Inbound Logistics: Feature Story

For any former Latin scholars, the name Celarix (sel-a'-rix) may joggle some suppressed -- or perhaps repressed -- high school memories of conjugating verbs. But, for those who are really on top of their grammar, the suffix may seem a bit out of place.

That's because the Cambridge, Mass.-based software developer contrived its name from the Latin word celaritas, meaning speed.

"The name came about by accident," admits Evan Shumacher, founder and vice chairman of Celarix. "We were struggling for a name. We had our first corporation papers due in an hour and we needed a proper name. A bunch of us got together and began playing around with globalisms, terminologies, and different languages. One guy proposed using the Latin term for speed -- celaritas. We took that and 'high-teched' it by dropping some letters and adding an 'x' at the end."

While it may not be the ideal recipe for cooking up a global software technology name, it is a pretty good match for a company that speeds up the supply chain process. Celarix's core competency was and is centered around speed and efficiency.

"The name made sense for us because we help companies move their inventory from the beginning of the manufacturing process to the transportation phase to its final destination," notes Schumacher. "We do that by connecting together and gathering information from all the different parties in a supply chain. We then feed that information to supply chain planning and execution systems.

"Our customers have high-value products, and they're looking to expedite their supply chains, so the concept of using velocity and speed to help companies create an agile, aggressive, and efficient supply chain is important," continues Shumacher. "That's how companies in the high-tech industrial sector compete."

Though Celarix came of age during the dot.com explosion, Schumacher is quick to point out that the company was a lot more focused and evolved than other flash-in-the-pan Internet companies. He attributes part of Celarix's staying power to its unique corporate strategy.

"We are on the cutting edge of where the industry is going because we're a hosted solution and because we provide this connectivity into the outside world -- beyond the four walls," says Schumacher. "We're focused on the outside, working with the factories and transportation vendors, and feeding that information into the four wall applications."

It's this "out of the box" thinking that gives Celarix perspective. Couple this with a small staff, and a flexibility that is fleeting for most companies, and Celarix has the ability to react quickly to changing trends within the industry.

"Still, as a startup, we are innovative. We have a mission, we think we understand clearly who we are today, and we're executing on our strategy," says Shumacher. "But we are still a fraction of the size of many software companies, so we're able to use our size -- our flexibility and speed -- to our advantage in our ability to seize opportunities, turn the ship, and head into other areas."

TLC: A Logistics Control Freak

Total Logistic Control (TLC) touts itself as a horse of a different color -- and for good reason.

"Total Logistic Control is a multi-disciplined logistics company," says Brian Fox, director of marketing, TLC. "We do refrigerated warehousing, dry warehousing, truckload freight, carrier management, dedicated facilities, contract packaging, and full consolidation. We offer total logistics control to our customers."

TLC, located in Zeeland, Mich., got its start back in the early 1980s when the word "logistics" was a footnote in the transportation and warehousing lexicon, compared to its widespread usage today. As supply chain management has evolved and assumed greater importance in the global economy, more and more companies have become "logistics" companies, making it even more difficult to differentiate what companies really do.

"TLC originally started out purely in warehousing and transportation," notes Fox, "but over time we have evolved and offered a broader list of services to our customers as they have demanded it.

"The sell was -- and is -- that we can go into our customers and, within reason, do anything they need or want. They can get all their logistics control at one point and through one company," he says.

When you consider TLC's recent endeavor with Guinness UDV North America to make, bottle, and distribute Smirnoff Ice, there is little argument over the authenticity of its name claim.

"For our partnership with Smirnoff Ice, we are taking its product from the cradle to the grave," notes Fox. "We actually create the product for them under contract and man the logistics of moving product all the way through to their distributor. We offer Smirnoff Ice total logistic control over that product line."

TLC provides similar control in its distribution of Guinness (although it doesn't produce it) throughout the United States.

"Every bottle, every keg, every can -- when it hits the port we take control of it," says Fox. "We strip the containers, put product into warehouses, and deliver it through mixing centers to distributors. We provide the retailer with fresh product."

