Global Trade Magazine has named Penske Logistics as one of America’s Leading 3PLs in its fourth annual ranking.
Penske was included as a top third-party logistics provider in the specialty cargo category, and Global Trade highlighted the company’s service to the automotive industry.
Sean Monahan, lead author from A.T. Kearney, presents the 2016 CSCMP State of Logistics Report at the National Press Club.
Logistics industry revenue and spending continued to grow in 2015, and the drivers of business logistics costs changed dramatically throughout the year. Vigorous growth in the business-to-consumer e-commerce market led to many of the changes that occurred in the past year, and the industry is likely to enter into a new era over the next decade as shippers and their supply chain partners collaborate to meet a new set of expectations.
“Historically the logistics infrastructure has been built on cost efficiency. The infrastructure today isn’t built for the I-want-it-today- or I-want-it-tomorrow-centric emphasis that we are seeing,” said Sean Monahan, a partner with the global strategic management consulting firm A.T. Kearney and lead author of the 27th Annual State of Logistics Report, which was introduced by the Council of Supply Chain Management Professionals (CSCMP) and presented by Penske Logistics on June 21.
“What does that do to logistics over time? We have to see how that plays out over the next five to 10 years,” he added.
Marc Althen, president of Penske Logistics, said consumer expectations are changing. “They want their products delivered fast, and they don’t want to pay a lot of money for delivery,” he said. “Shippers are struggling to meet the challenges these expectations create, and many are turning to outside logistics companies for expertise and support.”
Monahan discussed the report at a press conference at the National Press Club in Washington, D.C. Althen, as well as executives from The Hershey Co., Lowe's, Kansas City Southern and Yusen Logistics spoke in a panel discussion following the report’s release.
Total U.S. business logistics costs reached $1.408 trillion in 2015, a 2.6 percent increase. Between 2010 and 2014, U.S. business logistics costs grew by an average of 4.6 percent annually.
One reason for the slower growth in 2015 is that transportation costs—the largest single component of business logistics costs—grew by only 1.3 percent due to decreasing energy prices that lowered fuel surcharges and overcapacity in the full truckload market.
Monahan expects rates to increase in 2017 for a variety of reasons, including rising fuel costs and the right sizing of fleets. “All of the pressures are to the upside,” he said.
Throughout 2015, rail revenues decreased 8.9 percent mainly due to a steep reduction in coal traffic, and Intermodal traffic, a steady source of growth for the rail segment in recent years, stalled.
Motor carriers continue to make up the largest transportation mode and had $583 billion in revenues in 2015. However, the industry experienced overcapacity issues that drove rates down after several years of rising prices. “Carriers largely responded to this deteriorating environment by improving operational efficiency and holding back on fleet orders,” the report said.
Ultimately, trucking saw growth across several segments of the industry, including a 1 percent increase in dedicated. “On the trucking side we’re seeing a growth in dedicated because of the reliability of the service and they tend to be shorter haul so the driver can be home at night,” Monahan said.
Revenue growth within the truckload segment reached 3 percent, the less-than-truckload segment grew 7 percent, and the parcel and express segment of the logistics industry grew 8 percent. “E-commerce is increasingly becoming a big part of the economy that is driving parcel,” Monahan said.
This is the first year the report, which has a new author and researcher, has broken out parcel shipments—an $82 billion industry in the United States.
“We restructured the modes that you look at,” Monahan said, adding that the report follows the same pattern as in the past but uses slightly different data points. “The appendix includes a recalculated index for the past ten years. If someone looks at the old report and the new report, they’d see the numbers changed, but we’ve taken that into account.”
Penske Logistics President Marc Althen participates in a question-and-answer panel at the 2016 CSCMP State of Logistics Report.
E-commerce is likely to double in size by 2020, and the growth of business-to-consumer shipments will continue to alter the expectations, particularly related to visibility, of shippers across all industries.
“Supply chain transparency continues to grow in importance for shippers and third-party logistics providers,” Althen of Penske said. “This is driving significant technological change for 3PLs and shippers alike as they collaborate and share more real-time information to enable data-driven business decisions and meet the growing needs of consumers.”
E-commerce has also increased pressure on case picking or each picking, which is harder for some companies to manage. “In the past companies may have done their own, but now they’re increasingly looking to a 3PL to do that,” Monahan said.
