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Executive Q&A:  

Chuck Moyer, CEO, Express Courier Douglas Waggoner, CEO, Echo Global Logistics Scott McWilliams, Executive Chairman and CCO, OHL

CHUCK MOYER Board Member, Customized Logistics and Delivery Association CEO, Express Courier, Inc.,

Chuck has over 36 years of transportation experience and has served as a member of the CLDA Board of Directors since 1996. Chuck came to the customized logistics industry with 9 years of regional trucking and airfreight experience. His 30 years experience in the same day sector ranges from operating as an independent contractor to all positions up to and now including CEO for Express Courier International, Inc. (Nashville, Tennessee). Chuck started his career in the courier industry with Priority Dispatch (Cincinnati) in 1983 and joined Express Courier (Nashville) in 1993. Express is a full service same day logistics provider that operates in over 40 markets with a fleet of 1,700+ vehicles. Chuck will be presenting at eft’s12th Annual 3PL Summit in June on the Future of the Same-Day Industry. In addition, he will participate in the conference’s panel about small to medium enterprise logistics companies.

By Andrea Obston Director of Public Relations for the Customized Logistics and Delivery Association

Large shippers focused on e-commerce are changing the face of same-day. What are the challenges and opportunities in dealing with this new trend? Delivery companies have to assess the opportunities and challenges that dealing with these shippers present. Shippers are evaluating and adjusting their business model and strategic approaches in the race to provide same-day delivery. Customized logistic companies that serve the same-day market are typically smaller to medium size enterprises with the ability to be nimble and adjust quickly to market demands. The challenge for the carriers is to strike the right balance between capitalizing on opportunities and dealing with shippers that may need to change the business model and resource requirements without any firm commitments to their service provider. I’ve seen companies get very excited about large bid opportunities, invest in the resources to meet a shipper’s demands. Then the shippers change what or how they want to do business with them. Shippers and carriers that share a vision, are willing to dedicate the resources, and partner will achieve success together. Ecommerce and the escalating demand of same-day delivery seem to be a trend that has been covered extensively. What else is on the horizon in this industry? I believe that this will become the new norm and foresee significant changes in the final mile delivery model. Carriers are going to have to adjust their distribution models to remain competitive and to meet customer expectations. Trends reflect an increase in the amount of product being delivered to the end user. For example, businesses used to go to multiple vendors for their office supplies, break room supplies, cleaning supplies and their furniture. In today’s environment, suppliers are adding to their service offerings and businesses can purchase everything from one provider. Our members provide the final mile deliveries for many of these suppliers. This trend impacts both miles per delivery and number of deliveries per vehicle. That necessitates a change in economics. Let’s look back. In the past a cargo van might be able to hold 150 pieces. Its driver might make 50 separate deliveries a day, averaging three pieces per delivery and driving 200 miles. Now, with a higher piece count per delivery, that same driver still can only fit 150 pieces in a vehicle, but his average delivery has increased from three pieces per delivery to, say 3.7 pieces. At 3.7 pieces per delivery, he can only fit 40 stops onto his truck where he used to make 50. Those extra 10 deliveries increase the overall miles and labor hours in delivering the same 50 deliveries. So, essentially efficiencies have decreased. That means that ultimately carriers will need to modify their distribution or delivery model to offset that addition cost, raise rates, or loose profitability. Talk to us about the impact of technology Today, there are more technology requirements on both the shipper and the carrier than ever before. Customers’ expectations in terms of technology have changed dramatically. When someone orders something today, the expectation is that it will be tracked and that they will know as soon as it’s delivered. The original company and shipper expect real time updates, customer satisfaction statistics and key performance indicators customized to their needs. That means carriers need to have the resources and capabilities to provide those technology solutions.

Has there been a downside to technology? Oh, yes. I think there was a misguided idea that all you needed was technology and that technology alone would enhance customer service. It used to be that carriers wished that technology would develop to augment their customer service. They expected technology solutions to support customer service. So customer service was more advanced than technology a decade ago. But, here’s what happened: technology leapfrogged customer service and the focus went toward technology and away from customer service. Technology and the laser focus on efficiency it provided hurt the customer experience. It took the personal touch out of it and in many cases customer loyalty was impacted. Today, it is all about the customer experience. The companies that use technology solutions that enhance superior customer service are the ones that are going to be successful in the future. Today, it’s more than just on-time delivery. A delivery can be executed perfectly from a technological point of view, but if the driver doesn’t make the customer feel appreciated, the customer experience falls short. Carriers who succeed will be those that set themselves apart by giving the customer the Wow Factor. It will drive business back to them. That customer experience puts a hook into your customers. It makes it more difficult for them to switch providers. Technology drove the majority of those hooks in the last decade. The companies that enhance that customer experience through technology and personal service will exceed in building those long-term relationships with those companies and buyers in the next decade. You want to use technology for what it’s intended – to streamline processes, to provide better management reports so you can make better business decisions and to provide better controls and tracking. Technology was never intended to take away from the customer experience. It was always supposed to enhance it. Can you leave us with some final words of advice about succeeding in the next few years? My expectation is that that the changing environment will mean rapid growth for those of us in the customized logistics, same-day sector. Companies are going to have to develop business models that provide cost effective, customized solutions. They will need to operate on technology platforms that are flexible to meet the needs of shippers servicing the entire global supply chain. Superior customer experience, technology and same-day delivery will be the expectation and become the new norm.

