, the proper statutes in place. So this is considered the crime that it is because I feel like a lot of people, you showed me a picture of a warehouse filled with stolen stuff and you said [00:15:00] these guys went to jail for two years and it had to be millions of dollars worth of stuff.

Danielle Spinelli: Yeah, I think that was $13 million, and it was just over a year actually that they actually served. They were charged eight, but s- got out on one with good behavior and went right back at it.

Joe Lynch: Yeah, and I’ve, I think I probably said this to you before, but I had a friend of mine say, hey, you can buy like a pallet of linens on Facebook Marketplace for this much money. I go, a pallet? First off, why do you need a pallet of linens, dumbass? and then I was like, it’s not like you have us over for dinner all the time, we’re eating pizza at your house. And anyway, he said, you can buy a pallet of linens. And I was thinking that, that came from, that was

theft.

Danielle Spinelli: theft, I

Joe Lynch: That’s theft, So there’s all sorts of marketplaces. I’m sure they’re working on this, but it’s not easy to solve Facebook Marketplace problems. It’s not easy to solve eBay. All of these platforms [00:16:00] allow people to sell stuff on a secondary market.

And I’m guessing they constantly are chasing the same thing we’re doing, which is the bad guys get smarter as the solutions get smarter.

Danielle Spinelli: Yeah. And honestly what’s challenging for law enforcement is that they can… Like for instance, let’s say that they know, like the truck was going from here to here. A lot of times they need even like a subpoena to access the records for the traffic camera. So they have to have a timestamp on “Hey, they drove here.”

How… If they don’t have a tracking on that truck, how would they even really know? Not only that, but they only keep images, I wanna say it’s six months or something. So it’s really hard to see like a full big picture story of a carrier ’cause a lot of times these guys are not– It’s not just one hit that they’re doing.

They’re making multiple cargo thefts, the same network.

Joe Lynch: This is where the world has changed and you educated me on this is that in the past, we had a lot of opportunistic

cargo theft.

which was like Danielle and Joe are walking by and they go, hey, [00:17:00] Danielle, do you think there’s Xboxes in there? Let’s break it open. Oh, no, I don’t need that. Don’t

need all that crap.

Leave it. Now it’s we know there’s Xboxes and we’re going to follow that driver for two hours. And when he stops for lunch, we’re going to break into his truck or they’re doing the same with cargo. With trains, they’re tracking it all the way from the port because it’s valuable enough for them to do

Danielle Spinelli: california Highway

Joe Lynch: And that’s strategic.

Danielle Spinelli: Yeah. They, I… So I did a ride-along with the California Highway Patrol the o- the same ones we did that webinar with where they took me to the rail lines and walked me through, and like every step I took, there was broken seals, there was empty boxes everywhere. It blew my mind.

And so Yeah, so with that being said too, like the ev- every different area that cargo theft is happening, it’s not just over the road, it’s not just rail. It’s, there’s a bunch of different areas that we need to put a stop to things. But a lot of it comes from knowing who exactly you’re working with and helping law enforcement with the tools [00:18:00] of, “Hey, this is the big scheme.”

‘Cause it’s easier for them to kinda pin… the DA will take a case when it’s hey, they’ve done all of this crime versus hey, they stole this, one pallet of whatever. It’s because it’s a non-violent property crime, it’s easier to prosecute them for a longer time if it is a bigger case.

And a lot of times they can tie those same people to drugs or to sex trafficking or to a bunch of other crimes because they’re able to see them on this huge scale ’cause they’re com- they’re connecting so many different crimes. So it’s been interesting.

Joe Lynch: I think I sent you an email with this just before your webinar, and it was a train moving, a moving, train, and a pickup truck’s driving alongside it. And this guy is in the car, and he’s throwing stuff into the back of the pickup truck, and the guy’s catching him. So they knew, hey, this is– this car has this, and we’re gonna steal it.

It’s gotten very blatant, and you, as you mentioned, this is, it’s [00:19:00] strategic as opposed to opportunistic, and the cartels are involved. So if you steal that stuff, especially if you’re in the Southwest, it’s a short drive down to Mexico. And we’re gonna have to fix this problem for ourself. It’s probably too much for law enforcement.

They aren’t used to, uh, freight moving four states like we are, or across the whole country like we are. And I think it’s gonna be the technologies like this one that is gonna help us. Again, cargo theft, freight fraud, cybersecurity, they’re all siblings, and we hate them.

Danielle Spinelli: But I will say the FBI… So I actually went to Philadelphia. Jen- they asked Gen Logs to come. So I went to Philadelphia and met with the FBI team, and they actually are up, up to speed with what’s happening with our industry. I was super impressed with… ‘Cause I was like, “Okay,

I’m ready to educate them on some cargo theft stuff,” like super excited about it, and then they went through everything that they knew. I’m like, “Oh, wait, you actually know everything, so cool. Now all I gotta do is help you learn how to find these guys.” And um, able to help them with Gen Logs information on like, “Hey, this [00:20:00] is how you can use Gen Logs to try to find these guys.”

And they’ve had really good success just with using Gen Logs. So it’s been… it’s really cool being able to help. Like this is such a passion project for me.

Joe Lynch: FBI?

Danielle Spinelli: They… What’s funny is one of them was like, “Hey, I’ve actually seen your podcast.” I’m like, “What?” It was really cool

Joe Lynch: Yeah. I love that you guys are participating with the FBI, and I love that they want to participate with you guys because it is– this might be one of those places where there’s not gonna be one easy solution. There is no magic bullet here. But having the FBI understand the scope and the scale and all the tactics that are out there, because our industry has been maybe overly trusting.

We had all these great relationships over time. It’s “Oh, Bob always picks. He’s been picking up this load for 15 years. I know him. I know everything about him, and he knows me.” And maybe we got a little lax and when the automation came in, it took those [00:21:00] personal relationships away in some regards, not always. Um, and now we gotta get back to it. So Danielle, I wanna walk through, Let’s see. You do, you guys do business with insurance companies, law enforcement, carriers, brokers, and shippers. I wanna talk about the value you guys add for each one of these. And again, I’m talking to my friend Danielle Spinelli.

We’re talking about why Genlogs is critical for the next generation, but you can use it right now. So how do you guys help insurance companies do a better job?

Danielle Spinelli: What’s really cool with being able to see,

you know, ground level truth on, on drivers and carriers is being able to help insurance companies vet who they’re using. There’s some insurance companies out there, and if you’re a broker, I’m sure you can name like five off the top of your head of “Hey, these guys, this insurance company is known for having bad actors on there.”

And a lot of times it’s not really the insurance’s fault that they have these bad actors. It’s that they think that they checked all the boxes with FMCSA, so that means they’re probably

Joe Lynch: don’t want [00:22:00] extra

Danielle Spinelli: They don’t. They d- they definitely don’t. They, and they don’t want that name either, where you’re blocking out a certain insurance type just because of some bad actors.

So they’re definitely using GenLog’s data to be able to predict what the history has been on this carrier, what are, what have they been moving like. Is it where they’ve, shut down an MC, opened up a new one because they had a fatality things like that. The, you’re able to get a full history of a carrier and not just what they report to FMCSA, ’cause that is self-reported.

And we all know that’s touched on the carriers. Why don’t you give us a little education on the chameleon carriers? What is that, and why should we be concerned?

Yeah, so chameleon carriers, and one thing I’ll preface and say is that it’s, what’s difficult, especially right now, and I know we just saw, had a huge, news article about it, is that chameleon carriers, there’s two different ways. There’s day trips that people have leases on. That is legal.

That’s not illegal. So we have that gray area once again, like I was talking about

Joe Lynch: Wait, explain what is a day trip? I don’t know where you’re

Danielle Spinelli: A day trip. So if I’m a, if I’m a owner/operator and [00:23:00] I am needing to l- day lease or lease onto a company so I can haul, I’m stuck in Wyoming, and I’m gonna do a day lease because I’m gonna haul this freight from here to here, they won’t do it underneath my authority. I can do it underneath theirs.

So that, technically, that’s legal. Some people get that confused with it being a chameleon carrier. They’re, they are different. A chameleon carrier is where they will… even tactics like they will show up to a shipper and have one placard on the side of their truck because that’s the one that they can get through vetting platforms with, and they have good safety, and they have all the good things that happen.

As soon as they leave that, that shipping facility, they’ll pull that placard off, throw a new one on there, so that way if they do get in an accident on the road, they’re able to this other entity that they have or m- or DOT, they’re able to, “Hey, if I get in an accident on this one, I’ve already been in three other ones.

I haven’t gotten shut down yet. I might as well just ruin that name.” So they’re basically putting a chameleon face on themselves to protect themselves with… It’s mainly safety, but also cargo

Joe Lynch: Am I right to say that some of these [00:24:00] also, let’s just say three guys own 10 trucking companies. I’m doing the air quotes here. They own 10 trucking companies, and they have eight trucks. And as one MC is burned because they had accidents or tickets or whatever, they just move the guys to the other MC, and then after a while, somebody catches on and go, “I’ll put it in my girlfriend’s name.

I’ll put it in my kid’s name. I’ll put it in my wife’s name.” And they’re basically using the same trucks but multiple MCs, and each time they get in trouble, they just say, “Fine, we’ll just move to the next one.” And how do you even stop that?

Danielle Spinelli: What’s sad is really that’s, that needs to go back to FMCSA and the registration. Being able to vet exactly who this, the driver is, not even just carrier level, ’cause they’re even… Right now, they’re even starting up those same ones. Instead of putting it in your sister’s name or your brother’s name or whatever, you’re putting in your same name and opening up a new entity, and they’re able to do that, which blows my mind.

I’m actually meeting with FMCSA next week in DC to [00:25:00] discuss this. “Hey, why, how come we can’t have this registration point actually be vetted with previous history?” And so that’s what needs to happen on a federal level as far as registration, and then as an industry, h- having something like Genlogs, being able to put the mapping together of hey, these are this truck and trailer and this license plate, this license plate was zip-tied to six other trucks, or this placard, what, they say they only have one truck, but they actually are operating 20.

Like

Joe Lynch: said this while we were prepping today. I mentioned I like SafeLight. They come, and they’re coming to your house. They’ll send you a picture and say, “Hey, Bob Smith’s on his way over,” and you get a picture of Bob Smith. And that might give you a sense like, okay I… You might see his truck in the driveway and you go, “That’s SafeLight.”

But, um, the picture’s nice, and what you guys are kinda doing for the industry is saying We’ll get you pictures of everybody. Can– Now I’m assuming a lot of these you can tell what shipper they just came from or what receiver they just came from. So it starts to tell us, “Hey, [00:26:00] that tr…” Maybe this is, you’ll do this after the fact perhaps, but say XYZ was supposed to pick it up, but this doesn’t look like XYZ. This looks like it got picked up by ABC, and now we can start tracking that truck and find it.

Danielle Spinelli: Which that’s kinda why I got brought on board with being in partnerships is to work on integrating with different systems. Like for instance, they’ll have, there’s some shippers that have like their own camera system and guard shacks and stuff like that. So how do we get it to where those systems talk to each other?

Or a TMS, whenever in the TMS it holds all that driver information, how do we get it where that system’s talking to Genlogs and saying, “Hey, this is the truck that should be showing up. You put in this driver info, this truck and trailer number. Hey, here’s a picture of it. Why don’t you send that to your shipper, have them verify it when you get there”?

And maybe, like I said, the camera’s talking. There’s, it’s been super fun on the data level. Yeah.

Joe Lynch: opportunities are endless on this. You guys have just started, three years, three years and you guys are, in many ways the vanguards in it, but I can see also the company [00:27:00] being,

Much, much bigger, much more influential.

Danielle Spinelli: Yeah, it’s funny, Ryan Joyce, our CEO, he was meeting today. He was saying, we basically spent the past three years building the foundation and people have been like tasting the frosting of the foundation, but now we’re actually building the cake and getting a lot more data in different ways and being able to show that, showcase that in a way where, that’s very unique and no one else has anything like this.

So it’s really cool to be a part of and help the industry in so many different ways.

Joe Lynch: Before I forget, and we’ll t- I’ll make sure I put a link to this in the show notes. You have a podcast called “Tell Me Everything,” where you talk about a lot of this stuff. What is the “Tell Me Everything” podcast?

Not

Danielle Spinelli: talk, tell their story and tell me everything. How did you get here? How did you become successful? Things like that. And then every Friday, which is part of my passion project, is my Fraud Girl Friday episodes where we deep dive into cargo theft.

The month of May I’m doing one with Scott Cornell where we’re doing like a, I call it Fraud Girl University. So it’s like a [00:28:00] crash course. Scott Cornell is with Lojistic. He’s a kinda like a, I call him the king of cargo theft because he knows all things-

Joe Lynch: doing it, but

Danielle Spinelli: Not ’cause he’s doing it, but he’s for running it and knows it.

He’s actually been a investigator for about 30 years now or maybe it’s 25. Maybe I’m dating him. Whoops. But something like that. And so he’s, he came on with me kinda giving a crash course, like if you’re new to the industry, how do you get up to speed on what’s happening? ‘Cause it’s so much, and so much has changed.

So it’s a great way to

Joe Lynch: You said this before when we talked, that, that- If you are in, broker or carrier and you’re involved in a cybersecurity issue or cargo theft or freight fraud, it’s it’s embarrassing. You don’t wanna talk about it. You don’t… Y- you’re just hoping it goes away. You don’t want that es- no one wants to go to the boss and say, “Hey, you know that load we picked up yesterday?” “Yeah, good deal. Good job.” “Yeah, I think it gets, I think it got stolen.” Like, that’s a horrible feeling. So I think in a lot of [00:29:00] ways no one wants to raise their hand and say, “You know how I got my customer’s freight stolen?”

Danielle Spinelli: Exactly. But even if it’s the first thing that happened to you, so part of that course I was just talking about that me and Scott are doing this month, at the last one is if something does happen to you, how do you handle making a report? How do you handle the claim? How do you handle talking to law enforcement?

‘Cause sometimes you get to the point when you’re even making a police report that’s frustrating ’cause you… The police are like, “I’ve never even heard of cargo theft. I don’t even know how to make this report,” and you’re having to figure out how to tell them while you’re flustered. You’re like, “I can’t even do this.”

So it’s our, like, how to com- how to submit a cargo theft report for dummies. So that’s what we got going on this month

Joe Lynch: So the first group of people you work with is insurance companies, and what they’re getting is potentially some better vetting. They know where their, the trucks that they’re insuring are actually going, if they wanna track that kind of thing. Helps them avoid chameleon carriers. And also, w- if something does get [00:30:00] stolen, you guys are helping them find it. I wrote this down. You guys helped find 5,000 missing trailers last year?

Danielle Spinelli: in two years, since 2024. But yeah, since 2024. And then, and now if anything were to ever happen, if you go to genlogs.io and hit Find Assets we have an investigator that actually goes in and does the homework and looks through all of our cameras and tries to find your freight or at least give you some– sometimes…

Joe Lynch: that like a free service and

Danielle Spinelli: free.

Joe Lynch: just as a way to kinda say you should be working with Genlogs?

Danielle Spinelli: it’s also our way of giving back. It’s funny ’cause one of the biggest reasons why I signed on to GenLogs was whenever Ryan approached me and was like, “Hey, I want you on our team.” I’m like, “Listen, this is like passion project. It’s not even just about money. It’s a… I really wanna help the industry.”

And

Joe Lynch: Oh, I know they’re not paying you. That’s that’s

very

Danielle Spinelli: at all.

No. I know. I always check it out for you like that. But I told Ryan, I’m like, “It’s so important to me that we at least give back or we at least give information or, and things like that.” I’m big on knowledge stuff too. But because we do that was part of the biggest reasons I brought- [00:31:00] came on, ’cause we help, and it’s not just about money.

Joe Lynch: Yep. So you guys also work with law enforcement. What are you helping them– What problems are you solving for them?

Danielle Spinelli: So not only just like cargo theft cases, but even let’s say human trafficking over, if somebody gets we, you mentioned the cartels, let’s say they’re bringing over bodies from the border and then they’re going who- wherever in the United States. If they have

Joe Lynch: then they lose you somehow and they’re looking for ’em.

Danielle Spinelli: And they’re looking for ’em, and it’s hard to find these guys on the roads all throughout the US, so we’ve been able to have some really great success stories with law enforcement and help stop, It was more like the drug side that I know of things, but they were able to find a shipment of drugs that was going north.

They were in the Midwest whenever we helped them catch ’em. But being able to find them, ’cause it’s hard. It’s not like a easy, especially if you’re going in these really rural areas. It’s not like a easy way to spot a truck and trailer that’s It’s a big country.

Exactly. So we’ve been able to help them a lot.

And I know they use it in a bunch of different other ways, too, but mainly helping with this cargo theft stuff. And then also, like I mentioned with [00:32:00] FMCSA, like the safety protocols, like they can’t say… They don’t have enough officers out there to be able to do inspections and to find people who are violating hours of service.

But if we’re seeing, this truck repeatedly, doing this many miles, and maybe DOT investigates and they don’t have a team clearly they’re violating their hours of service, which leads to unsafe roads and so forth. Bunch of different

Joe Lynch: So I’m assuming that sometimes when they’re look- the law enforcement’s looking, they don’t have all the information. So if they say it might be a red truck, might be in Georgia, and I think it passed through Atlanta at about noon. Are you guys able to go in and say, “Yeah, we’ll get every red truck on every major expressway, and we’ll tell you where it was at”?

Danielle Spinelli: Yeah, that’s definitely combing through, and hopefully they have a little bit more information. But even if you just have the company name or at least one that they said it was, if you have truck and trailer, if you have license number, VIN number, even if you just have one of those things, we can– we’ll pull up all the images and you gotta filter through.

Joe Lynch: So you guys are– You’re able to pull all the, obviously the VIN and the license plate and [00:33:00] get all those pictures. Are you also cap- capturing the truck type?

Danielle Spinelli: That part we have, but we do not currently have it where you can search it. That’s on our roadmap. So making it where you can do color and type of truck and stuff like that,

Joe Lynch: So you, every day this gets a little more

rich in its because you can’t search images as easily as you can search

Danielle Spinelli: Yeah, like texts.

Joe Lynch: da- data, Yeah, text. Yeah, and I imagine before long with the way AI is working, we’ll get really good at just saying it was a red truck, it was a 53-footer, I think, and I think the last two digits was this on the license plate,

and we’d search by

Danielle Spinelli: And they had this bumper had this marking on it. You know what I mean? Like I think we could really get fur- like further in to finding that same truck

Joe Lynch: Yeah, it had the silhouette of a woman in one of their mud flaps. Can you narrow it down for me?

Danielle Spinelli: Exactly. I, it’s– I’m so excited to be a part of it ’cause, our data team is really cool and really great at like thinking outside the box of “Okay, how can we… All this data that we have, [00:34:00] what can we do with it?” So every time we meet on Mondays, there’s something new and cool I get to see, and it’s just…

Like I’m nerding out over here. It’s so cool

Joe Lynch: It’s very nice that this is, I mentioned earlier that this is not easy for the police on any level to deal with, and I know not only are you guys cooperating with them, but they, I’m sure, are looking and saying, “This is a resource that we can lean on.” So we talked about insurance companies, what you guys do for them.

We talked about law enforcement. Carriers is another group of people you work quite a bit with. What are you doing for the carriers?

Danielle Spinelli: You know something that’s really interesting is I’ve recently heard of a new fraud tactic or cargo theft tactic. They call it, they’re calling it the Trojan Driver, kinda like the Trojan Horse back in the day. There’s always a fun name, I know. But basically it’s where this, like a great carrier, they have, everyone’s kinda hungry to have new drivers on their fleet.

They get a new driver coming in, applying for the, for a job. Meanwhile, without their knowledge, they think everything looks great, they pass background checks, whatever the case may be, but this guy’s actually, [00:35:00] working for a bad guy. They’re waiting on the right load to be hauled on their truck.

They coincidentally park somewhere, leave their truck, and then the freight’s stolen. So it’s being able to use Genlogs for vetting new drivers and saying “Hey, this has been their history,” or, “Hey, this has been their truck and trailer, and they’ve operated under all these different people that may have had fatalities on their safety re- records,”

Joe Lynch: Now, how do you f- how do you know the driver from taking a picture?

Danielle Spinelli: I will say it’s more of the truck and… So it’s mainly owner-operators, so if they have their

Joe Lynch: Okay. Okay. Yeah. So there, and there’s a lot of owner-operators that everyone’s working with,

Danielle Spinelli: most of the time, yeah, usually whenever they’re applying and stuff, it’s owner-operator. So you’re able to vet on a driver level before you bring them on board. And then those a- those big carriers that have, X amount of trailers that just s- one driver quits and leaves a trailer on the side of the road, it’s very hard to find those trailers and where were they exactly in the US ’cause they, knocked off their ELD or whatever the case is.

So we’ve been able to help them a lot, too. So couple different areas for the carriers

Joe Lynch: Danielle, I’m gonna tell a story that I tell probably every six [00:36:00] months, but that’s what I do. When I was at a little 3PL, there was of a Friend of

my cousin. So I had lunch with this guy, and he says, “Oh, I move freight.” “Yeah, I’d love to you guys can bid on that work.” And it was full

truckload. And he said, “Every week we, um, we send out on Monday,” these 20 lanes that they do. And I said, “I don’t like to work like that. I’d prefer to have all your freight.” I explained the rationale. Said, “No.” So I said, “All right, we’ll win ’em over.” I hate working that way. So every week we would get the list, and I remember we won it, and my ops team came into my office and said, “Hey, Joe, we can’t cover that load with our normal carriers.”

I go let’s just figure it out.” And they’re like all right.” So then they come in, they’re like, “We found somebody. We don’t work with them. I don’t know they’re legal and all. It’s just we don’t work with them, and I don’t know anything about ’em.” And I was like, “All right we gotta move the freight.”

So we– It was going from Detroit to Louisiana. And here’s the thing. It was lotto tickets. So the [00:37:00] lotto tickets were being made in Michigan. And, Told me, “If this is more than two days late, we report it to the FBI. It’s the law.” And I was like, “It’s not gonna be two days late.” Well, cut to the chase.

This truck broke down, and the guy called, and then I actually talked to the guy ’cause my guy called me and go, “Hey, your load broke down.” It was over the weekend. I called the guy. He said, “Don’t worry. We’re getting it fixed. We’ll be there Monday morning.” They weren’t. I talked to the FBI on the phone. And my point to that is there are certain things, if they are considered missing, and again there’s rules, and I don’t know what they would apply to, but I’m assuming drugs and probably ammunition and who knows what else. Probably a load over a certain number, cer- a certain price would be considered, if I don’t know, I don’t wanna say higher risk, but basically where you have to report out on it.

And so I can imagine the FBI is very [00:38:00] interested in, “Hey, that’s missing. Where is it?”

Danielle Spinelli: run postal mail, that’s why I even

Joe Lynch: Oh, so that, that is something… Yeah, it’s federal

You can’t steal mail

Danielle Spinelli: Yep. And ’cause each piece of mail is a federal crime against it. Yeah, no, definitely they’re interested in that. And what’s really cool is, as a broker, you’re able to vet these same type of carriers on the same level that a FBI agent is.

You know what I mean? So you’re able to take all that data that they’re doing and take that in for you so that you’re doing all the pre- prevetting and stuff like that, so you’re avoiding all this type of bad things that’s happening. And then even finding carriers, capacity-wise, finding these carriers that we see on the road and showing them, these guys aren’t the ones posting on deck ’cause they’re running the same…

They’re running with Joe Logistics all day, every day, and they don’t ever post out there. You would never know that they even exist. But because we see them on camera, so you’re able to find those good old boys, those good carriers that aren’t just out there on boards.

