Last week on Let's Talk Supply Chain, I was joined by Bryant Smith of Manhattan for the first episode in our collaborative series together.And it was a fantastic show to kick things off.We talked all about supply chain unification
And, it is linked to so many big topics across the industry.Visibility, resiliency, we hear these words a lot, but they're buzzwords because they are so, so important.So, we really dove into that.
We explored why supply chain has historically been so siloed and the technology problems that were born out of that. Plus, we looked at how Manhattan's transport management solutions are tackling some of these big issues for clients.
We covered so much ground.Bryant and I were getting more and more hyped throughout the conversation, especially when we reached the realization that supply chain execution is hard, but using technology really shouldn't
So, I hope that you all enjoyed the show as much as I did, but if you missed it, you can catch up over on letstalksupplychain.com, on our YouTube channel, or anywhere else that you subscribe to the show.It was episode 430.
Let's Talk Supply Chain is not your average supply chain podcast.We feature not just the top of the industry, but also diverse voices from within the community, new innovations and the disruptors making waves in the industry.
Don't listen to the same old, same old.Be sparked by new ideas and fresh perspectives only on Let's Talk Supply Chain.
Are you ready to find your people?
If you're struggling to find a supply chain community of like-minded professionals where you can level up, network, learn about best practices from experts in supply chain, professional development, and marketing, look no further.
We created this secret society of supply chain to provide a safe space, a community for everyone in supply chain.
We offer unique opportunities for everyone to connect and grow in our three distinct value-packed communities, the supply chainers, women in supply chain, and the creative room.
From the learn-at-your-own-pace, content-rich approach of the supply chainers, to the empowering community-focused space of women in supply chain, and the marketing mastermind of the creative room, we mean it when we say there's truly a place for everyone.
When you join one of our communities, you'll gain access to a wealth of knowledge, resources, expertise, and my favorite part, opportunities to build genuine connections with like-minded professionals.
Whether you're a seasoned professional or just starting out, you'll find a supportive and collaborative environment that fosters learning, connection, and long-term growth.
Head over to secretsocietyofsupplychain.com to explore which community was made for you.
Hello everyone and welcome back to Let's Talk Supply Chain.So let's start with a question to get you thinking.Today's guest works with over 25% of America's largest private fleets.
But according to a recent survey, what percentage of America's freight by weight is transported by trucking fleets? It's got to be high.I mean, I'm trying to weigh it all up in my head, how it might compare to Ocean.But what do you think?
Well, let me know your guesses over on social and keep listening because I'll let you know at the end of the show.
So today I'm joined by a brand that is part of a group of companies with an expansive industrial real estate portfolio operating over 10 million square feet of indoor and outdoor logistics terminal space.
Operating since 1998, they're a one-stop shop for large private fleets.But who are they?Well, I'll reveal it all after the question of the week.
So the question we asked you, what is the most important factor for you when selecting a fleet parking facility?Now, we had almost 100 votes on this one.
56% of you said proximity to operational sites, 39% of you said safety of the vehicles, and 3% of you said cost of parking services.Now, Bonita weighed in and said all of the above, and Sam said another good one, just a curious bystander.
Well, thank you so much to everybody who weighed in on the question of the week.We do ask you a question every single Wednesday morning across the Let's Talk supply chain LinkedIn and Instagram, so make sure you be part of the conversation.
So now back to today's episode and which truck transportation brand is joining me today?Well, it's TSG Fleet.Now TSG, part of the transportation services group of companies, is a leader in
outdoor industrial storage for Southern California and North Texas.
And as a full service center for local, regional, and national private fleets and intermodal carriers, TSG also provides maintenance and repair to dry vans, containers, chassis, refrigerated trailers, and straight truck vans.
And it's Trace Haggard, founder and CEO at TSG Fleet that is joining me for the show.Now, Trace is an accomplished entrepreneur with a diverse portfolio spanning multiple industries, but he brings the same approach across all of his portfolio.
His business philosophy centers on creating employee-centric companies that uphold their commitments to customers, ensuring excellence and reliability in every venture.And I love to hear that.
So today Trace and I will be talking all about his founder journey, about TSG and what they do, the current landscape of trucking and the incredible benefits that TSG are delivering to customers by providing a range of much needed solutions all under one roof.
Well, welcome to the show Trace.
Thank you very much, Sarah.It's great to see you again today.I'm just thinking about that question the whole time with the intro.It's mind-wracking, impressive.I can't wait to hear the answer.
I know.We're going to share the answer at the end of the show.So I'm happy to have you here.I mean, I love chatting to fellow entrepreneurs. and you have a really interesting history.
