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Rails Need to Tie New Intermodal Initiatives to Improved Customer Service
6 Mar 2010 at 6:25amThe Intermodal sector faced many of the same challenges as other segments of the transportation industry during the recession and suffered some decreases in business in 2009. Toby Kolstad, President of Rail Theory Forecasts in Portland, Oregon attributed the volume declines to two factors. 'About 70 percent of the downturn in business is attributed to the drop in imports and the other 30 percent is due to the drop in domestic sales. I don't see the traffic picking up substantially in the future because I think retail sales of goods will continue to lag. There is just too much unemployment, debt and an overall feeling of loss of wealth.' He forecasts that intermodal volumes will return to pre-recession levels by 2014. Against this backdrop of discouraging news, the rails are not standing still. In fact, there has been a flurry of developments over the past several months that demonstrate that the industry is still vibrant and poised for growth. Major Truckers and IMC's restructure their Partnerships with the Rails J.B. Hunt, once America's largest truckload carriers now generates significantly more business from its intermodal business. For the past 20 years, Hunt has had an alliance with BNSF Railway, the largest intermodal railway. With the largest fleet of domestic 53-foot intermodal containers, estimated at 41,000 boxes, Hunt has been achieving consistent growth in its western USA intermodal business. Late last year it signed an agreement with Norfolk Southern Railway to grow its eastern USA business. Schneider National, one of its major competitors, has partnered with CSX, NS's leading competitor in the east. Schneider is focusing on the Chicago-Florida, Chicago-Northeast and St. Louis-Northeast routes. UP last year renegotiated a long-term space and pricing contract with Pacer International, a large freight management company that allowed the railroad to directly take over more domestic business. Before that it lured Hub Group, another large IMC, to shift much of its western-U.S. traffic onto UP from rival BNSF Railway. Expanded Rail Corridors to Take Advantage of the Widening of the Panama Canal The western rails have served as the land bridge for Panama Canal traffic. CSX and Norfolk Southern are positioning themselves to capitalize on what they hope will be a shift of customers to east coast ports as the Panama Canal is widened by 2015. This is resulting in a set of upgrades and intermodal expansion to facilitate the movement of containers through east coast ports. This eastern development is expected to pave the way for double-stack trains along these corridors. The Heartland Corridor is being implemented to increase double-stack intermodal traffic from the port of Virginia, the deepest east coast port, into the Midwest, primarily Columbus and Chicago. Several railroads have plans to invest in intermodal facilities in Memphis to facilitate traffic along the Norfolk Southern Crescent Corridor, a high-speed route between the South and Northeast which boasts the ability to take 880,000 long-haul trucks off the busy commercial corridor annually. CSX Corp. recently received $98 million in federal stimulus funds toward its goal of increasing the use of double-stack trains to move freight from mid-Atlantic ports to Midwestern markets. The $842 million public-private partnership, known as National Gateway, involves upgrading existing track, modifying bridges and raising tunnel clearances along three major CSX routes -- the I-95 corridor between North Carolina and Baltimore, I-70/I-76 between Washington and northwest Ohio via Pittsburgh, and the company's Carolina Corridor between Wilmington, N.C., and Charlotte, N.C. -- to accommodate the taller freight cars. One such train can carry the load of more than 280 trucks. In Virginia, the project would take an estimated 1 million trucks off I-81 in its first 10 years -- far less than Norfolk Sothern's Crescent Corridor plan. Prince Rupert offers Shortest Transit Times from the Far East Much has been written about the Port of Prince Rupert on the west coast of British Columbia. The port that in conjunction with CN Rail links the Far East to the heartland of the United States remains a key component of NASCO (North American Super Corridor). Container volumes are projected to grow from 500,000 TEU's to 2 million per annum. The Move to Jumbo Containers CSX Transportation in the eastern United States and Union Pacific Railroad in the West will soon be jointly marketing a domestic intermodal service in jumbo-sized containers. Dubbed UMAX, the service will give customers single-bill interline routing on more than 600 traffic lanes, and the railroads are backing it up with 20,000 of the big 53-foot boxes. The carriers said UMAX begins operating March 29, with door-to-door service that will be competitive with trucks by combining short-haul trucking with long-distance rail. The Warren Buffet Factor Warren Buffet has a reputation as a benevolent investor who allows the leadership teams in his companies to run their businesses, unless they falter. Some experts believe that he will maintain this 'hands off' approach while others foresee him trying to move BNSF, his largest investment ever, in