Joe Lynch: Yeah. And if somebody said to, and [00:39:00] I think this would probably apply for both carriers and brokers and maybe even shippers, is that if somebody said, “I run this lane three days a week, and I’m a GenLogics customer,” I can go, “Oh, I don’t see… That’s, GenLogics doesn’t say you run it three days a week.”

Danielle Spinelli: Even equipment. So because we’re able to see the actual trailers that they’re hauling, I couldn’t even tell you how many times I had whenever I had to do some oddball flat, flatbed loads, and I needed a gooseneck or whatever, I’m like, they’re like, “Yeah, I got that.” And meanwhile they show up with just a regular flatbed, and I’m like, “Oh my God, if only I knew that this is what’s happening.”

And another story I tell too is one time I was desperate for a car- a driver, and I sent one in, and the guy had bungee cord hood. He bungee cord his hood down and duct-taped it. If I would’ve seen them on Gen Logs beforehand, I would have not sent that in, and my shipper would have not been

Joe Lynch: Oh, yeah, you can see equipment.

Danielle Spinelli: Yeah, you can see the equipment, so you can vet

Joe Lynch: Yeah. And before– I’m sure it’s on your roadmap is can we t- can we tell you what year that truck is? Can we tell [00:40:00] you what color that truck is? And all these, all this information I think sometimes you can, if it’s a really old truck, you can kinda tell oh, that’s, that is not what we agreed that they were gonna move my stuff on.

And there are I’m from automotive, and I remember somebody telling me a long time ago, you’re not allowed to move automotive freight on any trailer that’s more than 10 years old. And so a lot of times, trucking companies around here that, that move automotive stuff, they’ll go, “It’s a relatively good trailer.

It’s just 11 years old. You can’t use it for automotive stuff anymore.”

Danielle Spinelli: Same thing with pharmaceuticals

Joe Lynch: Oh, yeah. Makes

Danielle Spinelli: have a reefer for X amount of time old and stuff like that. Yeah, so you’re able to actually pre-vet that and know who’s showing up before having a rejected trailer, and your shipper’s “Why do you keep sending in these bad trailers? I told you our requirements.”

Yeah

Joe Lynch: What do you guys do for shippers? ‘Cause that’s another group of people you guys work with. How are you helping them?

Danielle Spinelli: Mainly for kind of the same thing, carrier capacity and vetting. So they’re able to see exactly, especially high value freight, who exactly that you’re putting on there. So [00:41:00] maybe the broker’s hiring X carrier. Were they able to validate it? And because there’s these lawsuits that are pending, even like with safety, let’s say like the, it…

They’re coming back on the shipper until we get this, lawsuit out there that’s settled with the broker side, see if they’re responsible. Shippers are. So right now shippers are really trying to be careful as to who they’re loading and what their history is so they’re using, gen logs to see as much information as they can to stay as due diligent as they can to avoid any type of major lawsuit.

Joe Lynch: Yep. This is a little off-topic, but I’m always fascinated by this. It’s a lot off-topic, I’m sorry. I s- I saw a, an attorney, a forensic attorney talking on TV, and she said we used to have, you know, there was always talk of serial murders and there was many more serial murders seemingly in the past, and it seems like we don’t have as many.” And she said, um, “DNA has made that a lot more…” She goes, “But also cameras everywhere has made it a lot more difficult. And last but not least, the kind of [00:42:00] electronic im-” I always think it’s a horrible situation with the guys who murdered those kids in I-I-Idaho.

He brought his phone with him.

You’re like, “Oh,

just in they got him.

in case you needed to do a Facebook update?” What is going on? It’s… But that is, when you talk about trucks, we’re not, we don’t have DNA yet. D-Daniel’s on that. We don’t have DNA, but we do have pictures now, and we do have electronics that we can connect. And I don’t know that you guys are doing it or if he’s done the roadmap, but we obviously have a digital a map of where that stuff is at. Soon, I think you’ll be able to say, this is the digital, this is the picture right now

Danielle Spinelli: Yeah, I think digital footprint is what everybody’s been relying on this whole time with carrier vetting, which is why I don’t think we’ve been able to be proactive, just very reactive on, “Hey, a carrier just did this,” that type of thing. Unfortunately even like with ELDs, because they’re self-certified by FMCSA, they’re, they just basically fill out a form and say, “Yep I’m doing everything the right way.”

There are some not [00:43:00] great ELD companies out there that you are able to go in and hack around and, clear your logbook or update your location or whatever. So being able to validate that with some physical proof too. So I’m big on physical footprint and digital footprint. Both need to work together but really understanding who you’re working with

Joe Lynch: Yeah. We’ve had the visibility which we’ve just become very addicted to. But yeah, in the past it was like, “Hey I’m a half hour away.” And then you’re like, “No, I’m looking at the, I’m looking at the dot on the map and you are not a half an hour away.” Now I can see the videos of it also.

Danielle Spinelli: Yeah. And even like tracking through apps, for instance let’s take ELDs out of the mix and we have app tracking, which many drivers still do. Even right now, because they can’t spoof

Joe Lynch: That’s when they download the visibility tool onto their mobile.

Danielle Spinelli: And right now because they are– those tracking companies are doing a really great job at detecting if they’re spoofing that location.

Joe Lynch: Wait, what is spoofing for those people who don’t do that every day?

Danielle Spinelli: It’s basically just manipulating the location and saying you’re here whenever you’re really there just by having apps on your [00:44:00] phone or coding it different. But because these tracking companies can actually detect that something’s been manipulated on the backside, now these bad guys are having to do a in an actual car with the phone because they know it’s getting tracked.

They’re going to the right location while the truck goes this way. So we’ve actually had a use case with one of our customers, one of our broker customers, that was doing a high-value load where the shipment was being tracked this way, but then we were detecting that same carrier going a totally different direction toward California instead of New York.

And we were able to find, find them before they actually stole the load.

Joe Lynch: Yeah, this, this, the nature of our business is it’s spread out across the entire country, and in many cases across Canada and Mexico. By the way, I should ask, are you guys, um, planning on mapping into Mexico and into Canada too?

Danielle Spinelli: We are. I think we’re a little ways away. Right now we’re

Joe Lynch: No, yeah, that makes sense. They’re big countries too.

Danielle Spinelli: I know. Yeah. And but I believe we are, like, going into Mexico, I think, first, and then Canada afterwards. But I [00:45:00] don’t have timeframe or anything like that. But we’re really focused on making sure the network in the US is strong.

Joe Lynch: Yeah, this– Danielle, if we’re talking five years from now, I can’t imagine how much progress we’ll have made

Danielle Spinelli: I know.

Joe Lynch: And I always feel like for a long time we said real-time visibility when we’re using EI-EDI. We’re like, “If that’s– I give you real-time updates.” You’re like, “Give or take an hour or two.”

And, um, and now we really have gotten to visibility that is much better, but it isn’t, until recently, it wasn’t visual visibility. It was digital visibility, a little different. And I think now we’re just getting a clearer and clearer picture of what’s going on with my shipment or with my trucks, with my drivers, and that it– that’s only gonna be good stuff. And there’s still gonna be people for the foreseeable future who are trying to do the wrong thing on this stuff. But you know that you can get perfect. If you think [00:46:00] about, um, airlines, air- planes don’t go down, knock on wood because they’ve, over time, just got better and better and better. Banks don’t get robbed like they once did ’cause we’ve gotten so good, and I think we’re gonna g- and I think it’s companies like Genlogs that are gonna help us get there. Anyway, enough of my blather. I’m gonna summarize what we talked about, then I wanna get your final thoughts on the topic. So I’m talking to my friend Danielle Spinelli, and we’re talking about why Genlogs is critical for the next generation of supply chain starting today. So you guys work with insurance companies, law enforcements, carriers, brokers, shippers, basically everybody. And so you guys have cameras virtually everywhere where freight is moving. If there’s not good signal, you guys might not be there because taking a picture and not being able to transmit it doesn’t do anybody any good. And what you guys are doing is capturing pictures of trucks all over the country. You’re getting the truck’s name, you’re getting the ID– whatever ID [00:47:00] numbers they have, whether it’s DOT or M-M-MC number, and also getting what kind of truck it is. So mo- and every day, if you’re listening to this six months from May 4th, I suspect you guys will have more stuff that you’re capturing. And then this information is now available, and the real, the purpose is, gonna be very simplistic here, stopping the bad guys, whether they’re chameleon chara- ch- chameleon carriers or thieves or people who are running rogue. it’s also finding stolen stuff. Stuff gets stolen. Trucks get stolen. Trailers get stolen. Sometimes it’s just missing like my lotto tickets. But that, that costs everybody. When drugs get stolen– I just heard somebody say this on my podcast. It was Inpios talking about it. They, MercuryGate and Kerber Supply Chain are part of Inpios. Inpios, I’m sorry. They said there, there’s a pharmaceutical company, they got three trucks [00:48:00] and put the drugs on one of them because it’s cheaper to k- make these guys play f- three-card monte with this thing. That’s ridiculous. We’ve gotten to, that’s a that’s a very bad place we’ve gotten to. And those are the drugs that are keeping people alive and keeping people living normal lives. Can’t have it. So it’s finding stolen stuff, it’s finding trailers, it’s finding trucks, it’s finding people. So you guys are helping law enforcement find people who potentially were trafficked into this country, or there’s trafficking w- you know, into this country also. Also, it’s finding the right ride. You guys are helping carriers vet, owner-operators, helping the brokers vet the carriers they’re working with, and same for the shippers. And also just helping those insurance companies because they are trying to do a good job at assessing risk. They want to know what those trucks are at- actually doing, but unfortunately, they’re sitting in a New Y- an office in New York or Chicago or Chattanooga. It is not easy to do their [00:49:00] job without information.

You guys provide the information. Anyway, put a big old bow on this one. Final thoughts on the topic, Danielle.

Danielle Spinelli: Mainly just I’m really big on carrier vetting is a lot more than just technology, right? You need to have a process in place. You need to work on getting out of that gray area, making it be a yes and no, black and white type scenario. I work for a tech company and tech isn’t everything.

Even Genlogs can’t do everything. But I do think having tech there that is, that supports you and grows and is able to evolve with those tactics and stay more on the offensive side, that’s the type of tech really you should be looking for so that your processes are enhanced and you are faster at covering freight.

So whenever… Instead of having to call on every single driver, like you were just saying, which does take time, even though I’m a big old-fashioned fan of that please get on the phone and call your drivers. But if you don’t have time for that, being able to see them on the roads is the next best thing I would say.

So that’s my two cents on everything that I know on cargo theft and carrier vetting. There’s a way to do it, manually and stuff like that, but then there’s also a way to make it where tech enhances you and makes [00:50:00] things faster.

Joe Lynch: Yep. So why should somebody buy GenLogs?

Danielle Spinelli: Oh, Lord, ’cause it’s so cool. No, I’m just … there’s there’s honestly so many different ways. I think what’s interesting is even the ROI piece of it, like, how do I get my money’s worth out of it? Not even just preventing thefts, like the I’m preventing something from happening, but I… We didn’t even get into this part, but our shipper intelligence.

So because we’re seeing where these trucks are coming from a facility A to B, let’s say I’m running, a lane with my shipper. I’m doing five loads w- or five different lanes with them. Genlogs can actually see they’ve actually been shipping these 25 lanes. So whenever you’re calling them and saying, “Hey, how do I get on these other 20 lanes?”

Or you’re cold calling them and saying, “Hey, I have a truck that does this to this,” you’re actually able to get ROI on a product. And that’s… It’s rare nowadays to actually have that insight of in the l- in the logistics field. Think about ZoomInfo or whatever. That’s just, like, all over the place.

It’s not specific to logistics. So that part of it’s just super cool, too. So lots of different areas

Joe Lynch: So you guys are partnering with a whole bunch of companies. That’s your job to [00:51:00] help you guys integrate all of your cool information into systems and take their information. What kind of companies are you looking to partner with?

Danielle Spinelli: Right now our biggest priority is with TMSs. So our broker customers or shipper customers that have TMSs, I want it to where, let’s say maybe you onboard with whatever your onboard platform is and you vet that way, we’ll… That kind of last defense mode of, you put in the truck and trailer number in there and then runs it through Genlogs and says, “Hey, actually we’ve never seen that driver before,” or, “Hey, we haven’t…

We saw them like, six months ago, but then they went dormant. This could be a sold MC,” ’cause we have that intel too. So having that last line of defense in

Joe Lynch: So you wanna have an, so you have an API to a lot of them, will you– and you are looking to do an API to all 25,000 TMSs?

Danielle Spinelli: No it, that’s definitely my biggest priority and the, probably the biggest challenge is doing that first. But then from there, just being able to work with other… Kinda like I mentioned earlier, like having the TMS talk to us, and then we talk to this next part, that all kinda ties together [00:52:00] and gives kinda like a full picture of where are my shipments going on different levels.

So I’m excited to be that connector.

Joe Lynch: Yeah. Danielle when I saw the transportation management system for the first time, probably 2010, ’09, I looked at it, I was like, “This is the coolest thing in the world.” And I remember showing people, and I felt so smart showing them all the cool things it could do. And it just felt like a big step forward, and I think everybody had that sense when they saw a TMS, a really good one that just was intuitive. And since then, there’s been so many, I call them the killer apps, whether it’s a Project 44 or MacroPoint or, um, MyCarrierPortal, now part of Descartes. All of these things or the fraud prevention tools, everything plugs in now and it plugs in easily. And these integrations used to be clunky and hard. Now they’re very simple. And I think virtually all the new transportation management systems were built with the idea that I will be able to connect with [00:53:00] Genlogs. They were building it with the idea. I don’t even know what Genlogs is, but maybe five years ago, but they developed it with the idea that it can connect. And I think even the older systems, which by the way, the older systems tend to have big customers. That’s been around a while. They’ve all created integration layers to make it really easy. So ideally when you say, Danielle, we want to work with you and we use this TMS, you’d be like, boom, we’re there.

Danielle Spinelli: Yeah, exactly. So that’s what I’m working on right now. And even capacity, a lot of cap- TMSs have their own capacity in there, so you can reach out and not go on load boards. Being able to empower that capacity data, maybe your own history data with,

like, oh, also GenLog saw them running that lane recently, so go reach out to them.

So it, it’s really cool to be able to use our data in different ways that is world- real-world life, ’cause I was a broker, I was in carrier sales, I did all these things. I know I would not go to a separate platform and try to find things. It was just easier for me to post something.

So I want it where that workflow is easy for somebody where whenever I was a [00:54:00] carrier rep, I would’ve actually used it.

Joe Lynch: same place. Can we help our industry get down to

Danielle Spinelli: Yeah,

right, exactly. We’ll see if that happens, but

Joe Lynch: it’s going to be a while.

Anyway, I’m going to wrap this bad boy up. Why Genlogs is critical for the next generation of supply chain with my friend Danielle Spinelli. So Danielle, I’ll make sure I put a link to your LinkedIn profile, link to your website.

Any other links you and your go-to-market team give me, I’ll put those in the show notes. I will definitely make sure if you give it to me, put a link to your podcast, which is Tell Me Everything. And on Fridays, you do the fraud girl thing. So you guys, I think if you’re concerned about fraud, Danielle can give you the course starting in May.

So you definitely need to educate yourself because I can’t imagine as a person working in a brokerage or a shipper or even a carrier having to walk in and talk to somebody about, yeah, that new carrier I [00:55:00] got, they stole our stuff. That is an awful feeling. And I think a little bit of prevention, and I think you said it before on my podcast, just don’t be the low-hanging fruit.

Danielle Spinelli: Yeah, make them find someone else that isn’t ch- doing all the checks and stuff ’cause there are still people out there that almost like the bear running after you and you gotta be faster than this guy.

Joe Lynch: Yeah, that’s that old joke where it says, hey, you can’t outrun a bear. I don’t have to outrun the bear. I just have to outrun you.

Danielle Spinelli: Hopefully we get to the point where we’re actually stopping things and everybody’s

Joe Lynch: Yes, hopefully we kill the bear at some point.

Danielle Spinelli: Yeah, exactly. So we’ll get there for sure.

Joe Lynch: Thank you so much for taking the time, Danielle. It’s my pleasure.

Danielle Spinelli: Yes, thank you so much.

Joe Lynch: And thank all of you for listening to my podcast. Your support’s very much appreciated. Until next time, onward and upward

The post Why GenLogs is Critical for the Next Generation of Supply Chain with Danielle Spinelli appeared first on The Logistics of Logistics.

]]>
10868
Scaling with Intent: Removing the Constraints to Growth with Holly LaBoda https://www.thelogisticsoflogistics.com/scaling-with-intent-removing-the-constraints-to-growth-with-holly-laboda/ Tue, 12 May 2026 22:40:13 +0000 https://www.thelogisticsoflogistics.com/?p=10862 In “Scaling with Intent: Removing the Constraints to Growth” Joe Lynch and Holly LaBoda, Founder and Chief Growth Officer of Formula L, discuss how logistics leaders can bridge the gap between high-level strategy and field execution by building a sustainable, system-led sales infrastructure. About Holly LaBoda Holly LaBoda is the Founder and Chief Growth

The post Scaling with Intent: Removing the Constraints to Growth with Holly LaBoda appeared first on The Logistics of Logistics.

]]>

In “Scaling with Intent: Removing the Constraints to Growth” Joe Lynch and Holly LaBoda, Founder and Chief Growth Officer of Formula L, discuss how logistics leaders can bridge the gap between high-level strategy and field execution by building a sustainable, system-led sales infrastructure.

About Holly LaBoda

Holly LaBoda is the Founder and Chief Growth Officer of Formula L, a sales operating system built for logistics, supply chain, distribution, and complex B2B service organizations. She has spent 18 years working inside these industries — including a decade at C.H. Robinson leading enterprise sales system design and go-to-market strategy — before building Formula L from the patterns she saw break organizations of every size. Holly holds an M.S. in Performance Improvement and certifications in change management and strategy — which means she doesn’t just teach what worked once; she builds the system that makes it work consistently. She has worked alongside hundreds of sales leaders and thousands of sellers across logistics, freight, and distribution. Holly serves on the TMSA Board of Directors and is based in Minneapolis, Minnesota.

About Formula L

Formula L is a sales operating system built for logistics, supply chain, distribution, and professional services organizations that have outgrown how they operate. Most growth leaders hit a ceiling that isn’t about strategy — it’s about the system underneath it. Formula L builds the infrastructure that closes the gap between the strategy leadership decides and what actually shows up in the field: a proprietary diagnostic and competency model, the LIFT Method development process, and a full partnership model that delivers the operating system alongside the team. The result is sales growth that doesn’t depend on heroics — just a system built to handle it. Formula L works primarily with founder-led and PE-backed organizations in logistics and complex B2B services.

Key Takeaways: Scaling with Intent: Removing the Constraints to Growth

  • In “Scaling with Intent: Removing the Constraints to Growth” Joe Lynch and Holly LaBoda, Founder and Chief Growth Officer of Formula L, discuss how logistics leaders can bridge the gap between high-level strategy and field execution by building a sustainable, system-led sales infrastructure.
  • Move Beyond “Heroics-Based” Sales: Many logistics companies rely on a few “hero” sellers or the founder’s personal book of business. Holly emphasizes that sustainable scaling requires a system-led growth model where results are driven by a repeatable infrastructure rather than individual talent alone.
  • Identify the “Growth Leap” Constraints: Organizations often hit a ceiling when their current processes can no longer support their size. Common constraints include capacity (the leader becoming a bottleneck) and coordination (complex solutions requiring too much internal sign-off), both of which must be diagnosed to restart growth.
  • Close the Strategy-to-Execution Gap: A major growth killer is the disconnect between leadership’s strategy and the field’s execution. Formula L focuses on operationalizing strategy into daily sales behaviors so that the vision actually shows up in the field.
  • Avoid the “Feel-Good” Training Trap: Sales training is often a “feel-good intervention” that fails because the underlying system is broken. Before implementing training, leaders must ensure the sales process, compensation, and ideal customer profiles (ICP) are aligned, or the training won’t stick.
  • Focus on Business Trigger Events over Raw Intent: While “intent data” (tracking website visits) is popular, the real value lies in understanding the trigger event—what changed in the prospect’s business that made them look for a solution? This context allows for a more strategic, less “stalker-like” sales approach.
  • The Importance of Leadership Alignment: Growth requires that all leaders are “rowing in the same direction.” This often means making hard choices about role clarity, such as ensuring a sales leader isn’t also burdened with customer support or operations, which creates a “split-focus” failure.
  • Practice through Behavioral Coaching: High-level growth requires behavioral change, not just knowledge. Effective development involves learning labs and AI-driven practice to allow sellers to get “reps” in a low-stakes environment, similar to how elite athletes or military personnel train for high-pressure situations.

Learn More About Scaling with Intent: Removing the Constraints to Growth

Holly LaBoda | Linkedin

Formula L | Linkedin

Formula L

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to the Logistics of Logistics show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is scaling with intent, removing the constraints to growth with my friend Holly Labota. How’s it going, Holly?

Holly LaBoda: It’s wonderful. I’m having a great day here with you, Joe.

Joe Lynch: Yes. It’s always nice to talk to you. We talked a few weeks ago. We were supposed to do a podcast. I was– had a cold. We’ve talked a lot, but we haven’t talked on the mic. Holly, please introduce yourself and your company and where you’re calling from today.

Holly LaBoda: Yeah, absolutely. Okay, so I’m Holly Laboda. I hail from lovely Minnesota in the Minneapolis metro area. And my company is Formula L. I’m the founder and chief growth officer there, and we work with sales leaders and help them with all kinds of problems that they’re trying to solve.

Joe Lynch: So now I know you work with a lot of logistics companies, and you always have from– you’ve been around for a while in this for being a very young woman. But what problems are you solving for your– or helping your customers solve?

Holly LaBoda: [00:01:00] Sure. So I’ve spent my whole career in logistics working with sales leaders, and I tend to see a lot of the same problems that they’re working with where they have a particular outcome they’re trying to drive. More pipeline activity, higher margin, like whatever your outcome is, reducing customer churn.

And then they’re trying to figure out how to deploy it. I’m the figure out person. So what I’ve been working with them on is like there’s all of these pieces that are so chaotic of your system, but figuring out how to get from a strategy to field execution is the gap that we try to solve for our clients.

Joe Lynch: Holly, it’s it’s a lot of changes in the last ten, ten, 15 years in our business, and I’m gonna– I’ll set it up a little

bit, and I’d love to hear your two cents on It

It seemed like when I came to this business, I’ll say ten, 15 years ago people, if you were a freight broker or you’re a carrier, people just tended to make cold calls. They might not have a good website. They might not have a social media presence [00:02:00] at all, and not using a lot of technology. It was like, pick up that phone and make those phone calls. And then it’s flash forward everyone had to get a good website. Everyone had– has to get really active on LinkedIn and YouTube and Facebook and build that community. And oh, and you need a CRM. And then recently it just seemed yeah, let AI automatically make sales for you. And so I feel like there’s a lot of people going, “Wait, what am I supposed to do?” And I’ll throw this, my own challenge. Used to be if you were a company, a small company, you go, “Yeah New thing.

We gotta do social media. Didn’t plan on it, but we gotta do that. New thing, gotta do a website. No choice. Oh, now I have to make podcasts and videos and have a YouTube channel. It felt like we just– somebody just took a pile of disparate tactics, strategies, tech, and threw it at us and [00:03:00] said, “Here you go. No problem.”