I'm intrigued to hear how you've leveraged that with TSG because you consolidated all of these fragmented services and that is really what so many sectors across supply chain have been desperately in need of.
So I can't wait to dive in a little bit deeper and find out more.So let's start by talking about you because you're an entrepreneur with business across multiple industries.So tell us about your background,
your experience and how you came to co-found TSG Fleet.
You know, it's been a windy journey, to say the least.I grew up in Central California in an agricultural family, generational agricultural family.You know, my father's father, his father, mostly cotton farmers.
I wanted to get out of, you know, off the farm, so to speak.So I went down to San Diego for college and
Never left, right?Because San Diego is my favorite place.
I came back, so I'm close again, you know, and I live in South Orange County, California, so I'm close to San Diego still.
And then just by coincidence, I did an internship for 3PL while I was before my last year at University of San Diego.And I really enjoyed it.I had all intentions of going to law school, if you can believe that.Wow.
When I went back to school, I was studying for the LSAT and the company, International Transport Logistics, the general manager called and asked if I would be interested in coming back for a job.And that sounded a lot better than law school.
I thought maybe, you know, let's just take a break and go enjoy that life there in Florida.You know, I'd never really been to Florida.And then within six weeks of being there, they shipped me off to Puerto Rico. Wow.
Yes, to open up their San Juan office.
I mean, they were shipping, they were an asset-based MVOCC, and they were shipping refrigerated containers to and from the mainland down to Puerto Rico, Dominican Republic, and a lot of the US-flagged vessels that run that route.
And they just, you know, they pile up containers down there and they couldn't get them back and they didn't really have any staff on the island.So I asked if I spoke Spanish, si senor, you know, and away I went.
And three years later, I decided that I really liked, you know, business and wanted to know a lot more about it. But I also wanted to see more of the world, so I left and I went and did my MBA in Madrid, Spain.
Interesting fact, I need to say this, is where I met my wife.We went to the same school and she's from Colombia.Then I brought her back with me and we went back to that company and lived in Florida again.I managed their US Transcom contract.
At the time, we were moving MRAPs all around the world and they were rewarded the contract for that.And I got to do some really cool stuff with that job.
And about a year and a half into that, I was talking to a friend and we kind of wanted to get back to California because we didn't have a lot of family in Florida.And he knew about a trailer and flat car company.
Alliance shippers, and they needed someone to, you know, manage their fleet in North America.And I kind of had the experience on the international side with the refrigerated business.And so then I got
I got out to California and realized that it was a whole new landscape.Domestic intermodal is a lot different than the steamship side of things from a logistical standpoint.But I loved it.It was exciting.
And about six years into that job, I kept asking for a raise and they kept saying no.So I went to my boss and I said, you know what? Much different than it is right now today in the industry.At that point, capacity was really tight.
I mean, they couldn't get loads delivered because they didn't have enough local dredge.And I said, hey, how about I go out, buy two trucks, I'll put them on with us, and that'll be my race.You know, the extra income.
But I want you to know that's what I want to do.And he agreed.And so it took off.And in less than a year, we had nearly 20 trucks. We went out to dinner one night and he said, it's you got to make a decision.
You know, you either got to stay or go or find someone else to take over the trucking company.And I that's when I took the lead.Right.And so I. That was the motor carrier company that I own.
And then I don't know, you might've had this similar experience.You know, you start something right as an entrepreneur and you're excited about it.Everything's going great.And then one day you come in and you're like, this isn't it.
Like, I can't believe it.There's gotta be something more to this.
How many more things can I do?
Exactly.And I got a call from a customer, um, not Alliance Shippers, they're still a customer today, another refrigerated intermodal carrier.
And they asked, you know, if we could do more maintenance and repair for them because they weren't happy with their current provider in Southern California.And that part of the business was under my direction at my old job.
And I said, sure, we'll figure it out.And so we hired some guys to do the M&R because as you know, a lot of the All of the intermodal business is unmanned, right?
So you can't have refrigerated units going on its next journey without some kind of pre-trip and all the things that go along with that.
So we set up a very small terminal, it was about two acres and it's funny because we were doing it for that intermodal carrier and we moved the trucking company there and that's when TSG was born.TSG Fleet Services was born.
They all had different names at one point and now we've just kind of tried to get them all into the same Brand.Yeah.And this same customer, they're like, hey, the highway division wants to use your facility as our SoCal drop yard.
And I'm like, OK, that's a great idea.And it was Mother's Day.I know exactly where I was at.My wife's favorite spot, Laguna Beach.And I got a call and there was a driver at the gate.And at that time, we weren't 24-7.