As the 3PL market grows, the competitive landscape is changing, and more and more customers are looking for 3PLs that can serve as a one-stop shop. “There is a need to be much more collaborative,” Monahan the report lead author said, adding that 3PLs are experiencing increased pressure from clients that want 3PLs to come in as a partner, analyze the client’s data and provide overall guidance of their transportation network.
The report predicts that over the next decade, the logistics industry will enter into a new era as technology, such as 3D printing and robotics, and operational constraints, including regulations and the driver shortage, evolve and possibly change the rules of the game. “During the interim, those companies that build the skills to adapt to these disruptions will likely come out ahead,” the report said.
The State of Logistics Report has tracked and measured all costs associated with moving goods through the U.S. supply chain dating back to 1988.
The 27th edition reflects a change in the structure and content of the report. “Historically it has relied on publicly available reports and logistics industry data providers, government reports. We continued that but also spoke extensively with people in the industry and give a deeper, macro economic overlay in the findings,” Monahan said.
By “Move Ahead” Staff
Penske Truck Leasing is pleased to announce that it has opened a full-service truck leasing and comprehensive fleet maintenance facility in Mira Loma, California.
Located at 3777 De Forest Circle, it includes eight service bays and a wash bay. The 15,000-square-foot building is on a three-acre tract.
Penske already has facilities in nearby Fontana and Ontario, but it needed additional capacity to service fleet vehicles in the area. The company acquired a former truck repair shop and renovated it. The Mira Loma center employs 18 associates.
“With a growing number of business customers in this area, it made sense for us to add this facility to provide greater convenience for our customers and efficiency in our own operations,” said Penske Area Vice President Art Narmi. “In addition, this site gives us good visibility along the heavily-traveled 60 freeway.”
Office and service department hours at the Mira Loma facility are:
Monday, 7 a.m. to 5 p.m.
Tuesday through Friday, 6 a.m. to 11 p.m.
Saturday, 7 a.m. to 3:30 p.m.
The phone number is 951-332-3270.
By "Move Ahead" Staff
To meet growing demand for its rental and leasing services in Australia, Penske Truck Rental has opened its fourth Australian location in the southern coastal city of Adelaide.
The rental and full-service lease center is at 103-107 West Ave. in the suburb of Edinburgh. It is co-located within a Penske Power Systems facility.
“The addition of our new Adelaide location will further allow us to support our more than 300 existing customers on the eastern coast while also extending our products and services to the local Adelaide business network,” said Brendan Porter, area rental manager for Penske. “We remain committed to growing our footprint throughout Australia and to providing world class customer service to the transport industry.”
The Penske rental fleet offers Western Star, MAN and Freightliner prime movers, with day cab and sleeper cab models covering single trailer, b-double and road train applications.
With the addition of new rental trucks for the Adelaide location, the company will have a rental and lease fleet of more than 100 trucks in Australia.
This is the fourth location Penske Truck Rental has opened since it entered the Australian market two years ago. Other locations are in Sydney, Melbourne and Brisbane.
By "Move Ahead" Staff
Beginning June 7 and continuing through June 9, the Commercial Vehicle Safety Alliance (CVSA) will be conducting its annual International Roadcheck. The Roadcheck will see over 10,000 CVSA-certified inspectors in jurisdictions across North America perform large truck and bus safety inspections.
The International Roadcheck is the largest targeted enforcement program on commercial motor vehicles in the world. An average of 17 trucks or buses is inspected every minute during this 72-hour window.
Each year, the International Roadcheck emphasizes one aspect of potential violations. This year's emphasis is on tire safety. Inspectors will look for tire tread depth, tire pressure and proper clearance between tires, and examine the overall condition of the tires for things like cuts and bulges. While checking the tires of a vehicle is always a part of roadside inspections, CVSA is highlighting tire safety as a reminder to all drivers and carries of just how important it is.
Visit cvsa.org for more information about the Commercial Vehicle Safety Alliance and International Roadcheck.
Penske Truck Leasing Can Help Your Fleet
Does your truck fleet struggle with maintenance or meeting compliance? Penske Truck Leasing offers a comprehensive preventive maintenance service along with other solutions. To find out more, contact Penske Truck Leasing today.
