Innovators: Lakeville Motor Express
October 2008 Commercial Carrier Journal 63 A s 2007 came to an end, Pete Martin faced a grim scenario. To date, Lakeville Motor Express had enjoyed an 87-year record of consis-tent, profitable growth. But in March 2008, about 25 percent of the compa-ny's revenue would walk out the door literally overnight. To stay competitive over the years, Martin says that he and other executives of LME a Roseville, Minn.-based less-than-truckload carrier had under-stood that the company had to be more than just a traditional truck line. During the past decade, the company has invested heavily in any and all technology assis-tance to help shippers or con-signees to manage information flow, says Martin, the company's president. We have consistently made capi-tal investments in training person-nel, expanding the density of our terminal networks, and ensuring that we have the best, most cost-effective people and equipment that we can put on the highway. To be a player in today's com-petitive LTL market, Martin says that LME also has focused on maintaining a level of customer service that exceeds the demand in the mar-ketplace. But even with all of its ongoing improvement efforts, 2008 was not shaping up as planned. LME operates 385 tractors and 30 terminals to pro-vide daily morning delivery throughout a 10-state Midwest region. In November 2007, LME announced it would end a 12-year strategic alliance called ExpressLink with two LTL carriers to provide expanded LTL cover-age. Estes Express provided pickup-and-delivery ser-vices in the East, West and South, while TST Overland Express provided coverage in Canada. The ExpressLink agreement came to an end with Estes Express' decision to expand its terminal network to all 48 states. The company joined the ranks of national LTL carriers such as FedEx Freight, Old Dominion and YRC Worldwide. Estes now would be a direct competitor for LME's regional opera-tions. The ExpressLink alliance offi-cially ended on March 1, 2008. From November 2007 to March 2008, Martin worked quickly to create another strategic alliance that not only would replace lost business but also propel the company's future growth. We began looking for other strong, profitable regional LTL carriers that would allow us to form a new network, Martin says. To be considered, carriers had to have the same or similar values as LME: a commitment to superior service, dependable on-time delivery and a solid reputation within their own territories. Martin first met with Averitt Express, a large regional LTL car-rier with coverage in the South and Southeastern United States and Mexico. When meeting with execu-tives from Averitt, Martin talked about growth and other mutual benefits the companies would enjoy through a strategic alliance with other strong regional LTL carriers. That's the way the process began, Martin says. The Reliance Network quickly grew to include four additional carriers: Canadian Freightways/Epic Express (Canada), DATS Trucking (West), Land Air Express (New England) and Pitt Ohio Express (Mid-Atlantic and Central States). The technology edge The new alliance was designed to provide seamless LTL, truckload and supply chain freight services across the North American continent. The original agreement for the Reliance Network is a five-year term, but Martin describes the agreement as evergreen. innovators Lakeville Motor Express Roseville, Minn. Spearheaded the creation of a seamless LTL network across North America by working with five other regional carriers to create the Reliance Network. Synergistic growth Regional service with nationwide coverage lets customers have their cake and eat it too By Aaron Huff