And I think it’s a big problem.

Holly LaBoda: is a big problem, and it’s contributing to so much of this chaos that anybody who’s trying to grow anything is feeling right now. Because all of those might be strategies that have a ton of merit. They might be the key that made one company go from X to Y, right? But it doesn’t necessarily mean that it’s what your company needs to get there.

You have to figure out what your specific goals are and then try to figure out this, the tactics to get there instead of just slapping on every new strategy that comes out.

Joe Lynch: Yeah, and there’s a lot– been a lot of people, a lot of companies who’ve been very successful. So those people, they move from company to company, often start companies, and I think they’ll say, “Hey, I– the reason I started this company is ’cause I was so successful at blank, decided to go on my own.”

I think some of the challenge sometimes comes ’cause you don’t maybe have the bench you had at your old company. You don’t have the resources. You don’t have maybe a boss [00:04:00] who said, “You must do this. You must do that.” Or maybe not the brand. All– There’s a whole bunch of things that you might have had at your last company that you don’t have at your current one, and I think that’s where it helps to have outside fresh perspective that you bring.

Holly LaBoda: Yep, it does. I come from a big logistics shop, and a lot of the people that I work with are my former colleagues that are in that particular situation that you’re talking about. They came from a big company with all this infrastructure and all this guidance. Now they’re at a smaller organization.

They’re like, “Help, I don’t have any of the resources I used to have.” So we’re building that out for them. But that’s one idea. But then the other idea is you take like a brand new… You take a high-performing seller and put them in a sales leadership position, or you take a sales leader and just plop them into a different company.

Any of those cases, what worked before might not work now, or the market changes and what worked before doesn’t work now. So helping to figure out, okay, if your strategy is changing or anything that’s surrounding it, like the marketplace is changing, then all of the tactics need to [00:05:00] change too. And that’s what we’re working on with our clients.

Joe Lynch: like it. I like it. So tell us a little bit about you, Holly. Where’d you grow up? Where’d you go to school? Some career highlights before you started Formula L, and why you started Formula L

Holly LaBoda: Yeah, absolutely. Okay. So I’m a Minnesota girl, born and raised. I went– I grew up in southern Minnesota. My dad was a farmer, my mom was a banker, like very like corn-fed Midwestern kind of a thing. I went to school in more mid-central Minnesota, St. Cloud State. And then after that, I needed to stretch my legs a little bit, so I lived in Florida for a while, I lived in Dubai for a while and then a couple years of running around, and then I came right back to the Midwest, as so many of us do.

And I’ve been in Minnesota ever since.

Joe Lynch: So when and why did you start Formula L? Give us some of the some– the– give us some of the career stops before you started Formula L. Oh

Holly LaBoda: sure. So I would say like my most relevant career progression happened in the last 18 years or so. So I started at C.H. [00:06:00] Robinson in 2008.

Yeah, that was my– that was what pulled me into logistics. I never thought this was an industry that I’d work in. But I came… They needed to solve a particular problem, and I came in to solve that problem and then loved it and stayed.

Like so many of us that accidentally get into logistics, that happens, like that’s the story. But I worked there for 10 years. I built a lot of their sales curriculum, ran all of their sales curriculum for a while. And then Moved into talent coaching and development, so as an HR business partner, a lot of talent guidance, strategy coaching for all of these folks.

And then the last couple of years I was supporting the commercial strategy directly. So here’s where we wanna go as an organization, go to market redefinition, like all of that kind of stuff, and then strategy deployment. So I took all of that, launched it into Luminaries, did that for eight years with a business partner who also came from Robinson.

And we learned a lot over those eight years and the– all of the things that we did really well at Luminaries, that we did really well when I was doing work at Robinson I [00:07:00] put just started fresh over six months ago and put it all together and said, “The ones that do this really well, what does that look like?”

And that’s what Formula L is.

Joe Lynch: Yeah. Very nice. Very nice. That’s a great background. I’ve had a lot of dealings with C.H. Robinson in the past when I was helping a big 3PL select a partner,

and fantastic. Unbelievable unbelievable company. I interviewed the president not so long ago from there. Anyway great outfit. It’s interesting.

I, I did some work up in Minnesota with a company, and I remember they all s- t-two people said to me when I first started working, they said, “What’s common here in Minnesota is y-you grow up here, y-you hate it because it’s cold, it’s this, it’s that.” He said, “And then you leave, and then you come back.” And a friend of mine who’s an executive recruiter s-said, “Minnesota is a weird place to recruit to.”

He goes– It was C-level people, and he said [00:08:00] It’s hard to get somebody who’d never lived there to go b- go there, ’cause they just go, “Oh, it’s cold.” But if you can find somebody anywhere in the country s- senior management say, “Would you like to go back to Minnesota?” They’re like, “Yes.”

Holly LaBoda: Yeah. So like you don’t get it until you’ve experienced it. Yeah. Yeah.

Joe Lynch: Very nice. I enjoyed my time up there. Anyway so I wanna talk about– We, we identified four things we wanna talk about, and I think these are the four points you guys work on with your customers. First off, set this up a little bit. We had COVID, which was just a crazy event. Obviously, lots of families suffered with illness, job loss, cr- crazy time. But there was a lot of people in logistics who made a lot of money. It was– It seemed like you were shooting fish in a barrel if you had capacity. And I know you guys work with warehousing companies and tech companies, everybody else, so it’s not we’re just talking about freight brokers or carriers.

But it was an explosive time for growth, and it seemed like venture capital was here and saying anybody who [00:09:00] had a tech-enabled solution was gonna get funded. And boy, then it all ended, and I think we’ve had four years of slow growth. It brought a lot of people down. And I know a lot of companies that seemed to have all sorts of money for this, that, the other thing to grow, all of a sudden it was like, we’re just hanging on. And slowly but surely, it seems like here we’re talking at the end of April 2026, that it s- looks like things are moving in the right direction, just in time for the Iran stuff to upset that. But hopefully that’s not going to impact us too badly. So doesn’t matter all that, what’s happening in the economy.

We all have to sell anyway. But it’s harder than ever. So the first thing, and this is your approach, so I’ll let you talk more about it. But the first thing you guys do is this identifying growth constraints. Talk about the beginning of your process, including identifying growth constraints.

Holly LaBoda: Yeah, absolutely. So [00:10:00] the idea behind this is this this idea that I’ve been playing with for a decade maybe, is we all go through this, individuals definitely, but organizations go through these growth leaps. So they’re these big transformative moments in your life, like even think about you, Joe, like where you were here and then all of a sudden you ha- y- you jumped here and you had to figure out how to make that work.

Where whatever was working for you here is not gonna work anymore at this particular level. So that’s the idea around growth leaps and people have to redesign their entire organization to make sure that they’re continuing to grow or they will slow down or decline when they’re going through those big things.

So the constraints is a similar idea, but like a little bit easier to wrap your head around, is there’s probably something based on my Size or scope or amount of size, revenue, talent, whatever it is, there’s probably something that is making it harder for me to [00:11:00] grow right now. And if I can figure out what might be slowing me down, I can figure out how to speed it up.

That’s how we always start engagements, and the growth constraints is like a baby little one where you can just do it online without talking to me and just see if that’s, if that reflects what you’re feeling right now.

Joe Lynch: Yeah. I think, with that any intervention, there’s always this current state assessment, and somebody doesn’t do that, th- there’s something wrong. And by the way my master’s degree is in education geared towards consulting and training,

Always remember the teacher and professor saying this, besides they said the nonsense, the usual nonsense they said, but they said, “You’ll find a lot of customers will say, ‘All we need is sales training. We’re gonna bring a sales trainer in. All we need is customer support training. We’ll bring that in.’ All we need.” And he said, “Don’t fall for it. If– Don’t work with anyone who s- says, ‘We’re gonna skip [00:12:00] the current state assessment. We’re gonna skip, we’re gonna skip the place where we identify what’s going wrong and move right to the intervention.'” And you, with your background, you could say, somebody called and said, “Holly, all we need is sales training. I got all these young guys, all these young gals. Just come in and do sales training.”

What would be the problem with that?

Holly LaBoda: Yeah. Yeah. The– like I have people that come and ask me that, right? All the time. Especially at Luminaries, that is what people would come to us for all the time. That’s what they knew us as. I also have a master’s in education, so the same kind of background, but performance improvement and like the same idea as…

Yes.

Joe Lynch: That’s what mine was called. It was called Performance, Performance Improvement and some Instructional Design or something like

Holly LaBoda: Oh, really? We might have the same degree. We’ll have to… I’ve never met another person that studied that.

Joe Lynch: Yeah.

Holly LaBoda: interesting.

Joe Lynch: I liked it. That was g- it was good. I’m glad I did it.

But,

Holly LaBoda: so cool. But it helps you figure out that stuff because, of [00:13:00] course, I can come in and do a prospecting training if you’re not, if you don’t have enough pipeline. I can do that. Is it gonna get you the result you want? Probably not. So if you wanna take a smarter approach, then let’s do that.

Joe Lynch: Yeah. And it’s one of those things also, Holly, If somebody said, “Holly, we already know what’s wrong. My young people don’t know how to do sales. Come in and d- help them and give a refresher for some of us who are older, and then we’ll be all set.” And what– I, I call it the feel-good intervention. Why is it a feel-good intervention? I don’t have to say that we don’t support our existing customers. I don’t have to say, and maybe that’s the truth, maybe it’s wrong. I don’t have to say we have a poor compensation. I don’t have to say we have a bad re- we have a horrible recruiting process. I don’t have to admit that I’m a bad manager or the sales manager doesn’t know what he’s doing. I don’t have to admit any wrongdoing. All I do is say, “Holly, come in and train me.” And Holly comes in and trains, everyone [00:14:00] goes home, says to the girlfriend, “Yeah, my company loves me. They’re getting me sales training.” And n-nope, no harm, no foul. And the problem with that is there is a problem in there, and you weren’t able to identify it.

You just decided without any sort of research, without any sort of discussion, we’ll jump to the solution, sales training, and it’s not correct.

Holly LaBoda: Yeah. And sometimes that’s part of the solution, right? I usually don’t tell people, “No, I will never do training for your company.” I’m just saying, yes, you might need prospecting training in this example, but let’s also look at making sure your sales process is clear enough, making sure you’re actually aiming at the right targets in the first place, and your ideal customer profile is clear, and your team member knows who they are.

Those kind of things are cheaper interventions, and they make that training approach so much better.

Joe Lynch: Yeah, and a lo- a lot of times also, there’s just companies develop the way they do, and you might say, “Hey, [00:15:00] Holly’s not getting it, the sales done.” You’re like how many customers she have? They have 16 customers. Does she manage those or somebody else?” “No, she does.” Do you think the reason she’s slowed down on her sales is ’cause she got 16 sales that she’s

currently managing?” ‘

Holly LaBoda: cause you had no book.

Joe Lynch: “Yes.” “And if, if you’re okay with her doing that, or maybe we get an account manager who manages those existing clients.” It’s a funny thing because I’ve heard people say that to me for years. Yeah when Joe came in, he was great. He was guns a-blazing. He got 10 customers.” And then what?” Now he doesn’t do much.”

Holly LaBoda: Of

Joe Lynch: Now he’s got 10 customers. And yeah, we’ve also in our business had, I think traditionally, I go and get the customers, and I manage the customers. And then somewhere along the line, people said, “We’re gonna get a guy who’s gonna be the SDR, and then maybe a gal who does the sales call and wins the business, and then an account manager who manages it, and we’re gonna have a team that [00:16:00] manages that customer.”

And I’m sure you get into all of that, right?

Holly LaBoda: Yep, that’s actually one of the… You brought up the growth constraints. One of those constraints that people don’t even think about as a constraint, in my experience, is the coordination constraint. So there’s, there– think about that, Joe. Like, when you were going out and selling all those deals and then managing that customer, if that was a real example or not you didn’t have to coordinate with anyone ’cause you were doing it all yourself.

There’s lots of, there’s lots of drawbacks with that approach. Actually, my favorite argument to have with any sales leader is the value of a hybrid role or a player coach or a sales/account manager role. When you’re two things, you’re not either of them very well. But the coordination constraint is something that I have seen just eating into big companies’ selling time because all of a sudden your solutions are more complex.

You need to have your onboarding approach signed off by the implementation team. You need to have your pricing approved by so and you need to look at, you need to pull in this particular subject matter expert for this ocean [00:17:00] component of your proposal. So it gets tougher to do those kind of things when you move into that specialist selling.

It’s, in my opinion, once you reach a certain scale, it’s the right move to make, but you do have to be thinking about how do we make it easy for these people to actually work with each other and not dramatically slow down our growth engine?

Joe Lynch: Yeah. I’ve t- talked to a

consultant a few years a- few years ago, and he was working with a lot of logistics companies, and he said, “There’s a lot of these very successful owners who left somewhere else ’cause they were exceptional at what they were doing, and they s- built these companies.” And he says, “And they tend to be the number one sales guy at their company, and they’re also tend to be the best at the operations.

They know more ’cause they’ve been around longer, and then they’re the ones who care about the financial piece.” And they get to a point in their business where they’re getting older, they’ve got some money in the bank, they’ve done well, and any new customer is a [00:18:00] giant imposition. It’s difficult because they already have customers. And they said the constraint to growth in that situation is that a– the owner isn’t an executive. He is not in charge of sales. He’s in charge of sales. He’s not in charge of operations. He’s in charge of operations. He’s not in charge of finance. And it’s… They said the problem is now you have this big opportunity that’s gonna grow the company by 20%, and he’s just “Oh my God,” “This is gonna kill

Holly LaBoda: exhausting because that leader is the bottleneck. That’s the, that’s what we call the capacity constraint too. Anytime you have the founder-led growth to something else, you’re gonna have a capacity constraint. Or if we can’t add this giant big client because of that. Anytime the buck stops with you because of you that’s a capacity constraint that we need to figure out how to

Joe Lynch: Only I’m– I’ve experienced it myself in this business. I’ve had a very successful career. The hardest part of working the hardest place I’ve ever worked is [00:19:00] for me.

And I say I w- I would let myself go if I could find someone else to replace me. So the first thing you’re doing, they’re bringing you in, and what does this look like when you say identifying growth constraints?

Are you going in with the senior management team? Who are you meeting with?

Holly LaBoda: Yeah. That growth constraints, that’s usually a conversational topic when we’re starting some of these things. When we start actually working together, we’re doing, This is our our growth readiness or accelerator diagnostic, like figuring out how ready you are for whatever growth is in front of you.

Then we start working with the senior leaders, yes and s- couple of one-on-one, like we would prioritize a couple of kind of interviews. But then also with the sellers too. We wanna make sure I’m talking to some of your high performers, some of your middle performers, maybe one or two that are struggling to figure out what are those pieces of friction in your system that’s making it harder for your team to do what you’re asking them to do?

And then we pull all of that stuff out and try to reduce the friction.

Joe Lynch: the next point and please explain, [00:20:00] is the next point you have in your process is called system-led growth, and that is not technology system. That is the old-fashioned systems before we called tech systems.

Holly LaBoda: Yes. Yes. The processes, the disciplines. Yep. Yeah. So we, that is the p- second part, this other thing that all sales leaders need to do all the time, or all leaders of any kind, is if you have a strategy, great. Here’s your cool idea for how you can grow. But you have to take that and you have to operationalize it into your processes.

So if you want to do X, you need to make sure your team is equipped to do this and this. You have this kind of thing available. That’s how we pull. That’s the leverage part of our process. So if we’re trying to achieve this, what needs to happen to make sure that we’re set up to actually get there?

That’s the second part that we do.

Joe Lynch: Yeah, and this s-sometimes can be where I’m interested in getting to this place, but w- I’ve seen this happen where they say, “We want sales trainings.” They bring in sales training, and then [00:21:00] the system that you use at work is never discussed. And then– and they, here’s the approach, and I’ve had where this, the vice president of sales and the director of sales doesn’t go to the training, and you’re teaching these guys, “Hey, this is the way you should sell your process, your product.” director doesn’t agree ’cause he doesn’t do it that way, nor does the vice president, nor are the systems in the company set up for it. So the whole idea that you have disconnected pieces, everyone has to be rowing the same direction for this to work.

Holly LaBoda: Which is, it makes sense. It’s so obvious. If you said that to somebody, nobody would say, “Jo, that’s crazy.” But it’s so hard to do when everything around us is changing constantly. To come back to the beginning of this conversation, when the market is shifting, the political climate is shifting, your…

Whatever that is going on, your strategy, even if it’s, even if your goals are the same, your strategy has to be different than it was two years ago because you’re in a different world. So it’s hard to [00:22:00] keep your eye on all of those things as a leader or a sales leader and figure out, “Okay, if I’m moving this, then here’s all the other stuff we have to do.”

That’s how our system just makes it easier.

Joe Lynch: Yep. And, one of the things that we– just speaking of disconnects I was at a little 3PL, and I was the general manager COO. Titles came easy at a little company. And so now I’m in charge of getting the growth going. And I came from an engineering and product development background. I was an automotive guy.

And so I was like, “I’m gonna get myself trained.” I– So I went to SPIN training, and they didn’t have it in Detroit right then. I’d have to wait three months. So I just drove to Chicago, four and a half hours, went to SPIN, SPIN selling. It’s fantastic. I think it was a three-day course. And then at the beginning of the third day, I was like, raised my hand.

I said, “Hey, you know what we didn’t touch on here, and I’m wondering if we’re gonna get into it, is we’re– we’ve talked about after we’ve got the customer, [00:23:00] and I’m wondering, and he goes, “Oh, you’re asking if we do prospecting?” And he goes, “Yeah.” He goes, “Not in this course.”

And I was like, “Oh. Oh, okay.” And then I was just sitting there. I was thinking, “That’s what I need.” I just sat through three days of this. We did very well once we got in the room. And so it was a weird dynamic. And so somebody could say the sales process begins when you have a prospect.” Other companies are… Like, for me, I was like, “We do fine once we get someone to talk to. We got no one to talk to. We’re making cold calls, sending emails. No one’s talking to us.” And so I’m assuming you go from the very beginning of the process t-through customer support and, renewing that customer after a year or two?

Holly LaBoda: Yeah, we look at the full journey because your relationship with your customer is, it’s not just isolated in one little part. We might not help you solve everything we find in every part of that journey, but we still have to look holistically for everything you just said. [00:24:00] And actually, the other part that this sparked for me is I love SPIN.

There’s lots of good stuff in SPIN. I’ve done SPIN. I think we did it in our Robinson days for a while. But there’s lots of those different things out there. But the problem is, when you pick up a methodology like that, no matter how great it is, it doesn’t connect perfectly to what you do in your company.

And sometimes we can make that mental leap, and sometimes it’s really hard to do it. Yeah.

Joe Lynch: Yeah. Again, taking just SPIN, what I learned, you wouldn’t be successful because we wouldn’t, we didn’t talk about outreach. Outreach is the hard

Holly LaBoda: Yep.

Joe Lynch: And we’ve changed over the last dozen years, two dozen years, whatever it is, la- last 10, 20 years I’ll say, with social media. So in the past, if some content was gonna be created, that’s marketing’s job, not sales’ job. We didn’t necessarily have SDRs. I guess we had s- appointment setters and stuff. But now it feels like I want my sales leaders somehow to [00:25:00] create content be on LinkedIn, being, being seen as a thought leader, being on podcasts like mine. There’s other podcasts, obviously. Much… It feels and I do believe we want a lot of our salespeople to be thought leaders.

That is work that they traditionally didn’t do.

How do you make that work with saying, “No, you are focused on sales”? Because writing an article, being on a podcast, that isn’t necessarily sales. It is new business.

Holly LaBoda: Yeah. It’s putting your messaging out there. It’s attracting. It’s that part of the sales process. Yeah. And I think it’s not for everyone, right? And this is back to that thing, like you can’t take someone else’s sales strategy and plop it in your organization because it’s probably not gonna work.

Because if you are doing like a really transactional brokerage selling, do you need to be on podcasts and leading with insight if all you’re selling value-wise is a price? Probably not. But if you are trying to have partnership-type [00:26:00] companies or lead with supply chain solutions, like here, a different way to run your business versus just a different vendor and a different price, that is a conversation that leads to thought leadership as a strategy.

So it really just depends.

Joe Lynch: used to be a blogger. I used to write a lot more articles before I started the podcast. And I wrote an article that said, m- many years ago saying, “Hey, this The buying process starts maybe six months or a year or even two years before the sales process begins. And you’re invisible during those times if you don’t create content. And so I’m obviously I’m doing this. So I believe that this content that we’re creating today, someone will hopefully see this in a year and say, “Oh I s- I saw Holly. I like her. She’s had some good ideas. I love what she’s doing.” And, reach out to you. No guarantee though. That’s the challenge with that this kinda content. Everyone [00:27:00] wants a guarantee. But when I pick up the phone and say, “I’m gonna call 100 people,” there’s no guarantee that any of them are gonna

answer or any are gonna engage. And it’s a it’s a… Sales is a business of a lot of effort that doesn’t seem to go

anywhere, and we would never accept that in a factory. Where you say, “Holly and Joe are in this factory, and 90%

of

Holly LaBoda: Yeah. Selling is so hard, and I actually, I never thought I would spend this much time talking about selling or sales. I’ve never identified as a salesperson. But when I started working at Robinson and started working with the sellers there and realizing all of this stuff that you’re talking about that they were dealing with, it’s wow, you get rejected how many times a day?

Like how do you deal with all of this? Selling is hard enough, and the problem is, what makes it harder is that so many people are just not prepared in any way. They’re not given much kind of guidance from their [00:28:00] organization. They’re not given skill development. They’re not given the processes that they need.

That’s at the sellers. So now let’s take that idea to the leadership level, who have even more of a challenging job, and I think there’s there’s a bunch of research out there. You can probably dispute this fact that I’m trying to come up with right now, but I feel like it’s twenty-six percent or something pretty low, like less or maybe one in four-ish of sales leaders have ever actually been developed as a sales leader.

They might have had selling skills, and they might have had leadership skills, but the sales leader version of that is a little bit different. Growth leadership is different than other kinds of leadership, and most people are just making it up as they go, sellers and leaders alike. And that is just some people might thrive in that particular kind of approach, but it doesn’t have to be that hard.

Joe Lynch: do doesn’t produce product.” They’d be like, “Get them outta here.” Yeah. It’s it’s funny because I worked at a place where, they’re… You know what I say? “Always be closing. Always be closing.” And I was [00:29:00] like “That isn’t appropriate for what we sell.” We’re selling to people who are doing less than truckload stuff, and we need them to sign a long-term agreement with us.

That’s the only way we get good pricing from the LTL carriers. And So the whole idea of always be closing was like that probably worked really well. Something, maybe a car dealer where you say, hey, as soon as that guy walks away, the deal’s over. I’m not going to get this. So I might as well, I have to engage a little more aggressively. I don’t know the right way. There’s a way that you just don’t want that guy or that gal to walk off the lot because you know you’re not going to work with them at that point. They say, just looking, which we all say, right? And anyway, getting back to it, when you don’t have an approach and a whole bunch of people just a little bit of spin, little always be closing, always like I’ve just got charisma, whatever the hodgepodge of ideas that came together to create [00:30:00] your approach and it’s not working, that’s why you call Holly.

Holly LaBoda: And so often it’s just not done by design or intentionally. People have this approach they’ve cobbled together through their own ideas, for what they read in a book, through what ChatGPT told them or just what they have experienced and their hard lessons that they’ve learned over the years.

