Echo Global Logistics

SUPPLEMENT SPONSORED BY ECHO GLOBAL LOGISTICS

SPECIAL REPORT THE FUTURE OF TECHNOLOGY Q&A WITH ECHO CHAIRMAN & CEO DOUG WAGGONER

SPECIAL SUPPLEMENT L LICENSED TO SERVE 0 3P3PLSP TOPP 10110 LOGISTICS

SUPPLY CHAIN STATE

HIT THE BRAKES! THE VOTES ARE IN: ECHO WINS AGAIN!

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Online LTL shipping now easier than ever Cutting-edge, self-service portal Quote, book, ship, track, and pay faster than ever before Backed by intelligent pricing All load documents in one place Award-winning service and support

Learn more by visiting www.echo.com/echoship

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2 7 READER’S CHOICE: 5 THINGS YOUR 3PL TOP TEN 3PL REP SHOULD BE EXCELLENCE AWARDS DOING FOR YOU Our audience has spoken. These To help select the best are the 3PLs that nabbed their transportation providers for votes and earned a spot on this any business, Sean Burke, Chief prestigious list. Commercial Officer, narrows down the top five services a 3PL rep 4 should perform. THE FUTURE OF LOGISTICS 8 TECHNOLOGY SPECIAL THE TOP 100 3PLS A Q&A with Echo Chairman and 3PL EDITION CEO Doug Waggoner looks at the Inbound Logistics’ annual directory future of logistics technology and highlights the best and brightest what Echo Global Logistics brings 3PL service providers. to the table for shippers and carriers. 10 3PL POWER 6 Whether brand new, solidly up and 5 REASONS OUTSOURCING running, or decades old, shipper- TRANSPORTATION 3PL partnerships thrive on open MANAGEMENT WILL communications, flexibility, and trust. IMPROVE YOUR LOGISTICS OPERATION Mike Mobley, Senior Vice President 12 of Operations, discusses how DIGITAL JOURNAL outsourcing to a qualified third- RESPONSES party logistics provider helps keep companies moving in the right Doug Waggoner addresses the direction evolving role of supply chain technology in meeting customer expectations.

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[SPONSORED SUPPLEMENT]INBOUND LOGISTICS

ANDHE T 3PLS WINNERS ARE: 1 ECHOLOBAL G LOGISTICS

2 TRANSPLACE EXCELLENCE AWARDS 3 HUBROUP G

OUR AUDIENCE HAS STAMPED IT LICENSE-PLATE OFFICIAL: THESE TOP-TIER THIRD-PARTY LOGISTICS PROVIDERS DESERVE 4 ACCOLADES AND THE DISTINCTION OF BEING A TOP 10 3PL. C.H. ROBINSON

his year more than 18,000 ballots— signals and delivery deadlines. This applies an all-time high—were cast. The 3PLs to all verticals and links in the supply chain. 5 T KENCO garnering the most votes in our Readers’ Nearly all facets of the supply chain Choice Top 10 3PL Excellence Awards are represented in our survey, which drew survey received effusive praise, with responses from varied verticals—consumer voters listing the attributes that equate packaged goods, pharmaceutical, home 6 to excellence: attentiveness, reliability, appliances—and diverse job titles— WERNER flexibility, and ability to execute. from procurement to transportation Being able to execute is key when the management. (See About the Survey supply chain is dynamic and demanding. Respondents on the next page.) 7 By handling a portion or all of a company’s Voters include supply chain decision- (tie) transportation and logistics operations, 3PLs makers from well-known brands such as deliver the goods. Avon, Best Buy, Costco, Dow Chemical, DHL SUPPLY CHAIN General Mills, Google, Macy’s, Nestle, GLOBALTRANZ GETTING IT DONE Nike, Toyota, and Whirlpool. Says one voter of top spot holder Echo SERVICE REIGNS SUPREME Global Logistics, “Without them, I could 8 not get my job done.” With goods flowing Without question, shippers value SUNSET and supply chains humming, companies service—80% of respondents rate service TRANSPORTATION can turn their attention to what they as more important than price. This is do best—customer service, production, an increase from last year when 75% and profitability. indicated they prioritized service over 9 3PLs also help shippers manage price. Only 20% say price is their main (tie) information, along with their goods. consideration. Forty-four percent rate Our 3PL Perspectives report underscores poor customer service as the reason 3PL SEKO LOGISTICS a key value they bring—technological partnerships fail. PENSKE LOGISTICS expertise. They leverage technology to Year after year, the IL 3PL survey reveals manage shippers’ operations and deliver the key role customer service and execution efficiency-boosting insights, as well as play in shipper supply chains. The most provide IT solutions that customers can laudable providers offer innovation, 10 use in house. technology solutions, and the global R2 LOGISTICS Information management is crucial connections necessary to keep shipments when shippers can’t afford to miss demand moving. n

