Caravan Logistics

Riding high┬áCaravan Logistics is poised for double-digit growth even in the face of a slowing economy. Keith Regan learns how the company is using hard data and a well-trained and carefully selected staff to drive that growth. For many businesses, outsourcing transportation and logistics is a logical way to contain costs and focus resources on core activities.   The decision to contract out those operations can also be a risky one if the logistics partner doesnÔÇÖt share the same values. Since it was founded in 1997, Caravan Logistics has focused on aligning itself with its clients, which often translates into making customer service the highest possible priority. ÔÇ£We try to make everyone, from our account reps and managers through to the people in our office and the drivers, an extension of our customersÔÇÖ business,ÔÇØ says general manager Kevin Snobel. That starts with hiring and training employees who value customer service as much as the company itself, he says. ÔÇ£We try to find people who care as much about customer service as we do and leave it up to them to do the right thing.ÔÇØToday, Caravan operates a fleet of 150 tractors, using a mix of mainly employee drivers along with a small percentage of owner-operator partners. The companyÔÇÖs fleet of 300-plus trailers includes straight trucks with power tailgate services, dry vans and heated vans to handle a range of cargo for customers. It recently expanded its headquarters to include a 25,000-square-foot warehouse and handling space that is especially valuable for handling timely demands, such as produce shipments that must be moved quickly during peak season.ÔÇ£We try to make sure we end up with a staff that will go more than the extra mile,ÔÇØ Snobel says. ÔÇ£If that means staying an extra hour or half hour or three hours, itÔÇÖll get done because itÔÇÖs all give and take. If we know weÔÇÖve got 50 loads coming in, weÔÇÖll make sure we have the full-time and part-time staff to make sure itÔÇÖs done correctly.ÔÇØ In some cases, as with perishable goods such as fresh produce, one chance is all the carrier will get, he adds.Being a true partner to customers means not just getting goods to and from their destination but also working with them to improve how they prepare for the transportation part of the value chain. ÔÇ£If our driver notices that a load is being prepared in a way thatÔÇÖs not safe or that can lead to damage, thatÔÇÖs something weÔÇÖll share with our customer, and weÔÇÖll help them figure out a better way. When everyone is focused on the end result of a happy customer, youÔÇÖre able to have that kind of communication and cooperation.ÔÇØ As it has grown, Caravan has come to rely heavily on technology to improve its performance in a host of areas. The companyÔÇÖs satellite-based Qualcomm GPS tracking system is especially valuable in helping drivers spot ways to be more efficient and reduce fuel consumption, which keeps costs down and is inherently more sustainable, something customers appreciate as well. That enables Caravan to maintain good standing in CanadaÔÇÖs FleetSmart energy-efficiency program for trucking companies as well as its US counterpart, the EPAÔÇÖs SmartWay program. Major customers have direct access to the companyÔÇÖs tracking data, enabling them to see where their shipments are in real time, and all customers have access to customer service representatives 24 hours a day during the week and most of the weekends. Snobel himself is always available to customers and drivers alike. ÔÇ£If theyÔÇÖre in an accident or something goes wrong, they can reach me and we can start working on a solution to the problem right away.ÔÇØ Drivers are also continuously informed of the data that shows their driving patterns, with an emphasis on opportunities for improvement. ÔÇ£When you have the actual facts and figures, those conversations are a lot easier to have,ÔÇØ Snobel notes. ÔÇ£When itÔÇÖs there in black and white and a driver can see that someone else is getting better mileage, and itÔÇÖs not because theyÔÇÖre hauling different loads, it really can be eye-opening.ÔÇØBecause it invests continuously in its fleet and pays drivers wellÔÇöreward bonuses are available for efficient driving, such as keeping idling time to a minimumÔÇöit rarely has trouble finding qualified drivers. ÔÇ£A lot of companies have to recruit heavily, but we actually have people who come to us wanting to drive for us, because we have one of the most updated fleets on the road,ÔÇØ Snobel says. Each driver, new and old, is constantly reminded about the value of that fleet. ÔÇ£If you give someone the keys to a $150,000 tractor and a million dollarsÔÇÖ worth of cargo, you want to make sure they understand how valuable that responsibility is.ÔÇØCaravan has also done the work necessary to enable it to tap into a Web-based customs clearing option, saving time at the border crossings between the US and Canada. Opportunities to add to its revenue base abound, but future growth will not come at the expense of the companyÔÇÖs hard-fought efficiencies or risk damage to the bottom line. There are often opportunities to take on shipments, but those that may not make long-term sense have to be evaluated carefully, Snobel says. ÔÇ£I might be able to take on a load going to Nome, Alaska, but I have to think about how IÔÇÖm going to get my truck out of there without a 600-mile deadhead run,ÔÇØ he says. The companyÔÇÖs technology and its experience help it identify growth opportunities that are more sustainable, and Snobel believes 10 percent growth is possible over the next three years even in a doubtful economic environment.ÔÇ£As a company, we never stop learning as we grow,ÔÇØ Snobel says, adding that he frequently attends training sessions through the companyÔÇÖs insurer and associations that offer industry insights. ÔÇ£We feel we can continue to build on our competitive advantage by just striving for that next piece of improvement and making our customers that much happier.ÔÇØ ÔÇô Editorial research by Ryan Kirkey┬á