We had a little shop on a few acres.And the driver somehow got my cell phone.He's like, hey, we're supposed to be using this new drop yard.And I'm here. No one's answering the phone.
I'm like, I am, I am, you know, I'm the one, I'm answering the phone.
Welcome to entrepreneurship.
And then from that day forward, we were 24 seven.And as their fleet grew and other fleets asked for the same services, we grew and the rest is history.And now we're, we've had several sites in Southern California and, uh,
one new site in Texas and looking for others.Awesome.
I love hearing a founder story and one of the things that I want to note for the audience from your story is if you're looking for a pay rise,
There are other ways to do it, apparently, because you can just offer to go sort of start your own division and that will be your pay rise.So definitely something to note.So you've talked to us about how it got started and what led to that.
Can you talk to us a little bit about TSG?Like you're a part of a group of companies, I think.So tell us who you are, what you do, how do you help your customers?
Yes, so TSG is, you know, it's a bunch of companies that I own that, like I kind of just explained, they all kind of started because, hey, can you do this?Hey, can you do that?Sure, sure, we'll figure it out.And we've turned them into businesses.
What I try and do from my standpoint is tie it all together strategically.You know, our niche is, you know, when I when I first left the steamship side, I went into domestic intermodal and I made amazing contacts in that network.
And that network has helped build TSG into what it is today.Some of those people are, you know, from the railroads and other service providers and other trucking companies, even competitors.
I mean, some of my my my best mentors are competitors, you know, and they're just it's a very tight network.And I think that allows you to grow into different areas, like what we do in the Domestic Internal Network.
So we do local drayage, we do parking, we do terminal management, maintenance and repair.And we just try and keep ourselves within almost a cost-free distance from the intermodal hubs.That way, we kind of limit the cost.
And fortunately, if you're within those intermodal hubs, they're usually around a highway divisions corridor, right?
They're daily routing, and so that attracts the highway fleets, and a lot of the highway fleets now have intermodal fleets, and it just all ties together.And, you know, while they're here, we can do, you know, their pre-trips.
We can help the drivers out with things related to their trucks, just small stuff that you would go waste time at a fuel stop or those type of things.
That's amazing.Now, as I understand it, you work with over 25% of America's largest private fleets, which really is incredible.So do you exclusively work with large and private fleets?Do you have an ideal client?
Like, if I was listening to this, who would I need to be to pick up the phone and call you?
Yes, I think fleet's the key word, so more than one.
In the beginning, and still to today, certain terminals, we still have people that have been with us since the beginning and they have two or three trucks, but for the most, or trailers or whatever,
For the most part, though, we're dealing with the larger fleets that have hundreds and thousands of units, mostly thousands, because then they get in a situation where they have more units, whether it's a container or a trailer, in locations than they have drivers.
And so we can support them with our drivers or let it sit here until their other driver shows up to do the pickup or the delivery. And then more importantly is I prefer relationship based customers.
I've been very fortunate for my time in the industry that created great relationships.
And I mean that in terms of a relationship customer, when things happen strategically or even when economics aren't working out, you can sit down and have a discussion and you know, accomplish something to get through it.
Transactional customers come and go.We have those two.I usually see them from a mile away.They're always asking about cost, right?That's the first thing.How much does it cost?You know, how much can you do?You know, can you do it for less?
You know, and so when capacity gets tight, you know, they really want to get into our terminals.And it's difficult because the customers we have long-term relationships with, they stay here for the long term. And so we try and fit them in.
But yeah, I like to focus on the relationship instead of just, you know, transactional business.
Well, and that's kind of what this industry is built on, right?It's built on relationships, whether you're in your part of supply chain, whether you're in procurement.
whether you're in sourcing, whether you're in logistics, it really is about relationships.And you're kind of seeing it more and more now, because we're back to in-person conferences and things like that.
And business is really being done through those relationships.But also, You speak the truth around the relationships, too.And I want to point that out to the audiences.
If you are focused on price, you're focused on that sort of transaction, it might help you in the moment today.
But when things shift, when things change, you really want to have those solid relationships in place so that it's collaborative, so that it's win-win scenarios for everybody.And I like the way you kind of think about business, right?
Yeah, it's definitely hard to jump on board when, you know, things are busy, right?I mean, it's like the worst time to go look for a solution.
Exactly, exactly.So I want to talk a little bit about the landscape of trucking right now.I want to sort of set the scene a little bit because I'm talking a lot about theft, a lot about fraud at the moment.