DOUGLAS WAGGONER CEO Echo Global Logistics

Douglas R. Waggoner has served as Chief Executive Officer since December 2006 and has been a Board member since February 2008. Prior to joining Echo, Mr. Waggoner founded SelecTrans, LLC, a freight management software provider based in Chicago, Illinois. From April 2004 to December 2005, Mr. Waggoner served as Chief Executive Officer of USF Bestway, and from January 2002 to April 2004 he served as Senior Vice President of Strategic Marketing for USF Corporation. Mr. Waggoner served as President and Chief Operating Officer of Daylight Transport from April 1999 to January 2002, Executive Vice President from October 1998 to April 1999, and Chief Information Officer from January 1998 to October 1998. From 1986 to 1998, Mr. Waggoner held a variety of positions in sales, operations, marketing and engineering at Yellow Transportation before becoming Vice President of Customer Service. Mr. Waggoner holds a bachelor's degree in Economics from San Diego State University. Doug will be presenting at eft’s12th Annual 3PL Summit in June.

Large shippers focused on e-commerce are changing the face of same-day. What are the challenges and opportunities in dealing with this new trend? The biggest challenge that’s still ahead of us with the same day trend is the need for newer distribution centers or stores in the middle of population centers. It’s still in the early adopter/demand stage for most retailers. For retailers that are going to embrace it, it means a completely re-configured supply chain and that presents a huge opportunity for more flexible/asset light companies and 3PLs to help them with the transition. It’s going to be even more pronounced in the first few years as retailers learn the right inventory levels at various distribution centers. It will take a while to get to predictable stocking, which is an even greater short term opportunity for traditional 3PLs. The other big challenge and opportunity is the need for a new class of heavily urban, small parcelcentric, transportation service and network to enable same day delivery. Some retailers like Amazon are growing their own, but most of their smaller counterparts will rely on third parties to provide and co-ordinate that service. Ecommerce and the escalating demand of same-day delivery seem to be a trend that has been covered extensively. What else is on the horizon in this industry? The two big things we’re keeping our eye on - that could have a profound impact on supply chain and freight flows are: a) personalized design that manufacturing automation is enabling – manufacturing automation and robotics have reached a tipping point and the desire by retailers to provide a customized “designed by me” experience to consumers will have a profound impact on freight flows. It has the potential to significantly accelerate re-shoring, resulting in the need for redesigned transportation and distribution networks to route materials to manufacturing facilities as well as for getting finished products to consumers. b) multi shipper collaborative freight movement – this is the next frontier in reducing empty miles and thus driving cost out of transportation for shippers. Enabled by technology, this is where multiple shipping companies “share a truck” to deliver shipments.

Talk to us about the impact of technology In the last 10 years when internet and mobile technologies finally went mainstream in transportation, the industry has been dramatically impacted by technology. I can recap major changes from virtually any aree of the transportation process – from self- service online rate shopping all the way to tracking shipments and to mobile and/or electronic PODs. Technology has fundamentally changed the business and economics of freight brokerage. We can discuss that for hours. However, the most interesting aspect of technology that isn’t talked about enough is the impact it has had to the skillsets and quality of people that are now being attracted to the industry, right from CEO down to an entry level recruit. The brokerage segment specifically is no longer your traditional semi-blue collar workplace. We look at the operation at Echo, for example, from the same lens as you would look at a financial brokerage. Technology has changed the focus of this segment into requiring people to be more information managers and traders than just enablers of a shipper/carrier transaction. So in a sense we’ve seen the entire job profile, hiring strategy and retention methodologies of a transportation client analyst change in the past 10 years, and Echo has been at the forefront of that. We wouldn’t have scaled to being the operation we are so quickly without it. Has there been a downside to technology? We recognized very early on that the power of our self-service technology had the effect of decreasing consultative engagements with our clients. That’s still best served by having our freight experts talking to our clients. The biggest things that we design our systems and CRM for are to ensure that our technology doesn’t cause our people – which are our greatest strength - to lose touch with their clients most of which transact their business electronically. One downside to technology of late has been the ease with which anyone with even basic technology expertise can pop up a freight shipping website and with light marketing, start to attract a few clients. Most established 3PLs have the Brand preference resulting from the logistics expertise of their people and capital investments necessary to deliver solutions across multiple modes and to provide quality controls to ensure the best service for clients on an on-going basis. Can you leave us with some final words of advice about succeeding in the next few years? For our industry to continue to grow and for Echo to be well-positioned for success in the future it is important that we continue to build solutions and invest in technology. By uncomplicating the shipping needs of our clients through our technology and people, and building our relationship with asset-based providers we can add tremendous value as a third party logistics provider.

