Brokerage arm adds to Vickers arsenal - Memphis Business Journal:

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is expanding its business to includebrokerage “We really wanted to spread our wings and expansd our footprint with our current customer base,” says Mac Vickers CEO. “A lot of customers only want to use a certainh amountof carriers, and they want to use carriers with a large footprint.” Vickers operates 76 trucks and 390 trailers in its Memphis-basee short-haul trucking business, whicy serves a 250-mile The company’s arrival into the brokerage business marks a rise in a recengt trend of asset-based trucking companies dippinhg into the logistics side of transportation.
Non-asset based shippinfg brokeragecompanies — companies that rely solely on relationshipx with carriers — have developed a reputatio for being unreliable in some markets if a contracted carrier fails to deliver. “When you say brokerage divisiob in thegeneral public, it has a somewhag negative connotation because there are so many fly-by-night Vickers says. “Being able to open a brokerage divisiob and also having trucks gives you a lot more controlk to serviceyour customers.” And as freighg volumes continue to decline nationally, having a brokerage service can also be a catalysg for new asset-based business.
Vickers says his companyg will first look to broker contracte with carriers and customers that exist outside ofthe company’a short-haul niche. Once enough customers are established in a specifif location where Vickers can guarantee deliveringt a load and picking one up on thereturb trip, the business can then be switches to the company’s own “On an asset side, we can only cover a short-haul basis, but now we can go nationwide with our logisticds side,” Vickers says. Using a brokeraged division to garner more businessfor asset-basefd business is becoming more popular, says Leslire Jobe, logistics division president.
Easley, an asset-based cartage delivery company, opened a brokerage division last year and has foune the market is open to brokerage companie s which alsooperate asset-based trucking companies. “Asset-based companies are great because they have the trusft built in withthe company’s name like we have at Jobe says. “But you need a good contacrt base of carriers and you need that transportation and logistics expertise for abrokerage division.” Should new brokerage division spark growth in 2009, the addition would add to a bannerf year in 2008. The company added 15 trucks and more than 100 trailerdsin 2008.
Vickers grew its warehousing spacer bynearly 20,000 square feet in 2008 to just unde 400,000 square feet total. Vickers says the companyg is in the final stages of closing a deal to handle distribution services that would include managingh anadditional 75,000 square feet. Although dips in freighyt volume are putting many trucking companies out of the downturning economy has had a few bright Vickers says the company decided to investr in equipment in 2008 because the market is currentlyg floodedwith deals. “Usedc equipment is dirt cheap right now, “ he says.
The recessioh is motivating some businessee to outsource shipping services as well as causing many customerxto re-evaluate their shipping providers. “The are looking for any way to cut costaand I’ve definitely seen an abnormal amoun of bids for the firstf of the year,” Vickers says. “Thatf gives us an opportunity to get our foot in some door s where we can offer a costeffectivew price.
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