some new directions. Specifically, there are those who believe that by removing the focus on quarterly returns, this may allow the company to change its large network in ways that produce faster growth (e.g. take more freight off the road, sign contracts with ocean carriers). He may also look at a merger with Norfolk Southern in which he already has a stake and invest in dual power locomotive cars that are not currently used in the United States. Certainly if fuel costs begin to rise significantly over time, the BNSF would be uniquely positioned to divert business from road to rail. Don't Forget About Mexico The Kansas City Southern Railway is focusing on the Kansas City to Mexico corridor and the Rosenberg (Houston) to Mexico City corridor. New intermodal terminals are planned for Toluca, Mexico and Rosenberg, Texas. Mexico is also looking for significant container growth at the ports of Lazaro Cardenas and Manzanillo. Transloading This continues to be an option in certain situations where it becomes economically viable to utilize the domestic intermodal rail network and take advantage of opportunities to pool freight to specific destinations. If they build It, will they come' Taken collectively, these activities paint a picture of a mature industry that is in the process of revitalization. One would think that these new offerings would be warmly received by shippers. However, customers of Canada largest railways have issued a damning review of the quality of service they have received in recent years. The findings are part of the federal government's ongoing Rail Freight Service Review process which could potentially lead to greater regulation of the rail industry in Canada after the recommendations of the commission are given to Parliament in the fall. Some of the initial findings contained in a survey of 269 shippers across the country chastise Canadian National Railway Co. and Canadian Pacific Railway Ltd. for unsatisfactory service. Only about 17% of those surveyed said they have a high level of satisfaction in the service they have received from either CN or CP. Typically, such customer satisfaction surveys elicit a response in the 50% to 70% range, said Andrew Ennis, who conducted the survey by NRG Research Group on behalf of the federal government. Moreover, 62% of those surveyed said they had suffered significant financial losses sometimes in the millions, as a result, Mr. Ennis added. Terminal operators, port authorities and shipping lines have also reported concerns about the level of service they have received from the rails. Most shippers in North America are captive to one or two railways in their market areas so there are not a lot of options. While shippers do not want to see the government take over the railways again or heavily regulate them, they would like some measures implemented to balance the playing field, said Bob Ballantyne, President of the Canadian Industrial Transportation Association, the main shipper lobby group. Shippers would like to see some sort of financial penalties made available if rail cars show up late, like the demurrage fees the railways charge shippers. With all the exciting changes taking place in the intermodal transportation arena, the railways would be advised to upgrade their customer service to reap the full rewards from their new intermodal products and services. LTL Carriers Shift Strategy Gears in 2010
27 Feb 2010 at 8:13amLast year was a disaster for the LTL segment of the freight industry. As business volumes contracted and YRC, one of the industry giants, teetered on the brink of bankruptcy, many LTL carriers sacrificed their pricing discipline in the hopes of gaining market share and driving YRC off the LTL road. Rather than reducing capacity to meet demand, a number of carriers used price as a weapon to increase volumes. Ultimately this strategy failed with the LTL sector posting the largest year/year decline in rate levels. The North American economy is improving in 2010 but very slowly. YRC, with its debt for equity swap, has a new lease on life. This has driven many LTL carriers back to their board rooms in an effort to revise their strategies and rebuild their tattered financial statements. The broad outlines of these new strategies are now starting to take shape. Douglas W. Stotlar, president and CEO of LTL carrier Con-way described his company's strategy as follows. 'Our focus is on driving efficiencies into the network, building volume and improving yield.' This is likely a theme to be repeated by many LTL carriers this year. Here is what Con-way and some other leading LTL carriers are doing. Matching Supply to the Reduced Demand Con-way Freight is approaching the task of building network efficiency with a broad re-engineering of its network, slicing transit times between 460 destinations by reducing handling, and, in turn, building the density on its shortest, most direct routes that truckers say is critical to profit. Faster Service to Expanded Service Areas, including Canada Cross-border freight between Canada and the United States has long been one of the most profitable segments of the LTL industry. Holland, a YRC regional carrier, announced the availability of its enhanced next-day service reach between Toronto, Canada, and seven markets in the Midwest and reduced transit times on an additional