If jobs stop bullets, why aren't more companies stepping up?

julio, tegan, jared crain's article.JPG

CASE STUDY 2

Becker Logistics and LeadersUp

A Becker Logistics orientation seminar in Carol Stream. Photo: Manuel Martinez

Becker Logistics is a third-party logistics firm that has hired 20 people from low-income areas. But it has struggled to hold on to them: Five are still with the company, which is based in Carol Stream and has offices in Chicago, Barrington and Glendale Heights.

In a bid to keep employees longer, founder and CEO Jim Becker has invested $80,000 in an in-house training program suitable for all levels of hires, from MBAs to those with only rudimentary computer skills. Candidates for entry-level jobs can learn basic customer service and computer skills in the first two levels in two weeks and be ready to work; those destined for management jobs continue on.

Becker also has begun working with nonprofit LeadersUp to recruit and hire. Chronically under- or unemployed people often need help with basic job readiness, says Jeffery Wallace, CEO of LeadersUp, which was created by Starbucks and some of its suppliers in 2013. Based in Los Angeles, LeadersUp established a presence in Chicago in July 2014. Since then, it has placed north of 600 young adults in jobs at 15 local companies. Overall, the retention rate is 67 percent; Wallace says that is 15 points higher than employees recruited through other means.

LeadersUp works with companies to develop a training curriculum for the jobs they are trying to fill. Candidates also learn such workplace necessities as handling criticism from a supervisor and effectively voicing concerns; showing up regularly and on time, particularly the day after payday; and staying focused even when co-workers "start to get on your nerves," Wallace says.

CRAINS'S Full Article: http://www.chicagobusiness.com/article/20170812/ISSUE01/170819980#casestudies

Jim Becker's Visit to Western Illinois University

Bart, Niko, Jim, Honey - western job fair.JPG

On Monday, Jim Becker went to Western Illinois University to present about Becker Logistics and the 3PL industry.  Jim spoke about 3PL sales, supply chain management, and negotiations.  The classes that Jim spoke at were Introduction to Supply Chain Management and Supply Chain Negotiations.  One of the professors at WIU has informed Becker Logistics that several of the students that Jim spoke to are already asking about the company and creating resumes.   At Becker Logistics we find it important to go to universities, speak about the 3PL industry, and encourage students to consider a career in logistics.  

From the CEO's Desk: RFP

RFP.jpg

Every week it seems that one of our offices is receiving a RFP. I now look back after twenty years in business to reflect on all the different ways we have handled RFP’s. Most commonly known as a “Request for Proposal”; I remember sales people refer to it as a “Really Frustrating and Painful experience (RFP-e)”.

We learned over the years with our growth that we needed to streamline these processes to be more efficient. We are excited that more and more RFP’s are coming in every week. This could only mean that more and more companies are learning about Becker and our services. So we are excited to let you know our process continues to change to handle the new volume.

Becker’s customer’s true purpose of an RFP is for their company to receive competitive pricing, best possible service, and consistency throughout their supply chain. RFP’s should not be a “Really Frustrating and Painful experience (RFP-e)” for our sales team and definitely not for our customers. We promise to continue to strive for excellence in our process and create an even better platform for our company.
-Jim Becker, CEO

Discussion of Motor Carrier Safety Regulations

truck.jpg

The Motor Carrier Safety Advisory Committee consists of 20 members and they met in June to discuss motor carrier safety programs and safety regulations.  This committee consists of truckers, law enforcement officers, public safety nonprofits, union officials, and truck and bus trade organization executives.  In the meeting they talked about recommendations, looked at  regulations that need to be added, what news to be updated, what is unnecessary, and which has costs that outweigh the benefits.  This meeting was in the hopes of making some much needed changes that have been on hold.  One of the committee members, Todd Spencer who is the Executive Vice President of the Owner-Operator Independent Drivers Association, agrees that the new administration is offering an opportunity to change the current bad regulations that are in act.  Here is a list of Motor Carrier Safety Advisory Committee (MCSAC) Members.

From the CEO's Desk: Becker Logistics continues to grow

Our first quarter results were excellent. Revenue grew in Q1 2017 by 17%, compared to sales from Q1 2016 levels. We were really excited by our net income growth of 76% (this was stronger than expected) with total load count increasing by 19% over the same period.

