August 2010, Cover Stories
Technology Driven
Evans Transportation Services uses modern technology, service to fuel its business model
It doesn’t take a fancy chart to understand the basics of transportation. All you really need is a toddler, a truck and a sandbox. What separates the big boys of the industry is not the truck or even what it’s carrying. It’s the efficient management of the trucks as they move through the entire supply chain.
That’s the approach that Brookfield-based Evans Transportation Services uses with every client, often resulting in savings of more than a million dollars for clients with their advanced approach to transportation logistics.
“We’re a company that uses 25 years in this business to understand the efficiencies, needs and challenges involved in transportation,” says Evans CEO Don Cox. “For us, it’s about focusing on customer needs and then using our deep industry experience to acquire quality data to efficiently manage, handle and deliver more freight.”
Transportation has, since the very beginning, been a relatively low-tech industry. But those companies on the cutting edge are applying technology in innovative ways to reduce errors, increase efficiencies and generate cost savings. For Evans, the focus has been on actively participating in customers’ businesses.
“We work with customers to build an efficient transportation process,” says Cox, “based on our hands-on approach and proprietary software, to make the process and transition to our system as seamless as possible.”
“Transferring our data to Evans was a smooth transition, with little interruption at the plant level,” says Paul Acosta, SAF-HOLLAND’s director of supply chain and logistics.
SAF-HOLLAND manufactures coupling, lifting, and suspension systems for trucks, buses, tractors and trailers. SAF-HOLLAND products are sold and serviced under the SAF and Holland brand names from over 4,600 distributor and OEM locations worldwide. The global business has its U.S. base in Holland, Mich.
“We achieve as much as possible electronically,” says Cox. “We’ll never be at 100 percent – that’s just not practical – but we know we can get pretty close.”
Evans Transportation uses proprietary software designed to meet each customer’s unique needs rather than requiring customers to conform to an existing format when gathering initial data about a load or shipment.
“This is software our customers use every day to send us information,” says Cox. “We know that it’s important for the drop down menus to be customized, for example. That’s something that just makes sense.”
By making the software as user friendly as possible, Evans has been able to improve the quality of the data it transmits electronically throughout the shipment process.
“Is it something that our competitors are doing?” muses Cox. “Some of them are; it’s really not difficult to catch up on technology. But to stay ahead of the curve, you need to continue to make that investment to be a high-touch service company like we are. “
The end result is a process that is completely transparent for clients throughout the entire supply chain.
“The resulting quality of data collection from clients and efficient interfaces with partner carriers has led to Evans managing more transactions for clients than ever before, with fewer mistakes,” says Cox.
The transportation evolution
Evans’ book of business includes a number of notable clients, both Wisconsin based and across North America, including Bucyrus, Nestle, Tyson Foods and Alto-Shaam. Its client list remains primarily North American-based, though the company does do some international work for clients.
“We certainly do a lot of business with Wisconsin companies,” says Evans President Marty Johnson, one of the founding members of the company. “They’ve put a lot of confidence and trust in us over the years.”
The company has its origins in the Motor Carrier Act of 1980, which deregulated the trucking industry.
“We started out as two former trucking executives [Johnson and business partner Charlie Keepman] who applied to be Transportation Property Brokers arranging transportation for our customers using common and contract carriers as partners for each shipment,” says Johnson. “We weren’t unique, we weren’t a ‘one-of-a-kind’ business, but we had a solid amount of experience in the industry and we saw an opportunity based on that government de-regulation.”
With the Motor Carrier Act of 1980, the federal government reduced a number of controls, from price and entry controls to collective vendor price setting within the industry, all of which was previously regulated by the federal government.
The act allowed carriers to publish and establish their own reasonable rates, deregulate geographic routes and regions and opened up the types of commodities that could be transported, among other things. The end result was stronger competition for business, and cost savings for customers.
The executives at Evans were part of the de-regulation wave that quickly followed. By 1990 the number of licensed carriers, 40,000 across the United States, more than doubled the number a decade earlier.
“During those early years, we grew relatively slowly,” admits Johnson, who says Evans added third party logistics (3PL) in 1990. “We were telemarketing to find clients, and we’d match them up with a truck to ship their freight. We were calling our neighbors to bring in business.”
The company has changed quite a bit since then. Now celebrating its 25th year of business, the company has 55 employees and annual revenue in the range of $50 to $75 million.
But some key elements have remained the same.
“We definitely try to ‘out-service’ our competitors,” says Cox. “Internally, we take steps to provide the best service we can. Our account managers usually handle two or three accounts compared to the more typical 10 to 15 clients among our competitors. And we hire around new accounts so we can maintain that balance.”
The company’s long-term expertise also helps.
“Because of our experience in the marketplace, as well as our long-standing relationships with carriers, we can really optimize shipments for our clients,” says Johnson. “We know the best modes of transportation. With respect to all other facets of our business, we can really optimize our service for that particular moment and shipment, which is a huge part of how we do business.”
Cox agrees and says that this ability is paramount to saving clients’ dollars.
“We can reduce a lot of the hard and soft costs on a shipment, down to the pound,” he stresses. “That’s what sets us apart and sustains our business.”
The company has also maintained its hunger for growth and new business.
“When we started out, finding freight really required a lot of good old-fashioned hustle for new business,” says Johnson. “We’ve just created a new brokerage team that’s doing just that. They’re out there with the proverbial pick and shovel, making a lot of customer contacts and setting new records every week. They’re getting things done.”
In response to what it sees as a coming need in the marketplace, Evans recently launched that division, Evans Freight Services (EFS) to complement its logistics services division. It’s a bright spot both for the company and for an industry that has been struggling in the current economy.
“A lot of carriers and brokers are going out of business,” says Cox. “But that has also provided us with an opportunity; I think there’s going to be a turnaround. We’ve seen it already in house – not only do we have the new division, but our logistics side has more than doubled since April 2009. We’re not slowing down.”
Strategic growth is helping to propel Evans through the down economy, and the window of opportunity is definitely here for the company.
“Manufacturers, wholesalers and retailers likely will experience difficulty accessing transportation services as the economy continues to improve,” says Tom Aumann, leader of Evans’ EFS division. “When the economy skidded, transportation fleets were taken off the road and a lack of transportation capacity resulted. With economic recovery, business owners must keep an eye out for rising transportation costs and decreases in service levels as demand outpaces transportation capacity.”
It’s a situation that certainly will lead to future growth for an established, well-respected business like Evans Transportation, with its ability to provide both logistics and brokerage services. The company has developed a loyal carrier base over its 25 years, which it believes will play a key role in providing brokerage customers an easy, cost-effective way to access transportation capacity to help with their freight needs.
“The proven performance of our logistics division throughout the supply chain year over year has delivered dependable service, reduced costs and significant client loyalty,” says Cox. “Nearly all of our clients have been with us for a decade or more because of our disciplined approach. I believe our growing stable of brokerage clients will experience similar satisfaction.”