Swift Beats Greatwide for the Walmart account

And why do you even give a *%&# anymore, Rug?

Greatwide lost the contract for the same reason the Great Pumpkin is hanging by a thread: inability to deliver the loads on time. If setting a standard of on time pickup and delivery is cutting someone else's throat, then I guess I'm just as guilty. You'll believe whatever you want to regardless of facts placed right in front of you.

 

The fact is, Swift got the contract. Painting it as "cutting someone's throat" is pretty lame. Swift has a proven track record with Walmart and apparently, Walmart likes how Swift is doing things. I don't believe the rates being paid between Walmart and Swift are that much different from the deal between Walmart and Greatwide. Walmart, like any large corporation, has its standard contract. Rates to drivers are spelled out in the contract between Walmart and its dedicated fleets. Pretty much the same as new applicants to trucking companies: you either take what is offered or go somewhere else.

The terms are acceptable to Swift, Swift's services are acceptable to Walmart. Greatwide fell short. Too bad. It's business. Not charity.

As for the drivers for Greatwide, they are being given the option to continue on where they are. Either they will accept the terms being offered by Swift, or they will go elsewhere. That's their choice to make. Again, these companies were not established to just give stuff away. They were established to make money. Each of them is doing that, quite successfully. I happen to benefit from the contract between Swift and Walmart, by having a contract of my own with Swift. I am expected to provide a specific service, for which I receive a specific compensation. Swift is happy with it, I'm happy with it and Walmart is happy with the whole arrangement.

For whatever reason, Walmart is more happy with Swift than with Greatwide. It was their decision to make and they made it. When bids come up next time, Greatwide may offer a better deal and service than Swift and Walmart may take the deal. Does that, then, mean Greatwide is cutting Swift's throat? Well....no....because it would be Swift getting the boot and Greatwide getting the contract. Interesting, isn't it, how it's painted one way when it's one entity and a completely opposite way when it's another...

What it boils down to is business. Some of us understand that. Others cry about it and place emotion on it. And that's what separates business people from people who will never run anything bigger than a coffee cart.

 

Actually Greatwide had a 99.5% ontime rate. The Florida DC's had the highest LOS in all of Wal Mart including private fleet.. It is not about ontime service it is about money. I have been told that Greatwide is about to make a huge play on Los Lunas NM Casa Grande Roberts La and New Albany Ms.. And now they know what Swifts rates are in Florida.. Yes swift cut the rate very low in Florida.. Also heard Swift is about to take another DC from Greatwide which will put them at the Max Wal Mart will allow on carrier to have.

I was also told by a transportation director at a grocery dc this was not only about money and had nothing to do with LoS it is Wal Mart setting up regions.. If what he said is true it will come out in the next 6 months Greatwide will take the central U.S what he is calling the Texas Region.. He told me that Swift and there daycab idea probably will be extremely hard to manage as they want to have 3 to 7 day loops .. In other words when you leave your home dc it will be 3 to 7 days before you come back and with Bentonville taking control over all the backhauls Wal Mart will not be dispatching the trucks just dictating where they go.. He did say that swift looked to take the west coast if England didn't and that Swift looked strong in the east but didn't say what about the northeast.. Said it is up for grabs.

BTW I am not leased to Landstar... I am at Greatwide right now running Tyson (which I guess they still have).. When I transfered over from Wal Mart through Thxgiving was told when I (if) come back be prepared to be out 7 to 10 days on Wal Mart freight... Having said all that the transportation director told me that every thing is in flux and that the only thing that is certain is Swift out bid Greatwide by more that a quarter per mile in Florida.

And yes Swift cut the rate not the throat.. Just like greatwide will do in the next round when the central stuff comes up.. Either way I don't care I hate greatwide and I have no problems with Swift. I just think people are misreading what is going on with Wal Mart.. Like I said if Greatwide loses their contract in the central U.S what I was told was just water cooler talk.... If greatwide takes La through NM and North maybe this director was right.. Either way I will have a job.. Wheels have to turn either way.

And everyone involved in this sort of stuff needs to read the last line of INJUNs post. Don't get emotionally involved with a job or a business even if it is your own business.. Take a step back and think about it.. Wal Mart is not in business to give money away... Just like I am not in business to give you a job. Now if you come to me or I come to you and one of us has an idea that makes me money and gives you a job and a way to make a living then we both have an arrangement that works for us, but these contract negotiations MUST BENEFIT BOTH COMPANIES... Just like my friends in Florida at greatwide are crying about I can't believe swift can haul it for that... If Swift can Greatwide can.. They just may not be willing to.. Which sends Wal Mart to an agreement with Swift. and honestly from what I have seen swift is paying more than greatwide is per mile.. so maybe greatwide just went into this with the idea they were not expendable.. and greatwide has been milking their drivers forever.. I believe the Wal Mart accounts still make .765 cpm 40 load pay 21 stop pay/pickup pay. and avg 1900 miles per week but their fuel surcharge is figures at 1.12 at 5 mpg so right now it is .42 cpm

 

As far as I know, Prime is making the moves on the Northeast stuff. They are firmly planted at the Lewiston, ME terminal for the past few years.

Swift also has a company wide on time rate of 99.5%. However, in order to get on the Walmart dedicated, I was required to be 100%. Which I have been for the past few years. One late load here can get you removed from the fleet in fairly short order. They are very serious about that. Because Walmart demands it.

I look at the brag sheets on the walls at some of the terminals and think: "Geez! Only 97% on time? How'd ya mess that up?"

 

You have to also take into consideration safety ratings and I am sure CSA ratings now.. I don't think Prime is as firmly planted as was let known.. Like the guy told me Greatwide was in Florida for 10 years with 99.5 ontime. With the economy right now I don't believe anything is safe and these companies need to look at it as such.. I know for a fact greatwide took Florida for granted.. They were told it was going to be a quick contract rework. and it wasn't the kind of quick contract they thought.. (it was actually funny to hear it around the greatwide terminals the shock on the managers faces)

 

cheap freight just got cheaper, unheard of.....

 

#### capitalists ...

 

You want facts: Swift employs over 16K drivers at any given time and out of those say 80% out of 100% within the system of being on time. In FL and AZ, Swift has the authority of hiring and firing who they choose as FL and AZ are both right to work states thus they can hire and fire for anything they want for any given reason. As a result, the driver pool will be very big as per injun they need to have a 100% o time status in order to get on. Anything less than that will result in termination is my guess. Thirdly WM is Swifts biggest customer hence the underbidding.

Injun,

I know RT does care. Cut him some slack.

RT,

Hit me up. would love to hear from you.

KH