But it’s not always the smartest way, and potentially you will have elements that are conflicting with each other and making it so much harder than it needs to be. That, tho- that’s the kind of friction that we uncover. For example, this is one of my favorite stories, is I had a client that I was dealing with a couple of weeks ago, or a couple of years ago, on a discovery.

They’re trying to get to do better discovery, better deeper client relationships, better insights into their business, all the right stuff. They got the head of marketing in that in that company got up at the beginning of this workshop that they were paying us a lot of money to do, and she’s “I need to make sure you all remember to chase your RFPs, and here’s your incentive that you [00:31:00] get for every RFP that you start.”

Not even win, just start. And I was like, “Oh man. This is the wrong way.” Here we’re talking about this particular skill set and this behavior this incentive is over here. What do you think people are gonna do next? I just got them to do this discovery. They’re gonna go after RFPs.

Joe Lynch: I always feel like everybody’s business is a little different, but I’ve always felt like when you’re asked to do an RFP and they’re going to compare you on an Excel spreadsheet with 10 other companies, that right there is a show of you failed already. What you needed to do is get there before the RFP went out and convince them we’re the right guy.

Here’s our approach. We’re going to do it this way and you’re going to feel confident in our approach and we’re going to save you money and it’s a much better way than the RFP approach you’ve been doing. Let’s face it, some people are committed to an RFP. That’s what they wanna do. And I’ve always [00:32:00] said that there’s transactional players in our– the shippers. And when you say, “Hey, I’d like to work with you.” I used to get this, “I’d lo- love to talk to you about your freight.” “Oh tell me what you do.” “Oh, we do this, and this.” They go, “Cool. I’ll send you a spreadsheet for this week’s loads, and I just want you to give me a price.” And I said, “We don’t work that way.” That’s the way we work.” And you can almost never convince them that’s not the right approach. And I always would say, “I’m, I don’t wanna save $50 on tomorrow’s load for you. I wanna save you 5% and streamline the process.” A lot of people are just, that’s doesn’t appeal to them, and you can almost never convince them otherwise.

It’s trying to, it’s like trying to convince a Yankees fan to cheer for Boston today, it just doesn’t work.

Holly LaBoda: Yeah. Or the effort you would put in trying to convince them is not gonna be worth it.

Joe Lynch: Yeah. And but I think some– what happens sometimes, I call it the the friend zone, the sales friend zone, where they’ll pick up the phone and talk to you. You’re not getting their business. [00:33:00] They wanna do it a certain way, and you’re calling them, going and talking to them, and you’re never gonna win the business, but they’ll talk to you.

And very few people will talk to me. So I will keep them, keep going over there and “Hey, can I buy you lunch?” Who knows? Maybe this will work out. They’re talking to me. Who knows?

Holly LaBoda: Yep. Yep. That is– So I was just actually talking with a group of sales people about this idea of intent data or intent, ’cause that’s so big right now, and trigger events, and that, that was what we were talking about, like what’s changing in a person’s business to get

Joe Lynch: Please describe intent data for those who aren’t into it yet

Holly LaBoda: Yes. Yes. So the simple– I am not an intent data expert.

If you’re gonna ask Kara Brown to describe it, she’s gonna describe it very differently than I do probably, and she’ll be right. But what what I was talking with this leader, these leaders are about is intent data is exciting because it’s people demonstrating trackable interest in your solution.

So if they go to your website, if they engage in something, if they’re, I don’t know, all of these different signals, there’s all this stuff out there. So that’s [00:34:00] access, right? Or that’s that shows you that they’re interested in something, and they might be willing to give you access. The other part is, though, like why they’re interested.

What changed in their business that got them to go out and look for a solution that’s different in the first place? That’s what, in this particular case, we were talking about focusing on trigger events, but that helps you understand the business context behind the intent. And if you can focus on that as a salesperson, that, especially if you’re doing like bigger strategic, trying to get partnerships, that’s an entrance strategy that is gonna open you up to a different conversation.

Joe Lynch: Yeah, and there’s a whole bunch of different levels of intent data. So the pr- probably the easiest one for most people listening to this podcast is you have a website and let’s just, I’ll say 10,000

people visited your website last month. If you find some number of them that are, you can identify them as shippers maybe even people you’ve talked to recently or maybe six months ago, and they’re on your website [00:35:00] five times over the last month, and they spent 15 minutes looking at two articles, those are the people you should be calling this week, not people who just randomly popped up on your list. And that, that i- that’s showing some sort of intent to working with you. There’s all sorts of companies now that have popped up, 6sense and others that are have intent data and Audience Labs. And by the way I was just texting with Adam Robinson from Robinson Agency about intent data the other day, and then he’s, he wrote an article on it.

And he’s open to it. He just says, I, I– he goes, “I feel like I’m not seeing all the results I want.” But I s- I think he sees what’s coming though, which is more information about who I should call as opposed to just shotgun,

Holly LaBoda: and then you have to figure out, once you know that they have intent, what do you do with that? How do you get in a way that’s “Hey, I saw you were looking at me. [00:36:00] Knock, knock.” There’s a different approach, and that’s bringing it back to the insight and the business trigger and all of that stuff.

Joe Lynch: Yeah, and you never want it to come off as stalking either, where you’re like, “Hey,” we all experience a little bit of this when you’re w- you know, you’re talking about a product and then you’re watching YouTube and you have that commercial for the next six months and you’re like, “God, I should never have said that, that brand.” So there’s another part of your process. This is leadership alignment. Please explain. Please elaborate.

Holly LaBoda: Yeah, that was one of the big pieces as I was sh- as I was shifting from Luminaries to Formula L and what’s the big difference here? Leadership was an intentional layer that, that we added into this operating model. We’ve done leadership development, sales specific leadership development for years and years.

But having it be an ingrained part of the model and the deployment of the how versus just making me a better person is the different shift. So yes, you have to have certain skill sets to be a sales [00:37:00] leader, but when you think about bringing that strategy to execution gap that I was talking about, sales leaders have a certain roles to play in encouraging that, like this, these certain approaches.

So here’s the behavior I need out there, here’s I’m showing up in your ride along, here’s the k- questions I’m asking you. It’s bringing the management and coaching behaviors into the process and making it part of deployment versus just what you do in general.

Joe Lynch: Yeah, and I’m assuming part of this leadership alignment is saying, “Okay, I

have– Holly’s a great sales leader, but I also have her over here doing customer support. Can I say Holly’s gonna be 100% sales? She’s really good at it. She’s good at customer support, but– And I don’t have a customer support problem.

I have a sales problem. Let’s focus Holly 100% on this.” As you said, if you have two jobs, one of them is suffering at all times, and we sometimes have our [00:38:00] salespeople doing multiple jobs.

Holly LaBoda: Yep. And sometimes we need them to for long term or short term, and that’s part of what we have to do. But it’s not a sustainable long term strategy that will lead to predictable results, in my experience.

Joe Lynch: I heard another story a friend of mine who’s doing some consulting in this space, and he said there was… I think there was f-four

or five guys who started up a brokerage, and they were all friends, and they were all working well together, but no– And they said, “Who’s in charge of operations?” It was like I do some. Tom does some. Jerry does a little bit.” Who’s responsible?” I guess the us three.” One guy

Holly LaBoda: Yep,

Joe Lynch: is in charge of ops. And then, “Who’s in charge of sales?” We all we all have our contacts. We all touch it.” Nope.

Holly LaBoda: that means no way.

Joe Lynch: in charge of sales? Yes, exactly. Yeah. When you [00:39:00] say we all are, means no one is actually responsible for sales, and that’s– and From what my friend said, It

was awkward and there was a lot of ego kind of stuff where people… And one of the guys in that discussion said, “You know what? I’ve been thinking for a while that I don’t even wanna work here anymore. I love you guys, but I don’t wanna work here anymore. I wanna go do this. I’ll still be an owner, but no longer get a salary for doing this.” And he said it, when they finally got to a place where he said, “Here’s in charge of the finance, here’s in charge of ops, here’s in charge of sales,” whatever your divisions are, and somebody’s gonna be the CEO. Because they were all friends, because they all came in, they were all owners, they didn’t want to say, “Holly, you work for me.” And you’re like, “Wait, we’re partners.” Just we can trade off every other year if it makes sense, but I’m gonna be the boss for now just ’cause someone [00:40:00] needs to be the boss, and maybe next year we flip.” It’s not easy. These are, these, a lot of ego get in the way for these things.

Holly LaBoda: is. It is. There’s ego that gets in the way of it, but the clarity that you’re talking about, that, that conversation of here are the jobs that need to be done, and we’re not getting them done by sharing them. So let’s talk about how to move forward with that. Even though it resulted in that one partner moving in a different direction, that’s probably the right direction for them and the company, and you are elevating the conversation.

Joe Lynch: Yeah. Yep. And then again that we’re talking about, that’s a senior management. And again, I think when we get down to the lowest level, probably just as bad, maybe worse depending on the company, where

you have this guy’s an SDR and he works for this sales leader who’s who’s waiting for him to do something and unhappy the way he’s doing it, and he feels like he doesn’t have the resources.

And there’s always that, we always have the marketing people say, “I gave you those leads.” And the salespeople are like, “Those leads are crap.” And then

Holly LaBoda: yeah.

Joe Lynch: says, “I [00:41:00] gave you these six things.” And you go, “They were no good.”

Help me understand what’s good, and so I can go after good, because we have to all make those, all those handoffs perfect, or the best we can anyway.

Holly LaBoda: Yep, and that, that is– That, what you’re saying right there, is so much of the reason why we always start with that clarity of current state and the definition of the goal because so many people think that they have some of– they have clarity of their ideal customer profile, but marketing thinks something different than this sales guy, so you don’t have clarity.

So let-let’s make sure we have all of those pieces and that everybody is aligned on them. And then we’ll move forward.

Joe Lynch: Yep. It reminds me of I’m a big football fan, and it’s a simple game. We’ve all watched it. When there’s new coaches, and a lot of times you’ll see the new coach will say, “I want you, defensive player, to… If you see this happen, you just run straight here, straight there. And I don’t want you thinking.”

A lot of times they’ll say, “I don’t want you thinking.” [00:42:00] And “All I need you to see the cue, do it.” And I think sometimes when we make it too complicated because I have multiple roles or unclear who does what I, I hesitate and I don’t make– I don’t do what I’m supposed to do. And that, by the way that also applies.

You ever watch the World War II movies or… you might not have to. Given my age and my gender, I have to.

Holly LaBoda: No I have watched and read more about World War II than any probably person should,

but…

Joe Lynch: notice that they always say, “Remember your training. Remember your training.” They’re constantly saying, “Remember your training.” ‘Cause the military we gotta give them credit for one of these things is that during World War II and other wars, they brought in a whole bunch of people from a wide cross-section of the population and got them all on the same page and working really well together.

Holly LaBoda: Yeah. Yep, that’s

Joe Lynch: Not easy and in horrible conditions.

Holly LaBoda: Yeah.

I think this is actually I’m– I don’t have a military background. I will not speak about anything like this because I won’t do it [00:43:00] right. But it’s that I always think of that Mike Tyson quote “Everybody has a plan till you get punched in the face.”

Joe Lynch: one.

Holly LaBoda: That I think it’s the same idea k- because the military knows that even if you have a great plan, things are gonna go crazy when you’re in the fields. You need your folks prepared for every possible thing that would go crazy, and they can make the right choice in a second without thinking because they’re already prepared for it.

We don’t usually have that same level of consequences that would come from making a slow decision, so we don’t have to ingrain it quite as much. But if we can get a little bit further down that path, then we can move a little bit faster, make quicker decisions, and make them in the right direction.

Yeah.

Joe Lynch: Yeah. So another thing you guys do is you do some coaching ar- around all these topics. Please please explain how that works in the process

Holly LaBoda: Yeah. So anytime we’re doing any kind of development of a person or a team, like not company processes, we always think at the behavioral level. So what are the [00:44:00] behaviors that this role is expected to do? How is this person performing against them? And then if there are things they’re doing really well, how do we amplify that?

If there are things that are slowing them down, how do we minimize so the, anytime we do coaching or any kind of development, we start with the behaviors, and then we develop that specific skill. We might do that in a one-on-one coaching development, like to practice it afterwards, or our learning labs are like broader virtual classroom development.

So start with the skill, learn the skill, practice and apply the skill with a person helping you do that me or somebody else on my team, the consultants that we work with. And then we’ve also infused AI practice in there too. So the practice and application that a coach would do is great, but the AI practice can give you just the reps to get them in over and over in a minimal discomfort kind of realm.

There’s not big consequences or anything that come with it. So AI practice, the manager enablement and coaching, and then the behavior [00:45:00] change measurement. That’s all the part of… Anytime we, we try to move the needle with an employee, like a person or a team, we’re looking at all of those things in a progression.

Joe Lynch: Yeah. I saw a stat, and I’ve seen this many times, but 95% of Fortune 500 CEOs played sp- competitive sports growing up, and I always think they all had coaches that– And you learn to be coached, you learn to take a little bit of criticism usually ’cause you go, “Hey, I take criticism from this guy ’cause he has my best interest at heart.” I’ve joked with my friends that I haven’t had a hard workout since a high school coach was not behind me calling me names, right? They see things. I have an executive coach and she sees things. She knows my strengths, she knows my weakness. She’s done those assessments with me over time, and she has said many times, “Why are you doing this?

Why are you doing that? Should you consider something else?” Where I [00:46:00] was like, “Oh, I didn’t realize I needed to consider something else.” And

Holly LaBoda: Yep. That’s so

Joe Lynch: coaching, coaching is so key. And by the way, all Fortune 500 companies, their senior management all has coaches now. That’s just the way it– These are the guys who are leading the biggest companies. They have executive coaches who they’re working with for good reason.

Holly LaBoda: Because none of us have to be heroes. We can all have a system that supports us to be better than we could be on our own

Joe Lynch: Yep, and again, so often you don’t see what might be very obvious to you, “Joe needs to fix this.” I don’t see it. I look in the mirror, I don’t see it. You say, “Joe, stop doing blank and start doing this,” or, “You have this strength that you’re not taking advantage of,” or, “What’s preventing you from following the process that we agreed that we were gonna take?” Anyway, enough of my blather. I’m gonna summarize what we talked about, Holly, then I want your final thoughts. Before we get into final thoughts, one more time, who do you work with? What do– Who do you work with, and [00:47:00] then what is the last straw when they go, “All right, I’m calling Holly back. I know I should have last year.” What is– Who do you work with, and why are they calling you back and saying, “Yes, let’s do this”?

Holly LaBoda: Yes. Yes. I typically work with heads of sales or company leadership, so CEO, CRO, at logistics and distribution companies and professional service companies. So anytime anytime people are– see a gap between what the results actually are and what they want them to be, they should call me. But usually when people do end up calling me is when they’ve already tried to fix it multiple times and it hasn’t worked for them.

So they’ve had… If you have three quarters in a row or something like that where you’re like, “Okay, we still aren’t putting up the pipeline numbers, we still don’t have the new logos we need despite all the times telling our folks to do it,” let’s talk. Let’s not have it be another quarter.

Joe Lynch: Yeah. Internal initiatives sometimes fail just because there’s… It doesn’t seem like there’s any extra resources. We said, “Hey, we’re gonna somehow find an [00:48:00] extra 10 hours a week to do this.” Where are we getting that? We’re already busy. Some- That’s why you bring in

a resource like Holly and her team who say, “We do this all the time. We’ve seen these problems at a dozen other companies, and we can fix them on a timely basis. And by the way, we’re 100%– we’re responsible for making sure the results get happen in your company.”

Holly LaBoda: Yeah, absolutely. We’ve done it before. We can help you. It’s easy, an easier path, a quicker path, a fast track to your growth. And what is a little bit different, I know we’re close to out of time, but what’s a little bit different about what– how we approach our customers is I actually don’t want you to be my client for 20 years.

I want to help you solve these solutions, figure out these particular problems, and elevate your skill set internally. That’s why the system is built the way it is. So then you’re just running, and you don’t need me after, after we figure it out. So we’re trying to make everything better and not ingrain ourselves forever into an [00:49:00] organization, which is a little bit different

Joe Lynch: Yep, I love it. I love it. So I’m gonna summarize what we talked about, then I’m gonna get your final thoughts on the topic. So I’m talking with a friend, Holly Laboda, and we’re talking about scaling with intent, removing the constraints to growth. We talked about, first and foremost, you guys come in and you guys have a four-pronged approach.

You do this current state assessment, which is really identifying the growth constraints, whatever’s holding you back. And it’s hard to assess that internally sometimes. It’s hard to see it internally sometimes. Holly and her team, they see this all the time, so they know what they’re looking for. You identify those growth constraints, and then you put the processes and the systems and the enable- enablement in place to get the system-led growth, not necessarily this heroic sales guy. Our business is famous for saying, “Oh, I need a guy with a book of business that will hire him.”

And I’m like… I said I say this all the time now. There is no such [00:50:00] thing as someone who has a book of business who can take it from company A to company B. Stop saying it. It’s stupid. But even if it was, live by the sword, die by it. Rather than be dependent on one hero or a couple heroes who basically own your business because they know everything and they do everything, you want systems, you want processes, you want sales enablement and of course, technology.

But technology’s the last thing we should be talking about. Technology is not the silver bullet. Le- next, last, or s- not last, leadership alignment. You gotta n- make sure that the strategy and the incentives and tools are all in place to push that to growth, and make sure that everybody’s in the right seats. Nick Saban has this thing, I think he said, “It’s my job to make sure that the right guys are on the bus.” And he says, “And secondly, I need to make sure everybody’s in the right seat.” Last but not [00:51:00] least, you guys do a lot of behavioral coaching around this stuff because some people are gonna have to grow. And by the way, we all want that. We want growth in our people. We want growth in ourselves. Sometimes that growth comes with coaching. The best executives in the world have coaches. Again, I– If you look it up, you’ll see Fortune 500 companies have executive coaches for their leadership team. There’s a reason. And I know everyone’s going, “We don’t have that kind of money,” but they see the value in it. And these are the, these are the Jamie Dimons of the world, so if th- if he’s getting coached, the rest of us can have a coach.

Anyway, put a big old bow on this one. Final thoughts on the topic, Holly

Holly LaBoda: So all of those things are real important trends. I think that r- if people are taking one thing away from this conversation, I’m hoping they take away that your growth strategy needs to be tailored to you, to your company, to your customers, to your unique marketplace. And then everything else needs [00:52:00] to come after that.

And if you’ve been having multiple quarters in a row, if you’ve had a dramatic strategy shift, like the market has changed, there’s been an acquisition, PE investment, something like that, or if you just feel like you’re tired of getting run over by your sales function and want a better way to do it, let’s talk.

Joe Lynch: Excellent. Excellent. So Holly, I’ll make sure I put a link to your LinkedIn profile, link to your website, any other link you and your go-to-market team give me, I’ll put in the show notes.

Holly LaBoda: That’s great.

LinkedIn is great.

Joe Lynch: yeah, and give me th- give me those links. We’ll put those in the show notes, and people can reach out and talk to you. What conferences will we see you and the fine folks from Formula L at?

Holly LaBoda: Yeah. I think I– our next one is going to be TMSA Elevate in Denver at the

Joe Lynch: Out

Holly LaBoda: of June. Yeah.

Joe Lynch: And you’re speaking there, right?

Holly LaBoda: Yeah, I have a couple of sessions. I’m on a panel about growth strategies, and I’m leading a session for sales practitioners who wanna do real discovery that actually moves deals forward.

Joe Lynch: I love it. What other conferences? I think,

Holly LaBoda: That’s the only one I’m committed to for the rest of the [00:53:00] year.

I do a lot of them early in the year like other people do. Curious about Broker Carrier Summit. I haven’t been to that before. I’m thinking about checking that out.

Joe Lynch: think that’s this… Is it this week or

Holly LaBoda: There’s one this in April, but I f- or maybe

Joe Lynch: then There’s

another one.

Holly LaBoda: another one, yeah.

Joe Lynch: Great event. Yeah, I can’t get to all of the events, but I talk to all the event people and each one has its own personality. Each one has a reason to be there. Anyway, thank you so much for taking the time.

I love what you guys are doing.

Holly LaBoda: Thanks, Joe. This was a

Joe Lynch: you. It was fun for me too. It’s my pleasure.

And thank all of you for listening to my show. Your support’s very much appreciated. Until next time, onward and upward.

The post Scaling with Intent: Removing the Constraints to Growth with Holly LaBoda appeared first on The Logistics of Logistics.

]]>
10862
Reducing TCO Through Renewable Natural Gas with Scott Brinner https://www.thelogisticsoflogistics.com/reducing-tco-through-renewable-natural-gas-with-scott-brinner/ Thu, 07 May 2026 22:34:06 +0000 https://www.thelogisticsoflogistics.com/?p=10839 In “Reducing TCO Through Renewable Natural Gas” Joe Lynch and Scott Brinner, Vice President of RNG Solutions at Nopetro Energy, discuss how fleets can cut emissions while boosting their bottom line. Efficiency meets sustainability. About Scott Brinner Scott Brinner serves as the executive Vice President of RNG Solutions at Nopetro Energy, where he is

The post Reducing TCO Through Renewable Natural Gas with Scott Brinner appeared first on The Logistics of Logistics.

]]>

In “Reducing TCO Through Renewable Natural Gas” Joe Lynch and Scott Brinner, Vice President of RNG Solutions at Nopetro Energy, discuss how fleets can cut emissions while boosting their bottom line. Efficiency meets sustainability.

About Scott Brinner

Scott Brinner serves as the executive Vice President of RNG Solutions at Nopetro Energy, where he is responsible for developing and executing the division’s strategy, business development and expansion. His prior experiences include working as a CPA with Ernst & Young, executive vice president, Corporate Development & Strategic Accounts, at OmniTRAX, and as an investment banker with Wells Fargo and Raymond James, where he advised companies in transportation/logistics and waste/environmental services. Scott has an MBA from the University of Chicago and received both a BS, in Accounting and Finance, as well as a Master’s in Accountancy, from Miami University in Oxford, Ohio. 

About Nopetro Energy

Founded in 2008, Nopetro Energy is a vertically integrated energy leader focused on the production and distribution of renewable natural gas (RNG) for heavy duty transportation and industrial consumption. The company provides end-to-end energy and transportation management solutions, helping government agencies and companies strengthen fuel independence and create lasting economic value. Nopetro designs, builds, finances and operates both renewable natural gas production plants and fueling stations, allowing fleets to transition to this substantially less expensive, cleaner and domestically produced alternative to diesel. Visit www.nopetroenergy.com to discover how Nopetro is leading the way to a more energy-independent and financially predictable future.