five lanes in and out of Toronto for enhanced two-day service. Holland is claiming that these service improvements give them the largest next-day footprint between Toronto and the Midwest, including new next-day service with Chicago, Joliet and Wheeling, Ill., Cincinnati; Huntington, W.Va., and Indianapolis. With its expanded next-day service footprint, the company can also deliver enhanced two-day service to Joplin, Springfield and Kansas City, Mo., Memphis, Tenn., and Worthington, Minn., shaving a day off transit times to these markets. UPS Freight is speeding freight across the Canadian border by stretching its two-day delivery network from Toronto and Montreal as far south as St. Louis, Mo., and Atlanta. The new two-day transit times include Montreal to Milwaukee, Rockford, Ill., and St. Louis. Also, Toronto now provides two-day service to key markets in Georgia and North and South Carolina to include Atlanta, Augusta, Charlotte, Charleston and Savannah. Pricing Precision Across the LTL industry, carriers are retreating from rate discounting that slashed profits last year, signalling a truce, at least, in the industry's rate wars as they try to build a more profitable business. For Con-way, that means pruning unprofitable business from its books, customer by customer. LTL carriers are also seeking general rate increases (GRI's) on their non-contracted business. Con-way and FedEx have both signalled that they are seeking rate increases of 5.9 percent while Old Dominion is asking for 4.4 percent. Con-way has indicated that their GRI, implemented on Jan. 4 has held 'pretty well.' The GRI applies to about 30 percent of Con-way Freight's customer base. 'We've seen volume maintained at 2009 levels for that segment, and we have not been negotiating price with that segment of customer,' stated John Labrie, President of Con-way Freight. For the other 70 percent, 'We're going through the book of business account by account.' Bolstering Sales Teams Con-way Freight is starting 2010 by strengthening its sales organization by appointing five sales managers ' including three recruited from rival YRC Worldwide ' to lead new regions in the South, Mid-Atlantic, and Mid¬west and Great Plains states. UPS Freight named Allan Robison, former president of Canadian carrier YRC Reimer, Vice President of Sales in Canada. Improving Asset Utilization One of the unique elements of LTL operations is the requirement to have geographically dispersed freight terminals. Rather than just use these facilities for local cross-dock and distribution, LTL carriers in 2010 are seeking to make better use of their assets. Carriers such as Midwest Motor Express and New England Motor Freight are making their terminals into bonded warehouses and receiving container loads of freight from overseas which they can strip and load into their LTL peddle runs. Evolution of 3PL Services Most LTL carriers have seen the 3PL industry become the point of contact with many of their clients. This has caused a number of companies to expand their skill sets, service portfolios and information processing capabilities. These skills and tools are allowing them to provide a more holistic logistics plan for their customers. Some LTL carriers have begun to gain recognition for their enhanced IT capabilities. Con-way Freight, YRC, Old Dominion and Pitt Ohio Express all made the 2009 Information Week 500 list. Going Global Con-way has been one of the leaders forming alliances with APL Logistics and TNT Express. The APL partnership focuses on inbound ocean freight from Asia to the United States while the TNT alliance is geared to streamlining combined air and ground logistics between the European Union and the U.S. Clearly the LTL industry is going back to the basics in an effort to improve profits. Cost decreases, rate increases, improving the sales force, transit time improvements and new service offerings are some of the tools being employed to improve financial performance in 2010. Facing the Challenges of Freight Spend Management in 2010
20 Feb 2010 at 6:11amFreight costs can be as much as 3 to 5 percent or more of gross revenues in many companies. This can represent tens or hundreds of millions of dollars in expenses on an annual basis. During the recession, the Transportation Directors in many firms were tasked with some new realities. Customers cut back on order sizes. Inventory reduction became a top priority. Staff cuts were demanded. The challenge faced by many shippers was how to reign in freight costs and maintain customer service with fewer employees while shrinking inventories. Some companies learned a number of important lessons during the recession. Bring Freight Spend Under Management You can only manage what you measure. To effectively control freight costs, it is essential to gain visibility into the key cost elements of freight. This includes being able to capture data on line haul costs, fuel costs and accessorial charges. It encompasses data on shipment sizes, modes, carriers, by day, by postal code/zip code. A recent Aberdeen Group study reported that every dollar brought under management results in a 5 to 25 percent savings. Visibility is a key to cost savings. Focus on those KPI's that mean the Most to Your Organization In a recent Hackett Group study it was reported that of all the jobs lost during the