Post Gordon ~ Thoughts, Commentary & Reflections

HTLD hemorraging Gordon's best...

The trainer I had drove 5 years with Gordon, 16-17 prior with Barr-Nunn. Probably anniversaried on his 6th Gordon year by now.

Tremendous depth of experience. Would not allow GPS in truck. Stayed in contact with ALL his students. I was just a 24-hour check ride but would have gladly stayed on for further training at that level.

Dunno how many certified trainers Gordon had, but if too many leave it jeopardizes Gordon's student program.

That student program, out for 4-6 weeks with a 5-year experience level trainer who certified with Gordon through Gordon's trainer academy stands head-and-shoulders above any other in the industry that I know of.

That's 4-6 weeks with a 5-year level guy in the shotgun seat while you drive.



/Weather report calls for 30-mile/hour sustained wind, noon to 9pm and gusts to 50 mph. High-profile vehicle warnings. Just started to come up a few ago (10:45 am). Had been calm and warm this morning. Six inches of rain in my wheelbarrow.

 

Being 'against' Wal-Mart (or HTLD) seems like a vote against efficiency at large scale. Felt awed first time I entered a Wal-Mart DC (Olney, IL) located in nowheresville, miles and miles off I-70.

If you're a Trek fan, HTLD's arrival (like Wal-Mart's) resembles receiving a message from the next solar system that, "Resistance is futile." The Borg are coming, "Prepare to be assimilated."

But if you were giant Wal-Mart, would you prefer 2,000 trucks at a 93.5% costs/revenue pulling your freight or a 74% costs/revenue pulling your freight? Wal-Mart is big enough to wait until the dismantling of Gordon is complete.

Once complete, though, Wal-Mart's going to look at that 26% operating profit like a Borg mining operation. Count on it.

Next big move, Wal-Mart squeezes HTLD operating income.

 

Next Wal-Mart Board Meeting:

Chair: "Can we have the report on the HTLD/GTI merger? From their announcement, looks like we left a little extra on the HTLD plate, did we?"

HTLD/GTI Review Committee: "Yes, sir. The Gordon piece I don't think we want to disturb during the transition and dismantling phase, not with 93.5% costs/revenues and turbulence ahead.

But we see ample opportunity on the HTLD side right now."

Chair: "So the Review Committee recommends we bide our time on the GTI business?"

Review Committee: "Yes sir. Gordon is hemorraging both drivers and accounts right now that aren't interested in working with HTLD. But the dust will settle fairly quickly. HTLD intends to pay off $250 million credit line from Wells Fargo in 2015."

Chair: "Very good. I like that. We'll extend your committee at least through 2015, then. And what are we doing at this time about HTLD?"

HTLD/GTI Review Committee: "We're looking closely at the current HTLD piece and our contracts with HTLD. Some contracts we can't adjust for a while, others we can start right away. We'll nibble first as we get a better feeling for where the fat is. Then we'll adjust and tighten accordingly."

Chair: "Good job. Somehow HTLD got in under our radar, didn't they?"

Review Committee: "Yes, sir. But we're on it now."

 

Very interesting post (msg #910) over on joseph's thread right now with info on Gerdin family. Appears to be from the Gordon corporate, says drivers have nothing to lose by staying on, see what happens. GTI drivers will not lose seniority (did that matter at GTI?), trucks will not change right away and Gerdin looking at GTI driver comfort/APUs.

Article below covers panel discussion that included Steve Gordon, Mike Gerdin. Could the merger have been born there?

------------------------------March 2012-------------------------------------
Article below found here: http://www.truckinginfo.com/article...next-generation-leaders-run-a-tight-ship.aspx

Next-Generation Leaders Run a Tight Ship

March 2012, TruckingInfo.com - Feature
By Deborah Lockridge, Editor in Chief
A panel of young truckload executives talked about making sure growth, technology, employees and customers are all contributing to a carrier's success during a panel discussion last week at the Truckload Carriers Association's annual conference.


James Hebe, senior vice president of North American sales operations for Navistar, moderated the panel discussion, well received by the crowd in the large ballroom at the Gaylord Palms in Kissimmee, Fla.

The panel featured Steve Gordon, COO of Gordon Trucking Inc.; Paul Will, vice chairman, president and COO of Celadon Trucking Services; Rob Penner, executive vice president and COO, Bison Transport; Aaron Tennant, president and CEO, Tennant Truck Lines; and Mike Gerdin, CEO and chairman of Heartland Express.

What's right for your operation

At Celadon, said Will, "We've done a lot to bring people in and analytically evaluate what the business is - not just to run miles to run miles, not running to a certain state because that's what you've always done. Make sure you're doing what's best for the bottom line."

For instance, he said, Celadon is looking into regional operations in the Southeast and the Northeast to complement its long haul. "Not to change what we're doing, but to add on to what we're doing."

At Heartland, which has been unusual in its continued adherence to the pure-truckload model, Gerdin said while the company has experienced success following the model his late father Russ established, "that doesn't mean that model's perfect. We're constantly working on our pricing, on our deadhead, how we're going to service our trucks and trailers better, how we're going to take care of our driver, how we're going to get them miles. It's constant, we're looking at every part of our business, every department we have." During the downturn, Gerdin said, the company tore a lot of departments apart and redesigned them from scratch.