Key Takeaways: Reducing TCO Through Renewable Natural Gas

  • In “Reducing TCO Through Renewable Natural Gas” Joe Lynch and Scott Brinner, Vice President of RNG Solutions at Nopetro Energy, discuss how fleets can cut emissions while boosting their bottom line. Efficiency meets sustainability.
  • RNG as a Total Cost of Ownership (TCO) Driver: Unlike many “green” technologies that require a financial sacrifice, transitioning to Renewable Natural Gas can actually lower the total cost of ownership. While the trucks may have a higher upfront cost (roughly $70k–$90k more), the significantly lower and more stable fuel prices can lead to a payback period of just 2 to 3 years.
  • The “Closed Ecosystem” of RNG: RNG is a vertically integrated solution that captures organic waste from landfills, dairy farms, and wastewater treatment plants. By cleaning these molecules and putting them into the pipeline, Nopetro turns a potential environmental pollutant into a high-performance fuel that can achieve zero or even negative carbon emissions.
  • The Game-Changing Cummins X15N Engine: Historically, the trucking industry lacked an engine with the power and torque required for heavy-duty, 80,000+ lb loads. The new 15-liter natural gas engine from Cummins is a “workhorse” that matches diesel performance, range, and horsepower, removing the primary technical barrier for over-the-road fleets.
  • Fuel Price Stability vs. Diesel Volatility: Because RNG is domestic and tied to stable natural gas indices rather than global oil markets, it protects fleets from “spikes” caused by international conflict. This allows for predictable budgeting and even the potential for long-term, fixed-price fuel contracts—unheard of in the diesel world.
  • Proven Success in Adjacent Sectors: While OTR trucking is in the early stages of adoption, the waste management and transit industries have already proven the model. Nearly 50% of waste refuse trucks and 40% of transit buses in the U.S. now run on natural gas because it is more economical and easier to maintain.
  • Infrastructure and “Behind the Fence” Solutions: Fleet owners don’t have to wait for a public station on every corner. Nopetro specializes in building dedicated fueling stations directly at or near truck terminals. This “hub and spoke” approach ensures that dedicated routes have reliable, high-pressure fueling exactly where they need it.
  • Sustainability as a Competitive Edge: Large shippers (the Scope 1 and Scope 3 emission-focused companies) are increasingly looking for “greener” partners. Trucking companies using RNG can offer a cleaner solution at the same or lower price than diesel, often securing longer-term contracts (5–7 years) by providing the carbon-neutral results that customers demand.

Learn More About Reducing TCO Through Renewable Natural Gas

Scott Brinner | Linkedin

Nopetro Energy | Linkedin

Nopetro Energy

Nopetro Projects

Nopetro Info Email

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to the Logistics of Logistics show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is reducing TCU through renewable natural gas with my friend, Scott Brenner. How’s it going, Scott?

Scott Brinner: I’m doing great. Thanks for having me on.

Joe Lynch: I’m excited to talk to you. So Scott, please introduce yourself and your company, and where you’re calling from today.

Scott Brinner: I’m in Denver, Colorado, but our company, NOPETRO Energy, is headquartered in Miami, Florida, and I’m the executive vice president of our RNG Solutions division. We’re a vertically integrated company that produces RNG through designing, constructing, building, operating RNG production plants.

That’s renewable natural gas production plants, mostly at landfills. And then we also design, finance, build, own, operate renewable natural gas fueling stations mostly for buses, waste company fleets, and trucking company fleets, whether they’re private in-house fleets [00:01:00] for consumer goods or so forth, or trucking companies.

Joe Lynch: Nice. Nice. So there’s some definitions needed here. First off, your company is called NO Petro, so it’s just spelled just like it sound, like N-O P-E-T-R-O. You got it on your shirt there. NO Petro Energy. And so you guys sell RNG, which is renewable natural gas, which you’ve got trucks running on it.

And the other definition here, I guess mo- some people know what it is, but what is TCO?

Scott Brinner: TCO just stands for total cost of ownership. It’s an often used term, especially in the trucking industry, looking at the cost of owning trucks or owning a fleet of trucks.

Joe Lynch: So the title, Reducing TCO Through Renewable Natural Gas. You’re telling me, and we’ll talk about this for the next hour, that I can run my trucks, I don’t have any, but if anybody’s listening, I can run a truck cheaper using RNG than using [00:02:00] diesel.

Scott Brinner: Absolutely. My background is actually finance, investment banking, capital, stuff like that. So I’ve done a lot of look… i’ve looked very closely at this with a lot of experts in the last few years, and we confidently believe we can help a trucking company or an in-house trucking fleet transition to the use of renewable natural gas trucks and end up with lower cost, higher profit, higher margin.

And then the environmental aspect, the environmental improvement is actually just the kinda cherry on top, the icing on the cake.

Joe Lynch: We all want to be more competitive. We all want to have an advantage over the next guy, at least for a short period of time or a long period of time. And then we all wanna go back to our cons- customers and say, “We’re cleaner and greener.” And on a personal level, I think a lot of people like the idea of saying, “We, my company, we are greener than our [00:03:00] competition.”

And sometimes people get it in their head that somehow whether it’s the Biden administration or the Trump administration or the Clinton, it doesn’t matter. Forget Washington for a minute. The cu- the customers that we all sell to the biggest companies in the world, all have sustainability in their mission statement.

They are all looking for that edge. They are all looking for you, whether you’re a trucking company or a warehousing company, a tech company. What can you do for me that I can go back to my boss and say, “It’s cleaner and greener, and cheaper”? Cheaper is nice, too.

Scott Brinner: Yeah. There’s this, the sustainability, that word, the environmentalism, that, tho-those words were, I’d say, more in the forefront in the, maybe in, in previous

years. But I think the, the idea, the desire, the, the goal is still there with most, most trucking companies, with most, uh, customers of trucking companies.

Now, the hard part is most companies, [00:04:00] uh, You know, the world’s not easy. Profit matters and providing investor return matters. Most companies want the cleaner, uh, but they don’t wanna pay more. And that’s one of the things we think is special about the, the whole idea of using renewable natural gas.

Renewable natural gas is a closed in uh, very cool ecosystem where we’re capturing all this dirty air from landfills and wastewater treatment plants and dairy farms before it gets into our atmosphere and does anything bad to us. We’re cleaning it up. We’re putting it into the natural gas pipelines, and then we’re using it in transportation.

And when the scientists kind of look at the whole, the, the whole ecosystem, it ends up truly being possibly a zero emission, you know, the, like, the cleanest option, in some cases negative.

Joe Lynch: into our tank.

Scott Brinner: A-and we think we can… we’re confident you can do this at an economic [00:05:00] price that is lower than what you’re getting today using diesel, and there’s stability. So there’s so many things that the end customer of the trucking company loves. The environmental aspect is great, but the economic improvement that, and the way you can sell this to your customers if you’re a trucking company is, it’s pretty unique.

We think it can lead to some really nice changes for trucking companies, but it does take some kind of stepping outside the box

Joe Lynch: I think the industry is interested in thinking outside the box in a lot of cases because the economics are difficult in this business. And I think the leaders in this space are getting are making the investments that they previously were unable to. I think we got some of the biggest companies in the space are basically become engineering and innovation companies that are always looking for new solutions like this.

You touched on a little bit the stability of this. Why is this more stable than the rest of our fuel sources?

Scott Brinner: Going back many years but more specifically maybe more

back to the [00:06:00] early 2000s when I’d say that, that game changer of horizontal fracking and our new kind of technologies to the– in the oil and gas industry. The first change was the the access to natural gas

Joe Lynch: shale revolution.

Scott Brinner: of natural… Yeah, the shale revolution and the price of natural gas in this country in, in many countries, but for our country specifically, or North America exactly, is way more stable. It’s way less affected by global politics and global economics and the whole world that oil is affected by. So our natural gas prices have been stable.

They are stable. It’s domestic. We know it’s plentiful. We know it’s gonna be plentiful for a long time. Now you add this production of renewable natural gas, which is from organic waste, not from underground fossil fuels, from the oil. It’s not from the oil and gas industry. And we produce enough renewable natural gas today that it still trades at a [00:07:00] basic price that’s still in line with that.

So it’s very stable priced, and it’s… and that, that provides all kinds of certainty, budgeting, forecasting, all kinds of improvements that can, that that, that can be experienced by the trucking company and their customers when you put this more stable fuel into play, which is also much lower cost.

Joe Lynch: Scott, you’re gonna give us an education on CNG, LNG, RNG, maybe a little bit on propane. Y- but first, before we get into all of that, tell us a little bit about you. Where’d you grow up? Where’d you go to school? Some career highlights before you joined the juggernaut No Petro, and why did you join the juggernaut, the No Petro?

Scott Brinner: Sure. Sure. I grew up… I was born in Atlanta. I grew up in Knoxville, Tennessee the son of a doctor and a nurse. And then I went off to school and s-started as a CPA. And that was ’cause of my grandfather who started that way. And then spent a few years as a [00:08:00] CPA, then went and got my MBA in Chicago decided I wanted to try the world of finance and investment banking.

Ended up living a few different places and doing investment banking for about 13 years, and that’s kinda where I got into trucking and logistics. The first deal I ever

Joe Lynch: That’s a na- that’s a natural to go right from investment banking right into trucking. Yeah, a lot of us the first investment banking, the first investment banking project I was on was a trucking logistics warehousing company. I enjoyed it, and my boss enjoyed me, and he just put me on the rest. And so I ended up being an investment banker at a trucking logistics rail, actually waste companies for 13 years.

Scott Brinner: That’s where I met the founders back in, uh, 2009, ’10, about when the, the founders of No Petro Energy, the two guys came to my office and asked if I could help ’em raise some of their investment money to get the company started. I said, uh, “You know, I’m not real good as an investment banker raising early-stage money, but you guys have an awesome [00:09:00] idea.

It’s so cool.” Uh, we stayed in touch, um, tried to work on a few things. I left investment banking, got more on the kind of company executive growth side of the world. I thought it’d be more fun to help build companies than just help ’em with a transaction here or there as a banker. And then a few years, you know, two years ago, uh, the CEO and co-founder called me and said, “Hey, we’re do- we’re still doing some great stuff here at No Petro.

I think there’s a huge change coming. There’s this great new engine and natural gas coming from Cummins, and the world is gonna take natural gas into the trucking industry. Why don’t you join me and help me grow this company?” So I thought it sounded like a lot of fun. I think, you know, as I said, I came from…

I c- I come from a world where they taught me at University of Chicago a lot about capitalism, free markets, uh, but it’s really cool that I think we can mix all of that.

Economics makes… It’s, it’s practical, it’s good for business, and at the same time, good for the environment. So I [00:10:00] joined full-time about a year and a half ago and having fun

Joe Lynch: Yep. I’ve said this before on my podcast that There’s a lot of companies that kind of wrap themselves up in, “We’re sustainable and we’re green.” But, I’m, and I’m not ripping on Starbucks, but, you buy a $5 cup of coffee that probably cost them 40 cents to make, and then they say how clean and green they are.

That’s a different business than trucking, that, the very nature of it is you’re burning fuel and you have these giant vehicles. And by the way, s- there’s certain businesses like extraction. Anything you take out of the ground, whether it’s coal or gas or anything, all feels “Oh my God, this is so bad for the environment.”

Yet we all wanna live indoors and have heat and air conditioning and I always say I’ve spoiled myself by living indoors and eating every day. But this business, the only way you can go get the sustainability thing is if you can pay for it, and ideally make money on it. And you’re telling [00:11:00] me, so far, that I can– I’m gonna make some investments, but I am going to get a lower cost of total cost of ownership.

The wrong way to say it. My total cost of ownership will be cheaper, and it’ll be more sustainable.

Scott Brinner: Yeah. I think in the past, a lot of the misnomer is to be sustainable and cleaner, you had to be higher cost and your customers had to pay more. We completely believe the opposite is true at this point with th-this new Cummins X15 natural gas engine is just a game changer. It is the first engine that really does everything a diesel engine does. But yeah, as you said, this TCO. Trucking is a hard business. These guys work hard. Operations are hard. Maintenance is hard. Fuel prices, when you’re on diesel and oil, can go up and down like this. It’s the perfect

time.

Joe Lynch: the spike. Yeah, we’re talking on, we’re talking April 28th, and we just had a the the problems in the Middle East with the Straits of Hormuz. Yeah, we saw a big spike in [00:12:00] energy costs. So wait a second. You touched on an engine. So not every engine runs your fuel at this one minute.

What engine does?

Scott Brinner: Yeah. So natural gas engines, to get a really good engine, you’re not gonna probably, in most cases, get a bi-fueled engine or there are kits,

there are ways to change it, some, some trucks to be bi-fuel. But the, to be most efficient, to be lowest cost, to have a, a, a good operation, uh, something you can rely on you really want a natural gas engine in your truck.

Now that. that in the past fifteen, twenty years, there’s been a lot of development. There’s been some ups and downs. Only a few kind of engineering, you know, manufacturing companies are building natural gas engines. Uh, Cummins is really at the forefront. They’re really ahead of everyone when it comes to natural gas engines.

Uh, there was a twelve-liter for a number of years. It had some ups and downs. It’s actually done very well the last, I’d say, five to [00:13:00] seven years. Uh, I think Amazon has over three thousand of the twelve-liter Cummins engine powered trucks. I think UPS has a lot of the trucks that are, um, smaller natural gas engines.

But finally, Cummins has just released about a year and a half ago, the first ever fifteen-liter natural gas engine that then is put into all the trucks you see at, you know… Well, not every brand has it so far, but you can get a Freightliner, you can get a Paccar, a Kenworth, you know, a Peterbilt with this fifteen-liter natural gas engine by Cummins.

It’s the first

Joe Lynch: I get

Scott Brinner: the first. Yeah, the fifteen-liter engine

is– the workhorse of the trucking industry. And what that means is that, that means– That, that’s essentially telling you that’s the power, the range, the horsepower, the torque to do the job that the truckers do with eighty thousand pound trucks, with ninety-three thousand [00:14:00] pound, you know, over the, o-overweight trucks.

Some people doing a hundred thousand, a hundred and ten thousand pounds. You needed the fifteen-liter, you needed five hundred horsepower. You needed, you know, fuel range. This new fifteen-liter Cummins engine, combined with the fuel systems available, put into the Freightliner, put into Kenworth, it now has the exact same power, the same torque, the same range.

And now we’re finally getting to the point where there’s enough people that have driven this, tested it, Cummins tested it. You can go, “I live in Denver. This thing will go over the Rocky Mountains the same way the, the same way the diesel truck does It won’t break down.” You’re getting drivers and maintenance guys saying, “This is great.

I love driving this thing. Wow. What– You know, this has the same power. There’s no loss.” So then you’re saying you gotta pay a little more to buy this truck right now because of the engine and the fuel system, but the fuel savings are so significant.

Joe Lynch: regular engine cost? [00:15:00] I have no idea on these things

Scott Brinner: I talk about it more in the truck. The– So the, we had a customer recently I’ll use and we specced out the comparison. We specced out, what if they bought a diesel? What if they buy this new X-fifteen? The difference in price right now is a little higher than probably the industry would like. It usually ends up, if you’re buying a number of trucks You can probably get the difference in price to be somewhere between seventy thousand and ninety thousand per truck. It sounds like a lot because a lot of the day cabs today are priced at a hundred and fifty to two hundred thousand. So on a percentage basis it’s a nice increase you have to pay for this truck. But the savings on fuel, especially today are just… I was with a customer last week, and they’re paying five fifty to six dollars a gallon for diesel, and I told them if I– Nopetro Energy builds them a fuel station right next to their trucking terminal, when they get to the [00:16:00] point where they transition eighty to ninety trucks over to natural gas, I can charge them about a dollar a gallon.

Joe Lynch: So a little more investment upfront, but the savings you’re gonna pay for it. I’m, Is it right to say probably in the, in a year?

Scott Brinner: It depends on how many miles. What– The rule of thumb is, for me is, if you buy– if your trucks are going a hundred thousand miles a year, then your payback is probably close to two and a half years. If you’re eighty thousand miles a year it’s probably can get probably three years, a little less.

Joe Lynch: And this is only gonna get better though. That that, that’s the nature of these new technologies. It gets it… The cost gets better and better as you get more and more people adopting

Scott Brinner: Yeah. It’s ex- it’s expected to get better. And then the cost, there’s EPA two thousand twenty-seven. There’s a new engine standard that comes out later this year. So starting January two thousand twenty-seven, the industry is expecting the basic price of the diesel to go up ten to twenty thousand dollars.

So that [00:17:00] difference in price is gonna shrink ten to twenty thousand dollars naturally at the start of two thousand twenty-seven, which then you’ve got your payback period is even shorter

Joe Lynch: Yeah. So I’ve always worked I worked a lot in the automotive business for a long time, and any company that I ever worked for, you always have s- one of your customers, like General Motors or Nissan or BMW, they’re always asking, “Hey, do you have anything that you’re doing that s- that we can take back as a something that’s more sustainable than the past.

They’re always looking for that ’cause they all have those missions. They all have goals that they’re trying to reach. So there are– The biggest companies in the world are very interested in sustainability goals. All consumers, for the most part, are willing to… Now when you go to the grocery store we all see the organic, we all see the fair trade, we all see the recycled product.

Tho- there’s a reason those are there, ’cause people are [00:18:00] willing to pay extra for a social cause. Oh, I might have a fair trade coffee. I don’t want anyone to be ripped off selling me coffee from wherever they live, right? We’re willing to pay extra for the stuff that’s cleaner and greener. And I think this is definitely an option ’cause we’re always vilified in this business as being dirty.

Yet everybody loves it when their products arrive at the house or on the shelves, right? I don’t want anything to do with those dirty trucks. Who delivered the food to your grocery store?

Scott Brinner: Yeah. Yeah. The but in our industry I hear you. There’s a lot of examples of people being willing to pay a little more. The trucking industry is hard. It’s tough. The margins aren’t high. It’s been a hard kind of three years that most people in the trucking call it the kind of the longest trucking recession or trucking challenge period the last three or four years.

So paying more for environmentalism is hard, especially when you also go to your customers, and most of the [00:19:00] customers that have sustainability programs aren’t really got– wanting to pay you more to move it with the cleaner truck. But that’s where we think this is so special. We think the renewable natural gas section of environmentalism or sustainability is so great because we do believe you can offer a few things.

We think you can offer either the same price or lower price, and you offer this stability that your customers are not used to. This idea of a fuel surcharge, it can go away with renewable natural gas trucking

Joe Lynch: also, right now we just had fuel prices go up because of the stuff going on in Iran. But there’s also, here in the States, different states decide, hey, we’re going to have a different standard. So in California, they said we have higher standards. So you’re going to have to meet those anyway.

And I was at Long Beach, Port of Long [00:20:00] Beach, Port of LA. They have a real smog problem, a problem that you don’t have in Denver, a problem I don’t have here in Michigan. They have children who are getting sick, asthma at a higher rate, and they believe it’s because of all this smog. So they’ve made the decision.

We don’t want a whole bunch of idling trucks. Usually drayage vehicles tend to be older. So they’re asking us to go electric. And I know somehow, some way, somebody’s going to pay more for the electric. But that’s maybe a good solution there because you can go 50 miles, 100 miles and keep charging your vehicle.

It’s also probably a very good place for RNG. Am I right to say that?

Scott Brinner: Yeah. R-RNG works very well there. If you go

back to the, the, that early day when you’re talking about the shale revolution, there w- there was a little le– you know, there was less RNG, renewable natural gas. There was CNG. Compressed natural gas is about, let’s say, 20% to 25% cleaner, I [00:21:00] think, on average than diesel, but it also, in the terms of your smog, it, it is, it is a drastic improvement.

However, the movement to renewable natural gas and the, the, the infrastructure around the country that’s developed these RNG production plants, when you look at the full cycle, uh, what this renewable natural gas industry is doing, the amount of bad molecules it’s keeping out of our atmosphere is pretty amazing.

I think it’s pretty cool. We think it’s very cool. And if you got this really going and the market share got up and you keep just… We’re all gonna produce, we’re always gonna produce more garbage

It’s mostly gonna go to landfills. There’s always gonna be wastewater treatment plants.

Joe Lynch: and making

Scott Brinner: Yeah.

So now we have created an ecosystem where we can do something very economically efficient and practical with to reduce the environmental footprint, but then use it in these trucks in a way that’s much cleaner. Electric has a space. I’m not com- against electric. [00:22:00] We’re not against electric. There’s a place that electric vehicles and the efficiencies and the operations they can run will work well for short dray. If you get the truck price low enough and you get the right infrastructure, I think there’s still some challenges to make it economic, but there are some places where electric vehicles are gonna work well.

I think it’s gonna be a mixture of solutions. There’s gonna be, yeah

Joe Lynch: I saw a TED Talk on YouTube not so long ago, and it was a guy, and he came, he said, grew up, I think he had like hippie parents, and he says, it was all about the environment. And he said, so I was really behind electric. And he said, I did a lot of research, got involved. And he said And he says I– and he was wearing his T-shirt that said, “The future is eclectic.”

Meaning, as opposed to the future’s… people were wearing shirts that say, “The future is elec-electric.” And he said, “Depending on the use case, we’re gonna have different solutions.” And I think the whole idea of saying we’re all gonna [00:23:00] be electric first off, electric isn’t necessarily just clean.

I’ve heard somebody say that you can create electricity using burning coal or burning wood and then saying, “Do you see my clean vehicle?” It’s not necessarily clean. Again, I’m not against any of these. I think the engines we’ve used for a long time will continue to improve. We’ll find ways to keep taking carbon out.

But this sounds like a great opportunity. I need you to give us a little education here for a second. So I’ve heard the term compressed natural gas. I’ve also heard the term liquid natural gas, LNG, CNG. I’ve heard the propane people talk, and now the latest iteration is RNG. Please give us a little education on what is– what are all those different things and why you think RNG is a really good solution.

Scott Brinner: Sure, I’ll give it a shot. I’m not a scientist or engineer.

Joe Lynch: You’d play one

Scott Brinner: I’m a, you know, but I can do very high level. So liquid natural gas or LNG is really [00:24:00] just CNG or natural gas cooled in, in, into liquid form. It’s high density. It was an idea to put this into liquid form, use tanks and technology, put it on trucks.

You could put, could put it in trucks and tanks and take it to gas stations and still put it in a tank and then fill up the different trucks. Really I’d say what happened in the last 15 years is we realized that compressed natural gas, just natural gas on its own, is in these interstate pipeline systems.

It’s in our local distribution pipelines. And if you just build stations in the right place, in the right way, and you put the right technologies and fuel tanks on the vehicles it’s putting the same natural gas into trucks for transport as you are with LNG. But at the end of the day, it’s a lower cost, more economic way to use natural gas as a fuel.

That’s really why CNG and RNG Have become kind of m-more common than LNG in terms of use on [00:25:00] our roads and trucking and l- and logistics in our– in, in North America. Propane is something that you know, has– and propane has a lot of great uses. It has a high energy content but at the end of the day the idea using propane for our, large needs and transportation it ends up that the CNG or RNG is lower emissions and a more efficient way, more cost-efficient way of distribution and using it in

Joe Lynch: know buses sometimes you’ll see propane and some of those I don’t know if they’re– I don’t know if any of those delivery vehicles are, but I believe some are now propane.

Scott Brinner: There’s, there’s been some that have gotten out there. It hasn’t taken a huge market share. And then I guess lastly, just RNG versus CNG. RNG is renewable natural gas. It’s considered renewable because it comes from organic waste sources such as landfills or livestock manure at dairy farms or wastewater treatment plants. And then it’s actually, once we [00:26:00] clean it up at an RNG production plant, R… it’s CNG. It is clean natural gas. It’s,

Joe Lynch: you’re taking it out of what would have gone into our air. You’re taking it out and saying we’re gonna make it into energy. CNG is still being taken out of the ground which means some sort of drilling, some sort of extraction method. So ideally, the extraction method you guys are using, which is in landfills anyway, you’re not, you’re not– there’s a difference between extraction at a landfill and an extraction in a beautiful mountain.

Scott Brinner: Yeah. So this is, it goes into the same pipeline system once we clean it up, and it mixes with the rest. But the pipelines, if you think of pipeline, it is a closed system. It only has a certain capacity. There are only a certain number of molecules can fit in it. So the more RNG we produce in the country, the more that capacity, it becomes a higher percentage as [00:27:00] renewable sourced, and then we put it into trucks.