By Tony Kozuch
This year’s State of Logistics Report will have a new look and feel. The Council of Supply Chain Management Professionals (CSCMP) publication, presented by Penske Logistics for the eighth straight year, will feature a new author and researcher, A.T. Kearney, and distinguished new panelists. The 27th edition will be made public on June 21 at the famed National Press Club.
Sean Monahan, A.T. Kearney partner and operations practice leader – Americas, will for the first time serve as the report’s lead author and also sit on the panel.
Bob Ellis and Duncan in the cab of a Penske truck during a move to Texas in 2003.
During his 35-year career, Bob Ellis moved 17 times, so he knows a thing or two about how to save time. While packing a truck, he would sometimes tie a clothesline to his belt and the other end to the collar of his golden retriever, Duncan. That allowed Duncan some time to roam before long stretches riding in the truck’s cab.
One time Duncan saw a jackrabbit and took off after it at top speed, pulling the clothesline – and Ellis – behind him.
“For anyone standing nearby, that was probably the funniest thing they ever saw,” Ellis recalled. “This guy comes flying out of the back of a Penske truck and lands on the hood of his car.”
For Ellis, it’s just one of the adventures he had during his many moves while working for the Army & Air Force Exchange Service, which operates retail stores on military bases.
He’s used Penske for virtually all of his moves, starting with a move from Florida to Washington, D.C. when he was just 18 years old and his father helped him to rent the truck.
Later, Ellis found Penske was ideal to transport one of his most unique belongings: a vintage World War II plane.
With the plane stowed in the back of the truck and the car on the trailer, Bob Ellis was ready to roll on the move to Texas in 2003.
“Penske had the only truck that was long enough to hold it and the door would go shut,” said Ellis, who is a private pilot. He would remove the plane’s wings to get it into the truck, then secure them on special racks that he made.
Whenever they moved, he and his family would transport all their belongings to their new home, then Ellis would return to their old place and rent a Penske truck. He would haul the plane and their car, with Duncan riding shotgun. His longest trip in a Penske truck was from San Francisco to Carlisle, Pennsylvania.
“I have torture-tested Penske trucks going across the Mojave Desert with a plane in it and towing a car behind,” Ellis said. “The Penske truck always got us there.”
That’s not to say that every one of those moves went without a hitch, but Ellis said Penske’s Roadside Assistance service was a great resource. “I knew I had a good support system,” he said. “It always felt like I had somebody close by.”
Bob Ellis's latest Penske truck rental was to move his son Ryan to medical school.
When Ellis’s son needed to move to medical school recently, he told Ellis that “a move would not be right in my life if it didn’t have a Penske truck.”
Now retired and living in the Dallas/Fort Worth area, Ellis reflected on a career that has included numerous postings overseas as well as stints everywhere from California to New Jersey.
He said, “I have seen the entire country from coast to coast in the seat of my airplane and the seat of a Penske truck.”
By Steve Trapnell
In many cases, America’s military families function as teams. While service members are deployed to protect our freedoms at home or abroad, their spouses serve in a different way.
They’re pursuing careers, raising children, managing household finances, volunteering in the community – all while dealing with the stress of knowing that their husband or wife may be in harm’s way.
We honor those who stand next to our nation’s heroes on Military Spouse Appreciation Day, which is the Friday before Mother’s Day.
The nonprofit organization Support Military Spouses will mark the day on Friday, May 6, by providing care packages to 500 military spouses at an annual event in Fayetteville, NC.
Each care package includes items such as stationery, coffee, jewelry, manicure sets and a handwritten note of thanks.
“When I received the box I went to my car and I cried; someone thanking me and acknowledging me meant so much,” said Samantha, who received a care package at a previous event. “When I felt so alone and scared during my husband’s deployment, Support Military Spouses made me feel appreciated, loved and supported.”
It’s a response Dr. Steven and Diane Rumley have seen time and time again in the seven years since they founded Support Military Spouses. They started the nonprofit in their living room, and the first delivery included 35 care packages. Since then, Support Military Spouses has grown to serve seven military bases in North Carolina, South Carolina and Georgia. In 2016, they expect to deliver 7,500 care packages at events held throughout the year.
