XPO | XPO looks for more LTL savings in outsourced linehaul

http://www.joc.com/trucking-logisti...ltl-savings-outsourced-linehaul_20160118.html

Less than three months after acquiring Con-way, XPO Logistics plans a significant reduction in purchased transportation costs in its less-than-truckload business.

“We handle about two-thirds of LTL linehaul with our own trucks,” Bradley S. Jacobs, XPO chairman and CEO, said at the SMC3 JumpStart 2016 conference here Jan. 18.
So is he saying we're going to handle all of it now, or is he going to outsource more of it cheaper?? Could take it either direction from that starement
 
It pretty clearly says that they are looking to save money on the 1/3 of our line haul that's contracted out by trying to get lower bids on it. It doesn't say anything about outsourcing more, it just says they want to save on the work that's already outsourced. I'm not going to read more into it than what is in black and white. There's plenty of other people willing to do that.
 
On the red eye radio network AM station has XPO commercials about contractors and line haul runs. C.T. does the same thing with a lot of their line haul. Vitran attempted that meet halfway to cut out lay overs and hotel costs, then drivers worked the docks or ran drop and hooks. That hurt both line haul and city drivers with that one.
 
With a "shortage" in the driver market and companies having to pony up more cents per mile, it'd be interesting to see who can run it for cheaper than Swift or CRST. They're so big they can probably run certain lanes at a loss and it wont affect them
 
This is a misinterpretation of an already existing situation.

They are simply bidding out work that is or has been running on sub vans in the past.

It isn't actually changing anything. Just stream lining the process in which it happens.

Ain't any of us going to be running from Phili to SoCal any time soon. And ain't no super truckers looking for a three hour run.

Just calm down a bit, please. The real drama is yet to come.
 
On there website they have 19,000 owned tractors and 46,000 owned trailers. 10,000 trucks contracted through independent owner-operators and access to more than 50,000 independent carriers That's Global North American capacity -11,000 owned tractors and 33,000 owned trailers, over 6,000 trucks contracted through owner-operator and access to 38,000 independent carriers
 
Bradley S. Jacobs 4th quarter 2015 earnings conference call -

"So there's about $1.35 billion of line-hauls in LTL and about $800 million and change of that is done in-house by our own trucks and our own employee, and they do a great job. Most of those drivers have been with the company for a long, long period of time, are very dedicated to the business and we take care of them very, very well, They're very important part of our organization now.

And then there's about between $500 million and $550 million of outsourced LTL, outsourced line-haul to third parties that we put on over hundred different carriers, and that's what's out to bid right now. With respect to what kind of savings we're expecting; we don't know, that's the purpose of an RFP ( request for proposal - our company is asking for bids ) , that's the purpose of a tender. You hold it honest and fair RFP, you see where the numbers come in, and you evaluate people's service performance from the past, and you respect the relationships that you've had and the good relationships and partnerships you've had with carriers in the past and you sort it all out in a win-win way. So we don't have – we don't know where we're going to end up on that. All we know is wherever we end up, it's going to be the right market, it's going to be market-oriented."
 
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When is he bringing on Synergisticks trucking? I remember him talking all about synergies. Synergy this and that in one of his interviews.

:15:
SYNERGY the art of bending over, and grabbing your ankles.....

Yellow Roadway Seeks Savings
Bill Carey | Nov 20, 2005 7:00PM EST

Print
By year-end, Yellow Roadway will have reaped about 44 percent, or $200 million, of the $450 million in cost savings or synergies it hoped to achieve after buying Roadway Express in 2003 and USF this spring, company executives say. Winning the next $250 million in savings from its national and regional LTL subsidiaries may be harder.

Yellow's drive for synergies among the carriers in its trucking empire involves taking many small steps, such as printing invoices on both sides of a piece of paper, and a few large ones - in particular, shutting down USF Dugan.

Speaking Nov. 2 at the Stephens Logistics & Transportation Conference, Yellow Chairman, President and CEO Bill Zollars said "corporate office" synergies "were pretty easy to get ? in the case of Roadway, and in the case of USF we're capturing that now."

Zollars also spoke of harder changes that have been made - or may still be in the works.

USF Bestway and Michigan-based USF Holland are "two companies that need to be fixed," Zollars said.

Robert Zimmerman, formerly senior vice president of field operations and sales for Yellow Transportation, was named to lead USF Holland in June, following the resignation of Steven Caddy as president.

Meanwhile, sister company New Penn Motor Express, of Lebanon, Pa., whose territory overlaps Holland's in the Northeast, and USF Reddaway, of Clackamus, Ore., are operating efficiently in Zollar's opinion.

"Holland ? got mesmerized with what they call [their] Premium Plus business, kind of took their eye off the ball in their core business, which was next-day," Zollars said. "Their service suffered as a result of that, and they ended up pricing the Premium Plus business at too low a level."

Other Yellow executives described the synergy process and reported progress in achieving the company's goals in recent presentations to analysts. Yellow Roadway Chief Financial Officer Donald G. Barger Jr., said relatively small savings - $400,000 a year in the case of double-sided invoices - are being reaped in many areas. The process differs between Roadway and USF in that USF is decentralized, he said.

