The expert is the current Global Head of Logistics at John Deere, where he reports directly to the VP of Supply Chain and oversees a $4 billion logistics spend. With half of John Deere's sales occurring outside the US, the expert brings a solid understanding of global supply chains. His key 3PL carriers in the US include asset-heavy companies such as XPO, Old Dominion, and FedEx, with regional players involved as well. Internationally, he works with Mainfreight in Australia/New Zealand and Europe.
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National players like Old Dominion and XPO often don't compete well on my first component, service level. They also don't often compete as well on cost, my second component. Quality, which I define as Over Shortage and Damage (OS&D), can be a wash. In our experience, when you have these tight regions where you're running, let's say, 500 miles or less, the larger guys can handle it, but they don't perform well enough on service and cost.
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There could be several reasons. Regional local players have been operating in those spaces for so long that they've mastered the 500 miles or less segment. Anecdotally, they tend to care more for their larger customers because they rely on them a lot. On the other hand, larger LTL carriers wouldn't be significantly affected if they lost a client like John Deere.
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When we plug in the orders of the day, certain LTL carriers are more competitive in certain lanes. If we just gave that to one carrier, they would essentially build out what works best for their network into the pricing for us, and we would lose the value.
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The expert is the current Global Head of Logistics at John Deere, where he reports directly to the VP of Supply Chain and oversees a $4 billion logistics spend. With half of John Deere's sales occurring outside the US, the expert brings a solid understanding of global supply chains. His key 3PL carriers in the US include asset-heavy companies such as XPO, Old Dominion, and FedEx, with regional players involved as well. Internationally, he works with Mainfreight in Australia/New Zealand and Europe.
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