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BNSF Logistics
Springdale,
Arkansas USA
March 3, 2003
By
Evan Armstrong
Key Personnel:
Eric Wolfe, President
Todd Hoyt, VP Marketing
From zero to $150 million in two years. That accelerated rate of turnover growth
for BNSF will continue through FY 2004, according to BNSF President, Eric Wolfe.
Acquisitions will make up a large chunk of Wolfe’s plan, but organic growth will
contribute over half of the expansion. At a time when most 3PLs are trying to
mine mid-market accounts, BNSF’s organic growth will come from signing large
accounts by offering unique service solutions.
Frito Lay, Wal-Mart de Mexico, U.S. Borax and
others are buying integrated truck-rail solutions as BNSF moves into the lightly
populated niche where value-added services are mixed with the two major
transportation modes.
As part of its offering within this niche, BNSF
Logistics is now moving to coordinate activities with those of its parent
company’s warehouse/crossdock network. This service will be used primarily for
railcar transloading to trucks.
Among these new niche relationships is a bulk
potato operation for Frito Lay. This service involves loading TOFC refrigerated
trailers near the border of Minnesota. The trailers are offloaded in Chicago and
travel by highway to the processing plant in Frankfort, IN.
BNSF 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.
For Home Depot, BNSF 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 to deliver store racks and other
fixtures requiring flatbed service.
All of these major accounts are also BNSF Railway
customers and BNSF Logistics benefits from cross-selling opportunities.
Other value-added services include dedicated
contract carriage, an expedited truck/rail service and pool distribution. BNSF’s
dedicated contract carriage offerings utilize owner-operators for power. The
expedited truck/rail service relies on Los Angeles – Chicago high speed
intermodal coupled with truck delivery to the East Coast. Rates per mile for the
joint service are in the $1.05 per mile range and four-day service is standard.
A major pool distribution customer is a restaurant
furniture manufacturer with production facilities at two locations in
Mississippi. Core contract carriers are used to handle truckload shipments to
three flow-through centers controlled by BNSF. Final deliveries are made as
less-than-truckload shipments from the flow-through deconsolidation centers.
Managing BNSF’s rapid expansion is a strong
operations team under Wolfe’s leadership. Wolfe put most of the team together at
J.B. Hunt several years ago. The team then traveled together from Hunt to
Cardinal to BNSF.
This close knit group is long on operating
experience. Key people like Lynda Norris in marketing have been added from the
railway and others strengthening sales have come through acquisition.
Wolfe and his team have reasonable EBITS and have operated in the black
consistently over the last two years. Under their tutelage, we expect BNSF to
become one of the top North American 3PLs within the next five years.
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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, 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, 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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