recession, less than half will be replaced. This suggests that there will be fewer people available to monitor and act on a company's freight spend data for an extended period of time. This requires companies to focus on those key KPI's that mean the most to the organization. While many transportation organizations monitor the same data elements (e.g. on-time service, OS and D's), there are often some specific variables that are most relevant to that specific industry or company. This may be a cost per ton, freight costs as a percent of revenue, freight spend by mode or inventory turns. With fewer resources, it is critical to focus on the key transportation related cost drivers that have the most impact on profits and service. Revisit Current Benchmarks Order fulfillment levels and transit times evolve over time. These need to be constantly re-evaluated and re-assessed. Cost savings can be derived from shipment consolidations and/or from modal shifts. With good quality data, shippers can revisit established benchmarks in consultation with customers to see if ordering patterns and/or shipping processes or modal changes can drive freight spend savings. Don't Forget About Inbound Freight Inbound freight to some companies is viewed as an indirect or landed cost. It is managed in the Purchasing silo and sometimes does not command the same scrutiny as do outbound freight costs. However inbound freight costs can represent a large component of a company's total freight costs. These expenditures have the same cost elements as outbound freight and can represent an important opportunity for synergy (e.g. creation of round trip or continuous moves) and leverage (e.g. integrate and strategically source at same time as outbound freight services are sourced). Expand Carrier Base As highlighted in last week's blog, many shippers limit their opportunities for freight cost saving by approaching too small a base of carriers. Certainly in this day of staff cuts, it is challenging to find the time to perform one's basic job functions while having the time to research the market. The fact is that this can be a very fruitful path to securing cost savings. Upgrade Freight Procurement Management Tools Since many transportation departments now have fewer resources, this makes it necessary to make the procurement and management of freight services less labour intensive. This means less dependence on manually created documents and spreadsheets while increasing the use of both freight procurement and freight spend management tools. While it may be difficult to justify the cost of purchasing a spend management tool specifically for freight, it may be much easier to justify piggybacking on a corporate spend management tool and applying it in the company's transportation. In fact, the additional savings gleaned from more effective management of freight costs may be a key element in selling management on the value of this investment. Identify and Collaborate with Key Transportation Vendors The cutbacks in truck capacity make it that much more important to align your company with its key transportation suppliers. These companies can often identify wasteful transportation expenditures and provide insight and wisdom as to how to remove unnecessary costs from a company's transportation expenditures. Final Thoughts In 2010, the message is do more with less. This applies to the freight transportation side of the business. Shippers that do not aggressively attack freight spend management may find themselves at a competitive disadvantage. Following these basic principles can help shippers deal more effectively with the realities of the slowly recovering economy. Shipper Freight Rate Negotiations Strategies for 2010
13 Feb 2010 at 7:25amThe last blog looked at how shippers and carriers have elevated their game in the area of freight rate negotiations over the past 10 to 15 years. In this blog the focus will be on how shippers should prepare themselves to achieve the optimum results for their company. These are some proposed steps to follow. 1. Align Freight Rate Negotiation Strategy with the company's Business Strategy The recession of the past few years caused many companies to make fundamental changes in business strategies. These changes included integrating production into fewer facilities, closing warehouses, and/or reducing inventories. As 2010 unfolds, some companies are experiencing modest increases in demand. All of these developments have a direct impact on modal choices and freight rate negotiations. With customers ordering in smaller order sizes, will this require more LTL shipping' Instead of full loads can multi-stop truckloads with drops be a solution' Can customer delivery intervals be extended to allow sufficient time to build larger shipments and move them on designated days of the week' The first step in preparing to negotiate freight rates is to create a clear Freight Transportation Strategy that is in alignment with the company's Business Strategy. 2. Reformat Historical Freight Shipment Data in Line with 2010 Transportation Strategy Shipment activity levels and patterns in 2008 and 2009 may not be indicative of what may be experienced in 2010 and beyond. Since carriers need data upon which to create their rate quotations, there is a need to organize and structure shipping data in a way that is indicative of 2010 shipping expectations. If the plan is to move more full loads and this is not what has happened in the past, there is a requirement to convert historical data to current realities. 