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POWERED BY:April 14-16, 2015 | Louisville, KY

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The Rise of Regional Carriers – What’s Driving It?

Paul Steiner, VP Strategic Analysis Spend Management Experts

Mark Magill, VP Business DevelopmentOnTrac

John Janson, Director of Logistics & TransportationMWI Veterinary Supply



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Regional Carrier Services• Overview• Partial list of providers and locations covered

– OnTrac: West Coast– Eastern Connection: East Central, Northeast (Partnerships with Pitt-Ohio)– Pitt-Ohio: Midwest (Partnerships with U.S. Cargo and Eastern Connection) – Spee-Dee: North Central, Midwest– Lone Star Overnight (LSO): Southwest– LaserShip: Final mile delivery East Coast– Hackbarth: Final Mile delivery Southeast

• Regional carriers have coverage of approximately 85 percent of the United States

• More recent shift from B2B parcels to B2C, last-mile delivery• Increase in Regional business



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Rising popularity of Regionals

• What are the factors behind the shift?– Improved rates

• Freight Rates• Accessorials/Surcharges• Dimensional weight

– Improved service levels• Faster time-in-transit

– Later pickup times– Reduced damage claims



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The Regional Carrier Experience

• Which regional carriers is MWI utilizing?• Describe the dialog surrounding the National vs Regional

carrier decisions• Can you walk through the process of some recent

engagements?• How did you develop rate comparisons?• What level of tracking do you have with regionals?• How would you describe the reporting capabilities?



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Benefits of Regionals• Reduced Freight Rates

– 15 – 30% LESS than nationals

• Reduced Accessorial/Surcharge Fees– Examples: Residential Delivery Fees, Delivery Area Surcharges, Large

Package/Oversize Surcharges, Saturday Delivery Fees, etc.

• Improved Time-in-Transit• Improved service levels• Reduced DIM impact• Improved Flexibility & Client Service Levels



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Transitioning to Regionals

• Understand how much volume can move without losing current carrier discounts.

• What were some of the initial challenges of switching and how did you overcome them?

• What impact analysis can be performed?• What has been the impact to your customers?• What to look out for?



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Questions to Ask Carriers• Are the rates negotiable?• What are the minimum volume

requirements for a Regional contract?

• What are the surcharges?• What are the fuel surcharges?• What are your rules for

Dimensional weight?• Are daily pickups provided or is

drop shipping needed?• Are residential deliveries

offered?

• Is a multi-carrier shipping platform required to ship with Regional carriers or can I use the Web?

• How does the package tracking stack up to UPS and FedEx?

• Do you offer insurance?• Do you offer money-back

guarantees? • Are the drivers employees or

Independent contractors?



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What’s on the horizon?

• What are some of the upcoming service enhancements?• How have other regional carriers been working with On-Trac

to build larger Regional coverage? • Are there alternative solutions from the Regionals for USPS

related services at par with SurePost/SmartPost/Newgistics & Global Mail?



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Questions? Connect with us!

Paul SteinerSpend Management [email protected]

@Spend_Mgmt

Mark Magill OnTrac

[email protected]@OnTrac_Shipping

John JansonMWI Veterinary [email protected]



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