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BNSF Logistics
Springdale,
Arkansas USA
December 1, 2004
By
Evan Armstrong
Key Personnel:
Eric Wolfe, Vice President & General Manager
Andy Cordischi, Director of Technology & Engineering
Lynda Norris, Director of Business Development
Mica Jordon, Director of TES
Robert Sutton, Director of Supply Chain Services
Todd Hoyt, Director of Marketing
Founded in 2002, rapidly growing BNSF Logistics is on track to generate $190
million in revenue by the end of 2005, according to its Vice President & General
Manager Eric Wolfe. Acquisitions make up a large chunk of Wolfe’s plan, but
organic growth will contribute to half of the expansion. BNSF Logistics has four
successful acquisitions under its belt (it acquired parts in Clicklogistics in
2002, MRS Companies in 2003, and Sumark Services and RiteChoice in 2004) and is
looking to make additional acquisitions in 2005 to help drive scale and increase
its breadth of services.
Much of BNSF’s organic growth comes from its ability to manage rail in addition
to intermodal and truck transportation. This multi-modal competency coupled with
value-added services and strong information technology provides BNSF Logistics
with a competitive advantage awarding it entree into large accounts with rail
and truck transportation needs. Value-added services include: cross-docking,
transloading, expedited truck/rail service, pool distribution, and supply chain
network analysis and re-design. Frito Lay, Wal-Mart de Mexico, U.S. Borax, and
the Home Depot are current BNSF Logistics customers.
For Frito Lay, BNSF Logistics is managing intermodal moves of bulk potatoes.
This service involves loading TOFC refrigerated trailers near the border of
Minnesota and providing intermodal rail transportation to Chicago. The trailers
are offloaded in Chicago and travel by highway to the processing plant in
Frankfort, IN.
BNSF Logistics provides a different rail/truck
service for Wal-Mart de Mexico in addition to providing trucking capacity into
Wal-Mart’s Laredo DC. Rail boxcar movements of dry dog food are made from Texas
to Mexico City and other major destinations where they are transloaded to trucks
for delivery throughout Mexico. BNSF controls these movements from origin to
destination.
The U.S. Borax operation manages outbound rail and
truck transportation from Borax’s facility in Boron, CA and outbound bulk rail
moves from its facility in Wilmington, CA to the port of Long Beach. As a
value-added service, BNSF is also managing U.S. Borax’s fleet of 750 covered
hopper railcars.
For the Home Depot, BNSF Logistics is managing
intermodal and truck transportation of ceramic products to Home Depot
international distribution centers strategically located in the U.S. In
addition, BNSF delivers truck capacity to Home Depot for seasonal surge
movements of lawn mowers and other products. Home Depot uses BNSF Logistics to
deliver store racks and other fixtures requiring flatbed service.
To support the operations, BNSF Logistics has
deployed version 6.1.5 of i2’s transportation management software suite. i2’s
“Transportation Manager” is being used to support the transportation management
operations of three major accounts. It’s primarily function is to consolidate
less-than-truckload (LTL) shipments into rail, intermodal, and truckload
shipments. It then automatically tenders loads to carriers and provides supply
chain visibility. i2 has been integrated with BNSF Logistics proprietary
operations system to share information with BNSF Logistics’ Transportation
Execution Services group (TES).
TES is the operational backbone for BNSF Logistics and performs multi-modal
transportation management, freight brokerage, value-added transportation
services, and transportation exception handling services. TES incorporates the
acquired operations of the various acquisitions and operates out of 15 U.S.
offices. According to Wolfe, it will account for approximately 95% of BNSF
Logistics revenues in 2004.
Managing BNSF Logistics rapidly expanding
operations is a strong operations team. Wolfe assembled most of the team while
at J.B. Hunt Logistics and Cardinal Logistics. This close knit group is long on
logistics operating and engineering experience. Key people have been added
through acquisitions and from the railway further strengthening the
organization.
Wolfe and his team have generated strong revenues
and solid margins over the past two years. Under their management, we expect
BNSF Logistics to stay on track and become a top North American 3PL.
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Fe, Eric Wolfe, 3pl acquisitions, 3pl revenues, Clicklogistics, MRS Companies,
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manager, intermodal, railcar, TOFC, pool distribution, supply chain network
analysis, 3PL, Logistics, Armstrong & Associates, Logistics Provider, BNSF, BNSF
Logistics, Burlington Northern Santa Fe, Eric Wolfe, 3pl acquisitions, 3pl
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logistics, transloading, i2, transportation manager, intermodal, railcar, TOFC,
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Fe, Eric Wolfe, 3pl acquisitions, 3pl revenues, Clicklogistics, MRS Companies,
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manager, intermodal, railcar, TOFC, pool distribution, supply chain network
analysis, 3PL, Logistics, Armstrong & Associates, Logistics Provider, BNSF, BNSF
Logistics, Burlington Northern Santa Fe, Eric Wolfe, 3pl acquisitions, 3pl
revenues, Clicklogistics, MRS Companies, Sumark Services, RiteChoice, rail
logistics, transloading, i2, transportation manager, intermodal, railcar, TOFC,
pool distribution, supply chain network analysis, 3PL, Logistics, Armstrong &
Associates, Logistics Provider, BNSF, BNSF Logistics, Burlington Northern Santa
Fe, Eric Wolfe, 3pl acquisitions, 3pl revenues, Clicklogistics, MRS Companies,
Sumark Services, RiteChoice, rail logistics, transloading, i2, transportation
manager, intermodal, railcar, TOFC, pool distribution, supply chain network
analysis, 3PL, Logistics, Armstrong & Associates, Logistics Provider, BNSF, BNSF
Logistics, Burlington Northern Santa Fe, Eric Wolfe, 3pl acquisitions, 3pl
revenues, Clicklogistics, MRS Companies, Sumark Services, RiteChoice, rail
logistics, transloading, i2, transportation manager, intermodal, railcar, TOFC,
pool distribution, supply chain network analysis...
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