I think overcapacity post-pandemic remains a bit of a challenge. What are you seeing from your perspective and that of your customers right now?
Yes, I think you could probably tie the increased theft and fraud somewhat to the post-pandemic overcapacity, or at least draw a correlation.
You know, as you talk about often, probably the pandemic sent like a tidal wave, right, of capacity out there that, you know, we just didn't have at the time.
And we all thought the world was going to change, right, direct to consumer, no more retail shopping.Everything's going to be e-commerce.It's going to go from less than 50 percent to almost 100 percent. Um, and it happened for like 18 months.
And so everybody went out and loaded up on capacity for that new model that we thought was coming, you know, and then somewhere between 21 and 22, you know, everything snapped back.
Everybody went back to kind of like their old purchasing habits, their own shot, their old shopping habits. And that wave of capacity was just crashing down on the shore and, you know, kind of wiped everything out.
And so what happens is, you know, rates get really low.You know, the people that have thousands of units, you know, they they're just trying to run the units that they have.So they put the rates really low.
And then that makes, you know, the one off guys, the guys with smaller fleets or gals with smaller fleets, you know, they're more vulnerable.So then. You know, they're more vulnerable.And then I think the bad players feed on that.Right.
So, you know, they take advantage where they're stealing motor carrier numbers and stealing full loads or, you know, the train stops somewhere and they break in to the containers.
And, you know, that, you know, I think, you know, with the economy, you know, where it is today and, you know, the capacity issues that we're having, you know, people steal more, for lack of a better expression.
Well, and I think it's a bit of a recipe, right?Not that theft and fraud, none of us really want that, because obviously there's a lot of capital costs around it as well.
And there are a lot of companies that are working towards, you know, helping to mitigate that.But you're right, and painting the picture and the fact that you know, everything was going one way and then it got snapped back almost like a rubber band.
That's the first time I've ever heard that before, but it's a really good analogy because like we stretched it and stretched it and stretched it and stretched it and then all of a sudden, boop, and it went back to sort of how it was.
Things may have changed a little bit, but not on the scale that I think everybody thought it was going to.And we've really seen the effects in your industry and in the trucking industry over the last year or so.I'm hoping that
you know, by the end of 2024, going into 2025, things are going to shift maybe a little bit, maybe normalize back to pre-pandemic, hopefully, so that we can, you know, kind of stop talking about this, too.
We've been talking about this for a long time, and I know everybody wants to see a little bit of relief.
Yeah, totally.It's, you know, we hope, you know, somebody, I was talking to a customer this morning on the way in, and it was like, you know, we do a lot of trucking with them, and
We're just like, man, we, I think we were having this discussion the same month last year, like next year, it's going to be so much better than it is right now.And it was like, deja vu.
I was like, I think it was the same day, the same time, you know?So we were hopeful, hopeful, very hopeful.
Good, good, good.So let's talk about that because we've had enough of the challenges.We want to talk about the opportunities as well.And I just read that U.S.-Mexico trade hit a record $415 billion through the first half of 2024.
And I know that you mentioned TSG is based on Southern California, North Texas sort of transport corridor.
What's your take on what's happening and where things are going with that cross-border trade, with the opportunities and, you know, hopefully continuing to uplift the community?
You know, I'm really excited about it, right, because of our proximity to Mexico in both locations. It's there's there's a lot of opportunity there.You can you can just kind of feel it, especially in Texas.I mean, oh, my gosh.
Every time I go to our location there, I mean, it's like the energy around, you know, from Laredo up to north Texas is just like I feel like every day we're talking about new opportunities with different customers.
you know, and I think they call it air-shoring, right, where they're putting factories in Mexico, and then they're going to distribute up into the U.S.And, you know, Texas, as you know, doesn't mess around.
Like, they've got that corridor, they've had the foresight, they've really built the infrastructure out.California, I mean, we have some great border crossings here. two potentially great opportunities there.
We just got to make them bigger so we can get more throughput in and out of there.I think that's the biggest hold up here.Texas isn't really having that challenge.And the other opportunity in Texas is the train comes from Mexico and Texas.
So then from there it goes out to the rest of the country or stays in Texas because Texas for the last two or three years is the fastest growing state.I mean it's about to catch California.It's going to catch California.
within 12 to 24 months in economic terms.And so I think there's a lot of opportunity there.So with the nearshoring happening, Yeah, we're really excited about it.
I mean, we're seeing parts of it start to happen in our Texas location, not so much in California.I think a lot of that stuff stays south of Los Angeles, you know, and then gets redistributed from there.So, but definitely exciting stuff.
