May 28/June 4, 2018: Volume 33, Issue 25
By Reginald Tucker
In today’s hypercompetitive distribution economy, it’s no longer enough to simply move products from point A to point B. In order to gain an advantage, wholesalers must also go above and beyond by offering value-added services to manufacturers and retailers alike.
That’s precisely the edge that Xpress Global Systems, formerly Crown Transport, claims to offer its partners across the supply chain. “We’re the largest nationwide transportation hauler for the floor covering industry,” said Darrel Harris, CEO of the Chattanooga, Tenn.-based distributor. “Xpress Global is a company that’s been around for 40 years.”
According to Harris, Xpress Global Systems’ fleet entails nearly 300 trucks, and the company owns roughly 600 pieces of trailing equipment. From a logistics standpoint, about 75% of its freight originates out of Dalton, with approximately 20% coming out of the Southern California area.
“The majority of our business that we handle is LTL—less than truckload—shipments predominantly for floor covering businesses,” Harris explained. “We also have a fair amount of our business dedicated to warehousing. We store freight for our customers, and most of the time that freight then finds its way onto our trucks for local distribution.”
Xpress Global Systems also maintains a brokerage division (XTMS) that’s able to arrange transportation, truckload brokerage and LTL if it’s outside the scope of the company’s normal activities. Operating out of Xpress Global System’s Tunnel Hill, Ga., facility, XTMS is designed to provide additional services for the company’s large customer base in the region.
Harris cites additional competitive advantages. “By far it’s our expertise in handling floor covering, specifically rolled goods. Our employees are very well trained, experts in their field. It’s a type of product that requires special handling. You hear so many different stories in the industry about carpet being damaged when shipped using general commodity carriers. It’s not that we never had that problem, but it’s a very low claims percentage. Less than half of 1% of our shipments result in a claim, because we take great care of our equipment. Plus, our network is set up to make sure the carpet is handled properly.”
But it’s not just soft goods. Xpress Global is also equipped to handle pallets of hard surface products such as LVT. “We really put a big focus on the hard surface of segment of the business,” Harris said. “What’s really good about it from a transportation perspective is those goods commingle well in a transportation mode. Over the past few years we have really put a focus on exploring those opportunities with our customers.”
Xpress Global Systems also excels in what Harris refers to as “reverse logistics.” For example, if freight is delivered to a retailer but the shipment is rejected, Xpress can arrange to send it back to the originating mill. “We can assist the retailer for any reason that might create a scenario where they would need to return the product,” Harris explained.
Another competitive advantage Xpress Global Systems offers is its sheer size and scale. “There’s no one that has the broad coverage area to match our 33 facilities across the country,” Harris said. “That is something that’s very unique and special in this particular space focused on floor covering.”
So why would a retailer prefer to have Xpress Global ship their products from a mill as opposed to just paying the mill to have the product shipped to them? Harris explains the thought process. “What we find is many retailers don’t always take the time to really understand their overall freight costs or the logistics behind it. So there could be significant cost savings with us. Also, we have capabilities in so many different areas that are all built around floor covering, which translates into other solutions we could bring to the table that they might not even be aware of. For example, we can store goods for clients in various parts of the country without them having to spend the extra funds to basically put brick-and-mortar facilities in. In essence, they can use our facilities as an opportunity to position their freight for their customers, and we can handle shipping it out for them. So there’s just a lot of creative things we can do by opening up those discussions directly with the retailers.”
Robbie White, senior manager of distribution and logistics for Beauflor, is a believer. “Xpress Global has given us a lot of capacity that we didn’t have. But they have also worked with us on drop trailers, especially on nationwide coverage of rolled goods. With the proactive reporting they provide, we don’t have to wait on exceptions to come up. They’re really good at managing those exceptions for us.”
Other Xpress Global Systems customers attest to the distributor’s high level of service. Jared Warnack, vice president of Lowe’s division for Phenix Flooring, has been a client for more than 15 years—and for good reason. “They are a very integral part of our company. They service the majority of the nation for us, and they do a wonderful job.”
Warnack attributes that track record to the leadership at Xpress Global Systems. “When Darrel Harris [CEO] came on board, he changed some of the policies to help improve customer focus. For example, he created a customer advisory board comprising logistics personnel from most of their major manufacturer customers, and we talk about issues we face every day in the industry. Xpress Global Systems then uses that feedback to improve their service and offerings. That’s why so many specialty retailers and big box stores use them as their preferred carrier.”