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Providing coverage of Alaska and northern Canada's oil and gas industry
July 2003

Vol. 8, No. 29 Week of July 20, 2003

PETROLEUM DIRECTORY: Span-Alaska Consolidators Inc: Wysiwyg freightmasters

With depth of expertise and new technology transportation provider has served Alaska for 25 years

Susan Braund

Petroleum Directory Contributing Writer

The cyber expression, wsiwyg, aptly describes freight masters Span-Alaska Consolidators Inc.: what you see is what you get.

“We have no secrets,” says Kathy Lorec, vice president of sales. “We offer good service, treat customers fairly at a fair price, do what we say we are going to do and follow through on promises. Above all, we’re honest!”

Span-Alaska is one of the largest transportation companies serving Alaska today, with a fleet of more than 150 trailers and containers, 30 power units, and access to equipment owned by the ocean carriers.

Alaska focus

“As a full service transportation provider serving Alaska for 25 years, Span-Alaska offers point-to-point service between Alaska and the rest of North America,” says company President Mike Landry. “Unlike many of our competitors, we only operate in and out of Alaska, making us far more motivated to do a good job for our customers. Carriers who serve the western states or the entire country don't have to be as focused on the Alaska customers as we do because Alaska is a small percentage of their business. It is 100 percent of our business. So, who is going to feel the greater need to excel? We will continue to invest in the future of Alaska with new trucks, new computer technology and the most experienced employees in the industry ready to meet your needs now and in the future.”

Since, in Alaska, everything has to come from somewhere else, people are dependent on freight transporters. “Because we’re a transparent service, we are somewhat taken for granted,” says Lorec, “ but it’s actually an involved industry that takes a lot of coordination on the part of a number of companies to keep grocery stores full and our population thriving. In-depth knowledge of the Alaska market is essential. When you don’t know exactly what you are doing, you can end up paying two or three times more!”

The company uses its depth of expertise to find ways to reduce costs and move freight faster, so businesses can sell more product, instead of paying for it while it’s in transit. Customers can request daily shipment status via a special software program that indicates shipper, count, weight, probable carrier, estimated departure and arrival dates.

Less-than-truckload freight

Span-Alaska is the largest consolidator of less-than-truckload freight, LTL, in the state. “Our niche is very definitely LTL cargo,” says Landry. “We made a decision many years ago that we would spend most of our resources attracting LTL cargo. The margins are better and it is more reliable, less cyclical. From silk plants to building and drilling materials, with LTL we might have two to 40 customers’ items in one truckload, saving all of those customers money.”

VF Grace Inc. of Anchorage gives Span-Alaska positive marks: “As a company that has used several freight forwarders/consolidators over the years, we find that the strengths of Span-Alaska include: creative rating and routing, low rate of claims, knowledge of the Alaska Marketplace, helpful staff and excellent customer service. Span-Alaska has proven to be most capable and very responsive to our specific service requirements.”

Family-owned, family-fortified

“Lots of competition has come and gone over the years, but we’re still strong, still standing, and still family-owned.” comments Lorec.

Since the retirement of company founders Ray and Zoanne Landry in 1990, their five children have run the company — peacefully — disproving the old business warning never to do business with family!

“The company is celebrating our 25th anniversary this year. I think the anniversary is more meaningful to us as a company than it is to our customers. It really means a lot to my parents. I remember when they told the family that Dad was going to quit his job and start a new company. We were all a little surprised and maybe a little concerned — five kids, two of them in college, and no income is a little scary,” reminisces Mike. “But everything worked out beyond their wildest expectations. The company is three or four times larger since their retirement, but none of it would have been possible without the courage and determination they had to make this work.”

All five of Ray and Zoanne's children have been working for Span-Alaska since 1982 or before. “I haven't met anyone who can believe that five siblings —Teresa Brooks, Tom Landry, Jackie Norton, Mike Landry, and Paul Landry — can get along and work side by side for that long and grow a business. It really has been pretty enjoyable and very beneficial to the operation of the company,” reports Mike. “I have four partners that I can trust implicitly and that have a very good work ethic. It makes managing the company far easier than it would be otherwise.”

Sandy Erber, strategic account director for Horizon Lines (formerly Sea Land Service Inc.) reports a strong, 18-year working relationship with Span-Alaska. “They’re refreshing to deal with, and one reason is that their company carried over the values from their father — strong values and high integrity. All five of the Landrys absorbed them ... five siblings! It’s unheard of!”

Corporate philosophy

The company’s corporate goal is: “to be recognized by our customers as the number one service-oriented freight forwarder to Alaska, and achieve a reasonable return, by adhering to our principles on integrity, honesty and quality improvement, and recognition of people as our key resource.”

No cutting corners to cut costs at Span-Alaska. “We refuse to discount our service level,” stresses Mike. “We wouldn't know how to. So we won't always be the lowest price carrier on every product and we don't try to be. We do, however, try to provide the best value to our customers. The way we make that happen gets back to our employees. We like to hire smart people. tell them what we expect, and then let them go out and do their job. Nine times out of ten they will exceed our expectations. We do very little micro-managing here.”

Customers as partners

Customers report back that the thing that sets Span-Alaska apart from its competitors is customer service. “We are blessed with a wonderful group of employees that care about what they are doing, and we are into long-term relationships. Many of our customers refuse to refer to us as vendors preferring to call us partners,” says Landry. “When we can get our customers to stop thinking about logistics, and focus on what it is they have to sell, then we have done our job!”

Nurturing long-term relationships mean recognizing specific customer needs and requirements, like special equipment to accommodate certain products.

“We are pleased with the level of service we receive from Span-Alaska. Span is a major player in the shipping business in Alaska. Their expertise in shipping keeps our product moving safely and competitively. They have invested in the proper equipment to move flooring in the Alaska marketplace. We can count on our deliveries on time and their rates keep us competitive in a competitive marketplace,” reports A la Round Flooring Distributors.

Claims

The company’s damage factor is significantly less than the national average, but when claims occur they are dispatched quickly. “We have a system in place to handle emergencies. We research the problem, make recommendations and suggestions and do our best to resolve the issues. If a mistake has occurred, we can track who has touched your freight at every step,” says Lorec. “We are good at not repeating the same mistakes!”

Editor's note: Susan Braund owns Firestar MediaServices in Anchorage, Alaska.






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