"We basically concluded that through synergies, we could double the operating income of the combined Yellow Transportation and Roadway Express companies, and we are well on the way to doing that," Barger said. "? When we took a look at USF and drilled down on the synergy side, our conclusion was the same."

Barger said Yellow will finish this year with $200 million in cost savings.

This month, USF workers around the country were updated on the synergy process. James D. Staley, president and CEO of YRC Regional Transportation, the Yellow subsidiary that includes the USF companies, said nothing has been decided regarding any further consolidation or relocation of positions. He said there may be some layoffs, although they are not expected to be substantial.

The synergy effort will be reviewed through the first half of 2006, he said. In meetings with USF employees, "we acknowledged that, yes, there would be some relocations to where we have centers of excellence or scale that has been developed," following the Yellow acquisitions, Staley said.

Soon after buying USF in May for $1.37 billion, Yellow shut down Wichita, Kan.-based USF Dugan, which employed 3,000 people and had struggled financially for years. But Staley said it is "absolutely not correct" that the general office of USF Bestway in Scottsdale, Ariz., now is targeted for closure, as has been rumored.

The consolidation of USF functions is modeled on the synergy process underway at Roadway, which Yellow acquired in December 2003 for $1 billion.

Yellow, the nation's leading LTL carrier with nearly $10 billion in annual revenue, set out to trim $300 million in operating costs from Roadway in the next few years and $150 million from USF. "That was the template we used with Yellow Roadway and continue to use with USF, which we've said publicly," Staley said.
 
SYNERGY FREIGHT LINES
We haul it all from Amazon to Zoo Animals
Full World coverage with next day to
The Moon and Mars coming soon!!!!!!!
 
SYNERGY the art of bending over, and grabbing your ankles.....

Yellow Roadway Seeks Savings
Bill Carey |
Nov 20, 2005 7:00PM EST

Print
By year-end, Yellow Roadway will have reaped about 44 percent, or $200 million, of the $450 million in cost savings or synergies it hoped to achieve after buying Roadway Express in 2003 and USF this spring, company executives say. Winning the next $250 million in savings from its national and regional LTL subsidiaries may be harder.

Yellow's drive for synergies among the carriers in its trucking empire involves taking many small steps, such as printing invoices on both sides of a piece of paper, and a few large ones - in particular, shutting down USF Dugan.

Speaking Nov. 2 at the Stephens Logistics & Transportation Conference, Yellow Chairman, President and CEO Bill Zollars said "corporate office" synergies "were pretty easy to get ? in the case of Roadway, and in the case of USF we're capturing that now."

Zollars also spoke of harder changes that have been made - or may still be in the works.

USF Bestway and Michigan-based USF Holland are "two companies that need to be fixed," Zollars said.

Robert Zimmerman, formerly senior vice president of field operations and sales for Yellow Transportation, was named to lead USF Holland in June, following the resignation of Steven Caddy as president.

Meanwhile, sister company New Penn Motor Express, of Lebanon, Pa., whose territory overlaps Holland's in the Northeast, and USF Reddaway, of Clackamus, Ore., are operating efficiently in Zollar's opinion.

"Holland ? got mesmerized with what they call [their] Premium Plus business, kind of took their eye off the ball in their core business, which was next-day," Zollars said. "Their service suffered as a result of that, and they ended up pricing the Premium Plus business at too low a level."

Other Yellow executives described the synergy process and reported progress in achieving the company's goals in recent presentations to analysts. Yellow Roadway Chief Financial Officer Donald G. Barger Jr., said relatively small savings - $400,000 a year in the case of double-sided invoices - are being reaped in many areas. The process differs between Roadway and USF in that USF is decentralized, he said.

"We basically concluded that through synergies, we could double the operating income of the combined Yellow Transportation and Roadway Express companies, and we are well on the way to doing that," Barger said. "? When we took a look at USF and drilled down on the synergy side, our conclusion was the same."

Barger said Yellow will finish this year with $200 million in cost savings.

This month, USF workers around the country were updated on the synergy process. James D. Staley, president and CEO of YRC Regional Transportation, the Yellow subsidiary that includes the USF companies, said nothing has been decided regarding any further consolidation or relocation of positions. He said there may be some layoffs, although they are not expected to be substantial.

The synergy effort will be reviewed through the first half of 2006, he said. In meetings with USF employees, "we acknowledged that, yes, there would be some relocations to where we have centers of excellence or scale that has been developed," following the Yellow acquisitions, Staley said.

Soon after buying USF in May for $1.37 billion, Yellow shut down Wichita, Kan.-based USF Dugan, which employed 3,000 people and had struggled financially for years. But Staley said it is "absolutely not correct" that the general office of USF Bestway in Scottsdale, Ariz., now is targeted for closure, as has been rumored.

The consolidation of USF functions is modeled on the synergy process underway at Roadway, which Yellow acquired in December 2003 for $1 billion.

Yellow, the nation's leading LTL carrier with nearly $10 billion in annual revenue, set out to trim $300 million in operating costs from Roadway in the next few years and $150 million from USF. "That was the template we used with Yellow Roadway and continue to use with USF, which we've said publicly," Staley said.
Jenny. Could you do us all a favor and not bring up these articles that mention that man. I have friends at Conway and do not want to have them think they are in for what we have endured.
 
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