Joe Lynch: Now these, this com 15-liter Cummins natural gas engine, it’ll run CNG and RNG?

Scott Brinner: Yeah. It’s really the same thing.

Joe Lynch: That’s the same stuff. I get

Scott Brinner: the same stuff. When we make RNG, we just take the molecules and we put it in the same pipeline system, and it mixes with the natural gas molecules. So we technically can produce renewable natural gas at a landfill in South E- Southeast Florida, and we…

And because of the way they the regulations work We have ownership of that molecule, and if we want to say we dispensed it at a fuel station that we built in the state of Washington, we can do that. So it’s not like you put the station next to the landfill where you produce it. You don’t have to do that.

Joe Lynch: That’s– I think, even though they’re the s- technically the same molecules, as you said, RNG probably is a better deal because of where it’s coming from. What was gonna go into our atmosphere and we were gonna [00:28:00] breathe into our lungs or damage our environment, instead is going into our, in, into our trucks.

And by the way I gotta tell you this. We talked for a long time, so you heard me say this before. For a long time, it seems as if natural gas just got thrown in with fossil fuels and it– I don’t think it should have. I think it was, it’s a really whether it’s CNG or especially RNG, this is a really much cleaner and greener than the diesel that we’ve been using.

For some reason, it seemed as if we just said, “Oh, it’s gotta be wind,” or, “It’s gotta be solar. It’s gotta be electric.” We just seem to– I feel like we abandoned the whole idea of natural gas, which we have in abundance, we have here in the United States. And I don’t know why it just got glommed in with the fossil fuels rather than being considered more of the cleaner and greener energies.

Scott Brinner: Yeah, you’re right. It… With the shale revolution and a lot of the natural gas [00:29:00] molecules we have in our pipeline systems that are going to utility plants and so forth, they are fossil fuels. The renewable natural gas, the production of renewable natural gas did not really take off until, 10 to 15 years ago.

The right structure of the, say, the economy of renewable natural gas the was not set up and perfected. You were dealing with fossil fuels. Now, the fossil fuel part, it’s 20 to 25% cleaner, and there’s some other benefits of being a gas versus in the other forms. And then, there’s definitely been hype about the other options and how fast the other options were gonna be economical.

But this one has worked out very well. I know… we don’t– One thing we ha- a lot of us don’t see, what’s really cool is there were, if, our co-founders saw three industries when they started. There’s the, there’s waste refuse trucks. You think about how many thousands of waste trucks are coming up to houses, the residential waste

Joe Lynch: You mean garbage trucks?

Scott Brinner: You got the garbage trucks, you got

[00:30:00] buses, whether it’s transit buses, airport buses, you know, school buses, and then you have over-the-road trucks Well, back in around 2008 when our founders started NO Petro Energy, I’d say all three of those industries were very, very low market share powered by natural gas.

Today, the waste industry has gotten to the point where, uh, almost 50% of the entire fleet is natural gas. And if you look at any one year, the number of orders is more like 70% to 80%. The largest, you know, WM, the largest waste management company in North America, the most successful, they have, I think, 14,000 natural gas vehicles.

And if you talk to the people who have been a part of that transition the last 20 years, they will tell you they have done everything to test what is the best, what’s the most economical, what is the cleanest, and they will tell you the natural gas trucks are easier to work [00:31:00] on. They’re lower maintenance.

They’re cleaner fuels. They’re lower price fuel. It’s stable fuel. They love natural gas. Then on the transit bus agency, the school buses, the s- the, the same thing. Market share went from less than 5% to over 40%, and I think, uh, over 80% of new transit buses the last few years have been natural gas fueled. Uh, th- these two industries have really taken advantage of all the benefits and the fact that it’s practical and economical and clean.

And, and the trucking industry didn’t have an engine. Now it’s got an engine. We really think now is the best time for renewable natural gas

Joe Lynch: we’ve been the, we’ve been the laggards in over-the-road transportation ’cause we didn’t have an engine, but now we do. So you see that this adoption happened because they had the engines and they said, “Hey, we’ve done the math and it makes sense.” And I think, the people who own buses, I’m assuming those could be some municipalities again, they had probably su- some [00:32:00] sustainability goals.

I know the garbage companies they are always have– They’re taking stuff to landfills that they might have ownership in. They obviously want to say, “We’re doing the right thing when it comes to the environment.” But beyond that, I think they also said it’s total cost of ownership, cheaper.

Scott Brinner: It’s all these industries. Everybody’s trying to produ- produce for investors. You open the stock market, everybody wants investor returns, quarterly profits, but they also want the environmental sustainability. Like we– there’s really no other clean fueling technology that we see out there that truly works as well as this on an environmental and an economic basis.

Joe Lynch: right now if I look at all of compressed natural gas, is RNG a subset of that?

Scott Brinner: RNG is a subset of CNG. But RNG today, we finally in the last couple years gotten to a point where there’s enough RNG produced in the country that you can [00:33:00] Essentially every, or every CNG powered engine vehicle in this country or in North America could be fueled with renewable natural

Joe Lynch: So you have the supply. This isn’t gonna– This isn’t something that you’re gonna at some point go we ran out,” because ’cause we’re s- g- we still have m-m-manure at farms, and we still have garbage that we’re sending to landfills, and for the foreseeable future, you guys have a lot of opportunity.

So

Scott Brinner: think, I think part of the reason I think I’m at this company is our founder and many that have been watching the industry for a long time saw there was a

big change in the last two years, essentially is when the production of RNG is now higher than the demand for vehicles because there’s not enough engines or vehicles on the road and dispensing and going to fuel stations.

Today, there’s more supply than demand. [00:34:00] So that’s, that’s, that’s what my main goal is, to go help others create demand, to go build fuel stations for trucking companies or private fleets, to help tr-trucking companies and private fleets figure out how to make the transition to these new trucks with the X15.

That’s my goal. I wanna help them get these trucks. I wanna help them fuel these trucks. That creates more demand to even out that supply and demand because there is plenty of… There’s, there’s plenty of ceiling left to go on in terms of the supply side, but we need to keep creating the demand and putting more trucks on the road that use

Joe Lynch: these engines, so Cummins makes an engine. Is anyone else g- got a plan to make some of these type of engines?

Scott Brinner: this. The… Unfortunately, the news and everything I know so far is that nobody’s working that hard on a compe- a competitive engine to this new X15.

Joe Lynch: They will if they [00:35:00] start seeing a lot of sales on Yeah. Yeah. Cummins has done a great job. When I talk about the truck the bus engine, the waste engine, those are two smaller engines that Cummins perfected that work great. And then the Cummins had the 12 liter engine that has worked very well for certain cases in trucking Amazon and l-lighter weight loads, and now the 15 liter. And the 15 liter we think really could be a game changer

So I’m, I’ve, I’m, I’ve worked at a trucking company, but I’d never gotten to the back where they’re where the where the work is done on the trucks. There’s a lot of different OEMs, original equipment manufacturers. When I buy a truck, does it come– Do, can I specify the engine?

Scott Brinner: Yeah. So when you go inspect your truck, everybody goes to, their dealers usually or di-direct. It’s, you’re working with Daimler or Paccar most of the time in terms of, especially if you wanna look at a natural gas. Today, you can get the natural gas X15 in natural [00:36:00] gas Cummins engine. You can put it in the Freightliner you buy, that everybody buys. You can put it in a Peterbilt. You can put it in a Kenworth. So when you call your dealer, and you usually order this diesel truck, the only thing that’s gonna look different from the outside… Nothing’s gonna really look that different from the outside other than the fuel tank system that might be on the back of the cab, or you can also get the saddle tanks.

But 90% of the truck is the same truck you’ve always bought. You just now have a natural gas engine put inside.

Joe Lynch: But I can specify what type of engine I get. Now, so let’s just say I do I buy a new truck, and I decided I wanna put this engine in it, and they s- that’s great. And I’m, I’ll just say I’m here in Michigan, and I want to go to Texas. A lot of s- lot of Detroit to Texas stuff going. I really s- El Laredo or El Paso.

Where do I fill up?

Scott Brinner: Yeah. Yeah. That’s one of the other, big fears. It’s not the same type of situation. You’re not gonna just pull right into [00:37:00] every truck stop and find natural gas available there. But I think I, I– even though I wanna build stations all over the country and build many more, I think there’s gonna be demand for a lot more.

I think we can build them, uh, maybe more convenient for operations of trucking companies than just on the side of a road. But today, this, the best example I’ve got is recently we got a call in our office, and it was an Amazon truck driver, and he was opening the– his, there’s an app. He opened the app. It shows every CNG, compressed natural gas, renewable natural gas fuel station in the country. He’s driving down the road. He says, “I’m gonna need to fill up in fifty to a hundred miles. What am I nearby?” He opened his a-a-app up. He saw our station. Said, “Okay, I’ll go fill up there.” He actually gave us a call, asked us about the station. We talked to him for quite a while. It’s pretty possible. I don’t think there’s many places, many chances that you’re gonna get lost, not [00:38:00] be able to fuel. Maybe not as easy as you’re used to, but

Joe Lynch: But I think, there’s some– The larger fleets that are gonna buy some of this are gonna say, “This is going on a dedicated route from here to there five times a week, three times a week,” whatever it is, “and we’re going to know where this fuel station is.” And I think also if let’s just say they’re leaving Chicago or Detroit or Atlanta, they’re gonna say, yeah, there’s tons of fuel stations that they know in the area because the CNG, RNG people are gonna say, “That’s where the trucks are.

That’s where we gotta be.”

Scott Brinner: Yep. Yeah. I think as the truck demand… there’s a lot of investment necessary that we bring a lot of capital, a lot of investment to building a fuel station. They understand that. They bring a lot of a capital investment if they’re gonna transition their fleets over. So as, as we build out the ecosystem of RNG fueling to be more efficient, I think we can build it out to [00:39:00] actually be extremely efficient for the trucking operations.

They’re als- always looking for another way to be operationally efficient, cut costs and we think we can organize a way to build these fuel stations near truck terminals, whether it’s a, like you said, a route that’s going from Atlanta to Nashville or, Nashville to Chicago, making sure that there’s fueling at one end or the other at each end of the hub and spoke system and be very efficient.

Yeah.

Joe Lynch: And I think the nice thing about The way the world works, at least here in the States, is if somebody says, “Hey, I noticed there’s a whole bunch of these fleets over here in the same geographic area are buying these 15 liters Cummins natural gas engines. I’m gonna open a gas station. I’m gonna, I’m gonna be there for them.”

And I think the biggest, fuel stations in this business are gonna say, “Okay, the trucks that we used to fill with diesel, some of them want CNG, [00:40:00] RNG. We’ll be there for them. We’ll up- we’ll upgrade our stations.”

Scott Brinner: Everybody wants to…

Joe Lynch: be right next, might be right next door ’cause it’s a little different than obviously…

Scott Brinner: Yeah. You can’t add natural gas to every fuel station. You need to ne- you need to be near a pipeline.

Joe Lynch: what I mean, next door.

Scott Brinner: You need to be near a pipeline, so you have to fill… and you have… The pipeline has to be, not n- not the, The one that comes into our house is plastic Doesn’t have a lot of pro– high pressure.

It’s not built for the type of use. So you can’t build them everywhere. It takes a lot of capital. There’s, there is this dynamic. It’s not co– every investor that puts capital to build a fuel station is gonna want a return on their investment, right? And when you when the growth and market share of the how many trucks are natural gas fueling, there, there’s this, this…

You’ve got to be very cognizant, very edu– you know, you gotta be bit smart about where you use your capital. So you gotta know somebody who’s gonna drive [00:41:00] into the station and use.

Joe Lynch: I guess my point is if somebody says, “Hey I’m driving,” I’ve made the trip on the I-94 to Milwaukee from Detroit, and there’s a bazillion trucks between Gary and Milwaukee. And I always say the same thing I felt like you’re, feel like you’re the only one not driving a truck.

Obviously, there’s– you’re gonna see people who traditionally have owned gas sta- diesel stations say, “Hey, we’re gonna own, we’re gonna own R- RNG maybe down the street, but we know we’re losing some customers to compressed natural gas, and we’re gonna be there for them.” I’m not wor- I’m not worried about the infrastructure of this because that’s what capitalists do.

That’s what investors do. They look for opportunities, and they take advantage. And again I don’t know that it’s there right now, but this is the kind of thing that our government loves to say, “I’m gonna throw a whole bunch of money behind this because it’s cleaner and greener.” I’m not necessarily always a fan of that, but it’s something that makes sense.

And I do [00:42:00] believe there’s a lot of very large trucking companies that look and say, “God, we have a whole bunch of customers who are asking us, ‘What can you do for us to be cleaner and greener?'” And this is it. And th- and this is cleaner and greener, and also total cost of ownership is much better

Scott Brinner: There’s a lot of trucking company customers with large sustainability goals looking at Scope 1 emissions, Scope 3 emissions. Scope 2 is a little further away from what trucking companies are, but Scope 1 and 3 are very, applicable to the trucking industry, very applicable to the customers of the trucking industry. They all want to hit higher targets. We all work together, we can do this. I think, a trucking company that’s transitioning a fleet is putting a lot of capital into that. They’re putting a lot of time into that. What we think the best option is that’s gonna get the most, the fastest transition is not necessarily going to the customer that wants [00:43:00] cleaner transportation, is don’t a-ask for a higher price.

Ask for a longer contract Tell them we’re gonna invest a lot of money building this fleet, and this fleet needs to pay off. We need a return on investment. In the trucking industry, there’s a lot of one-year type of contracts. There’s very few three to five-year contracts. The natural gas trucks are gonna be so much cleaner. They can offer that at the same price, maybe a lower price, but it’d be great if the customers would give them like a seven or eight-year contract and say, “Look if you’re doing a good job, you got a seven-year deal. If you mess up, you’re gonna get kicked out. But we’ll give you a seven-year contract, and then we could fix fuel price.”

We can literally build them a… And this is unheard of really in the industry of transportation and fuel. If they get a seven-year contract, they come to us, we build them a station, we help them manage fuel purchasing. We could literally fix the price of fuel for this [00:44:00] next seven years. And fixed fuel is something, fixed pricing and stable, stability and forecasting.

It’s unheard of. We’ve had this fuel surcharge thing for twenty-five, thirty years. Fuel surcharge, right? And that, that, that goes up and down. I mean, everybody’s experienced ton recently.

Joe Lynch: Yeah. Yeah. This is not an immediate thing where you say, “Yeah, we’re all of our n- all of our new trucks are this.” But this is a transition that I think makes a lot of sense. And again, this is the stability of it, you just pointed that out, is great, but also its total cost of ownership is cheaper.

I think the right now you gotta spend a little more to buy that truck, but we’ve done that for a while. I remember a friend of mine, I won’t mention his name, but it was a consulting project. I was working the same consulting company, and he said th- this c- scrap company, they had a metal scrap, they owned all their own trucks, and he said they own outright all these trucks, and they’re very excited about the fact that they own [00:45:00] all their trucks.”

And he said, “But they’re old.” And he said, “And I…” He goes, “I did back of the napkin analysis and then I got deeper and deeper into it.” And he says, “Hey the fuel costs are much higher. You’d be better off investing in new trucks because your fuel costs are so high.” And they’re like, “Yeah, but we own these trucks.”

He’s “Yeah, but you’re paying more every year.” And he said they ultimately were like, they were just like, “We own all the trucks. Why would we buy new ones?” He says, “Because your trucking expense is higher every year because your fuel costs.”

Yeah. And he said he just wasn’t gonna commit. They were s- they were a scrapyard, so that was not, their interest wasn’t necessarily on the logistics side of it. But yeah, this makes a ton of sense. And again, I think that we’re seeing this from the biggest companies. I t- I talked to Ryder about this.

My friend Gary Allen he’s looking at innovation constantly. I’ve interviewed him a few times on the podcast. I always see him at a conference. We live [00:46:00] 20 minutes apart. We never see each other. We’re s- we always say we’re gonna get together for lunch, but they’re always looking at stuff like this, is how do we do better for our customers?

That, this talk of innovation and making investments in this kind of stuff wasn’t a thing 20, 30 years ago. Now I think it is. It’s, it, our industry’s growing up. Anyway, enough of my blather. I’m gonna summarize what we’re talking about today to the best of my ability, and then I’m gonna ask for your final thoughts on the topic.

So I’m talking to my friend Scott Brenner. We’re talking about reducing TCO, which is total cost of ownership, through renewable natural gas. And renewable natural gas is different than compressed natural gas. I think it’s a subset of compressed natural gas. But RNG is coming from waste. It’s coming from manure in our farms.

It’s coming from our garbage. This is stuff that was gonna go into the air and be part of the pollution. B- it was part of the problem, now it’s gonna be part of how we run our trucks cleaner and [00:47:00] greener. There has n- always been a limitation of the trucks in our space. Now Cummings has a natural gas truck.

Gotta pay a little extra. You gotta pay 70 to 90 grand upfront more, but you’re gonna save a ton of money every mile that you’re driving that truck. The maintenance is easier. The, you keep ’em on the road longer. Other industries, garbage trucks and buses, 40 and 50% already there. They expect that we are going to continue to move our trucks.

By the way, did Gary I’m sorry, Scott, I didn’t ask you, what percentage are vehicles run on RNG right now? Is it very low? Yeah. So it’s in its infancy, but I don’t think it’ll– I think it’ll grow fast because it makes sense. So we have a big opportunity here, and we did talk a little bit about propane.

Propane has its has its use cases, probably not for what we’re talking about with the big rigs. LNG seems to have gone away. W- CNG is– [00:48:00] CNG and RNG is going to be the leader when it comes to gas. Thank you for giving us a little bit of an education on that. This gives companies the chance to reduce their fuel costs, be more sustainable, and I think this is just a slam dunk.

I kn- I know it’s not gonna be an immediate, like everyone running out and buying these trucks, but I think if it proves out like you’re talking about Scott, I think this is the future. Enough of my blather. Put a big old bow on this one. Final thoughts on the topic, Scott.

Scott Brinner: Yeah. Thanks again for having me. As you can

tell, we’re very passionate, very excited. We think there’s a long way to go here. Uh, it’s not easy. There’s a lot of complexity in it, but once it’s done, the operation actually is pretty easy. Uh, No Petro Energy would love to talk to any trucking company or any trucking fleet owner, whether it’s a private fleet for a grocery chain or a food distributor or a, you know, a, a, a concrete, uh, ready-mix fleet [00:49:00] or a waste fleet or, you know, any of these types of fleets.

We are very, you know, as you can tell, we’re vertically integrated. We produce RNG. We’ve been building RNG production plants, RNG, CNG fuel stations for seventeen years. Uh, we have been mostly in Florida, but we’re, you know, branching out in the hope to be a North American, you know, very diverse all over North America over the next few years.

We’re well-capitalized, and we’d love to help them look at transitioning their fleet. We’ve got some very unique solutions that only a company like us can offer, so we can build, uh, design and build fueling stations behind the fence or just uh, across the street from your trucking terminal or your operation.

And then we also have some interesting ideas to helping the transition to the fleet happen, where we’re gonna take on more of the capital risk of trying out the fleet and help them transition, taking place of like a lessor and even offering service and maintenance. So we’ll do [00:50:00] everything we can. If we can, uh, just get a call and help a company look at this, we’ll help them analyze it on independently.

If it doesn’t work for them, great, but I think we can show many, many companies that this will be great for their, uh, balance sheet and great for their customers, great for their P&L.

Joe Lynch: fuel, you’re providing kind of the transition and helping ’em do the math. And as you said, if the math works or it doesn’t, right? You’re not trying to trick somebody into this and say, “Yeah, now we have a dissatisfied customer to work with.”

Scott Brinner: not at all.

Joe Lynch: I love what you guys are doing.

I’ll make sure I put a link to your LinkedIn profile, link to your website, any of the links you and your go-to-market team give me, I’ll make sure I put those in the show notes. Do you get to any of the logistics and transportation conferences?

Scott Brinner: Oh, yeah. Conferences are gonna start. I haven’t had it too much this year, but starting next week, we’ll be at the ACT Expo in Vegas. Later next week, I’m gonna move from Vegas to Orlando to the National [00:51:00] Private Truck Council Conference. That’ll be a great gathering, and we’ll have a table there. We’ll be probably at the next one or two big ATA events later this year, and we’ll probably be at a few of the kinda state trucking association conferences in Florida and Texas and probably a few more. look for us.

Joe Lynch: fi- if you wanna find you, you can find him at conferences. But again, I’ll make sure I put a link to your LinkedIn profile, link to your website, any of the links you and your go-to-market team give me. If you have something, if you have a case study or, anything like that, we’ll put those in the show notes so people can,

Scott Brinner: yeah. We’ve got a great calculator kinda thing on the website now, where you can kinda put in three or four metrics about your company or your fleet, and it’ll give you an average savings and stuff like that. Oops, the

dog came in. Yeah. Try check that out on the website. It, it’s a first high-level view of the savings.

Joe Lynch: I love what you guys are doing. Thank you so much for taking the time today.

Scott Brinner: [00:52:00] Thank you. Appreciate it.

Joe Lynch: And thank all of you for listening to my show. Your support’s very much appreciated. Until next time, onward and upward.

The post Reducing TCO Through Renewable Natural Gas with Scott Brinner appeared first on The Logistics of Logistics.

]]>
10839
Penske’s Supply Chain Insight: A Unified View with Mike Medeiros https://www.thelogisticsoflogistics.com/penskes-supply-chain-insight-a-unified-view-with-mike-medeiros/ Tue, 05 May 2026 20:25:52 +0000 https://www.thelogisticsoflogistics.com/?p=10825 In “Penske’s Supply Chain Insight: A Unified View,” Joe Lynch and Mike Medeiros, Executive Vice President of Operations for Penske Logistics, discuss how their new product, Supply Chain Insight, turns complex data into a proactive tool for supply chain orchestration. About Mike Medeiros Mike Medeiros is executive Vice President of Operations for Penske Logistics,

The post Penske’s Supply Chain Insight: A Unified View with Mike Medeiros appeared first on The Logistics of Logistics.

]]>

In “Penske’s Supply Chain Insight: A Unified View,” Joe Lynch and Mike Medeiros, Executive Vice President of Operations for Penske Logistics, discuss how their new product, Supply Chain Insight, turns complex data into a proactive tool for supply chain orchestration.

About Mike Medeiros

Mike Medeiros is executive Vice President of Operations for Penske Logistics, where he leads field operations and supports performance across the Penske Transportation Solutions network. He brings extensive leadership experience across transportation and logistics, including dedicated contract carriage and fleet operations. Medeiros has been recognized as a 2026 Pro to Know award recipient by Supply & Demand Chain Executive, honoring leaders driving operational excellence in the supply chain.

About Penske Logistics

Penke Logistics is a Penske Transportation Solutions company headquartered in Reading, Pennsylvania. The company is a leading provider of innovative supply chain and logistics solutions. Penske offers solutions including dedicated transportation, distribution center management, 4PL and lead logistics, transportation management, freight brokerage, and a comprehensive array of technologies to keep the world moving forward.