3. Do a 'Deep Dive' on Modes and Carriers In order to save money on freight, it is essential to perform due diligence on prospective business partners. The day of calling in a half dozen carriers in each mode and asking them to refresh their prior year rate quotes is not a viable strategy in the current environment. On every major shipping lane, there are carriers looking for head haul and/or backhaul traffic. The task is to find them. If this is done in a superficial way, this will not result in achieving competitive freight costs. Since carrier requirements change each year, the search for carriers is a never-ending process. One large shipper with whom I spoke two weeks ago had recently completed their truckload RFP exercise. They approached 350 truckload carriers. While this may be overkill for small to mid-sized companies, the point is that to find the best rates, doing a 'deep dive' on prospective carriers is a mandatory. 4. Use the Best Analytical Tools Available If your company is spending more than a couple of million dollars on freight, you need good quality tools to analyze the quotes that you receive. As mentioned in the prior blog, there are companies such as mine that have years of experience in helping shippers execute freight RFP's. My company and others use some excellent tools that are custom designed to evaluate the quotes or bids received and perform a variety of analyses. These tools can find creative ways of saving money on freight. 5. Add Multi-Modal Experience to the Negotiating Team The modal options evolve each year. In addition to parcel, LTL, truckload and carload transportation, there are a host of other mode and hybrid options. Intermodal shipping via trailer or container, B-trains and 'turnpikes' (long combination vehicles consisting to two 53 foot trailers), short sea shipping, and 'roadrailers' are just some of the options available today on some shipping lanes. To build an effective freight negotiating team, shippers in 2010 should add this expertise on a full time or outsourced basis so as to ensure all cost reduction options are evaluated. 6. Learn how to Leverage Business Volumes and Negotiate Effectively It is essential that every shipper gain an understanding of how to take their inbound and outbound shipping volumes and leverage these volumes with transportation providers. This starts with gaining an understanding of which transport companies would derive the most benefit from the company's freight. Conducting multi-round RFP exercises allow shippers to identify and increase leverage over time. 7. Calculate the 'Total Cost of Ownership' for Each Scenario Freight transportation costs are just part of a company's distribution costs. To perform a meaningful analysis of freight costs, they must be integrated with production costs (that can vary by plant), handling costs, warehouse costs, and cross-dock costs to calculate the total cost of ownership. This allows a company to compare alternate supply chains from different locations to serve specific geographic markets. 8. Take your Time Conducting a multi-round sourcing project takes several months. By rushing, by cutting short on the number of rounds or the level of analysis performed, this limits the level of cost savings achieved. As the 're-setting' economy evolves over the coming years, freight transportation sourcing professionals need to employ a full arsenal of skills and tools to provide full value to their employers. Oh No You Di'nt! Chevy Posts Bigger-Than-Ford Torque Figure
10 Mar 2010 at 8:24amGeneral Motors announced today that the diesel engine in its 2011 Heavy-Duty pickup trucks will produce 30 pound-feet more torque than the diesel engine in the 2011 Ford Super Duty. Well,... More... 2011 Chevrolet Corvette Z06 offered with Michelin PS2s and a Bunch of Carbon ...
9 Mar 2010 at 11:01pmYou like carbon fiber, right' Of course you do. It's all, you know, carbon-y black and racy. And, of course, it makes any vehicle onto which it is applied, like, superfast. Might we then introduce... More... IL Track Tested: 2010 Acura MDX
9 Mar 2010 at 10:39pmInside Line tests hundreds of vehicles a year, but not every vehicle gets a full write-up. The numbers still tell a story, though, so we present "IL Track Tested." It's a quick rundown... More... Video: Audi RS5 and Ur-Quattro on Track
9 Mar 2010 at 12:12pmHold on to your sassy, feathered Bavarian caps, Audi fans, because the above video shows a lot (of unedited) footage of the new 450-hp RS5 at the racetrack, with a special guest appearance from the... More... California's "Cool-Car" Rules Might Be Cool for Felons
9 Mar 2010 at 10:32amWe have it on good authority that an incomprehensibly large nuclear reactor hangs in the sky over California. Apparently, the rays of energy cast by this "sun" bombard parked vehicles with... More... Beautiful Pininfarina-Designed Goodness for Auction
9 Mar 2010 at 9:16amMany beautiful cars will be sold to very rich people this week at the Gooding & Company auction at the Amelia Island Concours beginning this Friday. Now we like the resto-mods and Hemi 'Cudas... More... Was This Prius Really "Out of Control?"
