Most companies I work with are “managing by thrashabout,” as I call it. They are in this mode not because they cannot solve their problems, but because they cannot see their problems. They cannot see their problems because they are using outmoded traditional costing methodologies and cost-control methodologies.
An LTL carrier is a very complex and capital-intense business. That capital intensity is driven by the capacity the carrier provides the marketplace in the form of pickup and delivery capacity, dock capacity, and linehaul trailer utilization capacity. Variable cost is 65 to 75 cents of every revenue dollar and 95% of that 65 to 75% is in those three areas.
Robert Sullivan began his transportation career at Southeastern Freight Lines as a local pickup and delivery driver, eventually advancing to hold several management positions in his 15-year tenure there. Robert has also held the position of Interim President and Interim COO in an LTL turnaround, Interim Executive VP of an LTL division turnaround, and a C- level position in charge of Business Development for an LTL carrier. Additionally, he has served on the board of directors of several regional carriers.
As I was writing this book, memories of my journey in the LTL industry began flooding my mind. I paused for a few minutes, and after reflecting realized how blessed I am to have had the opportunity to work with so many wonderful, giving, intelligent, courageous, and passionate leaders through the years. I have learned so much from every company that purchased my system and installed my methodology. To all of you, thank you!
My journey in LTL began when I was in high school, but I had always been fascinated by tractor-trailers. I remembering going to Ford, GMC, and Chevrolet dealers and grabbing their brochures on the trucks and tractors they manufactured, reading through them with a passion. I could stand in my front yard and listen to a truck coming down the highway and without seeing it tell you what make of truck it was.
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