columbian q4 2015 newsletter

Happy Holidays

This is a season of reflection for many, a time to look back over successes and struggles and apply those lessons learned to planning for the New Year. As Columbian Logistics Network moves forward in pursuit of its mission and vision, we must reflect on and recognize the partnership with both our customers and employees. It is with deep gratitude that we thank our customers for the opportunity to support their business goals, and heartfelt thanks to all of our dedicated employees for their contributions to our success.

REFLECTION, GRATITUDE & FOCUS

CONTENTSLETTER FROM EVP 1SHIPPER OF CHOICE 3BUILDING A CULTURE OF SAFETY 4GAMBLING ON SPOT FREIGHT 5EMPLOYEE UPDATES 6EVENTS CALENDAR 7LEGENDARY CUSTOMER SERVICE AWARD 7

Doug Johnson, EVP

Building A Culture of Safety pg. 4

GREATSHIPPERS

I

QUARTERLY NEWSLETTER

Shipper of Choice:Develop better relationshipswith your carriers. Page 3

A QUARTERLY NEWSLETTER PUBLISHED BY COLUMBIAN LOGISTICS NETWORK

WAREHOUSING | TRANSPORTATION |FOOD LOGISTICS | MANUFACTURING LOGISTICS

WWW.COLUMBIANLOGISTICS.COM

ISSUE

69 Q4, 2015

Columbian-Q4-15-Newsletter.indd 1 12/9/2015 3:40:24 PM

SHIPPER OF CHOICEMaking life a little easier for Carriers can have big benefits for shippers. Learn how you can become a Shipper of Choice.

Network Newsletter2


SHIPPER OF CHOICE FOCUSING ON CARRIER RELATIONSHIPSTight capacity has made the relationship between shippers and carriers a two way street. Shippers may go to the marketplace to search for carriers, but with more freight to choose from, carriers are in a better position to turn away work that may generate extra headaches. To make sure you aren’t left scrambling to book loads, it’s time to focus on becoming a ‘Shipper of Choice. A shipper of choice is a strategic partner, aligning their business goals along with that of their carriers for the benefit of both. Focusing on finding compatible carrier partners, developing good communication and helping make life a little easier for drivers will grow priority relationships with carriers and avoid uncertainty.

It’s Not You, It’s Me: Determining GapsShippers who do not invest the time or effort to build mutually beneficial relationships with carriers can often experience intermittent equipment availability, pricing fluctuations with the spot market, and overall uncertainty when seasonal volume spikes. To avoid these pitfalls, shippers must analyze what their current practices are and look for gaps in order to set up corrective actions. Shippers can begin by sitting in the shipping office. Take a look at how your front-line employees are treating the drivers who come and go to and from your facility. Note how long it takes to process a load. Look at the area where the driver waits for his load. Listen to the conversations that happen. You’ll learn a lot, we promise! Next, review your payables. We all know that payroll and Uncle Sam are typically the first to get paid in any business, but are you putting off those freight bills for an extra week? Is the carrier being pushed to the side to pay for that new office renovation instead? Shippers must also review their carrier contact list. Does your organization have contacts at 3 different levels of the carrier company? If the clerk and the driver know each other by name, the sales person and your traffic manager meet for a review every month, and your CEO meets with theirs for lunch once a quarter, then you’re probably in pretty good shape. If not, then what can you do?Finally, talk to your IT department and bridge the gap between the operational flow of freight and the electronic flow of data. Is that a cumbersome process for either side? Is one department working extra hard to make up for a deficiency on another side? Becoming A Shipper of Choice: Tactics & StrategyIf you or someone in your organization goes through this analysis, and finds that there are gaps between your habits and those which are considered “preferred,” there’s no need to panic. There are some simple tactics any business can do in order to quickly improve its status with carriers. The first is known as load leveling. Smoothing volumes throughout the week can allow for significantly more predictability on the part of the carrier, which can drive both capacity improvements

and lower costs. Second, think about the physical properties of your freight. If your product overhangs the pallets or slip sheets, then carriers may be more fearful of damage to your product. Getting the right pack sizes and packaging materials can go a long way toward improving load turnaround times at the dock. Finally, it all comes back to communication. The fewer surprises there are in a system, the better off both parties will be. If you have a requirement that super sacks of food ingredients can’t ship on a trailer with wood sides, then it’s important to make that clear before you go to market for capacity and pricing.