SCOTT MCWILLIAMS Executive Chairman and CCO OHL

Scott McWilliams currently serves as the Chief Customer Officer and Executive Chairman of the Board at OHL. In his 23 years with OHL, he has served as Site Manager,Vice President of Operations, President, and CEO. Prior to joining OHL, McWilliams worked for the Kroger Company and Super X Food and Drug for nine years in a variety of positions in logistics and supply chain management. McWilliams is an active member of CSCMP, and WERC. He is a Director of the Nashville Branch of the Federal Reserve Bank of Atlanta, and on the editorial advisory board of DC Velocity magazine. He is currently the Chair of the Government Affairs and Diversity Council Committees for the International Warehouse Logistics Association (IWLA). He was also past President of the Southeastern Warehouse Association. Currently, McWilliams serves on the board of directors of the IWLA, Tennessee State University Supply Chain Board, the University of Tennessee Global Supply Chain Advisory Board, Alive Hospice and United Way of Metropolitan Nashville. McWilliams is an elder at First Presbyterian Church, and has previously served on the Boards of the Warehouse Education and Research Council, American Red Cross, Second Harvest Food Bank, QPSI, Jobs for Life and Habitat for Humanity. McWilliams has a B.S. in Logistics from the University of Tennessee. Scott currently resides in Nashville, Tennessee with his wife Leslie, and has two sons. Hayes is employed with HP in Atlanta, GA, and Douglas is a junior at the University of Georgia. Scott will be presenting at eft’s12th Annual 3PL Summit in June on the nature of the LSP– Customer relationship.

Large shippers focused on e-commerce are changing the face of same-day. What are the challenges and opportunities in dealing with this new trend? Obviously the cost of shipping same-day is high and studies show that consumers are more interested in free shipping than they are in fast shipping. It is my understanding that most consumers today are only willing to pay about a $6 premium for a same day shipment relative to the cost of next day or two day service. For retailers to compete with e-tailers on same day or next day service they will probably have to better utilize all of the assets that they have at their disposal: distribution centers, cross docks and bricks and mortar stores. Ecommerce and the escalating demand of same-day delivery seem to be a trend that has been covered extensively. What else is on the horizon in this industry? The evolution of regional small parcel carriers is the newest trend and offers some compelling value propositions in most regions of the country. With retailers having the need to get their products closer to consumers, there is a dramatic increase in the value of using regional small parcel carriers to get their products closer to the ultimate consumer quickly, while maintaining a high level of customer service at a very reasonable cost. Talk to us about the impact of technology Technology is the backbone of serving omni-channel clients. Since mobile commerce is growing faster than desktop and bricks and mortar commerce, consumers want to know instantly if the product is available and that the shipping window can be clearly defined. Mobile commerce is going to be the primary means to shop in the next 5-7 years. Inventory visibility has been the Holy Grail in our industry and it will continue to increase in importance. All carriers will eventually need to have the type of event driven tracking that the primary small parcel carriers have had for years. I recently ordered a piece of exercise equipment for home delivery and was amazed that even though I paid the freight, it took three weeks to receive the item and all of the correspondence regarding the delivery was done via the telephone. It was quite a disappointing customer experience! Can you leave us with some final words of advice about succeeding in the next few years? I think it is extremely important for companies to be nimble regarding their IT strategy. There are varying views regarding where our industry is headed, but the ability to turn on a dime with regard to technology decisions will give many companies the greatest opportunity for success.

Explore more changes, challenges and opportunities at the 2014 3PL Summit…

Internal to the Business – Strategize and Discuss key themes on how to gear your business towards a profitdriven future

 Growth  Using Technology as a Differentiator  Rethinking the Business of Logistics  Commoditization  The CFO  The SME 3PL Personal – Find out how you, your team and your organisation can improve through talent, personal development

 Rising up Through the Ranks  Change Management  Personal Development Critical and Visionary Logistics Topics, Dis-  Women in Logistics cussed Interactively and Candidly With The Leaders in Logistics Including Scott, The Logistics + Customer Relationship – The very Chuck and Doug... latest thinking on shipper – logistics relationships

External to the Business– Learn from experts and debate topics external to your logistics business

 Market Conditions

Case Studies - Find out how your peers are collaborating with their customers to produce long-term, mutually beneficial relationships

Theory – Learn from industry experts on how you can change your approach to your customers to create long-lasting relationships and find out what strategies you can implement to set yourself apart from the competition

 The Future of the Industry  The Regulatory Climate  Acquisitions and Private Equity

Shippers – Hear directly from shippers and understand what's behind their choices. Ask them directly how you can win their business

 Emerging Markets  Latin America Focus Session  Regional roundtables Asia, Latin America, Eastern Europe

 Emerging Technology – 3D Printing, 4D printing,

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