You can see the growth happening and it's like a line, you know, you can, when you look at the railroads and the development for the warehouses and so forth,
It's like a line that goes from, you know, Monterey, Mexico, like straight up to Chicago, right?And then, as you know, Chicago's kind of the, for now, is kind of like the heart of the railroad intermodal industry, right?
Everything has to come and go through Chicago because the way, you know, the founding members of the railroad set it up.Like, you can't go past this point.You can't go past that point.
Interesting.Well, I just recently did a show about Mexico and how Tupperware was leaving They're manufacturing, I believe, in South Carolina and moving that to Mexico.
And then they were talking about a few other brands like Mondelez and a few more looking at Mexico, moving manufacturing into Mexico.So you're right.There is a lot of opportunity there.A couple of questions around some challenges.
I know I'm going to bring those up.I know we're just talking about opportunities, but also labor, right?They need to have enough people there to be able to man, the manufacturing facilities, the warehouses, et cetera.I think that might be one.
I think you're right.I think that's going to be Mexico's biggest challenge, because it's not only the US companies that are going.I mean, it's some things that are happening to get around Paris and so forth from Asia.
They're moving a lot of manufacturing base to Mexico as well.And that's a lot in a short amount of time for a labor force to handle.
Yeah, it really is.And so you're really trying to help fleets sort of maximize their potential, right?So let's talk about the services that are helping them.
Can you give us an overview of your terminal operation solutions, the systems you have in play, and how they're helping brands to optimize their logistics processes?
Sure, yes.I mean, the best way to do it is probably just walk you through a typical in-gate, out-gate process.Let's do it.Because that's where everything happens, right?
So whether it's one of our trucks or a customer's truck, they come through our automated gate system.And it has image recognition software, so it picks up what truck it is.
what chassis number it is, container number, or if it's just a trailer, it just picks up the trailer number and it identifies the customer based on the unit number usually.So when it comes in, it gets logged into our yard management system.
And then depending on your fleet, we have highway fleets, we have intermodal fleets, we have chassis providers.They all have their own little you know, maintenance protocol that we have to do.Some people don't want any maintenance, which is fine.
You know, you can just park here until you need to get to go where you're going.You know, but then it'll flag it in our system, you know, what it needs, if it needs anything.
So, if it comes in and you don't need any of our services, it just comes in, it gets listed as ready because it's, you know, if you're going to sign on, on the customer end of the portal, you'll see, okay, my unit's there, it's ready.
You can see when it checked in, how it checked in, what driver brought in, you have all those images on our portal online.And if you're a fleet that needs services, and we have your protocol in our system, it'll walk you through the entire process.
So when it gets here, it'll go down as non-inspected, and then our service team will know that they need to get out and do their multi-point inspection on that unit. And they go do that.And then, you know, they have a tablet.
So they're online as well.So as they go through the inspection, they update to its ready status, the customer can sign in, you know, and see their fleet go from not inspected to bad order, or there's an estimate pending or whatever it is.
until it's finally what we call green tag because back in the day, we actually bought these green tags and you would somehow get it on the trailer or the chassis, you know, they have little wire tags on them.
Fortunately, we don't have those anymore because like green tags and red tags, we just litter our terminals, but now it's all on the system.
And so, you know, then the customer knows that, you know, what's ready, what's not ready, and then they can create reports on there and download it and then send it out to their dispatch and say, these units are ready to go.
You know, we do that through EDI, you know, some customers require EDI, so we have that capability as well.That's all in our yard management system.
And we found that doing it that way compared to the old way, which I'll tell you really quickly, because it's kind of funny, we'd take pictures with a digital camera, we'd write up a work order, and then we'd have a separate estimate, and then we'd download that all into an email and send it out to a customer.
To be approved?To be approved, yes.
I don't want to bash it because I know in some places that still exists and if you can do it, that's great.As you increase volume, you're always looking for efficiency and better throughput.
This digital process really helps and they don't have to wait on an email.They can literally sign on their team wherever they're at and just look and see what they have and what's available to use in their network.
Well, and you mentioned maintenance and repair.So if that, like, if they let you know that that unit needs maintenance and repair, or do you let them know?
It goes both ways.So they can flag the unit in our system as something that they need to check.
So perfect example is, you know, let's say the train's coming in from Chicago and there's a refrigeration unit on the train and it's shut down for some reason.
But the customer would see that in their system, we necessarily wouldn't, but then they'll go into our system and create a flag and they'll flag it.
So as soon as it gets off the train, it gets here, we fix it, get it back up and running and then send it on to get unloaded and hopefully avoid a claim.