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3PLS

ECHO GLOBAL LOGISTICS EXCELLENCE AWARDS

IN THEIR OWN WORDS 1 Echo Global Logistics offers accountability and personalized customer service. CavClear

WHY THEY WON:

Echo combines service of choice and continue to for improvement in a truly Doug Waggoner Chairman & CEO and technology to create do what’s best for their consultative manner.” impressive, customized third- business,” he adds. Echo prioritizes ensuring party logistics solutions for Steven Judge, senior high-quality customer service each of its customers. manager at Newell Brands, and results. “Echo sets itself “At Echo, we put a praises the 3PL for providing apart by solving the complex premium on technology and accurate, reliable, and challenges that shippers and customer service in order proﬁtable results. “Our carriers face in the market,” to meet the complex needs relationship with Echo began says Waggoner. “Whether of this highly competitive, with the goal of helping us that’s addressing a lack of CLIENT ROSTER: rapidly expanding industry,” simplify our transportation visibility into their supply • Archway says Doug Waggoner, management and has grown chain or providing more • Culligan International • Greenheck chairman and CEO. to include a deeper analysis robust, data-driven reporting, • Johnstone Supply “Our employees follow of our shipping operations,” the company ensures its • Monster Beverage • Stonecrop Technologies through on Echo’s promise he says. “Echo acts as a true customers have the tools and • Newell Brands to simplify transportation partner, always keeping reliable support they need • Taraca Paciﬁc management, helping our our best interest in mind. to meet their transportation clients become a shipper They come to us with ideas management goals.”

ABOUT THE SURVEY RESPONDENTS WHAT IS MORE IMPORTANT? Price FUNCTION SERVICES READERS BUY 20%

Corporate management 34% Motor freight (TL/LTL) 82% Service Logistics/distribution 24% Third-party logistics (3PL), 80% contract logistics 77% Supply chain/purchasing/ supply management 19% Small package delivery, WHAT IS THE #1 REASON 3PL expedited freight, express services 72% Transportation management 12% RELATIONSHIPS FAIL? Warehousing and distribution 67% Operations 11% Supply chain technology, 44% software/systems 56% Poor customer service INDUSTRY Air freight 48% 22% Retail/e-commerce/wholesale 44% Rail, rail intermodal 46% Failed expectations Manufacturing 38% International shipping, freight forwarding 45% 11% Services 18% Ocean, ocean intermodal 38% Other Materials handling systems, 10% equipment, forklifts 35% ANNUAL TRANSPORT/ Cost LOGISTICS SPEND Site, port, or facility selection 29% 6% $10-$49 million 46% Fleet operations, More competitive options dedicated contract carriers 26% More than $50 million 23% 4% Transportation equipment 20% $1-$10 million 21% Cultural dissimilarities Packaging/labeling systems 10% 3% Less than $1 million 10% Loss of control

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LEADERIP SH Conversations with the Captains of Industry

The Future of Logistics Technology

IL: What is Echo’s perspective on technology for logistics? At Echo, we believe in technology’s potential to simplify transportation management and continuously improve efficiency. That’s been our goal since we rolled out our technology 15 years ago. When we were founded in 2005, the industry was extremely fragmented. As an innovator, Echo has set ourselves apart by offering best-in-class technology to allow transparency and visibility for shippers. We’re constantly looking for ways to continue to disrupt the shipping world for shippers, carriers, and our employees. Today we continue to have technology at the core of everything we do.