These tactics are a good start and important component of a long term strategy for positive carrier partnerships. The foundation for carrier interaction should be built around frequent, open, and honest communication. This communication should come on a “3by3” basis, with persons from multiple levels of each organization building productive

working relationships. A common platform will enable good communication, and in many cases can be a Transportation Management System (TMS), or an integrated Electronic Data Interchange (EDI) platform. In lower-tech cases, that platform could be a standardized spreadsheet shared between the two organizations on a regular basis. In any case, that platform should allow for clear transfer of data and confirmation in both directions. The last component, and most

universal of any transactional relationship: pay on time. A customer who pays on time with minimal administrative burden is going to get the next available load nearly every time.

Respecting Drivers: Walking the TalkThe driver is the touch point in any transportation relationship and quite literally, where the rubber meets the road. Respectful treatment is not just the lack of mis-treatment, but rather treating the driver for what he or she is: a trained professional performing a critical service. Many shippers have improved driver lounges, provided free wi-fi, and provided other amenities to make their docks the most desirable in the business. Drivers like to work with people and in places that treat them with respect, just like anyone would.

Having a reputation as a partner that carriers want to work with takes time and some amount of effort, but the return on your investment will more than offset the cost. If you take a good hard look in the mirror at how you work with your carrier base and find that you are could use some help, take comfort in the fact that help is out there. At Columbian Logistics Network, Shipper of Choice in today’s tight-gripped marketplace… and we can do it before you find yourself with uncovered loads at your busiest season, or paying spot-market rates.

Questions about becoming shipper of choice? Contact Blair Thomas, [email protected]

A shipper of choice is a

strategic partner, aligning their business goals along with

that of their carriers for the benefit of both.

3Network Newsletter


COLUMBIAN LOGISTICS CORE VALUES BUILDING A CULTURE OF SAFETY

Columbian Logistics Network operates under five core values, which “…determine how we run our company, how we do our work, how we deal with people, and what customers can expect of us.” The principal value, Safety, is two-fold, both promoting the well-being of our employees as well as the integrity of our customers’ products. Columbian has built a culture of safety into the very fabric of its operating standards, and has been recognized in recent years with the MSHARP designation at two facilities.

ROI of SafetyAccording to OSHA’s 2014 statistics report, while the national average across all private industries for nonfatal occupational injuries is 3.2, the Warehousing and Transportation industries come in well above with 5 and 4.5 respectively. The nature of the work is very physical, involving heavy equipment and a fast paced environment, providing more opportunity for accidents. Operating for over 100 years, Columbian Logistics as an organization has enough experience to know that promoting safety has a tangible return on the investment in time and effort . Creating that environment begins at the very root of the company’s operating structure. A Safety and Compliance Manager, Linda Karel, oversees all safety initiatives for both warehousing and transportation operations. She meets with facility managers monthly to review safety procedures and initiatives, as well as to conduct inspections. Each facility also has its own safety committee that meets to discuss concerns as well as corrective and preventative actions. “We are committed to providing a safe work environment because a safe workplace allows people to do their best work. Employees can focus on their job without worry of injury, and that is a win for everyone,” notes Karel.

A Structure Built For SuccessColumbian Logistics also formed an exposure mitigation team, formed with members from across management and operations, who meet to discuss risk across all facets of the company, including equipment, financial security, facility maintenance as well as operational safety. The activities of both the safety division and the exposure mitigation group are proactive, looking for ways to prevent accident and injury. As part of that focus on prevention, Columbian contacted Michigan Occupational Safety and Health Administration (MIOSHA) regarding participation in the Michigan Safety & Health Achievement Recognition Program (MSHARP). The program was created to recognize employers and employees "committed to creating a workplace culture that makes safety their top priority," and provides incentives for those companies that pass the rigorous standards. The process begins with the employer request and application, which initiates a comprehensive consultation including an initial assessment, followed by a report and recommendations. Columbian Logistics Kentwood Campus was the first facility to pass the certification process in 2013, with the Grand Rapids DC following suit in 2014. Columbian is the only third party logistics provider in the state of Michigan to be MSHARP certified.

Columbian Logistics Network’s mission is to improve our customers supply chain, and service that is grounded in safety is more reliable, effective and efficient.

Questions about the Core Values series ? Contact Mandy VanHaitsma @ [email protected]

This is the first part in a series detailing Columbian Logistics Network's Core Values, which will include Legendary Customer Service, Respect, Performance and Agility.