“Each one of those is a family, so we’re touching thousands of families,” Diane said.
Over those seven years, Penske Truck Rental has stood beside Support Military Spouses, supplying trucks to gather donated items and transport them to care package “packing parties” and also to deliver completed care packages to distribution events like the one in Fayetteville.
“We recognize the significant commitment and sacrifice made by every member of a military family – not just the service member,” said Don Mikes, senior vice president of rental for Penske. “We employ more than 1,800 veterans, so many of our associates’ families have been through the same challenges – shouldering work and family while one parent is deployed, the risks and uncertainty that are a daily part of military service, and frequent moves to a new base.”
To assist with service members’ frequent relocations, Penske Truck Rental created a dedicated call center staffed by associates who are veterans or military family members.
“We’ve worked with many husbands and wives when they’ve been assigned to a new station, and we’re happy to offer our experience to make the move as convenient as possible,” Mikes said. “That’s why our longtime collaboration with Support Military Spouses is such a logical fit. It is truly gratifying to see the impact they have on military families.”
In addition to care packages, Support Military Spouses also offers job skills training, job fairs and money management workshops. They also provide “Littlest Heroes” care packages to the children of service members. The packages include items such as bedtime stories, puzzles and handwritten notes.
Diane Rumley said that when they provide children with care packages during the holidays, it feels a little like playing Santa – “and that Penske truck is our sleigh!”
By Steve Trapnell
Penske Truck Leasing will be an exhibitor at the BevOps Fleet Summit 2016, scheduled for May 10 to 13 at Red Rock Resort & Casino in Las Vegas.
The 11th annual event, hosted by Beverage World magazine, focuses on warehousing, operations and fleet management in the beverage marketplace. This year’s program will include presentations on key challenges for beverage operators.
Penske will be exhibiting at booth 117 and will also participate in roundtable discussions, with experts on full-service leasing, fleet maintenance and alternative fuels.
“We are excited to be part of this year’s BevOps Fleet Summit,” said Russ Scaramastra, Penske vice president of sales, strategic initiatives. “We are fortunate to have many beverage distributors as customers, and we look forward to connecting with them and others throughout the industry.”
By "Move Ahead" Staff
Penske has teamed up with Golf Channel for a new #MovingDay Presented by Penske multi-platform branding campaign that encompasses Golf Channel’s coverage of “moving day” across the world’s professional golf schedule each week this season.
The new collaboration further enhances Penske’s digital marketing strategy, which supports its full-service truck leasing, truck rental and logistics business units, and includes digital, social and on air enhancements across Golf Channel’s platforms.
Penske commercials are embedded within this blog post. This is an example of a Golf Channel digital video segment: #MovingDay Digital News Segment.
In golf, “moving day” is a commonly used term to describe the penultimate day, traditionally Saturdays, of a four-day tournament. Golf competitors on “moving day” strive to move up the leaderboard in order to set themselves up for success in the tournament’s final round.
“Activating our brand across Golf Channel’s coverage of golf’s ‘moving day’ is an organic and effective way to raise the profile of Penske, because every day is moving day for people working in transportation and logistics,” said Sherry Sanger, senior vice president of marketing for Penske Truck Leasing. “This activation aligns closely with our brand and helps us reach key business decision-makers following the dramatic storylines each Saturday in the world of golf.”
“Penske’s #MovingDay is a prime example of Golf Channel providing creative solutions for our partners that showcases their brand within our high-quality content across Golf Channel’s suite of targeted multi-media platforms,” said Tom Knapp, senior vice president, golf sponsorships, NBC Sports Group. “In addition to utilizing significant digital and social media tactics, a strategic decision was made to promote the platform on television to raise further awareness of #MovingDay, amplifying the campaign while showcasing our deep commitment to our partner’s media and marketing strategies.”
The #MovingDay activation campaign was developed by The Martin Agency for Penske. Cliff Sorah, senior vice president group creative director, was pleasantly surprised it was available.
“We couldn’t imagine a better opportunity for Penske to align with a major sport to reach a C-Level and decision-making audience,” he said. “To promote this partnership, we found a nice creative parallel. I have seen some sports sponsorships in the past that just didn’t quite align. In our case, the alignment was perfect and natural.”