IL: What are the key benefits of Echo’s technologies? Echo’s technological advancements over the last 15 years enable us to serve shippers and carriers in new and better ways with improved productivity, predictive analytics, and enhanced freight visibility. Our multi-modal capabilities allow us to serve small and medium-sized businesses, as well as Fortune 500 Recently, Inbound Logistics shippers, across the U.S. In addition, our strong relationship with our carrier network provides reliable access to capacity to sat down with Doug Waggoner, serve our shippers’ needs. Chairman of the Board of IL: What technology does Echo offer? Directors and Chief Executive Our latest technology platform, EchoAccelerator, supports Officer at Echo Global Logistics over 16,000 shipments a day and is the proprietary architecture that powers EchoShip, our self-service shipping platform, and for a Q&A. EchoDrive, our carrier facing web portal and mobile app. We’re simplifying the freight marketplace with solutions that address our clients’ and carriers’ needs, while increasing the productivity of our employees.

IL: Tell me about EchoShip for shippers? EchoShip, our online shipping portal, consolidates and simplifies shipping by enabling customers to build loads, store frequently used shipment information, and track shipments in real time. Shippers can also search, view, and pay all invoices using EchoShip.

IL: Tell me about EchoDrive for carriers? EchoDrive, our dispatcher portal and driver app, gives carriers real-time access to search, bid, manage, track, and

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get paid on available loads. It gives dispatchers the ability to manage loads and drivers from one centralized location, What Sets Echo Apart? while letting drivers provide real-time tracking and submit The Echo Brand Promise. We simplify documents quickly, allowing for faster payment. transportation management, handling crucial tasks so clients can focus on what they do best. IL: Is Echo a tech company or a broker? Clients, carriers, and Echo team members enjoy an As I like to say, we are a technology company that happens to be in logistics. Our roots were in technology. This has exceptional experience grounded in the Echo Way. helped us evolve to keep up with the changing landscape and Better Technology. The heart of our offering is we continue to invest in our technology development. our proprietary technology—quickly adaptable, highly scalable, and uniquely easy to use for clients IL: Is Echo a digital freight marketplace? and carriers. Through efficiently integrated portals, I think that Echo, along with a couple other companies, we ensure better data collection and transmission, was one of the first digital freight marketplaces. There are a seamless communication, comprehensive reporting, few large competitors in our space, and all of us have been and real-time visibility. investing in technology for a long time. We built a lot of Expert Logistics Professionals. Echo has the scale, which matters in this business, as does lane density. We best people in the business, a team of energetic, have big IT and data science budgets. Everyone is enamored enthusiastic, expert logistics professionals determined with these new start-ups and that is fine, we were once a to deliver the highest quality service experience. With start-up, too. But to get overly enamored and think that some outstanding coverage, we help ensure your goods of the big companies in our space are not applying massive arrive where and when you need them, whatever the amounts of technology and data science to an existing mode. marketplace that has tens of thousands of participants is a Exceptional Service. Above all, Echo values huge oversimplification. exceptional service in every client interaction. We recognize that one solution does not fit all, so IL: What are your thoughts on the new entrants to the space? we evaluate your transportation needs, discover Here is the problem with ‘build it and they will come’ -- it is efficiencies, and deliver the best value for your spend. a very big and fragmented space, with hundreds of thousands Echo ensures you get the transportation management of shippers and carriers. No one company is going to capture solution that’s right for you. and become the de facto market standard. In our case, we have 35,000 shippers and 50,000 carriers, and that only reflects a portion of the market. Our shippers are using multiple forms the success of our model and other companies like us is, in of transportation partners and almost all of our carriers are part, due to the people component of our model and the hauling freight for multiple shippers. It is not feasible that one relationships we built, and the service and solutions we provide. company is going to create a mobile app and website and have That’s why we invest in our 2, 300 employees in 30 branch everyone come running to them. offices throughout the US. At the same time, because of the critical scale we have with size and density, our buying power IL: What role do people play in addition to your lets us be much more efficient. technology offering? I like to say we offer technology at your fingertips…experts IL: Any final thoughts? at your side. In our business, relationships matter. Having a We’ve talked a lot about our technology, but it’s really our relationship with a shipper and solving their problems and employees, whether they are building the technology or using coming through for them when they are in a pinch matters. it, who simplify transportation management for our shippers The same thing happens for trucking companies. We think and carriers.