Got it.Got it.Okay.And so if there's maintenance and repair that you need to do, that trailer is marked red until you do the maintenance repair, and then it turns green in the system.I'm just trying to get a handle on it.
Yeah, you're right.And I think the other important part is, I mean, a lot of units, you know, there's a DOT standard, right?That a unit has to be roadworthy.And that's the basis of all that, right?
You can't send it out with a brake light that doesn't work or missing a mud flap. uh, flat tires, you know, all kinds of stuff that, you know, the tire tread that needs to be checked before it goes again.
So they really rely on you then because at the end of the day, if they are sitting in another part of the country and it's going into your facilities, they're relying on you to check everything on that trailer to make sure that it is roadworthy and for you to flag it and say, no, we need to do this, this, and this before you can actually pick it up.
Yes, that's correct, 100%.
And then also, part of the services that you provide is 24-7 storage.I think you said that earlier.You went from not being 24-7 to getting the call on Mother's Day and being like, oh, I think we need to be 24-7.Talk to us about that.
What type of storage do you offer?Who's it for?Where is it? And how do you make sure that you're combating that rising issue of security and theft that we sort of talked about earlier?
Yeah, so we offer a few different types of storage.Obviously, we started with trucks and trailers, and now we stack containers.Chassis, we're a chassis depot for some of the biggest chassis companies in the country.
And from that, we've morphed into other things, you know, out of gauge, big equipment that doesn't need to be in a warehouse, right?
It just needs to be set down outside with a big container lift and wait until it gets sold or gets installed, like a commercial AC unit.I don't know if you've seen them.They're like a 40-foot container-sized, you know, device or, you know, thing.
And then, you know, we can lift them on and off with, like, a container lift or a heavy-duty forklift and set them down, and then the hospital that they're building needs it. we can do that.That's still a very small percentage of our business.
It's a growing part of our business.Ninety-five percent of it is, you know, trucks, trailers, chassis, containers.And we offer, you know, we've learned, right, you traditionally when you have
off-peak and on-peak freight seasons, which we really haven't seen a very traditional one yet for a few years, but we're hoping.A lot of the equipment providers store thousands of containers during off-peak, right?
So they're just looking for the least expensive option. So, we find locations that are, you know, within an hour.
So, for example, I don't know how much you know about California geography, the high desert here, so the Atalanto area, there's tens of thousands of containers up there during off-peak because they're not using them, right?
And then as on-peak comes on, we take them out of storage.The real estate's less expensive there.The cost to operate is less expensive.
It's a little bit longer drive to bring them back into service, but you're paying less than half the cost to store it as opposed to somewhere near us in Ontario, California.
We try and keep these for wheeled storage and truck parking specifically just because it's more transitional.There's a lot more movement here.There's a lot more maintenance here.Those containers, they're just 10 boxes.
They don't need a bid inspection. When we put them in stack, we take pictures and inspect them to make sure there's not going to be water getting into them and stuff like that.
But nothing like a trailer, especially a refrigerated trailer or a refrigerated container.Those are the wheeled spaces that we do here at these locations here in Texas.
You're very intentional about where you are putting which product.
Exactly, totally.Yeah, you don't want a bunch of dry boxes that are only going to be used for like a six-month period getting in the way of the people who are using refrigerated equipment, for example, all year round, right?
Refrigerated equipment, they don't really flex peak and off-peak.It's our food, so we're always eating it.
Yeah, and we always need those reefers.
And then to your question about 24-7 security, so we have the automatic gate system, right?You can't come in and out without going through that.You could if you broke in through a fence.Everything's fenced.Everything's lit.
I can look right up here and see a bunch of our facilities, including shops on a CCTV. camera.We have people monitoring that all the time, looking for any suspicious activity.
For example, when someone comes in in a vehicle, they can't just come into our yard because the system doesn't recognize them, right?So they have to call and ask.Every once in a while, someone comes in, drives around, and we have people here
all day, all night.And so they flag them down like, are you okay?What are you looking for?It's usually an Uber driver looking for a truck driver to take them somewhere.
But it's like, they get in and like, like for here in California, in Southern California, our main facility, the driver's lounge is on the front part of the property and they just go right past it.
And then they're back in the back where all the maintenance and shop is.And Henry's like, who's this person?What are they doing?And you know, we get them in the right spot.So it's hard to get in and out of here without being noticed.
But security is top of mind for you, which is good to know, right?
Especially, you know, if you want to have a good insurance policy, which all the major private fleets require you to have like the, you know, they, they vet that very well.So you, you know, if something does happen, you're insured.Right.