#MovingDay Presented by Penske will be integrated across Golf Channel’s platforms, including a feature segment each Saturday on “Morning Drive”, Golf Channel’s daily news and lifestyle morning show; a weekly video segment via Golf Channel Digital; streaming video and banner ads; and promotion via Golf Channel’s social media platforms, including Twitter, Facebook, Instagram and NBCU’s Social Synch platform, amplifying this content to reach Penske’s desired customer base at scale.
By “Move Ahead” Staff
Posing with the Automotive Supply Chain magazine Corporation of the Year Award, are from left: Sam Ogle, magazine editor; Marc Althen, Penske Logistics president; Christiane Meyer, Penske strategic account executive; and Peter Wooding, chief executive of Three6Zero.
Penske Logistics has been given the North America Corporation of the Year Award by Automotive Supply Chain magazine. Penske was one of 17 companies and individuals rewarded for having achieved extraordinary success or for having pioneered a new way of thinking or working.
In 2015, Penske was named the publication’s North America Third-Party Logistics Provider of the Year. It was the first year that the North America ceremony was held.
“It is an honor to accept the award for Corporation of the Year,” stated Penske Logistics President Marc Althen, who attended the Las Vegas ceremony. “It is always a privilege to receive industry recognition for our service offerings, administration and sustainability efforts. I am proud of our North America associates and their dedication to excellence for our automotive customers.”
Automotive Supply Chain is a source of incisive information on the global supply chain. With a presence in more than 60 countries globally, the magazine focuses on each and every aspect of automotive supply chain right from when the parts come in to when the finished car reaches the dealership and everything else in between.
“These awards reflect the enthusiasm for development and innovation across the whole industry,” said Peter Wooding, chief executive of Three6Zero, who organized the ceremony. “I am delighted with the support we have had to bring this event to North America once again and believe it has brought the opportunity to connect, debate and share the hot topics in the industry but also, to celebrate the achievements of our colleagues and peers.”
By "Move Ahead" Staff
Penske Truck Leasing is ringing in Earth Day 2016 with its fourth consecutive SmartWay Affiliate Challenge Award. The company is one of seven organizations, and the only transportation corporation, being accorded with this designation by the U.S. Environmental Protection Agency (EPA). The American Trucking Associations (ATA) is also an honoree.
“It is quite humbling for Penske to accept this distinguished award four times in a row,” said Drew Cullen, Penske Truck Leasing senior vice president of fuels and facility services. “This speaks to the consistency of our team, and that our customers can count on us to aid them in becoming the best environmental stewards they can be.”
These are key ways that Penske promoted the SmartWay Transport Partnership:
The SmartWay Affiliate Challenge is a national challenge developed by the EPA to acknowledge organizations that participates in SmartWay and does an exceptional job supporting the partnership’s freight sustainability goals.
SmartWay Affiliate honorees have proactively initiated and executed recruiting, promotional and marketing activities that raise awareness and encourage their members to address air pollution from freight activities.
“EPA commends the Affiliate Challenge honorees for their extraordinary level of commitment, enthusiasm, and creativity in supporting EPA’s SmartWay program, and sustainable transportation,” said Christopher Grundler, director of EPA’s office of transportation and air quality. “The work in this arena helps to advance the environmental sustainability of commercial transportation and logistics bringing us all closer to achieving the shared goals of efficient goods movement and clean air.”
EPA launched SmartWay in 2004 to help business improve the sustainability of their freight supply chains. Today the Partnership consists of nearly 3,000 partners, representing a cross section of the freight supply chain industry. As of today, SmartWay Partners have saved over 170 million barrels of oil. SmartWay’s clean air achievements (72.8 million metric tons of carbon dioxide so far) help protect the health and well-being of citizens.
Penske Truck Leasing is a transportation industry leader in the areas of spec’ing, operating and maintaining fleets of traditionally-fueled vehicles as well as alternative-fueled vehicles that includes natural gas, propane, electric and diesel-electric hybrids.
Penske Truck Leasing is an affiliate partner in the U.S. EPA SmartWay program and Penske Logistics is a partner in the trucking carrier and logistics categories. Penske Truck Leasing is also an affiliate partner in the Canada SmartWay Transport Partnership, which is administered by Natural Resources Canada.
By "Move Ahead" Staff