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5 Reasons Outsourcing Transportation Management Will Improve Your Logistics Operation By Mike Mobley, Senior Vice President of Operations, Echo Global Logistics

s your logistics department ready for growth? Optimizing your transpor- fluctuations, consistent freight prices, I tation operation involves much more than moving freight at the lowest carrier qualification, and technology to price. To drive real innovation and long-term value for customers, many improve carrier communications (such shippers have turned to Managed Transportation services and are seeing as real-time track-and-trace capability) great success. are some of the other ways 3PLs can leverage their own scale to reduce costs So how can outsourcing to a qualified third-party logistics provider and ensure greater capacity for the (3PL) help keep you moving in the right direction? benefit of their customers.

1. GET GREATER FLEXIBILITY AND 3.INIMIZE M OVERALL COSTS 5. IMPROVE CUSTOMER SERVICE TECHNOLOGY You might think outsourcing is more Since every shipper’s main goal is 3PL partners give customers access expensive than hiring and attempting to a high level of service for their end to their resources, which means you’ll handle all logistics functions internally. customer, this too needs to be a focus for benefit from a more extensive technology But companies can lower overall costs any 3PL they work with. An experienced and logistics operations infrastructure. by leveraging the capabilities of a 3PL. 3PL will build and execute a strategy to As one significant example, top 3PL This ROI can come from the provider’s help overcome the challenges of delivery providers are already invested in a expertise at optimizing transportation speed, information flow, visibility, and Transportation Management System planning, sourcing capacity, negotiating delivery accuracy. This can extend to (TMS) or have developed their own to more favorable rate agreements with service reporting and the availability support a shipper’s logistics operations. carriers, and reducing workload for of data analytics for use in tools like This gives their customers access to employees through process automation. Key Performance Indicators (KPIs) and logistics technology most could not Armed with the latest technology, 3PL vendor performance scorecards. afford on their own. providers can leverage the power of As more shippers lean on logistics analytics and reporting to understand service providers to deliver quality, value, 2.OCUS F ON OTHER PARTS OF THE drivers of transportation spend to be able and customer service, 3PL partnerships BUSINESS to spend smarter. 3PL providers can also are built on lifelong strategy, rather than help reduce infrastructure investments With Managed Transportation, a short-term fix. Doing your research and otherwise necessary in software, customers get the best of all hiring the right Managed Transportation personnel, equipment, and facilities. possible worlds. You gain access to service provider will help you get knowledgeable, experienced supply more things done and raise customer 4. ENJOY ECONOMIES OF SCALE chain professionals with specific satisfaction, drive higher profit margins, areas of expertise around industry On their own, many shippers typically and fuel the growth of your business. regulations, modes, carriers, and more. don’t have much negotiating leverage Resources and time once spent trying with carriers—at least not on the scale of to do everything can now be spent on a 3PL. With a Managed Transportation production, marketing, establishing partner, shippers should expect to benefit customer relationships, and developing from their collective buying power new ideas. In other words, leave logistics because the 3PL can secure not just to the professionals so your people lower rates, but capacity at crucial times can focus on building and running when the market is tight. Confident your business. knowledge of the market and its daily