So there's, there's that component as well.
Right, right, right.So I know you've given us a few examples, but I'd like for us to bring this all to life with a case study.
Do you have an example of a customer who utilized maybe one or all of your services, and what was the benefit or ROI that they saw from working with you?Because
I can already tell by bringing all of these solutions together in one place, it makes things so much more efficient and they can do so much more.But I'd like to hear some like the benefits and ROI that customers have shared with you.
Yes, I mean, I think the most important one is like for our food supply.You know, I think traditionally, you know, let's go back 20 years.
You know, carriers would just use like a dirt drop lot somewhere, you know, and they didn't have telematic devices.They depended on their network of drivers to check on units to make sure the refrigeration unit was running.
And then it became more sophisticated, and we were able to monitor the temperature setting, the fuel levels.And so we do that in our locations where we have refrigerated carriers.And I mean, that's the first thing customers realize, right?
We're here 24-7.So that thing, we don't even let it.When you sign our depot agreement, you agree that if it gets below a quarter of a tank in fuel, We're going to go out there and fuel it and charge it.
Because we don't want to get into back and forth of like, oh, do you think it'll last for five or six more hours until the refrigerator unit goes out?And then the frozen beef thaws and rots.
So that right there, that saves carriers tens of thousands of dollars because there's no inexpensive refrigerated cargo.It's all pretty expensive stuff.
You know, the other benefit that, you know, we get a lot is you can often avoid road service with us, especially for the, I mean, if your truck's engine blows up, there's really nothing we can do to help you out to make your next appointment.
Brake lights, mud flaps, little things that, you know, they would call one of the big truck stop companies, you know, to come out and do the maintenance and repair.It can take hours.
So then they miss their next appointment, which usually becomes a domino effect, right? And fleets are huge on service, right?They all want to be in transport topics, be at the top of the list for service.And that affects their service rating, right?
Every day, you know, you just kind of, it's kind of like flights, right?You get stuck behind and then it never catches up.So we're able to do those minor repairs to keep them running, right?
If they come in and there's a container on a chassis and the brake lights out. You know, we're here, we've got brake lights, you know, we're partners with the chassis company as well.We can pop a new brake light in there and get them on their way.
They don't miss an appointment.They don't have to wait for the third party service provider to come.So those are all little minor issues that happen that cause big delays that effectively cost money.
Well, it builds up, right?You can just sort of see little thing after little thing.
Oh yeah.And a mobile service, mobile service will wipe out, will wipe out the profitability in an intermodal loan.Like we're talking like $500 lanes, right?So you're probably making at best a hundred bucks.
So if you've got to get mobile service, that's 350 bucks just for them to show up, right?From wherever they came.
But I think about like in our personal life on a regular basis, you know when you wake up in the morning and like one thing happens and then another thing happens and it sort of like piles up and you just get irritated.
Totally, I had one of those mornings.
It all morphed into the microphone not working when I got here and everything.
No, but I can see that for an operator Knowing that they have somebody like you Involved somebody that they can rely on to be like, let's change this out.Let's do this Let's do that that decreases the level of irritation
that an operator would have that would necessarily have to be on top of all these things.So I just wanted to put that into perspective because that alone, to me, if I can reduce irritability in any of my operators, my staff, my professionals.
So in other markets or other companies that do not use TSG, to your point exactly, imagine coming in and something's not working in your fleet. and there's no one there to help you, right?
So then you've got to call, you know, hopefully it's only one thing, right?So you've got to call that service provider and they got to come and do that one thing.If it's two things, you're waiting on two people before you can even start your day.
And I think we eliminate a lot of that stress here, right?Because we can kind of do a little bit of everything.And if you need to get that truck going and leave that there, we can bring in one of our trucks and finish that load per se.
You are eliminating stress across the industry.I love that.We might need to use that for the title.Anyway, looking into the future real quick, what are your predictions for the industry?What's to come for TSG?
Uh, I, you know, I, I still think it's fairly unpredictable.Um, I, I think there's a, there's a dim light at the end of the tunnel.
I mentioned earlier, I was talking to a customer on the way in today and we were laughing because I was like, didn't we have this conversation 12 months ago about things picking up and everything getting better in our industry.
Um, you know, until these capacity issues work themselves out, whether that's a big company going out of business, like a yellow freight situation.I mean, it's unfortunate for all the employees, um,
Otherwise, that's something that has to happen in our capitalistic system, right?When you have too much capacity in any industry, any market, things have to change.
The demand has to go up significantly where I really don't see that happening anytime soon in trucking.
