John Ruan had a knack for sell- ing from early childhood – he trapped animals and sold their pelts, picked berries, hunted mush- rooms, and popped corn, peddling his wares to neighbors. “My father often credits his success to hard work, saying he might not be smarter than the average man, but he works harder. He also was will- ing to take risks–acting on ideas others considered too uncertain,” says John Ruan III. Nineteen-year-old James Ryder brought a similar work ethic and penchant for perfection to his first job at CR Clark Construction–qual- ities that served him well later in his career. Among his responsibili- ties was making cement. “Mixing one batch of cement at a time with wheelbarrows waiting to move, he recognized there was a better way to do the job,” explains Bruce. “So he built a second mix- ing box, allowing him to begin a fresh batch before the other one was depleted. Working in a more just-in-time manner resulted in less lag time, and earned him a nickel raise to 30 cents an hour.” Hard work came naturally to Ryder. When he acquired his first truck in 1933, Miami Beach was just beginning to come into its own and construction was rampant. Ryder would pick up anything he could find–construction materials,
The carrier’s business grew as it added routes other trucking com- panies willingly ceded or forfeited when they went out of business. There was a strict quota on truck movements in specific lanes and the state authority set pricing as well. “Because of these restrictions, Oak Harbor would haul every- thing and anything in its lanes, inbound and outbound,” adds Hobby. “Henry Vander Pol used to talk about how they would truck fertilizer one way, then watermel- ons back; haul horse manure, hose out the box, and load the truck with apples for the backhaul.” Customer Service Takes Root Regulation may have limited profitability and expansion, but it also forced trucking companies to engage customers and grow their business organically. In its early years, Schneider Transport operated as a local carrier hauling paper, pulp, and foodstuffs for companies such as Kimberly Clark, Proctor and Gamble, Fort Howard Paper, and Schreiber Foods. As these companies expanded, their needs changed. “A loyal customer base supported Schneider from the start–they had a need for inter- state service,” shares Wayne Lubner, senior vice president of associate relations at Schneider National. Lubner, whose tenure at Schneider National spans 36 years, fondly recalls the founder’s ethos: “He used to say, ‘Without the customer, we are nothing. If we can’t provide what the customer wants, we’ll be out of business.’” Customer service and technologi- cal improvements paved the way for Schneider and other carriers to expand their market presence and scope of oper- ations. Up until the 1950s, trucking moves were essentially “less than truck- load” local runs direct to consignees or between terminals. But as equipment and highway infrastructure improved, and customers demanded greater coverage, the Schneiders of the world fol- lowed their lead. In time, Eisenhower’s
The Vander Pol brothers (top) acquired what came to be Oak Harbor Freight Lines in 1936, transporting cargo between Whidbey Island, Wash., and the mainland.
tree trimmings, trash, and bag cement, transporting them between ware- houses, rail yards, and local beaches. Recognizing an opportunity, Ryder engaged his friend Ed Bond to join him on the job and in the cab. This way they could run the tractor 22 hours a day. The Heavy Hand of Regulation While carriers explored innovative ways to get the job done better and attract more business, they did so under the heavy hand of government regula- tion. As the trucking industry grew, the Interstate Commerce Commission (ICC), first introduced by President Grover Cleveland in 1887 to regulate unbri- dled railroad monopolies, extended its
sanctions to over-the-road transport. The 1935 Motor Carrier Act gave the ICC authority to regulate interstate truck and bus companies, dictating which compa- nies could become motor carriers, what services they could offer, and what rates they could charge. “Trucking companies had to buy or acquire lanes,” says Mike Hobby, accounts receivable manager for Oak Harbor. “For example, they had to go to the state operating authority and request permission to move freight between Oak Harbor and Washburn, Wash.” In the 1930s, Oak Harbor was pri- marily delivering goods to and from Whidbey Island, which was connected to the mainland by bridge.
40 Inbound Logistics • September 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND
Powered by FlippingBook