I have had businesses tell me they won’t let non-asset based carriers (companies that don’t own trucks) ship their freight. As the owner of a non-asset based logistics company, this is always frustrating to me. But when I heard it again most recently I got to thinking about how unfounded this mindset really is.
Let’s say I had a really bad experience with Lou’s Lawn Care Service. They tore up my lawn with their mowers, blew grass into my freshly-mulched flowerbeds, ran over my child’s favorite sandbox bucket, and were constantly pestering me to sign up for additional services that I didn’t want. Obviously I would stop using them, but would I never use another lawn company again? Of course not. I have a fairly large sloping yard, a young child, and I own a company – I don’t have the time or the equipment to do it myself. So I would hire another lawn care company, most likely based on a referral from someone else, and hope that the leadership of the next company is better.
Leadership is the key to any company. No matter how much control company leaders give their employees, they are still ultimately responsible for their actions. The company is based on its leaders’ ethics and values, and employees hired to work there tend to have these same traits. Otherwise they wouldn’t have been hired. If it is discovered that someone does not have the same standards, it is up to the leaders to either instill the standards in them or let them go.
Leadership decides how much time and money is invested into which parts of the company. Their dedication to constantly improving technology can make a non-asset based company even more streamlined to work with than a company that owns trucks. If they concentrate their efforts on establishing strong relationships with large quantities of drivers, the company’s on-time percentages and reliability increase dramatically. Combining these strengths with a staff of hand-picked quality employees results in a company that’s hard to beat.
I would like to think that those companies who insist on working with asset-based carriers don’t just work with any carrier that has trucks. I’m assuming they still ensure that these carriers have the proper coverage, pick up and deliver on time, act in a professional manner, and fix the problem if one arises. So why not do the same with a non-asset based company? Don’t focus on their lack of physical assets, look at their leadership. If they have a good reputation and the same values that make your company successful, give them a try.
by Antony Coutsoftides, CEO