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5 Things Your 3PL Rep Should Be Doing For You By Sean Burke, Chief Commercial Officer, Echo Global Logistics

ou should expect exceptional service from your third-party logistics (3PL) 4. BE AN INDUSTRY EXPERT Y provider, but how do you know you’re getting it? Your 3PL representa- The transportation industry is tive’s main job is to help ensure your supply chain runs efficiently. However, constantly impacted by factors outside without the right communication and technological tools, he or she might your control such as state and federal not be able to help you avoid costly or otherwise preventable disruptions. regulatory changes, weather disruptions, Echo’s approach to transportation management was voted #1 by read- and driver capacity issues. For example, we saw Hurricane Florence affect whole ers of Inbound Logistics in the 2018 Top 10 3PL Excellence Awards for communities in the Southeast and Mid- the second year in a row. Take it from the experts: your 3PL rep should Atlantic, causing road and terminal simplify transportation, not complicate it. To help select the best transpor- closures and extensive damage to tation providers for your business, we narrowed down the top five services infrastructure. Your 3PL rep should have your rep should be performing for you. a knowledge base that’s a mile wide and a mile deep. In other words, your rep 1. OFFER ROBUST, CUSTOMIZABLE information regarding your shipment. should be an expert who offers advice TECHNOLOGY Going above and beyond is a sign of concerning any developments that might The technology your 3PL a great 3PL and a great rep. Whether affect your business. representative utilizes must be robust that means having afterhours support in enough to handle your most complex place or being available through email 5. PROVIDE BETTER OPTIONS transportation needs. Preferably, or phone, your rep should be ready to There’s an ideal mode for every it should be built in-house rather answer your questions day and night, shipment, and it may not be what than taken off the shelf so it can be so that if you encounter any issues you were expecting—in a good way. customized to your specifications. The with your supply chain, they can be Your 3PL rep has access to a wide technology should allow your 3PL to resolved quickly. range of transportation resources. But analyze your transportation practices and providing options is more than offering identify inefficiencies for improvement. 3. SOLVE PROBLEMS QUICKLY different modes. It should measure your performance Timing is everything in logistics. The Your 3PL rep should understand against key performance indicators success of the transportation industry your business, including how much (KPIs), support real-time tracking, hinges on many parties adhering to a flexibility you have regarding pickup and and deliver accurate reporting. Most tight schedule. Your provider should be delivery dates as well as whether your importantly, the technology should drive prepared to handle unforeseen issues. delivery location is open on weekends, continuous improvements to your supply Trucks break down, inclement weather has preferred carriers, or offers extended chain and help make managing your surprises everyone, and traffic is anything hours of operation. Based on this business a lot easier. but predictable. Your 3PL rep has been understanding, he or she should seek a through this before and should be balance between the range of cost and 2. PRIORITIZE COMMUNICATION equipped to offer you the support you service options available and provide You should be able to reach your need to navigate any disruption quickly. unique carrier or modal solutions that 3PL any time—even if it’s 9 p.m. on a If a load is delayed or a shipment is exceed your expectations. All of this Friday. Your rep should be proactive in damaged, your rep should be in contact is part of your rep’s job and should be communicating with you about tracking not just to let you know, but also to offer included in the services you have come updates, load deliveries, and any critical potential solutions. to expect from your 3PL provider.

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3PLS

USE THE 3PL DECISION SUPPORT TOOL INBOUND LOGISTICS SEARCH on any of these data points to match your requirements to the Top 100: bit.ly/3PL-DST PROVIDING INNOVATIVE AND RELIABLE SUPPLY CHAIN SOLUTIONS, THESE THIRD-PARTY LOGISTICS PROVIDERS DRIVE HOME THE GOODS. PRESENTED IN ALPHABETICAL ORDER, THESE ARE THE3PLS 100 3PLS INBOUND LOGISTICS EDITORS SELECTED AS THE BEST OF THE BEST.

ECHO GLOBAL LOGISTICS 800-354-7993 | echo.com

ASSET/NON-ASSET: Non-asset-based AREAS SERVED: US/Canada/Mexico MARKETS SERVED: Transportation LOGISTICS SERVICES: LLP/4PL, Integrated Logistics,EXCELLENCE Omni-Channel Logistics, JIT, Global AWARDS Trade Services, Inbound Logistics, Logistics Process Reengineering, Supply Chain Finance, Vendor Management, Shared Services TRANSPORTATION SERVICES: TL, Intermodal, Fleet Acquisition, Equipment/Drivers SPECIAL SERVICES: Consulting, Sustainability TECHNOLOGY SERVICES: CRM/SRM, EDI, ERP Integration, GTM, Optimization, Predictive Analytics, Supply Chain Design, TMS, Visibility