Key Takeaways: Penske’s Supply Chain Insight: A Unified View

  • In “Penske’s Supply Chain Insight: A Unified View,” Joe Lynch and Mike Medeiros, Executive Vice President of Operations for Penske Logistics, discuss how their new product, Supply Chain Insight, turns complex data into a proactive tool for supply chain orchestration.
  • Moving from Fragmented Systems to One View: The industry is shifting away from jumping between different TMS, WMS, and ERP systems. Supply Chain Insight provides a “single pane of glass” so you don’t have to toggle between multiple windows to make a decision.
  • Proactive vs. Reactive Operations: With the Supply Chain Insight dashboard, both the logistics provider (Penske) and the shipper look at the same real-time info. This transparency lets teams get “upstream” to resolve problems before they happen, rather than just reacting to late shipments.
  • Prioritizing Data Quality: The AI and analytics within Supply Chain Insight are only as effective as the data feeding them. The focus is on measuring data quality and ensuring the KPIs you’re tracking are accurate and actionable.
  • AI as a Personal Analyst: A standout feature of Supply Chain Insight is the integrated AI assistant. You can query loads or identify performance trends using natural language, essentially giving you a dedicated supply chain analyst at your fingertips.
  • Real-Time Asset Coordination: Having total visibility in Supply Chain Insight helps keep freight moving by spotting underutilized assets. For example, finding an empty driver nearby can solve an urgent capacity need and prevent a lost sale.
  • Battle-Tested Internally: Before launching Supply Chain Insight to customers, Penske had their own associates use it first. This internal testing ensures that the platform is a stable and reliable system of record from day one.
  • Managing Inventory and Carrying Costs: Visibility in Supply Chain Insight extends beyond the road and into the warehouse. Understanding real-time inventory levels helps shippers minimize carrying costs and avoid the risks of seasonal stock mismatches.

Learn More About Penske’s Supply Chain Insight: A Unified View

Mike Medeiros | Linkedin

Penke Logistics | Linkedin

Penke Logistics

Supply Chain Visibility Software | Penske Supply Chain Insight – Penske Logistics

The Logistics of Logistics Podcast

Joe Lynch: [00:00:00] Hello, friends. Welcome to the Logistics of Logistics Show. My name is Joe Lynch. Thank you so much for joining us today. Today’s topic is Penske’s Supply Chain Insight, a unified view with my friend Mike Maderas. How’s it going, Mike?

Mike Medeiros: Wonderful, Joe. How are you today?

Joe Lynch: Doing great. I’m excited to talk to you about this. So Mike, please introduce yourself and your company and where you’re calling from today.

Mike Medeiros: Yeah, my name is Mike Mederis. I am the Executive Vice President at Penske Logistics. I have the pleasure of leading all of our operations throughout North America and Brazil, and I am calling from Redding, Pennsylvania where our corporate headquarters is.

Joe Lynch: Yep. We’re gonna focus in on just one part of Penske today. I know there’s a whole bunch of different areas we can talk about Penske. I say it all the time. I’m in the Detroit metro area where every automotive facility has Penske trucks. I don’t know if they’re your logistics trucks or the leasing trucks, but they’re, every facility has Penske.

So you guys are everywhere. But we’re gonna talk today specifically [00:01:00] about a new product. Talk about that.

Mike Medeiros: Yeah, so we’re on a journey with this supply chain insight platform and really trying to redefine the way we provide visibility to our customers and in, in a really a single source view. And it’s been an exciting road so far and we still get a long way to go but couldn’t be more happy with the team and where we’re at.

Joe Lynch: Yep. And there seems to be a kind of a recognition, I think, by the whole industry that we have all these cool systems now. A TMS, I might have a WMS, I have my ERP all the visibility platforms, and now I have this for the ocean, and they all seem to be out there. The problem is I have my information in all these disparate systems, and I’m trying to make good decisions, and you go yeah and Mike you’re a boss.

You could say to V- Joe, you, I gave you everything you need to make a decision.” I’m like, “Yeah, all I gotta do is log into these 15 systems to pull everything out, put everything into a spreadsheet.” And you’re [00:02:00] like, “Wait, did you go back to 1998? No spreadsheets. Make a decision.” So what you guys have created, something a little better than that.

What is that?

Mike Medeiros: And I think l- let me start with with our company. So we really plug into the supply chain for our customers really at various different stages, really from inbound to distribution, outbound, reverse logistics. And through all those stages, we have great tech. We have tier one technology but what we lacked was this unified view. And as we see more and more of our customers leveraging multiple services we provide, whether it’s dedicated in conjunction with some brokerage or some warehousing we found ourselves in that same position that you were, Joe, 15 windows open on any given day, toggling back and forth and really trying to connect the pieces on where’s my stuff, what’s going on, where do I need to be looking?

And supply chain insight really brings a unified platform, single site view to our customers and our associates on the front line supporting those customers.

Joe Lynch: Yep. So have you guys already launched this or are you [00:03:00] going to an event to launch this? What’s the story on this?

Mike Medeiros: Yeah we are in the process of fully launching for the full market launch May 4th and 5th at the Gartner Supply Chain Symposium. We have over 70 customers on the platform today. Those customers have been really integral in building out. So every four weeks, we do what we call a sprint to where we’re actively enhancing the system based on the feedback directly from our customers.

And that’s been in process since day one. Really excited about, how that shapes the future roadmap and where we’re going with this.

Joe Lynch: I think that’s, seems to be the new way to develop product is you bring in some of your trusted trusted customers and say what’s wrong? What can we do to fix it? And will you help us with feedback that you’re not developing it, you’re just providing ongoing feedback so we don’t go off and on a tangent and provide you something you didn’t ask for.

[00:04:00] Yep. And if I could add this one of the things I’ve noticed with AI coming, and this was the same with visibility. There’s a lot of, startups, and by the way, tho- those are startups are absolutely crucial. Those startups eventually get bought up by Penske’s and and other big players in the industry.

They tend to be very bombastic and, they’re VC back, so they gotta grow really rapidly. And they can say things because they don’t have the largest companies in the world depending on their s- on their services yet. Maybe they will, but they don’t right now. So they can say, “Hey, fire your logistics team, because we got this AI bot that’s gonna do it.

You guys, given who you work with you can’t be you can’t be an unstable platform. You can’t be taking wild risks. They just, your customers wouldn’t tolerate it, and of course you guys wouldn’t do it.

Mike Medeiros: [00:05:00] Yeah we absolutely need to keep, security execution in the forefront with everything we do. We’ve we work with some very large shippers and we wanna make sure that we’re protecting their supply chain as if it were our own. And, I’ll tell you, w- where we, with the services we provide, when you look at the landscape that we work across, it’s not uncommon to have our Penske associates embedded with our customers.

And I travel quite a bit and go out and visit our operators and operations. And, the shining moment for me is when I walk into a customer operation and I have a hard time disseminating which associates are Penske associates and which associates are customers. That to me is, it tells me still that a lot of

There’s still that personal touch and technology certainly is advancing us and helping, but people working shoulder to shoulder together really are making the difference.

Joe Lynch: Yep. Yep. Before we move on, who are your customers who are your customers and then who, who is this supply chain insight targeted at?

Mike Medeiros: Yeah, it’s directly targeted at our customers, so we do deal [00:06:00] with some of the largest shippers in the industry all different shapes and sizes. And like I said, we plug in, whether it’s on our transportation side through our dedicated services, we have a shared dedicated network. We also offer a brokerage offering to help with flex capacity. On the warehousing side, we support with flexible space, cross-stock support, as well as, full dedicated warehouse management with our technology en- embedded inside those four walls. And then beyond that, we do what I would call supply chain orchestration through our 3PL and 4PL models.

Really focus on network design and where can we lean out and optimize the network on behalf of the customers. In that space, we have, gosh, over six billion dollars in freight under management that we’re responsible for on behalf of our customers. What I would say is we deal with really the whole array when you’re looking from a shipper standpoint.

We, we have, single site, small regional shippers as, as well as, worldwide giant shippers that

We’re working with every day. [00:07:00] Yeah, absolutely. So it’s really where our customers need us. And and we really tailor those solutions to meet the specific needs of the customer.

You think about transportation, warehousing and, that supply chain management or orchestration, it can go a bunch of different directions and not every customer needs the same thing. And I think that’s probably one of the unique things about Penske is we really focus on identifying where our customers need us, how can we leverage our experience, our expertise, the operational execution with our team in the field and really help accelerate their performance.

Joe Lynch: I love it. I love it. So Mike, tell us a little bit about you. Where’d you grow up? Where’d you go to school? Some career highlights before you joined the mothership Penske.

Mike Medeiros: Okay. I grew up in New England. I I spent the first 18 years of my life in in Plymouth, Massachusetts. And from there I was ready to leave. And I I applied to two colleges, one in Florida and one in North Carolina, Elon University where I ended up going. I studied business at Elon, graduated from there in 2000, and you’ll you’re probably not gonna [00:08:00] believe this, Joe, but I have been working for Penske since the day I graduated.

So

I was coming out of school, I’m looking for a job, and I had interviewed with several companies up in the Boston Metro area. And I saw an ad, I think at that time it might have been on Monster. And I said, “This looks interesting.” And I’ll tell you what I went. I met with the the leadership team there and it was a culture fit from day one. I’ve been afforded the opportunity to hold multiple different roles. So I started my career as a management trainee on the rental counter in Boston, Massachusetts. From there, I’ve probably moved eight or nine different times with the company, spent my first 15 years on the truck rental and leasing side of our business, and then transitioned over to a l- our logistics business 11 years ago.

So it’s been a 26-year journey that has gone by very quickly, and I can tell you I wouldn’t trade it for the world.

Joe Lynch: Just from the little I know of you, you’re obviously very ambitious to be the executive vice president. The [00:09:00] fact that they had opportunities to keep you there. And now I gotta be honest, I was at a logistics company and I had some young guys that I had to say, “Hey, at some point, this is gonna be too small for you’re gonna have to move on.

And that was a ba- a bad feeling. Now, by the way, I can still talk to those guys all these years later Penske’s had those opportunities because I think they’ve grown with what I’ll call the new expectations for a logistics partner, for a transportation partner. 20, 30 years ago, it was like, “Oh, we got trucks, you need stuff moved.”

Now it’s, “Bring me not only the assets or but also I need you to bring me technology.” And I think today we’re gonna say, “I need the assets I need the technology, and I need the data.” I think our supply chains run on data as much as they do on trucks.

Mike Medeiros: Absolutely.

Joe Lynch: Yeah, so they, they must have had big opportunities Penske’s grown pretty quick.

How many people do they have when you join? Do you remember?

Mike Medeiros: I, gosh, I can’t recall. [00:10:00] I know in just in our logistics business, we have over 20,000 associates. You put that in perspective, it’s significant. I think when you roll in the truck leasing and rental side, it’s double that. It’s a, it’s been a great place to be. And with the growth has come that opportunity I would tell anyone out there looking for somewhere to land.

It’s just been a fantastic place to be. I think the culture and the people here are really what set us apart. So couldn’t be more happy with where I ended up in the last 26 years.

Joe Lynch: Yep. So I wanna talk to you about a few … Again, these are big shifts in our space. So first thing is why visibility and point systems fall short. So we talked the other day about this a little bit. We have more visibility than ever before, but we also have it all in these different systems, and you call them point systems.

Please explain.

Mike Medeiros: Yeah, i- regardless of the TMS, the WMS, where your data is housed, and like I mentioned to you, I think, this really started as a internal concern. Like we, we said, “How do we connect the pieces as our customers are asking us for more [00:11:00] end-to-end visibility of all the services and products we provide them, how do we connect those pieces?”

And, I think visibility, we identify pretty quick. It breaks down in between these systems. It doesn’t matter how good the system is, it doesn’t matter tier one, the best in class, how do you connect those systems? And really, that was where the precipice of supply chain insight. And, through that journey we’ve identified a whole lot more, but it was really, how do we get that unified view for our customers of their entire supply chain and aggregate that data in a way that’s gonna allow them to make data-driven decisions?

Joe Lynch: So you guys created supply chain insight to pull information from these disparate systems so I can have all my information in one place, whether it was from my WMS or TMS or visibility solution, and God, there’s so many visibility solutions now, this becoming just probably one of the latest. But we have the nature of it.

You have to connect with all of them. Now, is this a separate platform that I log into or is this connected to my ERP? How do I access this information

Mike Medeiros: This is [00:12:00] a … Y- you would log into this platform with the vision being this is the only platform you log into. And what I would say is I think it, it delivers the ultimate level of transparency because it’s the same platform our frontline leaders in the field are using to support the customer’s business.

So they are literally looking through the same pane of glass as our customers which to me is the ultimate level of transparency. I, and, we don’t wanna get a text or a phone call of where’s this or where’s that and why is it late? This whole product is designed to get us further upstream, provide that clarity and be that single pane to, to which the customer and our field leaders can work together on, preventing those disruptions before they even occur.

Joe Lynch: When you look in s- some people, still, a lot of people in our business, they’ll have three monitors. They’ll have the one in front of them, one to the left, one to the right, and they’re there, and they’re looking to make sure that, that trucking company that I just contracted with, that they’re, are compliant, that they’re o- they’re [00:13:00] good in our system.

I’m also looking over here into fraud. I’m also here looking at the network and, on time performance and all that. And the challenge is that guy or gal who’s sitting in that seat is the weak link and all of that. And the fact that they have to have three monitors we’re not meant to work that way.

I should be able to look at one monitor and do my job, ideally. And maybe we’re not all the way there, but I think the supply chain insight is one of those tools that’s gonna bring us all the way there. And the problem is y- that person, if they’re sitting there say, “Oh, I pulled this information, and I just texted Mike something,” and Mike sent me an email responding to it.

The, th- that’s not the, that’s not putting all the information where it needs to be. It all needs to feed up to one system, a supply chain insight that we’re all looking at. I can’t have somebody on the other side of the world, the other side of the country with information that all of us don’t have.

It just, it, that’s not the way it works.

Mike Medeiros: [00:14:00] Yeah. No, you’re 100% right. And I think that connectivity, that single pane, that, that’s really what starts getting us to that proactive state. And o- one other thing I’ll bring up, Joe, is while we’re talking about it, our customers have the ability based on, like you were talking, different people in organizations do different things.

They have different responsibilities. This system is configurable to the user level, to where they can log in and look at just the routes or the loads or the warehouse inventory they wanna see that they’re responsible for. They can save views, they can establish their own metrics based on what their, what is in their responsibility.

I think it’s unique in that regard where it really can be tailored to meet the needs of whoever the user is within the partner that we’re supporting.

Joe Lynch: I love it. I love it. And the next piece of all this, and this is another point that I had written down is data quality. So we still have data quality problems, and we’re pulling information in. How do you guys, when you get it, are you, what are you doing? Do you clean it up or is that [00:15:00] kind of expected before it gets pulled into the supply chain insight?

Mike Medeiros: Yeah, so I mentioned some of the things we’ve learned along this journey, and I will just say with good data, I’ve said that probably more than more than a few times over the last 12 months. But yeah, I think when you think of data one thing we identified early on this journey was we need to really understand what are those critical data elements that are driving accuracy in metrics and visibility. And they’re different by the service or the product or the system that we’re pulling them from, but we went through every single service that we provide and how it was feeding our supply chain insight platform and said, “What are those three, four, five critical data elements in each one of these services that if they’re not right, we’re not gonna have what we want, and the customer’s not gonna have that clear picture of their supply chain.” And we said, “Okay, we identified those. We figured out what those were. How do we take it to the next level? We’ve created dashboards and metrics [00:16:00] around our data. We’re physically measuring the quality of our data as it comes from the core system into our supply chain insight platform, and we’re managing the behaviors, we’re addressing the anomalies. W- we are at a position where we can, based on the data we’ve collected so far, we can automatically behind the scenes through AI close those gaps. We, we are probably you know, if I go back to where we started to where we’re at today it’s light years with regards to data, and it’s really changed the culture in our field from our field leaders and our customers too.

They’re really understanding how powerful this product can be when you have good data, with good data. It guarantees the metrics are right, it’s gonna make sh- make those KPIs so much more impactful, really drive those desired performance outcomes that we’re all looking

Yeah,

from all of our operations throughout North America and South America, Yep.

Joe Lynch: So when I think of [00:17:00] s- something being the formatting issues, little things like, okay, we say it’s 1:00 PM here, and somebody says, “Oh, you mean 13:00?” I need it all formatted the right way. I can’t be working with apples and oranges when I’m looking at my information.

Somebody’s gotta clean that. And so that, that’s, that speaks to the quality of the data, but somebody also might have to, I don’t know, clean it up or make it appropriate for us.

Mike Medeiros: Yeah. And when you’re pulling it into that single platform, you’re gonna get better visibility internally to where those gaps are. And I think just by the sheer volume of data that we’re pulling in, we’re gonna be able to identify those gaps early and often, really find out what the root cause is.

And is there a systematic way we can fix this without any human intervention going forward? That’s all things that we’re looking at on a daily basis.

Joe Lynch: Yeah. And, we’re not gonna get super deep into it today, I don’t think, but we all wanna use AI. I can’t feed AI a whole bunch of dirty data and say, “Oh [00:18:00] how’s that AI model?” It’s okay, but I’m giving it incomplete data, I’m giving it inaccurate data. Hopefully it can figure it out.

No it’s not gonna figure out something that it’s, it would, it’s garbage in, garbage out just like our old systems.

Mike Medeiros: Yep, it really is. One, one thing that we’ve been so laser focused on this data being right as it enters this platform is because the use cases for AI are robust. And w- we’re piloting right now an integrated AI assistant that really will … It has the ability today to query loads, orders, any exceptions.

You can ask it performance questions really without needing any dashboards or an analyst with you. The best part of this is it’s really designed to evolve into being really a personal supply chain analyst for our customers, and they can ask it anything. They can ask it to pop up a dashboard for them, show me the metric trends over this period of time. I think that’s really where we’re going with this, and we’re not too far off. And [00:19:00] when you look at what it’s already performing for us today we are, we’re not that far away from really having this as a personal supply chain analyst for our customers in the very near future.

Joe Lynch: Are you guys piloting internally?

Mike Medeiros: Yes, we started with our internal users. I think the one thing with any of this technology is, that adoption is crucial. If you miss out of the gate, people just don’t go back. They don’t trust it. And we wanna make sure that with anything we enhance or integrate into this platform, it’s been tested, it’s been tried, it’s true and it’s not gonna have the adverse effect.

We want people in here every day making this their system of record. This is where they go to do their job. We’re not gonna get that if we stumble out of the gate with things like this. So we’re really focused on making sure it’s right.

Joe Lynch: I’ve talked to a number of large technology companies in this space that have said, “Yeah, we have AI. We’re piloting internally.” And all of them are that, on, on that same place, recognizing that [00:20:00] the scale of your customers is such that you just can’t take chances. But also I heard somebody say it this way, and I really love this, they said it’d be dishonest.

If we weren’t using it internally and getting value, and then saying, “Hey it, we’re eating our own cooking rather than say, Hey, Mike, have a taste. Tell me if it’s, how’s this, how is this? And you go, say it’s horrible. Oh, all I guess I could have tasted it here internally. So you’re eating your own cooking for a while, and then when it does get launched, it’ll be solid.

And I’ll contrast that a little bit with, there’s a ton of AI startups and I’m not against any of this that’s no hate here, it’s just they don’t have massive teams to tr- try it out internally. You guys have 20,000 associates who can try this out prior to you rolling it out to your customer. So when it’s a solid solution is when you guys roll out.

Mike Medeiros: I think it’s, … I’ll tell you a little side story here, AI has really just become prevalent over the last year or so. You hear it so much more today than you did, [00:21:00] and, I, we talked to our IT team and they’re like, “We’ve been doing this AI, we’ve been doing this for, over a decade.”

And you go back and we’ve had, predictive analytic models built by our team, our data scientist team, and we were predicting driver turnover, warehouse worker turnover, we’re we’ve had these in place for a long time. And this is just the next iteration. It’s how can we take some of the lessons learned over those predictive models and push those into, through our experience, push those into the capabilities of this AI assistant or this supply chain analyst that we’re building out and really make it impactful for the end user.

Joe Lynch: Yeah. It’s amazing. And, anyone who uses a mobile phone goes through this where you’re talking to your buddy about a ballgame or whatever, and then the next ad you sees for tickets or what you’re like what’s going on here?” And I keep thinking it’s just a matter of time before we get to the place where you say I got a message from Penske about blank because the systems know that I’m in trouble, or the systems know that there’s an opportunity to save money.

We’re getting [00:22:00] better and better at this every single day.” So there’s a big shift here and we talked about a little bit already, but it’s the need for the sh- one operational view. I know you guys created this really with your customers in mind. What is the, what is, what were they saying and then what is the value that they’re getting, for the 70 companies that are already using it?

Mike Medeiros: Yeah it what we heard was you guys provide great service down and in. So down and in dedicated contract carriage you’re excellent there. Warehousing, you do a great job for us. Supply chain management but where we share your support and those services across our business we can’t see everything that we need to see to be as successful as we can.

That, that was what we heard. And, I’ll give you an example because it’s recent and it’s on my mind. We were doing business for a large scale grocer out on the West Coast and our operator happens to sit at the the distribution center with his counterpart and the counterpart came in hair on fire.

It’s going into Thanksgiving holiday and he says, “I got [00:23:00] a load of turkeys, two loads of turkeys, full trailer loads sitting at a cold dock. I can’t get coveraged. I can’t find capacity to get these to the DC. The trucks are sitting at the dock waiting to go. And my fr- my frontline leader pulled up supply chain insight, identified a dedicated driver coming back empty with a refrigerated trailer, rerouted them right to the cold dock, picked up the turkeys, brought them in to the distribution center.

I think they sat on that distribution center for about two seconds before they went out on those route trucks and wound up on Thanksgiving day tables across the communities that we serve out there. That to me told me we’re on the right track with this. When you saw how quickly they were able to make that happen, they pulled it together with a quick conversation, a couple clicks of the mouse, and all of a sudden we’re rerouting a driver and we’re solving a real problem in real time before it created a disruption.

Joe Lynch: And I gotta say this, I think, a lot of the conversations I’ve been having lately are, [00:24:00] “Oh, there’s disruption because of the conflict in the Middle East. There’s problems with, this port or that port, the war in Europe.” We seem to talk about those just like it’s daily. And, since COVID, we all thought after COVID, it’ll just go back to normal.

It’s never gone back to normal. It feels like the disruptions are constant. And I’ll throw this out there. I think a few things happen. First off, we have visibility tools that tell us that didn’t arrive on time at the port. It used to be, I used to receive stuff from the port. I used to ship stuff to China back and forth into Thailand.

I remember the, I remember my supply guy, an automotive company saying Joe, don’t bother me. Come back next week, late next week.” That would be it. Come back late next week. We don’t manage supply chains that way anymore. And it used to be, hey, that goes from Shanghai to Long Beach, it’s picked [00:25:00] up.

We never changed for years, and now if Long Beach is slow or expensive or slow down, we’re gonna move it because the customers that we have, whether they’re the end customers, we’re all very impatient, but also the retailers and the, the Amazons of the world, they’re like faster, and they have scorecards and we have visibility into this.

So I think the bar has really risen for logistics and transportation. We expect more.

Mike Medeiros: Yeah. I think the consumer drives the behavior and it’s, it is. It’s more faster, but don’t sacrifice the quality. And w- we, I routinely will tell the team, our primary focus is safe, on time, professional, in full. If we break it down and simplify it, that’s where we wanna be.

We wanna be safe, on time, efficient, and in full. And it’s not going away. We gotta continue to lean into those opportunities to use technology to make us m- make us better. And this is one of those moments where, you know, that, [00:26:00] that single pane of glass I think is really the

I’ll, I’m gonna go back to it again. It’s the ultimate level of transparency, for me, gone are the days where you go to a customer meeting and you, they say, “Show me your KPIs,” and someone’s been up for a week or two weeks pulling them together and putting them into a PowerPoint and going to Kinko’s and binding them and, those days are gone.