As Becker Logistics is in the middle of Q2, we are optimistic for this quarter to do even better than Q1 and definitely from Q2 of 16. Certain segments of our revenue streams are forecasted for growth y/y; Total TL volume +28%, LTL volume +10.9%, refrigerated volume +20.8% and adding momentum to our managed freight services division 3PL 360.

We are excited to share that Becker Logistics is celebrating 20 years in business. It seems like yesterday that we opened our doors on May 16, 1997. Our employees have built a great thing here.  This is what we're looking forward to in 2017; We have hired 9 employees in the Q1 and 6 employees halfway through Q2 with hopes that these new team members sustain our current business and continue to support our growth.  We have seen our Barrington office grow in revenue 47% y/y and we will be opening a Branch office in Chicago, IL August 1.

We would like to acknowledge and thank all of our customers, carriers, vendors, associations and employees for making this all possible. Without you our success and this growth would not have been possible.

Continuing Cargo Thefts:

153748257resize.jpg

According to Cargo Net, in the first quarter of 2017 $28.7 million has been stolen in cargo.  The average loss per incident is said to be around $149,522.  31% of all cargo thefts are in food and beverage with the most thefts happening in secured yards, warehouses, and parking lots.  California is the most frequent area for incidents to happen.  They have a 40% increase year over year in cargo thefts.  

These are the 10 counties with the most cargo thefts.

  1. Los Angeles County, CA
  2. Dallas County, TX
  3. San Bernardino, County, CA
  4. Cook County, IL
  5. Miami Dade County, FL
  6. Harris County, TX
  7. Tarrant County, TX
  8. Middlesex County, NJ
  9. Will County, IL
  10. Riverside County, CA

Two years ago Becker Logistics had $112,000 worth of copper stolen.  Becker thought they hired a carrier we had been working with for 8 years to bring the load from Alabama to Chicago.  What we found out too late was that the carrier had gone out of business and someone else had stolen their name and purchased insurance so that brokers would not suspect what was happening.  The theft was successful: the copper was stolen and Becker ended up having to pay the company for the lost cargo.    

Around the same time a similar situation happened with Becker Logistics with a load of nuts.  The people who stole the authority came with a different truck as well.  In, this situation the shipper ended up taking care of it.  

These are not isolated incidents.  Law enforcement is making strides in preventing cargo crime but criminals are getting more savvy as well.  Companies are learning that they now have to safeguard their loads so that they will have as few thefts as possible.  Unfortunately, like Becker Logistics, many of these companies are learning the hard way that they need to check every little thing before sending the shipments out.  

 

Cargo Theft Reaches $114 Million:

      This past year cargo theft overall has dropped for the third year in a row, however the value of the stolen loads has increased.  According to Cargo Net the value of the missing freight peaked at $114 million compared to that of $100.5 million in 2015.  The police believe that the fluctuation in numbers could be related to more frequent reporting and greater awareness of cargo theft.  The top state for cargo theft was California with 228 incidents, followed by Texas with 135 incidents and New Jersey with 73 incidents.  The most common commodities were food and beverages, with second most common being electronic goods.  The top commodity stolen has varied from prior years, in 2015 the biggest loss was that of the pharmaceutical and medical industry.   Investigators have said that law enforcement has done an excellent job  responding to the reports of cargo theft.   Unfortunately, it remains difficult to prevent future theft because the culprits responsible continue to be strategic with their methods and locations when committing criminal offenses.  Increasing awareness and safe practices across the freight industry  will help deter thieves and hopefully help overall cargo theft continue to decrease year after year. 

What you need to know about the Federal Food Safety Modernization Regulations:

April 6th, 2017 brings new regulations on the sanitary transportation of food products.  Regulators from the Food and Drug Administration prepare to crack down on shippers and carriers in the supply chain that do not comply.  These new regulations are in response to the 2011 Food Safety Modernization Act that moves from preventing food contamination rather than just responding to it when it does happen.  This deadline affects larger shippers and carriers while smaller operators have until April of 2018.  The key requirements state:

·         All equipment must maintain safe temperatures while transporting food            and must be cleaned between runs

·         Proper training of carriers transporting the goods

·         Keeping detailed records and, of course, better separation of raw food            from other products. 

This will better protect food from contamination during the transportation to and from stores.