9 Mar 2010 at 6:35amAnother day, another story of an out of control Toyota. This time it was in San Diego and it involved a Prius. You can watch the news report after the jump, but the driver basically claimed that he... More... No Bad Cars? What a Bunch of Bull.
8 Mar 2010 at 6:00pmThis semi-regular column is written (in his own blood) by an automotive sage and noted malcontent, known as The Mechanic. Mercilessly beaten as a child with rolled-up back issues of old car... More... Toyota Panel Demonstrates Why Acceleration Experiment Was Bogus
8 Mar 2010 at 4:23pmToyota held a press conference today at its Torrance headquarters to prove why an experiment discussed during a Congressional inquiry does little to implicate its cars in unintended acceleration... More... Mercedes to Double Spending on Hybrid and Electric Powertrains for Future Models
8 Mar 2010 at 3:37pmA report in the trade journal Automotive News says that Mercedes-Benz parent Daimler will double its spending on development of various green technologies over the next two years. The company plans... More... Block's First WRC Event Filled With Incidents, Finishes 18th
8 Mar 2010 at 1:57pmLast weekend Ken Block and Alex Gelsomino finished 18th in rally Mexico in their Ford Focus WRC, but the event was far from trouble free. Here's some on-board footage from Day One, which concluded... More... Lexus Offers IS 350C F-Sport Special Edition for $58,375
8 Mar 2010 at 1:45pmThe Lexus IS 350C coupe/convertible is a perfectly serviceable luxury convertible (other than the loaded-diaper rear end that sometimes comes along with hardtop convertibles). The problem, at least... More... Acura TSX Sport Wagon to Debut at the New York Auto Show
8 Mar 2010 at 12:35pmAcura, maker of a wide range of pointy-faced sedans, crossovers and the ZDX, announced today that it will unveil the 2011 TSX Sport Wagon at the New York Auto Show on March 31. The company had... More... GM CEO Whitacre Flies Private, On AT&T's Nickel
8 Mar 2010 at 10:37amThe Detroit News is reporting today that General Motors Chairman and CEO Ed Whitacre commutes between San Antonio, Texas and Detroit via private plane. Before anyone comments on the misuse of... More... Welburn Opening Up Next Corvette Design to Foreign Studios
8 Mar 2010 at 10:37amAccording to a report in Automotive News, the design of the next-generation Chevrolet Corvette could come from one of GM's foreign studios. Ed Welburn, GM's head of design, told the trade paper that... More... Quick Transport Solutions, Inc. - Your Freight On-Time |
I want to be a goat farmer
8 Mar 2010 at 1:39pmWhat do you know about how other people spend their day' Mitchell York gives us great insight into the agricultural experience. I want to be a goat farmer how about you' Mitchell's article give great insight into this "free spirited" life. By Mitchell York, About.com Guide to Entrepreneurs These Entrepreneurs Move their Own Cheese Saturday February 27, 2010 Emily and Michael I first met Emily Sunderman when we both worked at CMP Media, a publishing company on Long Island, in the 1990s. She was a business analyst and a great person. We both moved on and I hadn't heard of her again until I stumbled upon her online. Wouldn't you know it, she and her husband, Michael Lee, are entrepreneurs. Their cheese-making business, Twig Farm, is based in Cornwall, Vermont. We reconnected and she and Michael were gracious enough to take time away from the goats to answer some questions about their entrepreneurial journey. I told Emily before she answered these questions that, looking at her website, I wanted to be a cheese farmer in Vermont just like her! After our interview, that fantasy hasn't changed. Thanks Emily and Michael, and continued success! What has been your greatest success as entrepreneurs' And your biggest failure' Biggest failure first. We tried raising buck kids for the Easter market this Spring--hundreds of hours of labor, lots of purchased feed, and we lost our shirts at the livestock auction. Live and learn. Greatest success is we make a good product that we're proud of and that people need, or at least want, very much. What advice do you have for would be executive-to-farmer entrepreneurs' Animals don't take weekends, holidays, or two weeks paid vacation. There aren't very many people who want to work Christmas so you can drive to Auntie's. When I went to your website, my reaction was, "I wish I was a goat cheese farmer!" It looks so idyllic. What's it really like to be in the cheese-making business in Vermont' It's a lot of fun doing one shitty job after another-sort of a definition of farming. If you know that to begin with, it makes it all a lot easier. Specifically to the cheese-making side of things, we're part of a friendly community that rarely sees one another. We make a ridiculously small quantity of cheese, and have gotten very good at saying, "We don't have any more cheese