To be able to offer end-to-end supply chain management demands a day-to-day commitment to excellence, and TLC is not satisfied to rest on its laurels. "We are only as good as our last product," says Fox.

Judging from its performance to date, Total Logistic Control is indeed a unique breed.

FedExpress Yourself

In its nearly 30 years of existence, FedEx has built itself into one of the world's most recognizable brands. Whether it's a television commercial, a high-profile role in a major motion picture starring Tom Hanks, or simply the presence of its trucks on the streets of the world, the Memphis, Tenn.-based company is as much a cultural icon as it is a multi-billion-dollar business.

When Frederick W. Smith first came up with the idea of an airfreight carrier that specialized in expedited shipments, his vision took on an almost patriotic purpose.

For one, the original name -- Federal Express -- suggested an interest in nationwide economic activity.

Secondly, one of the first deals Smith worked on was a contract proposal with the Federal Reserve Bank.

Finally, the company's corporate colors -- orange, white, and purple -- had a vague resemblance to the U.S. tricolor.

Despite the fact that Federal Express was a privately held company and anything but a federal enterprise, the name was unique and distinctive and gave the company a competitive edge as it grew into a national carrier.

Ironically, Federal Express' rapid growth and success throughout the 1980s and early 1990s was also the motive behind its name change in 1994. While its morph from Federal Express to FedEx may appear to be simply a matter of semantics, the reason for the name change was far more important.

"In 1994, we were beginning to expand the business into the international world," says Gayle Christensen, managing director, global brand management, FedEx, "and we realized that the name Federal Express wasn't working very well for us for a couple of reasons.

"First, it's long, and whenever you're in the global marketplace, you're much better off if you have a simple, easy-to-say name.

"Federal Express also sounded governmental, and in some parts of the world, the letter 'r' is difficult to pronounce. Plus, many of our customers already referred to us as FedEx," continues Christensen.

Ultimately, it was a combination of customer preference and a resolve to extend its global reach that led Federal Express to shrink its name into FedEx. With its brand so deeply ingrained in the U.S. transportation culture, the potential advantages far outweighed any risks.

In fact, the change not only facilitated FedEx's move into the global marketplace, it also enabled it to evolve its portfolio of services.

"We were looking primarily at extending the existing brand to other countries," notes Christensen, "but then when we actually extended our brand to other companies, it worked out perfectly."

The descriptor names of FedEx's companies (Ground, Trade Network, Custom Critical, Supply Chain Services) are very simple and descriptive, and link to FedEx.

"We ascribe three rules in naming our companies," Christensen says. "Keep it simple; make it describe what you do; and always link it to the FedEx megabrand."

The shorter name has also allowed FedEx to come up with a new corporate identity design, recognized by its distinctive, color-coded divisions.

From a marketing perspective, "the name contains fewer letters," notes Christensen, "so we can present them in a much bigger way. FedEx has become the global, modern, marketing and communication name for us."

Not a bad match for a company that has become a modern and global leader in the logistics and transportation world.

Logistics Goes to the Dogs

Had it not been for a serendipitous conversation between Greg O'Riordan, CEO of Big Dog Logistics, and a prospective customer back in April 2001, he'd be explaining how the name Texas TransWorld Logistics found its way onto the company letterhead.

While setting up to do some work with a client, O'Riordan mentioned the intended company name in conversation, only to receive a less-than-enthused response. In turn, the customer posed a question: "When you're playing golf and the chips are down, you have 290 yards left on a par five and you need to make eagle, what do you do?" To which he responded: "You whip out the big dog, you whip out the driver, you whip out the best. That's what you are, you're the big dog -- you gotta be the best."

The name Big Dog stuck, and it was only later that O'Riordan discovered that it also happened to be the customer's college nickname. Regardless, the Houston, Texas-based third-party logistics provider is living up to its name in big ways.

"What differentiates Big Dog from other 3PLs is that we can take care of any problem at any given time," notes O'Riordan. "We are not tied to our own transportation. We do anything and everything possible for the customer."

