How do we get supply chains back on track after years of constant disruption and setbacks? The supply chain backlogs came largely from the shock at the start of the pandemic, but even before then, there have been many supply chain vulnerabilities.

Supply Chain Resiliency: Alleviating Backlogs and Strengthening Long-Term Security

Recently, Congress met to discuss our national and global supply chains, current supply chain issues that we need to focus on now, and how to build supply chain resiliency for the long term. Congress invited individuals and organizations to come to testify, to present their views for inclusion on the topic. U.S. Senator for Delaware, Tom Carper, asked Doug Potvin, Chief Financial Officer (CFO) of Trinity Logistics to testify.

With 16 years of service at Trinity and over 30 years of industry experience, Doug sees first-hand the problems plaguing supply chains. Doug’s testimony gave the Members of this panel valuable insight into the continued problems in supply chains and how members of the Transportation Intermediary Association (TIA), like Trinity Logistics, continue to serve the nation amidst these difficult times.

Doug’s Testimony Before Congress

“ I want to introduce myself as the CFO, Chief Fun Officer at Trinity Logistics because we like to have fun when we’re working hard. Thank you for the opportunity to speak with you today regarding how policymakers and business leaders are addressing the existing backlogs in the supply chain in the short term and building more resilient supply chains in the long term. My name is Doug Potvin. I’m the CFO of Trinity, a third-party logistics company (3PL) headquartered in Seaford. I’m privileged, honored, and humbled here today representing Trinity, our association, Transportation Intermediary Association, and the entire third-party logistics industry that we serve.

We serve as an intermediary in solving the logistical needs of our shipper customers by sourcing capacity from motor carriers and vendor partners. We are proud to report today that this past year we’ve generated over 1 billion dollars in revenue, arranged over half a million shipments, and offered 350 individuals full and part-time jobs. We truly are a proud Delaware company.

From Charles Dickens, the novel, The Tale of Two Cities; It was the best of times, it was the worst of times. Season of light is the season of darkness, a spring of hope is a winter of despair. Over the last two years, the same could be said of the international supply chain and from our perspective, closer to home, the domestic transportation industry.

In March of 2020 as both domestic and international countries shut our businesses including the shutting of the port cities and operations in China and the fact most consumers were at home facing an uncertain future, freight volumes plummeted. Motor carrier capacity increased dramatically due to the steep drop in goods moving and the transportation market saw prices for motor carriers fall. In fact, Trinity Logistics was mentioned on a Facebook post that we were earning an average gross margin of 60 percent, which was simply wrong.

In addition, a small number of motor carriers came to Washington D.C. and demanded rate transparency. Interesting after the businesses, ports, and countries opened up freight volumes began to skyrocket, available motor carrier capacity tightened up, and rates paid to motor carriers increased due to reflecting the change in market conditions. Demand for rate transparency went silent.

The pricing in our industry is driven by market conditions, supply and demand. Large scale, no entity on either side of the equation has enough market share to drive rates. In addition, each shipment has its own variable considerations to take into account including everything from available to capacity in various regional markets, lead time for products, dwell time at shippers and consignees, commodities needing move, and type of equipment needed. All this happens in real-time to ensure goods get to market, keeping our economy moving forward.

Now more than ever, the role of third-party logistics professionals has become more valuable. Companies like Trinity and the other 28,000 licensed property brokers are working overtime to ensure that essential goods continue to be delivered in an efficient manner to meet our customer and consumer needs. Our industry along with motor carriers are the main component as the why during the crisis and disruption, the supply chain bent but never broke.

Trinity Logistics applauds the U.S. Senate and House of Representatives’ Bipartisan passage of the Infrastructure Investment and Job Act, a historic investment into transportation and infrastructure. We’re very pleased to see how quickly the Federal Motor Carrier Safety Administration (FMSCA) established the Safe Driver Apprenticeship Pilot Program. Trinity hopes this three-year pilot program will be successful and made permanent so individuals ages 18 to 20 will explore interstate transport careers. Trinity also believes that as the spending on the Investment Act ramps up in the near future it will provide enough support to the economy to keep the motor carriers employed as we are starting to see freight volumes pull back over the last 30 to 60 days.

Trinity would also like to thank Chairman Carper, John Cornyn, Senator Menendez, and Senator Tim Scott for the support in offering legislation and getting the Senate to act unanimously in passing the Custom Trade Partnership Against Terrorism Act (CTPAT).

Currently, the vaccine mandate for truck drivers coming to the country to deliver freight from Canada and Mexico continues, these professional drivers spend most of their professional time alone in the truck cab, presenting a zero percent risk of spreading Covid-19. This should be lifted immediately to open up capacity and shorten the amount of time it takes to move goods across borders.

Another issue that greatly impacts not only the efficient movement of goods, but highway safety, is the lack of a federal motor carrier safety selection standard. Currently, because of broken safety rating systems from the FMCSA, almost 90 percent of trucking companies are considered unrated. There are no requirements in place before selecting a trucking company, that drastically impacts the overall safety of our nation’s highways. The latest report from the national highway traffic safety administration noted that the number of accidents involving commercial motor vehicles increased 13 percent in 2021. The status quo is not working, and highway safety needs to be improved. Trinity Logistics and our trade association, TIA, fully support legislation to create a motor carrier safety selection and mend the safety rating process.

The U.S. trucking spot market conditions have reflected towards weaker and more normal conditions, though we still will see what the future holds and how that trend continues. Hopefully as a result of this meeting and coordinated actions taken by the United States, our trading partners, manufacturers, supply chain vendors, our nations become resilient when facing similar conditions and uncertainty.”

Trinity Logistics would like to thank Chairman Tom Carper and the TIA for inviting Doug to testify before the Committee. He is a very valuable leader in the industry and Trinity Logistics appreciates all he does for our company, our industry, and our nation.