And in all its related industries, I think it's going to be more the other thing, where people are going to get into a credit crunch for all the equipment they bought, or someone that we don't know right now is just going to bite the bullet and close their doors.
Because I don't know.I track a lot of metrics. the rate of which motor carriers are closing their door today is insane.Now it's the smaller ones.It's just, I mean, it's hundreds a month, right?
So it's dozens a week and they're just, they're just tossing in the towel and leaving, which that's going to help, right?Because that capacity has got to be picked up somewhere.
And then going back to the whole, the whole thing of nearshoring through Mexico and, and hopefully the combination of that and the capacity thing working itself out, maybe there's a balance there between
the extra capacity being needed once these, you know, factories that they're building down in Mexico come online.And, you know, then, you know, especially in the intermodal business, that's how all that gets here, right?
There's not enough truckers to move all that stuff across the border.So I'm optimistic, cautiously optimistic.
Well, and I think TSG is going to be there to help innovate and be that reliable partner moving forward, sort of no matter what happens, right?
Yes, totally.We're going to be here.Yes, for sure.
So in today's fast-paced world of commerce, efficient logistics are the backbone of successful businesses.
Whether you're a manufacturer, distributor, or retailer, having access to reliable storage and transportation solutions is crucial for maintaining the flow of goods.And so is keeping a fleet of vehicles running smoothly, efficiently, and safely.
So TSG Fleets is the partner you need with industrial storage facilities, a team of highly skilled technicians, and a range of trucking terminal services.TSG is your one-stop shop for success.So did you have a guess at today's big question?
Well, at the top of the show, I asked you.Today's guest works with over 25% of America's largest private fleets.But according to a recent survey, what percentage of America's freight by weight is transported by trucking fleets?
Well, it's 72.5% and that was a horrible drum roll.That is over three quarters.So brands really need to focus on keeping those trucks secure and on the move.If you want to find out more, you can check them out at tsgfleet.com.
If you'd like to hear more from us, we have plenty more content for you featuring the best and brightest in the industry. So head over to letstalksupplychain.com to find out more.
Trace, thank you so much for joining me on the show today and for making this episode happen.
Awesome.It was great to be here.I appreciate it.
Did you know that the average cost of losing an hourly supply chain worker has reached $19,607?And that recent research shows that 77% of hourly supply chain workers are considering a job change in the next three months.
This could have a huge impact on your productivity, bottom line, and culture.WorkStep is helping supply chain companies to better engage their distributed hourly workforce at scale.
Understand the true reasons behind their workforce turnover and take actions to make positive changes and reduce attrition.WorkStep has successfully helped many companies reduce their frontline worker turnover by up to 36 percent.
Visit workstep.com to learn more. If you would like to hear more from us, we have plenty more content for you featuring the best and the brightest in the industry.Head over to letstalksupplychain.com to check out the latest.
And if you have a supply chain challenge, we've most likely had the solution on our show.So head over there, put the keyword in the search bar, and all of that content will come up.And remember to come back next week.
I'm going to be joined by Jeff of Manhattan for our second show together, where we're going to be exploring Manhattan's unified forecast method.
Now, if you're not quite sure what that is, don't worry, because we're going to be breaking all of that down for you.
We'll be looking at Manhattan's unique hybrid forecasting approach and how it differs from traditional statistical and machine learning models.
Now, we'll be talking about the benefits of this approach, the importance of optimizing inventory and helping organizations respond quickly to ever-changing market dynamics.
Our last show with Manhattan was a real eye-opener, and I'm sure this episode will be no different.So make sure you don't miss it, and I'll see you next week.If you enjoy our show, there's a few ways to support us.
You can follow us on LinkedIn, Instagram, Facebook.We're also over on TikTok.Subscribe to my LinkedIn newsletter called The Monthly Hustle.Subscribe to the Let's Talk Supply Chain LinkedIn newsletter.
Plus, we have a weekly newsletter to subscribe to on the letstalksupplychain.com website. And make sure to subscribe to our YouTube channel so you stay up to date and don't miss a thing.
Now, you can also find some really cool merch for that supply chain or in your life in our shop at letstalksupplychain.com.
And if you are looking for a supply chain community to network, grow, learn from some of the experts in the industry, or maybe you're looking for a virtual monthly meetup for a woman in supply chain, or even your marketing team. We have you covered.
Head over to SecretSocietyofSupplyChain.com and check it out.We've got three distinct value-packed communities and you can sign up for whichever membership resonates with you and I'll see you in there.Have a great week, everyone.
Thanks for listening and remember, ship happens.
Sign in
