ADuiePyle | Pyle loses Lowes Account

don't forget, this industry is an ongoing battle between marketing and sales in search of the perfect account..then there'soperations and the real world in direct conflict....in the late 80's we had a boy geniusin either seattle or portland who signed soloflex as exclusive carrier,5 vans a day,300+ bills per....he also waived residential,notification and inside delivery charges on everything. Trouble was . they were ALL inside residentials that needed appts....if memory serves me , that fiasco finally costed out around 129.3 woulda been cheaper to break the contract and get sued

bad habit, Are you talking about CF?

They had an account like that coming out of Salt Lake City. They were all inside residential deliveries. The freight was treadmills. Not only did we have to bring them in but we also had to take it out of the box and take the trash back with us.

If I remember right, part of the contract also involved picking defective ones up and sending them back for free
 
Sometimes it is necessary to take on a loser account like the one above for a few reasons.

A - It keeps men working
B - It keeps other freight moving
C - It makes other freight more profitable.

Companies are not in the business to lose money, but if it helps build direct loads and allows other freight to skip break bulks it can add a lot of profitability to a terminal.

Trust me. If there is an account that does not offer anything to a company, they will cut it loose. In the publicly trading companies, you have to answer to share holders and in the private ones, you have to answer to ownership.

There is always a payoff.
 
Heres an example of two accounts thats not worth much to haul.
Sallys beauty stores,all inside deliveries,stacking their product around their stores that their customers are shopping in.
And also Yankee candle mostly inside deliveries at shopping malls.
Both take a long time to make the delivery.
I know this because my company handled both,and they are real money losers.
My company doesn't haul this stuff anymore thank GOD.

Home improvement products are very easy to damage when its moved with so much other common freight.
Home improvement stores are no prize to handle,as well.
But the thing is with the trucking industry,it comes down to have something to haul,because how long will you be in business if you don't have anything worth hauling?

So is it better to haul something for nothing,or nothing,for nothing?
Its a tough business to be in thats for sure.
 
WRONG !!!!!!

FedEx went in and undercut price. They were also able to offer one stop shopping which no regional carrier can offer. ADP has done such an exceptional job with Lowes that they created new levels of awards for ADP. They won gold level status the first two years, they then created a PLATINUM service level which they won for two years, while non one else qualified for it. The last two years ADP was awarded the DIAMOND service level, while no one else has ever achieved PLATINUM. So please do not start spreading rumors that you no NOTHING about. Please read the press release from the 2006 award.




Lowe's Recognizes A. Duie Pyle with Highest Level Service Award
WEST CHESTER, Pa. (February 26, 2006) - A. Duie Pyle, Inc., the Northeast's leading LTL and integrated transportation provider, has been recognized with Lowe's highest-level service award.

At this year's Lowe's Carrier Conference (January 19, North Wilkesboro, NC ), Lowe's - the world's second-largest home improvement retailer - presented A. Duie Pyle chairman Peter Latta, vice president of sales and marketing Russ Miceli, director of ADP Logistics Anna Hummel, and ADP/Lowe's project leader Dawn Polito with its 2005 Diamond Award. A. Duie Pyle was the only Lowe's LTL carrier to achieve the "Diamond" level of performance.

Lowe's Diamond Award, which is awarded based on criteria culled from the company's in-house service records, is given annually to the carrier that best achieves Lowe's target goals across a range of categories. A. Duie Pyle won based on its superior performance in the following areas:

98.61% - Transit on Time
98.59% - Gap Compliance
109 - Deliveries Before Exception
97.34% - Delivered On Time
1.15 -2 - Sigma Difference to Standard

"A. Duie Pyle's dedication to excellence and commitment to service impress us year after year," said Rob Long, director of LTL transportation services at Lowe's. "Our award standards are hard to meet, but A. Duie Pyle continually exceeds them. The highest level of service deserves the highest reward. We're proud to call A. Duie Pyle a partner."


That this is a partnership that will be missed on both parties.

Awards and 69 cents will get you a cup of coffee at McDonalds. Its a shame but in todays world there is no loyalty. The only thing companies say is sure you did a good job but what have you done for me lately....AWARDS DON,T PAY ANY BILLS
 
Folks here are all mentioning the traditional examples of the worst accounts in the world to service. But I maintain there is no such thing as bad freight, just badly priced freight.