If you would like to watch the full hearing:

https://www.finance.senate.gov/hearings/supply-chain-resiliency-alleviating-backlogs-and-strengthening-long-term-security

A day in the life of logistics has a loose framework and cycle, with each shipment navigating its way from creation, shipment, billing, and payment. Each day is different and exciting for shippers, carriers, and third-party logistics companies alike.

As a 3PL, we spend our days receiving shipments and working with carriers to arrange transportation via truck, rail, air, and sea.

So, want to know what a day in the life of a third-party logistics company is like? We’ll give you a front row, 3D tour (okay, not 3D…we don’t have a Virtual Reality tour just yet).

Shipments

Every day, our Logistics Specialists, Logistics Assistants, and Account Managers for each Team come in, get their morning coffee, tea, etc., say hello to their colleagues and sit down to their computers.

On average, there are about 90-100 shipments waiting to be covered when the day begins. Some have already been handled by our 24/7 Team (the night crew, if you will) and some will be easier to find a carrier for than others.

Our Operations Department at each Regional Service Center (five offices around the United States) is made up of individual teams that each handle certain customer accounts. These teams will be responsible for checking what shipments have been sent in by our customers, what is already loaded into the system, and calling to check up on other customers to see if they have any shipments that need to be taken care of.

As soon as the day begins, these teams spend the next 8 or so hours making the magic happen. Talk about hard workers with dynamic personalities!

Cycle of a shipment: finding a carrier

When a customer has a shipment that needs to be covered that day, it is listed as pending in our freight management software. It can make its way to us through a phone call, fax, email, or our Transportation Management System (TMS). At this point, our job is to find a carrier who can pick up and deliver that shipment in the necessary time frame. This is where the fun and unique form of matchmaking begins.

We have a network of more than 32,000 carriers who are currently vetted in our system and checked for operating authority, insurance information, and safety ratings. These carriers are checked on a daily basis for compliance and before every shipment.

When choosing a carrier for a particular shipment, we either work with what we call “relationship carriers”- carriers that we’ve developed a relationship with over time, or a carrier that is newer to us, in terms of tenure with us or number of shipments handled. The idea is to develop relationships with all of our carriers to not only build rapport but to help our customers receive the best rates and service possible.

Once we’ve found a carrier for that shipment, we call the carrier or driver directly to dispatch them on this particular shipment.

Logistics and Relationship Carriers

It seems impossible– a network of 32,000 carriers, you can’t possibly get to know them, right? Walking through the operations floor, you’ll hear the conversations and know that building relationships with our carriers is a part of what we do.

Two of our Logistics Specialists, Nicole Hastings and Carrie Harman, booked more than 300 shipments each in April 2017. Carrie says working with relationship carriers is a huge part of hitting that number, but so is coming in early to cover hot shipments, putting in extra effort to find carriers to haul harder to move or less desirable freight, and staying on the phones day in and day out.

Cycle of a shipment: Carrier Relations

Before a carrier is dispatched for a shipment, our busy bees in Carrier Relations get to work. This team makes sure that everything needed for compliance is on file. If anything needs to be updated, someone from the Carrier Relations team will contact the Carrier and make sure it happens so the driver can get on the road. This team stays in contact with the Logistics Specialists to make sure everything runs smoothly.

Driver is on the move

After we dispatch one of the drivers in our network, they begin heading to pick up the shipment and get it to its destination. Whether it’s a truckload of tomatoes, a few pallets of paint, a container of radios to go over the rail, or an expedited shipment of emergency response equipment that has to ship fast, our logistics team is contacting carriers and getting tracking updates on all shipments for our customers.

If there’s any factor that could create a delay in a shipment, our team is working around the clock to troubleshoot and problem solve.

If a truck were to break down “after hours,” which has happened before, our 24/7 Team is able to find another driver who could get there, load the shipment onto his/her truck and be back on the road, without a single hiccup in the delivery window. The customer knows there was a change in trucks, but there was no interruption in service.

Driver arrives at destination

Once the driver arrives at the freight’s destination, he or she either backs up to a loading dock or uses a forklift or liftgate, etc., to unload the shipment. The receiver (the location/person receiving the shipment) verifies that everything came off the truck as it should, and our team confirms.

At this point, the driver can then be released to head out to the destination, and the “behind the scenes” work on that particular shipment can begin.

Billing Cycle

Once the shipment is delivered, the billing and payment cycle begins. The drivers can either email or fax their paperwork to our billing team. Then, the carrier gets paid and the customer is billed for the shipment.

In April 2017 alone, our billing team processed tens of thousands of bills – and our Customer Service team fields any questions that may come through about payments.

This entire process cycles again for every shipment that is booked through Trinity Logistics. This process happens hundreds of times a day on our operations floor – a converted bowling alley with Teams of Logistics experts in a “bull pen” –solving issues, covering freight, and finding solutions for the most challenging shipments.

Why work with a 3PL?

In the cycle of arranging shipments, there are only three real pieces of the puzzle that involve our customers. First, our customers contact us with their shipment details. Later in the cycle, we provide them with tracking updates. Then, they receive a bill for the shipments, and only have to pay Trinity for the shipments, instead of each individual carrier.

We work with customers who are looking to cut down on the amount of time spent finding trucks to cover their shipments and are looking to expand their capacity. Some of our customers take advantage of our Transportation Management Systems to completely outsource their logistics operations with Trinity’s account management and carrier base.

We take the time to update our customers on industry news that could affect their core business and find solutions together. Our main goal is to help save our customers time, money, and headaches.

We also offer:

– Single source for all shipment arrangement
– Innovative solutions
– Integrity and personal relationships
– A full team ready to make your shipments flow quickly and smooothly