CRM/SRM Customer/Supplier JIT Just in Time TMS Transportation Relationship Mgmt LLP Lead Logistics Provider Management System DCC Dedicated Contract Carriage LTL Less Than Truckload VMI Vendor Managed Inventory ERP Enterprise Resource Planning PLM Product Lifecycle Management WMS Warehouse Management System GTM Global Trade Management TL Truckload

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AMERICOLD GEODIS INBOUND LOGISTICS APPROVED FREIGHT FORWARDERS GLOBALTRANZ ARMADA HOLMAN LOGISTICS REGAL LOGISTICS ASCENT GLOBAL LOGISTICS HUB GROUP RINCHEM ATLANTA BONDED WAREHOUSE INGRAM MICRO COMMERCE & ROMARK LOGISTICS CORPORATION LIFECYCLE SERVICES RUAN AVENGER LOGISTICS J.B. HUNT TRANSPORT RYDER BENDER GROUP JOHANSON TRANSPORTATION SERVICE SADDLE CREEK LOGISTICS SERVICES BLG LOGISTICS KAG LOGISTICS SCHNEIDER BURRIS LOGISTICS KANE IS ABLE SEKO LOGISTICS C.H. ROBINSON KDL (KEYSTONE DEDICATED LOGISTICS) SHIPPERS GROUP C.L. SERVICES KENCO SUNLAND LOGISTICS CAPACITY LLC KNIGHT-SWIFT LOGISTICS SUNSET TRANSPORTATION CARDINAL LOGISTICS MANAGEMENT LANDSTAR SYSTEM SYFAN LOGISTICS CLX LOGISTICS LEGACY SUPPLY CHAIN SERVICES SYNCREON CORPORATE TRAFFIC LOGISTICS LOUP LOGISTICS TAYLORED SERVICES COYOTE LOGISTICS LYNDEN TOLL GLOBAL LOGISTICS CRANE WORLDWIDE LOGISTICS MALLORY ALEXANDER INTERNATIONAL TOTAL QUALITY LOGISTICS LOGISTICS CROWLEY LOGISTICS TRANSGROUP GLOBAL LOGISTICS MATSON LOGISTICS CRST SPECIALIZED TRANSPORTATION TRANSPLACE MD LOGISTICS CT LOGISTICS TRANSPORTATION INSIGHT MGN LOGISTICS CTSI-GLOBAL TUCKER COMPANY WORLDWIDE NFI DF YOUNG UNIVERSAL LOGISTICS HOLDINGS ODW LOGISTICS DHL SUPPLY CHAIN UPS SUPPLY CHAIN ODYSSEY LOGISTICS & TECHNOLOGY DISTRIBUTION TECHNOLOGY UTXL PENSKE LOGISTICS DLS WORLDWIDE, AN RRD VERST GROUP LOGISTICS CORPORATION PERFORMANCE TEAM VOLTA LOGISTICS DSC LOGISTICS PHOENIX LOGISTICS WAGNER LOGISTICS DUPRE' LOGISTICS PILOT FREIGHT SERVICES WEBER LOGISTICS PLS LOGISTICS SERVICES ECHO GLOBAL LOGISTICS WERNER LOGISTICS PORT JERSEY LOGISTICS ELM GLOBAL LOGISTICS WSI (WAREHOUSE SPECIALISTS, LLC) PORT LOGISTICS GROUP ENGLAND LOGISTICS XPO LOGISTICS EVANS DISTRIBUTION PROTRANS INTERNATIONAL FEDEX SUPPLY CHAIN PUROLATOR INTERNATIONAL FIDELITONE R2 LOGISTICS

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[SPONSORED SUPPLEMENT]

WHETHER BRAND NEW, SOLIDLY UP AND RUNNING, OR DECADES OLD, SHIPPER-3PL PARTNERSHIPS THRIVE ON OPEN COMMUNICATIONS, FLEXIBILITY, AND TRUST.