Customer service plays a crucial part in how Big Dog Logistics conducts its business. The sentiment among its employees is that Big Dog is a 3PL with the means and confidence to develop solutions for customers.

But employee sentiment is only part of the company's commitment to its customers. Even the name Big Dog Logistics conveys an "every man" appeal -- casual and approachable. There are no pretenses or corporate rhetoric.

"People realize they can talk to any single person in the company at any time and get a straight answer," says O'Riordan.

Big Dog's simple yet challenging corporate ethos mirrors this unyielding commitment to the customer: "There's only one right way to do something," says O'Riordan, "and that's the perfect way."

BDL's three big dogs (l. to r.) Daniel Kirk, executive vp of sales; Greg O'Riordan, CEO; Kirk Lane, president.

To provide the best service, you need to employ the best people.And while it's said that you can't teach an old dog a new trick, O'Riordan would likely contend that you can teach a Big Dog -- because that's precisely what they do. O'Riordan comes from a finance background and many other people arrived at Big Dog Logistics without transportation credentials.

"We get the best people in here and then we teach them transportation," says O'Riordan. "We have a good mix of experience and fresh perspective."

Ultimately, it is this fresh perspective that endears new customers

-- that and the name, of course.

"Without a doubt, you say Big Dog Logistics and it catches attention," adds O'Riordan. "The name definitely gives us an in and opens up a lot of doors."

G.I. Trucking: A Real American Hero

The familiar image of G.I. Joe -- popularized by the 12-inch action figure issued by Hasbro in the 1960s -- is a piece of Americana that not only represents the integrity and virtue of the U.S. Armed Forces, but also the industriousness and perseverance of post-war America.

For Charles Hutchings and Frank Dunn, two soldiers home from World War II with a vision of starting their own trucking business, the name G.I. Trucking was an appropriate fit.

When Hutchings and Dunn initially got out of the service they found it difficult to find a job. So when the opportunity presented itself, the two men secured a used military vehicle and hauled their first movement of household furniture for $5 and a tank of gas.

"It was partly a result of the entrepreneurial spirit at that time," notes Fran Glidewell, vice president, sales and marketing, for the La Mirada, Calif.-based carrier. "Hutchings and Dunn learned to grow with the economy, took their lumps, and always stood by their employees."

Most of their initial employees also were former military men, so in effect, the company became an extension of the army. Not surprisingly, G.I. Trucking remains a tight-knit organization to this day.

"We believe that our strength is our employees, and that our success and failure will always be with our employees on a day-to-day basis," notes Glidewell. "We formulate this with a senior driver program that rewards drivers not only with pay but also with recognition for being with us long term. We have some drivers here with more than 40 years of seniority, many with more than 30."

Despite its strong military flavor, G.I. Trucking has evolved its business to be flexible and accommodating -- atypical of rigid military stereotypes.

"G.I. Trucking has always been a carrier that believes in flexibility and meeting the customers' needs," Glidewell says. "We are not a hard, fast, structured company -- we still have the ability to change the way we do business to satisfy the needs of the individual customer. "

That's not to say that G.I. Trucking doesn't bring a gung-ho commitment to solving even the most challenging problems.

"The question is always, 'what can we do for our customers to make it work?'" notes Glidewell. "We encourage our employees to never say no."

To similarly foster greater camaraderie within its organization, every year a committee of G.I. executives tour all the company's facilities to visit and interact with employees. It's a gesture that, with a little imagination, bears striking similarity to an image of a general mingling with his troops.

"We have meetings with all the employees to tell them exactly the state of the company, where we're at, how we're doing, what we need to do for the upcoming year," says Glidewell. "We feel that kind of communication has had a lot to do with our long-term success."

G.I. Trucking has come a long way since its humble beginnings and the company today does a whole lot more than move household furniture. But the values are still the same, and its name still resonates strongly with customers and strangers alike.

"Hundreds of people a year ask us what G.I. stands for," says Glidewell. "I get the question virtually weekly, from Fortune 100 companies down to the smallest companies. Our name gives us a uniqueness that a lot of companies don't have."