The business reviews of today are us opening a computer, plugging into a screen and having conversation with our customer on what are the trends telling us? What are the metrics showing us? Where do we need to double down? Where do we need to focus?

Joe Lynch: Yeah, Mike, I’m, I’ve always been a big believer in KPIs, and I always say only the best metrics grow up to be KPIs, and give me four or five good KPIs to manage. And then I always say that’s when the conversations begin. Because you say what is this telling me? ” I had a boss years ago. I worked in engineering.

I remember I sent him spreadsheet which he, he wrote back, “What am I supposed to go through this and determine what’s [00:27:00] going on? ” He goes, “I wanted you to do. That’s what you’re getting paid to do. ” And so he said, “Next time you send this, you can send me the Excel, but I want in the body of the email, what are the findings?”

And I think those are the kind of conversations we wanna have with our customers and our associates. With a company as big as Penske, a lot of times it’s probably internal. We’re gonna have these good internal conversations, but I can’t have them if I have a little bit of data and I have to guess the rest of it.

Mike Medeiros: Yeah, no I, and what I’ve seen, what I’ve seen the product do is it’s generating those conversations exactly what you’re talking about, a lot from our frontline leaders. They’re looking, where do I have lean opportunities? Where can I make sure this doesn’t happen again? And they’re proactively working with the customers on, “Hey if you can do this, we can make sure that we don’t experience what we experienced last time.”

And those are the conversations that are more prevalent today than probably ever

Joe Lynch: Yeah, I think also, we all want to move our execution teams from a place of harried ex- execution, dealing [00:28:00] with exceptions all day. And I wanna move them to a place where you say, “Hey, Mike, if we move this on, you called us on Monday rather than on Wednesday, we could save you 10%.” And by the way I think we’re carrying a little more inventory than we need.

We, we could save you some money on carrying costs over here. That’s where I want my team kind of being in that consultative place. And let’s face it, our business is growing out of this, but we’ve been a business of exceptions where, people call and say, “Hey, you guys were late.” And I always say, “I’ve always been a scorecard guy.

Yes, we were late that one time and we’re working to make sure we don’t do it again, but did you see the other 200 shipments where we’re on time and in full?” That is where we’re trying to get to, but I can’t get there without the, without this good data.

Mike Medeiros: Yeah. Yeah. Yeah I think you, you’ve definitely been around Joe. I’ve had that conversation a few times. What about the other ones where we weren’t late, but it’s yeah it, I [00:29:00] think taking that historical late data and looking at it over a longer period of time that’s really where we can start seeing those trends and identifying, is it seasonality?

Is it, a certain road? Is it a highway? Is it a touchpoint somewhere within the supply chain? And what do we gotta do? We gotta figure it out. And I’ve just seen such a relentless focus from our team in all the departments, whether it’s IT, engineering, how do we solve for this to really make a better day tomorrow?

And that’s been, it’s been the mainstay here. So it’s exciting. It’s really exciting.

Joe Lynch: Not so long ago, I spoke to John Larkin. He’s a industry legend and money guy, and I was asking him, the biggest trucking companies are just a few percent of the market.

And he said, “Yeah, but Joe, they’re m- wildly more efficient. They buy better. They utilize better.” They have the network density, they have all the stuff that is going to allow them to grow. And so sometimes people look and go, “Oh, those guys have a lot of trucks. Those guys have few [00:30:00] trucks.” A- a little fleet versus a big fleet.

The big fleets are oftentimes much, much more efficient because they can be. They’re gonna have the funding, they’re gonna have the the density and the customers that allow you to grow in a way that makes sense. Meanwhile that’s not to discount any of that. We absolutely positively need all those independents out there too, to fill the gaps.

But the bigger companies they do it better. That’s why they’re bigger.

Mike Medeiros: Yeah. A- and we’re fortunate, right? We certainly have Penske Truck Leasing as a extremely strong partner. And I think if I look today, we probably have more than 20 emerging technology maintenance, new ma- maintenance technologies that we’re piloting on out in the field with real use cases and pulling that data in and really understanding what’s the impact to MPG, what’s the impact to efficiency?

How does the driver feel about it? And being able to do that in real time with real applications with a partner like Truck Leasing, [00:31:00] Penske Truck Leasing is, you can’t find that everywhere. And I think it’s a it’s really helped make us stronger, make us better, but more importantly it, we use fleet is an advantage for Penske Logistics.

We, tr- I think there’s 900 or more brick and mortar truck leasing facilities where we have access to get maintenance anytime of the day. They’re twenty four seven over the road coverage is best in class. They’re fix- today they’re fixing trucks over the air without the driver ever coming into the shop, which, you look at the level of service that we’re afforded and what it translates to our customers is it’s uptime.

It’s uptime and it’s on time and that’s really where the rubber meets the road when you’re talking about our dedicated or truckload

Joe Lynch: Yep. So one more time, what is the benefit that your customers, and again, you’re just starting to roll this out, 70 customers so far, soon to be, I’m su- I’m assuming thousands will be using this b- before too long. What are the benefits they’re getting? What are the … Is this saving them money, making the money?

What are they doing with all this information?

Mike Medeiros: I would l- I would like to [00:32:00] think it’s saving them money. And I, you use that turkey example as an example that would’ve translated to lost sales in some mode. Maybe they would’ve got it there. It wouldn’t have got there as quickly as it did. That certainly would’ve had an impact on the stores and the sales there.

I think where they’re using it is to take and aggregate the data over a period of time today. This is a lot of the conversations we’re having and say, “Is this telling us something that we didn’t see before?” And those are the, those are more of the conversations we’re having. And, it, it has great visibility.

You can see where’s my stuff and with good data, you can see exactly what’s in that truck. We have customers that, their data is of a extremely high quality and we can see down to every part that we’re delivering and how many are in there and where do they, where are they going and what time are they gonna be there? And the customer can go in and set up proactive notifications and say, “I wanna know if this load is gonna be late by 10 minutes because it’s that crucial to my customer, my end user.” So [00:33:00] I think that’s really where we’re seeing a lot of usage is, those proactive notifications a lot of customization around what are the metrics I need to be on top of every day and really focusing the hunt for our customers. Instead of having to weed through countless dashboards and metrics and pivot tables and spreadsheets, now they can go to one place and set up a, an environment that is gonna give them exactly

what they wanna see.

Joe Lynch: The other day when we’re prepping for this call, I I mentioned that when I was in automotive, I did some lean facilitation and we would always kind of … Lean looks at order to cache and we would use the term end to end or order to cache. Most manufacturers use that kind of talk.

And we’ve created all these siloed systems, which by the way, every single one of them was a miracle. The first time I saw a TMS, I couldn’t believe it. I remember presenting it y- years later to a c- just some [00:34:00] spreadsheets. I said, “You guys aren’t using a TMS, this was a large shipper that should have been.”

I think their brokerage was, and when I showed them these screens that just s- screenshots, they’re like, “Oh my God, this is unbelievable.” Those were miracles. Warehouse management was always spreadsheets or paper. So we’ve had all these unbelievable technology breakthroughs, but like all breakthroughs, they lead to the next dissatisfaction.

And that dissatisfaction is these point systems that aren’t necessarily all connected in a way that lets us see everything. And when somebody says, “I want order to cash and I want flow,” that’s what the big companies asked us to do. And we go, “You want flow? We got a whole bunch of point systems for you.

And now this gives me a sense for flow. I, this gives me a sense for end to end, and I’m assuming it’s just gonna continue to grow and pull in more and more pieces of the supply chain as opposed to [00:35:00] just over the road transportation, which our industry tends to be very inward looking on that stuff.

Mike Medeiros: Yeah, we’re already, the platform already l- is being leveraged inside our warehouse operations to look at inventories, to understand, how quickly product’s moving, where do I have potential shortages or outages? We’re losing it with our supply chain management team and the third party carrier partners that we support and just having that aggregated visibility has been game changing because you, you hit the nail on the head, Joe, you go back and you could have the best transportation management system.

It could be the best and you could build all the greatest add-ons around it, but that’s where it ended. If you brokered a load for that customer, you lost that visibility. If that customer asked you to move that, some product and store it in one of your warehouses, you had to go to another system to see that product. And really what this does is it takes that away where there’s more toggling,

Joe Lynch: Yeah, Mike, I think there’s also another piece to this, which is [00:36:00] we tend to look at transportation and logistics and say, “Oh, I can save you 50 or $100 on a truck.” And if you’re being more strategic, you’re like, “We’re gonna, we’re gonna improve your business and save you 5% over the course of a year.” There’s, we’re gonna streamline the process.

What we don’t always talk about is inventory and the cost of carrying inventory. And we learned during COVID how nasty inventory can become when it’s late, when you bought too much, you expected those sweaters to arrive in November and they arrived in January, now you can’t sell them all by the end of the year.

And we all want to be lean. The, when you have stuff on shelves, s- bad things happen. You don’t want sweater, like we’re talking right now, April 24th, we do not want a whole bunch of sweaters from wintertime on my shelves anymore. I need to get the shorts in here. And the same I’m an automotive guy.

When we would, anytime we had inventory, we had so many product changes that parts were obsolete. And these [00:37:00] ve- very expensive parts would go obsolete because we’re carrying inventory. So not only do we need to have visibility into my transportation, but also into my inventory carrying costs, which are sometimes gonna be higher than transportation costs.

Mike Medeiros: And I, and again I think it’s that data and working with our customers to make sure that we’re supporting them the same way we went on that journey on how do we drive and ensure with good data, quality data at every opportunity, specifically around these critical data elements that you absolutely need them to be right, to get those metrics that you can really dig into and identify where there’s opportunity.

And I that, that’s gonna be the changer. I think people are already recognizing that, you need good data to move faster, and the demand is there. We have to move faster. Being ahead of that curve from a data standpoint really challenging our customers in a professional way to, to say, “You gotta get this right for us to be able to deliver X, Y, and Z.”

And [00:38:00] th- those are where we’re spending a lot of our time and it’s exciting because I, after being doing this for a long time you, you’re always so used to reacting when something goes wrong, like we talked about earlier, and it’s, how do I get out of the hamster wheel?

I, when something goes wrong it’s inevitable. That’s not the only thing that’s going wrong that day in this world. Y- getting to where our people feel like they have a mechanism and a method to get further upstream, to head those problems off before they happen and really work shoulder to shoulder with our customers that’s the exciting part, because that’s where the, that’s where we wanna be doing.

We wanna be innovating, we wanna be optimizing, we wanna be looking at how do we tweak this solution to make it even better and more resilient and more agile for our customers so the next time there is one of these events we’re prepared for it, we’re prepared, and it that’s, those are the exciting conversations.

Joe Lynch: Yeah, Mike, I think everybody expects more from their vendors than ever before. In the past if you were a trucking company, you did not [00:39:00] have the same level of supply chain expertise as the supply chain that you served. I think that’s changing. And by the way, you’ve also implemented technology outs- that you might’ve bought from someone else.

In the past, it was like, “Hey, could you help us implement this? ” “Hey, we sent it to you. What else do you want? “We’ll send a consultant over. Now the, now if you guys, you’re probably doing it internally, but if you guys were to buy an outside technology, the expectation is they’ll send experts and it’ll be a painless process.

I think the biggest companies in the world expect that now from their transportation logistics partners. They expect that proactive, proactivity that you just talked about. They don’t expect to say,” Hey, we won the business. Now what? ” [00:40:00] Yep. Mike one last time who is the customer for supply chain insights?

Let’s just say somebody’s listening right now, they go, ” Oh, I leased some trucks from them, and I’ve done some work with them. “Who, is this for anybody who’s working with Penske?

Mike Medeiros: it’s for all of our logistics customers. So when you think about our logistics customers, their dedicated contract carriage customers, our share dedicated customers, our brokerage customers, our truckload customers, our warehousing customers our supply chain management customers, all those customers [00:41:00] have access to supply chain insight.

Any new customer we bring on today immediately, granted the access supply chain insight in that single pane of glass. Really any, anyone we support from a customer standpoint on the logistics side they have the supply chain insights for them.

Joe Lynch: Does it take training? Does it take long to implement?

Mike Medeiros: It doesn’t thankfully, because there’s, like I said there’s other, core systems driving it. We use a system for our transportation that feeds the supply chain insight. We use a system inside the four walls that we manage that feeds supply chain insights. So really supply chain insight is just the aggregator.

It aggregates that data. It displays it in a view and a method that is easy to use for the user and allows them a lot more opportunity to customize and specialize what they’re doing and what they’re seeing on a day-to-day or month-to-month basis.

Joe Lynch: Yeah. I think there’s a new paradigm when it comes to systems like this of a friend of mine was im- implementing a new parts and service for, a [00:42:00] parts and service solution for all of their distributors around the world. And I remember he said to the developers,” I want it to be like Amazon, and I want you to copy what Amazon does.

“And so then all these distributors were calling him and saying,” Hey, I’m gonna come for the training. “And he’s ” There’s no training. ” And I was like, ” That’s smart. “Like the a- the whole idea, you use Lyft or Uber if somebody said,” Hey Mike, all you gotta do is go online and take a, like a 30 minute class so you can learn to use Uber, be like, no, the, it’s a, the reason we like it is because it’s intuitive, I know right away, I call it consumer grade tech.

Consumer grade tech doesn’t make me take training or hit control F8.

Mike Medeiros: Yeah. Oh, yeah, absolutely. And that’s exactly what we’re doing. And when there is that moment in time where the user has an issue, our customer success team is right there they have the ability to remote login and actually walk that individual through, like I said, [00:43:00] this is how you do what you wanna do.

And I think that, that builds that comfort, that builds that adoption and really makes them move closer to that, super user that we’re wanting them to be. We want them to have everything they need at the, at their fingertips at any given moment in

time.

Joe Lynch: Mike, I’m gonna lose you in a few minutes, so I’m gonna wrap this bad boy up and then I might your final thoughts on the topic. So I’m talking to my friend, Mike Maderas. We’re talking about Penske Supply Chain Insight, a unified view. So we talked about Penske Logistics Fen- Penske Transportation.

And this brand new tool that you guys are most brand new solution, it’s probably bigger than a tool, brand new solution that gives me that single pane of glass that lets me see if it’s not right now, end to end, it’s pretty close and it’s getting better every single day. We’re adding, they’re adding new fields, and this is gonna give me that unified view so I don’t have to pull up my warehouse management system and my ERP and my order management system and my TMS.

I don’t have to go over to the [00:44:00] visibility solutions. All the information’s pulled into one place so I can see it and I’m, and they’re normalizing it, making it so I can look at it with the right insights. And because one of the problems you always run into with all these kind of things is incomplete data inaccurate data, half the data that, that’s not good enough.

So these guys are pulling this, all this information and this stuff gets better every day. And again, we’re gonna need this kind of data eventually to pull for our AI. So we talked about a few things. We talked about why visibility and point systems fall short. The biggest supply chains in the world trusted us, the logistics world, the transportation world, warehouse world to create flow.

And what we gave them back was a whole bunch of point systems. And this is finally our industry saying, no, we can give you the view that you need. We can give you the flow that you expect for your supply chain. By the way, they’re not doing it internally either. They’re doing the best they can. And the reality is we all want good data and the data quality has [00:45:00] become a constraint.

And you’ve just talked about you guys are actually measuring the quality of data and trying to get to the place where you’re measuring saying, “This is what this data needs to be. ” It can’t just be like, “Hey, we pulled in that information and maybe it’s right, maybe it’s wrong.” We can’t have that if we’re gonna feed it into AI.

You can’t have it if it’s gonna, it’s gonna determine how I make decisions. We also talked about the need for one operational view. I don’t wanna talk to you and have you say, “Oh yeah, everything’s going good.” And then I’m look- because you’re looking at one, one view of the data and I’m looking at another view of the data, we need to have that shared view, the shared vision of what, what’s going on in the business.

We also talked about how you guys built this. You guys took 70 customers that you’re already working with and said what do you need?” And then also you rolled it out internally to let your team use it, which is a pretty big team, probably bigger than most of your customers. But that’s important because I think this is the way technology’s being developed today.[00:46:00]

It’s not, we’ll go off into a back room, create a whole bunch of technology that we think you need and then roll it out to you and you go, “Nah, that’s not what I needed.” You know what your customers need because you’ve been working on it and you guys are also using it. You’re eating your own cooking.

Anyway, very cool solution. Put a big old bow on this one, Mike. Final thoughts on the topic.

Mike Medeiros: I’ll do my best, Joe, and thank you. What I will say is Penske Logistics is committed to accelerating supply chain performance on behalf of our customers. That, that’s our focus day in and day out. What we’ve built with the supply chain insight platform, it’s really to given the ability to run your supply chain through a single pane of glass and that transparency between our frontline operators and our customers looking at data in the same fashion, the same manner, in the same moment, you just really eliminate the noise.

You eliminate that lag, that second guessing that has historically slowed everything down, and supply chain insight, i- it enables us to move differently, and it makes us [00:47:00] faster leads to fewer disruptions, and ultimately accelerates that performance on behalf of our

Joe Lynch: I love it. I love it. I’ll make sure I put a link to your LinkedIn profile, link to your website, any of the links you and your go- to market team give me, I’ll put those in the show notes. So I know you’re going on the road to talk about supply chain insight. Talk about some of the places you guys will be

Mike Medeiros: Yeah, so we’ll be

Here at Gartner Supply Chain Symposium and in, in Orlando first week of May, And then later this year, we’re gonna be at CSCMP, as well as the Next Gen Supply Chain Conference, both I think in Nashville this year in October. So looking forward to those events coming up.

Joe Lynch: I’m assuming there’s gonna be lots of press releases and all sorts of other o- other appearances maybe on other shows. I’ll make sure I put a link to all of those in the show notes. And Mike, thank you so much for taking the time today.

Mike Medeiros: Thanks, Joe. Really enjoyed it.

Joe Lynch: Yep. And thank all of you for listening to my podcast, your sports.

Very much appreciate it. Until next time, onward and upward.

Your Content Goes Here

The post Penske’s Supply Chain Insight: A Unified View with Mike Medeiros appeared first on The Logistics of Logistics.

]]>
10825
How FDH Aero is Simplifying the Aerospace Supply Chain with Bob Loycano https://www.thelogisticsoflogistics.com/how-fdh-aero-is-simplifying-the-aerospace-supply-chain-with-bob-loycano/ Thu, 30 Apr 2026 22:24:19 +0000 https://www.thelogisticsoflogistics.com/?p=10814 In “How FDH Aero is Simplifying the Aerospace Supply Chain”, Joe Lynch and Bob Loycano, Vice President, Supply Chain for FDH Aero, discuss how specialized distribution and strategic inventory buffering eliminate bottlenecks in the global aerospace industry. About Bob Loycano Bob Loycano serves as Vice President, Supply Chain for FDH Hardware. In his role,

The post How FDH Aero is Simplifying the Aerospace Supply Chain with Bob Loycano appeared first on The Logistics of Logistics.

]]>

In “How FDH Aero is Simplifying the Aerospace Supply Chain”, Joe Lynch and Bob Loycano, Vice President, Supply Chain for FDH Aero, discuss how specialized distribution and strategic inventory buffering eliminate bottlenecks in the global aerospace industry.

About Bob Loycano

Bob Loycano serves as Vice President, Supply Chain for FDH Hardware. In his role, Bob is responsible for establishing the purchasing and planning strategies utilized by each of the FDH Aero businesses. He aggregates the collective’s purchasing synergies, enabling improved partnerships with suppliers. He reports to President of FDH Hardware, Matt Lacki. Prior to joining FDH Aero, Bob spent seven years as Executive Director of Supply Chain at Wesco. After his time at Wesco, Bob spent 7 years as Vice President of Procurement at KLX Aerospace – three years of which were spent with Boeing Distribution Services, after its acquisition of KLX. During his tenure, Bob oversaw all global procurement, planning, sourcing, and technical support. Bob’s experience extends well beyond aerospace distribution – starting his career as an engineer at General Electric Aircraft Engines. He then spent 18 years at Pratt & Whitney as a manufacturing & design engineer, and later, as Commodity Manager. Bob graduated magna cum laude with a Bachelor of Science degree in Manufacturing Engineering from Boston University. He would go on to earn an MBA from the University of Connecticut. 

About FDH Aero

FDH Aero is a trusted global supply chain solutions partner for aerospace and defense companies, helping to shape the industry by simplifying the supply chain. With over 60 years of experience, it specializes in hardware, electrical, consumables & expendables, licensed products, and value-added services for global OEM and aftermarket customers. FDH is headquartered in Commerce, California, and has operations across the Americas, EMEA and APAC. FDH Aero – named a Best Place to Work in Aviation – has locations in 15 countries across the globe, with more than 1,500 best-in-industry employees and over 650,000 square feet of inventory space. For more information, please visit FDHAero.com.

Key Takeaways: How FDH Aero is Simplifying the Aerospace Supply Chain

  • In “How FDH Aero is Simplifying the Aerospace Supply Chain”, Joe Lynch and Bob Loycano, Vice President, Supply Chain for FDH Aero, discuss how specialized distribution and strategic inventory buffering eliminate bottlenecks in the global aerospace industry.
  • Global Scale and Specialized Scope: FDH Aero is a global supply chain partner with over 60 years of experience, operating in 15 countries with more than 650,000 square feet of inventory space. They specialize in high-criticality components including hardware, electrical parts, and consumables for both the commercial and defense aerospace sectors.
  • Managing the “Long Tail” of Supply: While major OEMs like Boeing or Airbus buy high-volume parts directly, FDH Aero adds value by managing the “long tail”—the thousands of lower-volume, specialized parts that are difficult for OEMs to forecast or stock individually.
  • The Criticality of Quality and Safety: In aerospace, every part is essentially a “safety part.” Bob highlighted that FDH Aero tests every batch of parts for strength and durability—such as ensuring fasteners are forged rather than cut—before they ever enter their inventory to prevent any single point of failure.
  • Bridging the Capacity Gap: A major industry challenge is the “skills gap” and labor shortage in manufacturing. FDH Aero acts as a strategic buffer, chasing global capacity and managing long lead times (which can exceed a year for simple nuts and bolts) so that production lines don’t stop.
  • Simplifying Complex Logistics: FDH Aero simplifies the supply chain by acting as a single point of contact for thousands of suppliers and customers. They handle the “onerous” terms and conditions of large OEMs that smaller manufacturers might avoid, while also navigating complex international tariffs and customs.
  • Inventory as a Service: By carrying approximately 600,000 SKUs, FDH Aero provides “availability as a service.” They use their own forecasting expertise to stay “smarter than the customer,” ensuring parts are on the shelf before the customer even realizes they have a need, thus preventing “Aircraft on Ground” (AOG) situations.
  • Economic Efficiency through Aggregation: FDH Aero provides cost savings by buying industry-standard parts in bulk across multiple customers. This allows them to offer lower unit costs than a customer could get by buying small quantities directly from a manufacturer, while also eliminating the customer’s internal inventory carrying costs.

Learn More About How FDH Aero is Simplifying the Aerospace Supply Chain

Bob Loycano | Linkedin

FDH Aero

FDH Aero | Linkedin

FDH Aero | Instagram

FDH Aero | YouTube

Bob Loycano Interview

The Logistics of Logistics Podcast

The post How FDH Aero is Simplifying the Aerospace Supply Chain with Bob Loycano appeared first on The Logistics of Logistics.

]]>
10814