BY MERRILL DOUGLAS

strong connection with a third-party logistics (3PL) company Acan make all the difference in your supply chain operations. When shippers and 3PLs function as partners, they jointly tackle challenges, devise innovative strategies, spot new opportunities, and respond nimbly to the ups and downs of daily operations. Partnerships evolve over time. At each stage, there’s something to learn about how to work together to achieve the best results.

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[SPONSORED SUPPLEMENT]

LOYALTY THROUGH THE YEARS

TARACA PACIFIC avid Wozniak and Andy Hafertepe + on goods from that country in 2018, Dhave worked together for about 20 Taraca began to develop sources in years. Wozniak is marketing director other countries. It asked Echo for help at Taraca Pacific, a small firm based ECHO GLOBAL with its evolving supply chain. in Virginia Beach, Virginia, and Echo quickly helped Taraca find San Francisco that imports and sells LOGISTICS additional, reasonably priced storage plywood. Hafertepe is divisional vice in ports where it was needed. “A lot Taraca Pacific manufactures and distributes president at Echo Global Logistics lumber, plywood, and millwork. A long-term of our changes had to be made on the in Chicago. But when he and partnership — and friendship — with 3PL fly,” Wozniak says. “The information Wozniak first met, Hafertepe and his Echo Global Logistics is a key element of success. was coming in the middle of the night group worked for a company called from the White House, so we didn’t American Backhaulers. always know exactly what was going to The two stuck together through happen when.” several mergers and acquisitions, Hafertepe’s team has also helped most recently when Echo acquired with simpler challenges. Once, a large Command Transportation in 2015. customer told Taraca it wanted to add Behind this long partnership is a 4x4-foot panels to go with the 4x8-foot set of close personal relationships. panels that Taraca currently supplied. “When somebody knows your business To get that program going sooner, and what your needs are, they cater with a large inventory of the 4x8-foot to that,” says Wozniak. “Andy and his product already in the United States, group have always done that.” the logistics team brought saws to five Echo’s main job for Taraca today warehouses and got to work. is to manage distribution to a large “We took Taraca’s 8-foot SKU, home center retailer with locations cut the sheets in half, labeled and throughout the United States. Echo repackaged them, and Taraca was in holds the inventory in third-party business a lot sooner,” Hafertepe says. warehouses located around the According to Wozniak and country. “And then they manage Hafertepe, two keys to a successful the trucking out of each of those shipper-3PL partnership are locations,” Wozniak says. “We have an communication and trust. Those inventory set up, we carry backstock, values are critical, for example, when and we ship daily to our large retailer discussing freight rates. Prices rise and as well as to other customers.” fall with market conditions, Wozniak The 3PL team developed and says, and he trusts Echo to give him improved that distribution network the best rates available at the moment. over time. “We started getting the rates “We do check—we look elsewhere down and getting the best carriers,” from time to time,” he says. “I’ve never Hafertepe says. found Echo not to be up to date on When Hafertepe’s team became part the market situation.” of Echo, one big change Taraca saw All customers call around to spot- was access to Echo’s in-house information technology. “That check prevailing rates on occasion. “When I go to sleep at allowed us to have more controlled inventory management, night, I want to know that if Wozniak calls five other carriers and a system whereby we could order trucks right through their for rates, that I’m within $50,” Hafertepe says. website,” Wozniak says. Taraca and Echo also started using Open communication and a sense of loyalty have deepened electronic data interchange (EDI). the relationship between the shipper and 3PL teams over the Recent trade conflicts have posed new challenges for the years. “We’re friends now,” says Hafertepe. “If you can get Taraca-Echo partnership. Taraca has traditionally sourced to that point as a customer or a 3PL, it makes work so much plywood from China. When the United States imposed tariffs easier.” n