The Columbian Logistics Team celebrating it's MSHARP Certification at the Grand Rapids Distribution Center in 2014

Network Newsletter4


GAMBLING WITH SPOT FREIGHT: RISKS IN QUOTING EVERY SHIPMENT

Are you a shipper who goes to market via freight brokers for freight quotes on every shipment? Are you doing so even if you’ve shipped the same freight in the same lane multiple times every week or month for years? Many shippers believe they are saving money by paying what the marketplace will bear each time they ship a recurrent lane. There are hidden costs in time, money, and risky relationships inherent in this process that offset any potential for savings. Instead of gambling on the spot market, shippers should make an investment in managed solutions and contracted carriers.

Strategic Planning Pays OffManaged solutions and contracted carriers avoid the pitfalls of quoting every load on the spot market by providing stable service agreements and pricing, as well as mutually beneficial partnerships with experienced teams. Managed solution providers are focused on ever-shifting market conditions like seasonality, regulatory and even weather (think Winter 2014 disruptions) that can impact your freight movements. Providers invest in the tools to extend visibility across freight spend, helping shippers capitalize and leverage historical data toward lower costs and increased efficiency. Tapping a provider with these duties allow customer service resources to take freight out of their job description and focus on increasing order volumes and managing clients needs. Other benefits include:

Total Landed Cost: Whether or not you have a 1 day, 1 week, 1 month, or 3 month sales cycle, wouldn’t be nice to know the cost of freight before the sale is made to protect margin? Accruing / Budgeting Freight Costs: You have a new client whose business will greatly expand the geographic footprint to which you ship, you can predict freight costs before committing to your sell price. Budgeting freight dollars in advance is a great way to project financials 3-6 months in advance if not farther.

Capabilities and Service Levels Agreements: Contracted pricing and accessorial charges allow for a course of action when service fails; Become a shipper of choice – Consistency in freight volumes makes you a preferred client rather than a one-off spot market shipper.

Accountability: Single sourcing allows for efficient management of all carrier/providers via a single accountable resource. KPI creation, monitoring, management can allow for dynamic monitoring and corrective management that can extend up (to vendors) and down to warehouses or clients.

Investing the time and effort to develop a long term transportation strategy with experienced partners will provide savings and increase efficiencies, and odds are, those companies will have more time to focus on driving success.

Questions about Transportation Management? Contact Paul Laidler @ [email protected]

Quoting every shipment? Why? Evaluating your processes can help avoid hidden costs and reveal hidden efficiencies.

Costs of Playing the Spot Market

TimePerforming these tasks can lead to a tremendous amount of time wasted: Creating, publishing, waiting for quote responses. Labor Inefficiency: why have your most valuable CSR chasing freight dollars and trucks when they could be managing your most important client relationships and their orders.

Money Many transportation markets and submarkets (National, Regional, Local) exist, each with their own subtleties that impact freight rates. Tracking rate increases in all markets when bidding every move becomes untenable, and shippers can fall prey to opportunistic pricing. Further, if you have strict requirements on trailer specifications for your freight, what is the cost of late trucks and incompatible equipment? Often these service failures lead to increase labor (OT) and utilization in warehouse and distribution area, and longer order to ship cycles.

Risky RelationshipsEntrusting your freight and your customer’s orders to the lowest bidder, when the depth of a brokers relationship only goes as far the $50 in margin on any given shipment, how do you know that they are willing protect your interests? Are they willing to extend services or absorbing additional costs in doing so?

5Network Newsletter


Lead Generation ProgramThe lead generation program is a way for employees as individuals to contribute to the over-all success of Columbian Logistics by identifying potential new business opportunities.

1See An Opportunity?Someone who needs transportation or warehousing?

Submit the lead online or by phone or email to Sarah Mosher-Byer.

2If your lead is

QUOTEDIf your lead PRODUCES REVENUE3

Submit Leads Online: www.columbianlogistics.com/leadsContact Sarah Mosher-Byer at 616-514-1904 or [email protected]

1. Don't Bank CaloriesSkipping meals to 'save up' for a big holiday meal will lead to pigging out. Eat small meals to feel satiated ahead of your party.2. Stay Active!Staying active is a gift you give to yourself! Go for a walk at lunch, jog after work, take a fun class like zumba or join a dodgeball league. Staying active will help you feel great, mentally and physically.3. Enjoy Yourself With Portion ControlIf you have dreamed about Grandma's green bean casserole for 360 days, tear it up my friend. But watch your portion sizes and you can enjoy your meal without loading up on calories.4. Fiber Is Your Friend: Hit That Veggie TrayFiber will help you feel full, and veggies are packed with nutrients and low on calories. Just watch your dip to veggie ratio...if someone offers you a carrot to go with your dip, recalibrate.5. Drinking ALL THE CALORIESA mug of something warm, sweet, and covered with toffee sprinkles will probably save your life at some point this holiday season, but remember drinks like smoothies, lattes and frappacinos can pack almost a whole days worth of calories, so make them an occasional treat.