to sell you" in lots of very gentle ways. Why did you get into this business, and what were your goals when you started in 2005' I don't remember. How have your outlook and goals evolved since then' We have a goal to take a family vacation next year. What's a typical day like' Michael gets up at 4:45 to set up to milk the goats. By around 5:15 he gone out-this time of year wearing a headlamp as it is dark-to find the goats in the pasture and lead them to the milking parlor. Milking and cleaning up are complete by around 7:30 and then Michael gets the milk into the cheese vat to start warming up. We have breakfast together around 8:00 then chase down shoes for our toddler. Michael drives our three year old son Carter to day care and Emily starts email and telecommuting at her job as a web traffic analyst. The cheese is usually ready to stir when Michael gets back from daycare drop-off and the cheese made is usually in the molds by lunch time. We generally have cheese sandwiches together at noon. After lunch Emily goes back to web traffic and Michael moves fences for the next pasture rotation or some other regular farm chore. Michael sets up milk around 3:30 and is done with afternoon milking and clean up around 5:45. Emily goes to pick up Carter from daycare at 5 and is back around 5:45 and we cook dinner and play at being pirates or firefighters. After dinner the cheese is usually ready to move to the brining process in our walk-in cooler, so Michael moves the process along. We take turns putting Carter to bed, and then read the New Yorker and do email before turning in for the night. Has the larger economy (oil prices, feed prices etc) affected your business and if so how have you adjusted your strategy' Yes-feed has doubled in price since we started four years ago. We've raised our prices a little and are now buying milk from other farms as well so we can make bigger batches of cheese. What do you love most about your business' No boss! What do you like least about your business, or hate most, if you feel that way' It is no fun when an animal gets sick and neither we nor the vet can make them better. Michael does cheese-making, Emily does marketing and web support. Who does everything else' Do you two do it all' Emily looks after the bookkeeping and marketing. We have a high school student that helps us on Sunday mornings with packaging cheese for shipment. We also have help with milking on Saturday mornings when Michael sells cheese at farmer's market and on Sunday afternoons so we can have family time. Michael takes care of the animals and makes and ages the cheese, and everything else. Moving forward, Jeff Roach www.brooketraining.com www.freightbrokertraining.com (see our new look!) www.pajamalearning.biz  Freight Broker Class in Session
22 Feb 2010 at 1:28pmDrake Silver is the main instructor for our live freight broker training class this week in Dallas. We are privileged to have him. Here's a bit of his resume: Drake Sliver, instructor of the Freight Broker Training course in Dallas, has had trucking and transportation in his sights since the age of 3 years old when his family first moved to Dayton, Ohio. The moving truck, with all of the gear shifts, gauges and sounds, held a great deal of intrigue. Eighteen years later, it would be Drake, with chauffeur's license in hand who would pilot tractor-trailers locally and coast to coast. Some 35 years later, his transportation experience would encompass driving, dispatching, freight brokerage, VP of Fleet Maintenance, Logistics Manager, fleet owner, President/CEO and head of several brokerage start-ups and agent programs. He has always used means and methods to reduce cost, increase efficiency while increasing revenues. Motivation, mentoring and teaching others sales and business development are a natural fit for him, As a manager and recruiter of agent prospects, he has taken fledgling companies to prosperity using his skills to develop agents networks producing over $20 million in revenues annually. He openly shares information and processes with those individuals and companies who need guidance in developing their business, and also believes that coaching people in their personal lives that tie so closely with their business lives. Individuals who work in the transportation field know that work and personal life are a delicate balance because of the 24/7 nature of the business. Drake believes in encouraging people to be the best that they can be bother personally and professionally. An avid photographer and film preservationist, Drake also spends free time golfing, mountain biking and hiking. Students enjoy learning from a pro. Be sure to ask him lots of questions and make the most of this opportunity to gleen from the best. Moving forward, Jeff Roach www.brooketraining.com www.justintimefreight.com www.transportationtraining.com  |
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