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Ultimately, supply chain technology allows THE EVOLUTION OF businesses to integrate processes across SUPPLY CHAIN their organization. Are smaller businesses at TECHNOLOGY 4a disadvantage? Building an efficient supply chain is a major investment of time, money, and human resources. It’s a challenge for businesses of all sizes, but smaller businesses often are at a disadvantage, mostly due to a lack of investment power, modest IT budgets, and limited access to supply chain/ logistics professionals. In particular, smaller businesses tend to by Doug Waggoner, How has supply chain have a trickier time achieving supply chain 3technology evolved? visibility, building and maintaining critical Chairman and CEO, Technology has completely transformed the supplier/partner relationships, and staying up Echo Global Logistics supply chain, changing the entire structure of to speed as technology evolves. This is where how we work, from internal communications the power of a 3PL partner like Echo really How have consumer expectations to physical processes. 14 years ago, when comes into play. 1of retailers changed over the past Echo launched our technology, it was a highly Quality 3PL partners, such as Echo, often five years? fragmented industry and Echo was at the provide logistics technology as part of their Consumer expectations of retailers are forefront. Today, we continue to develop and service, and at no additional cost to the changing rapidly. Consumers used to have evolve our Digital Freight Marketplace to keep shipper. Most provide access to rates a shipper standard expectations about competitive us in that position, most recently launching could not negotiate on its own which helps to pricing and quality customer service. But EchoAccelerator, our flexible and robust level the playing field. nearly every industry has grown quickly over proprietary architecture that supports shipper, the past five years, and business models have carrier, and managed transportation systems. What can smaller businesses do to evolved, so it’s not surprising that retail is Technology has made supply chains 5improve their logistics processes? experiencing major changes as well. more transparent than ever before, giving Improving your supply chain and logistics Today’s consumers have higher the customer full visibility and immediate processes doesn’t always have to mean a expectations—they want connected answers about delivery status. Take for large-scale overhaul that takes a lot of time omnichannel experiences, personalized example, EchoShip, our self-service shipping and money to implement. Smaller businesses interactions, and nearly immediate shipping platform that consolidates and simplifies looking to improve their logistics processes options that cater to shoppers’ convenience. shipping by enabling customers to build loads, should focus on four things: store frequently used shipment information, • Choose suppliers/partners that are of a How important is the supply chain for and track shipments in real time. Shippers similar size and operating on a similar scale 2meeting customer expectations? can also search, view, and pay all invoices to build and maintain resilient supplier/ The supply chain is often a forgotten factor, using EchoShip. partner relationships. but it plays the largest role in meeting EchoDrive gives carriers the ability to book, • Increase your supply chain visibility, modern customer expectations. Building manage, and get paid on freight hauled for which benefits your organization and your a better supply chain boosts customer Echo. The platform’s load management tool supplier. Internally, it allows employees to satisfaction because it has a direct impact and document upload capabilities streamline access vital information that can help them on two of the most critical customer operations, keeping dispatchers organized strategize more effectively. Externally, supply expectations: price and delivery. An efficient and helping drivers get back on the road chain visibility allows your suppliers to check supply chain allows retailers to cut costs, faster. EchoDrive users get real-time access your inventory in real time so they can serve which allows the business to lower prices, and to search, view, and bid on available freight, you better. it improves the company’s overall profitability. reducing the effort associated with finding • Engage your IT department to learn about In today’s retail market, fast fulfillment freight for their available equipment. new software that can potentially streamline is an absolute must for many consumers. Modern supply chain software is much supply chain processes. A high performance supply chain means more efficient, which expedites processes. • Partner with a 3PL like Echo to leverage you’ll be able to meet—or exceed—customer Thanks to greater transparency, we can their robust buying power and advanced expectations on delivery timing, and that identify potential errors more easily, which technology, ultimately simplifying your drives higher customer satisfaction and means supply chains can adapt more quickly transportation management and allowing you repeat business. and complete processes more rapidly. to focus on what you do best.

52 Inbound Logistics • February 2020

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A web portal and mobile app for dispatchers and drivers Search available loads and submit offers Real-time tracking Full fleet mode with ability to manage all loads and drivers Document upload capabilities Invoice portal to view current and past receivables

Learn more by visiting www.echo.com/echodrive

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Few franchises in history succeed in winning three consecutive championships, but of those who do, history remembers them as one of the greatest of all time. Echo is proud to join this elite category of three-peat champions in being voted as this year’s 2019 Inbound Logistics #1 3PL.

Thank you for voting Echo your #1 3PL in the 2019 Inbound Logistics Top 10 3PL Excellence Awards

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