Building tomorrow's transportation company model
Apr 21, 2010 3:40 PM, By Charles E Wilson
Dupré Logistics continued...
He describes Dupré Logistics as a true pioneer in this type of business. “We don't see many other companies using our type of model to serve the chemical industry,” he says. “However, we're seeing more interest in this type of transportation service from the chemical companies, particularly as transportation capacity has shrunk. They want to focus on making and selling chemicals. Supply chain management is not part of their core business. Even chemical distributors are exiting the transportation side of the business. They recognize that they are not trucking companies, and many of them no longer want to deal with the liability, regulations, and complexity involved with transportation.”
As a 3PL, the SCS business group offers a broad range of logistics services that are complimentary to the Site Logistics and Private Fleet Services business group, and it covers all surface transportation modes, according to Kevin Smith, SCS director of logistics. SCS operates predominately in the United States, but service is available to customers throughout North America.
The SCS operation was launched in 1992 for dry van and refrigerated shipments. Liquid and dry bulk was added in 1998. Packaged freight accounted for about 53% of the business in 2009. Bulk shipments have grown to about 30%, and hazardous materials account for close to 60% of the shipments.
The SCS division can tap into all of the assets and resources of Dupré Logistics. SCS also works with approximately 200 additional carriers of all types. Customer freight is analyzed by size and transit needs to determine the proper mode. The SCS management team optimizes the transport provider selection process by sorting for service, price, and long-term reliability.
“We take total responsibility for the shipments tendered to us,” Smith says. “We provide our 3PL customers with a dedicated team of industry professionals to service their needs 24/7, and we handle the full supply chain for them, including reverse logistics.
“We use the capacity of other carriers to handle our customers' spikes in business levels, campaign work, and emergencies. Our thorough carrier safety approval process (handled by the Dupré Logistics safety department) and regular audits ensure that our carriers remain compliant to our customers' customized key performance indicators. Our monthly, quarterly, and annual metrics are customized to customer needs and provide the data needed to analyze all facets of their transportation network.”
Until recently, the SCS operations were managed from the Dupré Logistics headquarters in Lafayette. However, SCS opened a second office in Colorado Springs, Colorado, in March. That office will be used to build a stronger presence in the Rocky Mountain region and beyond.
“Our team is thrilled with the expansion into Colorado,” says Jeff Colonna, SCS corporate director of operations. “This strategic expansion will help us build density throughout the West and will give us the opportunity to continue building the SCS group.”
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