Sally Beauty, by definition, isn't bad if you get compensated for the additional work involved. You know up front it's what you are going to have to do to service the account. It is going to take more time to service, so you need to build that into the rate.

Smart carriers recognize this and price the freight accordingly. Dumb ones (may they RIP) ignor the obvious.

Earlier some quoted that Lowes is 15% of Dyle's business. Is that true? Can anyone confirm that? That's a bunch of biz to lose.
 
F of F -

Wow, that's still a pretty big wack.

Did they have any warning...you know...this is going out to bid and the low ball carrier is going to get it.

Or did it just come out of nowhere?
 
I think for every carrier, this is normal. Accounts like that go out to bids every year and sometimes, someone just blows everyone else away.

Its not like it went to a sh*t bag operation it went to FedEx who does a good job in their own right
 
You gotta hand it to Duie Pyle though. They have guts. Any other carrier would have buckled under on the price and put themselves in a bad financial position.

Pyle will more than likely replace Lowes with lots of other accounts. Maybe not as big, but profitable.

By the way, I thought Estes got the Lowes business but I see lots of posts saying FedEx got it.

Keep on Truckin'
 
im assuming Home Depot does this to Estes & NEMF. if so, what is the point of hauling their frt. ? if it dont make dollars, it dont make sense !

According to the Estes board......Home depot dropped them as their carrier. It says that home depot is now opperating its own dc's. And having swift deliver from their dc's to the stores. Sounds like they lost a big chunk of business too!!
 
deep discounts

I think for every carrier, this is normal. Accounts like that go out to bids every year and sometimes, someone just blows everyone else away.

Its not like it went to a sh*t bag operation it went to FedEx who does a good job in their own right
FOF
Big accounts are like musical chairs with the carriers so its not like a big lost cause someone else lost an account that they (ADP) might have picked up and saw it better to let it go. They come and go like fruitcake at xmas.

I work for RDWYand we lost a million dollar account recently not because of service or claims but it is an era of deep discounts. In a time of razor thin profit margins and job cuts you better be in it to win it or you'll be out of it (Business wise). We had an account that was sand paper good heavy tonnage but was operating @ a 105 but combined with other freight it did alright but we dropped it after a year just like every other carrier. There isn't a carrier in the area who hasn't handled this account

It will eventually hurt alot of carriers with these deep discounting of freight going on as we'll wind up prcing each other out of the market. "You can't keep hauling it for free and expect to be around for long":greedy:
 
Right now it is tougher than ever before because you have FedEx and UPS offering bundle discounts. How can a local carrier compete ?

They can offer,next day, long haul, package, logistics, etc. some people like one stop shopping.

Think of FedEx and UPS as Walmart with wheels.
 
UPS is no WalMart

Right now it is tougher than ever before because you have FedEx and UPS offering bundle discounts. How can a local carrier compete ?

They can offer,next day, long haul, package, logistics, etc. some people like one stop shopping.

Think of FedEx and UPS as Walmart with wheels.

Youve got to be kidding! UPS is nothing like WalMart or will they ever be. UPS is Unionized and pay their employees appropriately. (Full Pension,Healthcare, etc......._) I cannot say the same for FedEx though.
 
Right now it is tougher than ever before because you have FedEx and UPS offering bundle discounts. How can a local carrier compete ?

They can offer,next day, long haul, package, logistics, etc. some people like one stop shopping.

Think of FedEx and UPS as Walmart with wheels.
Hate when people mention walmart and a union company in the same sentence.
Walmart-Always low Wages, Always
 
i can agree with the Wal-Mart on Wheels comment. a prime example of that was when a customer refused to give me a skid and in turn gave it to UPSF. they gave this customer a quote of $100 for a skid leaving NYC to be del. in Kentucky. that's a joke.
 
Be thankful for losing that account. Most of those discount stores are so picky about their freight. I bet PYLE wasnt making any money off of them. Let the NON-Union companies have it. They will discount them too at over 70% and pay dock workers top dollar to slip sheet load it. Loss of revenue in my book. Pyle will pick up another account soon, They are a good carrier.
 
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