While Heartland decided to add PeopleNet electronic logs, Gerdin said, it has not invested in trailer tracking. The company does a good job of keeping up with its trailers, he said, so the company didn't see a large return on investment there.

"We don't just do something because it's the new trend or everyone's doing it; you have to look at what it's going to do to help our company."

As Bison's Penner said, "It really comes down to, what are the big problems in your business, and will this [product] help?"

Customers and lanes

These young executives believe in using data to help them manage. For instance, when Mike Gerdin heads into the office after he's been out of town, the first things he's going to look at are numbers for load count, deadhead, and the loads in each lane, looking for flags for problems such as letting in a customer that maybe shouldn't be in the mix in this particular area.

Being disciplined in the freight you haul is vital, Gerdin and other panelists stressed. "I'm real particular about who's getting into our freight basket," he said. Some customers, he said, have a way of sneaking in where they don't belong.

Steve Gordon agreed that customers can be sneaky. "We track every commitment on every lane, and lo and behold, they don't always do what they say they're going to," he said. "If you don't manage your customers, they'll manage you." It's not unusual, he said, for a customer to promise, say, 20 loads a week in a particular lane but not follow through, and then want to know why the company's having problems giving them the service levels they want. "We check that two or three times a day," he said.

GTI tries to head off problems, as well, with a "robust filter" on the front end of the contract process.

Gerdin agreed: "It's your job to make sure your freight and your lanes are what you want to haul."
In order to get better rates, several panelists also noted, you have to offer something more in the way of service than the competition. This is especially vital for smaller carriers that can't compete on volume.

"If you're always chasing the easy stuff, you're easily replaceable," said Steve Gordon. "In that case, size doesn't necessarily matter, if you provide a valuable service better than anyone else.

Tennant, for instance, hauls machinery and is thus in a somewhat specialized business.

At Heartland, Gerdin said, "when we go to a customer, we ask for their toughest lanes, the ones they can't get covered, and give the best service on it. If you get a foot in with that customer, you can grow that customer, if you're taking care of stuff that really creates a problem for him each and every day."

HOS and pricing

Another key issue with customers going forward will be hours of service, panelists said.
"It's how many hours drivers can be behind the wheel now," said Celadon's Will. "You may look more at what you are going to be paid per hour the drivers are utilized, rather than old metrics like revenue per day."

Electronic logs, said Bison's Penner, allow fleets to see productivity in a totally different way. "We don't go to our shippers and say, 'Here's a 5% rate increase across the board,'" he explained. "We look at lanes, and talk to customers about where they're driving costs into the business, and give them a choice to take the extra cost out or pay us for it. I think it's the way the industry's going."

As Mike Gerdin said, "It's going to be more and more evident as we go forward: The ticking clock is the real issue."

The importance of people

A common theme was the importance of surrounding yourself with the right people - and that getting the right person may mean hiring someone without trucking experience or bringing someone in from outside the family.

At Gordon Trucking, explained Steve Gordon, "we had really great folks around the whole organization. But about 10 years ago, we found those folks had a lower 'ceiling' than what we needed to run the business." For instance, he said, just because someone was great in customer service didn't mean they would be a great customer service manager. So the company changed its hiring practice to focus on people coming out of college who had the attitudes and leadership abilities needed, then taught them the trucking business.

At Tennant Truck Lines, Aaron Tennant said, his family may know trucking, but that doesn't necessarily mean they had the skills to pull the analytics out of the company's data that it needs to control its business. "So we had to start hiring from outside the family," he said. "That was tough for a lot of family members. But I think once we made that switch and brought those talented people in from the outside, we've been able to explode with growth."

The right people includes drivers, as well. At Bison Transport, which has won the TCA annual safety award numerous times, Penner said, "We really are focused on surrounding our people with the right tools. Everyone in our business understands that if you're not out driving a truck, you're support staff for the drivers."


/You can read a profile of Mike Gerdin here: http://profilemagazine.com/2012/heartland-express/

/More info on Gerdin's father, Russ Gerdin, who died in 2011 here: http://iowabusinesshalloffame.com/inductees/russ_gerdin.html

/Gerdin and colorful Heartland history here (be sure to scroll down, article is long and first paragraph is short intro, then stock info, then article: http://www.answers.com/topic/heartland-express-inc

 

Yeah. I drove over to Ellettsville just as the tornado warning came on. Left the dogs home just in case. 70 mph winds and a tornado on the ground near Bedford/Oolitic. Not too bad on my drive but am used to high winds in the desert. Library at first said if came in building had to stay in one of two bathrooms. Target here was Greene, Monroe and Bartholemew counties. (Bedford, Columbus, Bloomington.)

Steady tornado sirens. Later came outside and said had to either leave property or come inside. This after rain and wind opened up hard. Heading back home, seems okay now. Had 30 mph sustained up at my place. Potential gusts to 50 mph. Not sure it got that strong.

Lively discussion over on joseph's thread if you hadn't noticed. Someone from management chimed in.

 

Seemed to speak directly to you, tow.

Recommend consider PM you next time.

Description of news over QC gripping, difficult for him/her to respond.

Left median vs average unaddressed.

No real details. Claim top 77K. 'Avg' 57K.

Maybe bring up a couple drivers next.

For that matter, HTLD drivers could PM you if worried about retaliation.

You may want to open up a PM channel yourself to Heartofatrucker.

Heartofatrucker will need 10 posts to PM you back.



/Does stand for heart o fat 'rucker, right?