DEC.30th Final Weigh In

Network Newsletter6

Company Wellness Fun Staying FitTeam members got outside on a beautiful day for an active afternoon of cornhole to help promote wellness.

Hold It For The Holidays Challenge Tips To MaintainColumbian Logistics employees participating in the Hold It For The Holidays Challenge will be weighed in on December 30th to see if they maintained or lost weight over the holidays. Below are some tips for a healthy holiday!


Events CalendarColumbian Logistics Network will attend the highlighted events.We look forward the the opportunity to connect, and encourage you to contact Blair Thomas, Director of Customer Care at [email protected] or by phoneat 616-514-5977 to schedule time to meet.

American Manufacturing Summit 2016 Feb 29 - Mar 1 Chicago, IL manusummit.com

Manufacturing Leaders Conference Feb 18 Traverse City, MI mimfg.org

Michigan Agri-Business Association Jan 11-12 Lansing, MI miagbiz.org

Customer service

est.1894

Legendary Customer Service The Award Winners

THOUGHT LEADERSHIP EXPANDING OUR MESSAGE AND BUILDING MOMENTUMColumbian Logistics Network's sales and marketing team had a busy fall with activities ranging from trade show sponsorship and exhibiting to hosting its second webinar and speaking at the SQF International Convention. “It’s been a great year for Columbian, we’ve had some excellent opportunities to speak to new audiences at the SQF Conference, as well as further establishing our experience amongst peers at the WERC conference. The introduction of webinars to our channel mix will also really help to expand our brand awareness and thought leadership. We’ve been hard at work planning activity for 2016 that will build on this year’s momentum.” Said Marketing Manager Mandy VanHaitsma.

7Network Newsletter

The Legendary Customer Service Award was created to promote and recognize employees who exhibit the 'Whatever It Takes' ethos in their work.

The Legendary Customer Service Award is the highest honor a Columbian Logistics Network employee can receive. The award is given quarterly to two employees, one nominated internally

and one externally by a customer or partner business. This quarter, Steve Humphreys received that honor through a direct nomination from a customer. At the time, Steve was working on second shift in our Grand Rapids DC, and was instrumental in successfully completing a heavy volume period for his primary customer. Steve, who has since moved to first shift, was praised for demonstrating Columbian’s agility through successfully helping manage situations when the customer required “general “Plan B” scenarios when we have product availability issues and need to rework loads.” Great job Steve, and best of luck in your new role!

“In my opinion, Brian Dahl is the definition of Legendary Customer Service. Brian gives his all every day for every customer. Because of his attention to detail, Brian caught a labeling error that could have caused a big headache for our customer. The customer, who has only been with Columbian for a month, was very happy to be notified that the error was found and corrected at the warehouse instead of shipping incorrectly to their customers. A big thank you, and job well done to Brian!” These kind words are high praise for Brian Dahl, a warehouse lead in Columbian’s Grandville DC and our internal LCS award winner. Brian was nominated internally by Theresa Zarnowski, a longtime coworker in the office who is particularly sensitive to the customer experience. Congratulations Brian!

If you have experienced Legendary Customer Service from a Columbian Logistics employee, please let us know! Contact Jilia Hagen

at [email protected] or by phone 616-514-1934

Facility Manager Tami Binkowski & Brian Dahl

Steve Humphreys & VP Jim Gadziemski


Address information MUST be in this areaminimum dimensions 2x4 inches

Final Fold

Lead

ing

Edg

e

8.5x11 spread

8.5x5.5 Front Panel

8.5x5.5 Address Panel

Prsrt StdUS Postage

PAIDGrand Rapids MI

Permit 1

Return Address

GREATSHIPPERS

I

Becoming A Shipper Of Choice

4www.columbianlogistics.com Phone: 1-888-609-8542

LETTER FROM CEO 1ORGANIZATIONAL UPDATE 2POOL DISTRIBUTION 3WALLS TO WHEELS 4EMPLOYEE UPDATES 6EVENTS CALENDAR 7LEGENDARY CUSTOMER SERVICE AWARD 7

2900 Dixie Ave SW Grand Rapids, MI 49418

A QUARTERLY NEWSLETTER PUBLISHED BY COLUMBIAN LOGISTICS NETWORK

WAREHOUSING | TRANSPORTATION |FOOD LOGISTICS | MANUFACTURING LOGISTICS

WWW.COLUMBIANLOGISTICS.COM


columbian q4 2015 newsletter

Documents