Twin Modal Inc: Providing delivery solutions

Source: Supply Chain Digital

Date :10/8/2008 9:35:15 AM

President Chip Smith explains how this Minnesota company has grown to become one of the nation’s premier brokers

Written by Terrence Doyle and Produced by Michael Magno

Chip Smith, the President of Twin Modal Inc for the past 14 years, joined the company in 1977 and held various positions in customer service, sales and management. By 1994, he had worked his way to the top where he remains today. “I am currently Vice Chairman of our industry trade association, TIA (Transportation Intermediaries Association), where I have been on the board of directors for approximately 14 years,” says Smith, 50, a graduate of St Cloud State University College of Business in Minnesota.

“I co-authored TIA’s P3 Industry Best Broker Practices and lead negotiations with other industry trade groups in establishing the first ever model broker contracts for shippers and carriers. In addition to TIA, I am active in NITL (National Industrial Transportation League), IANA (Intermodal Association of No America), CSCMP (Council of Supply Chain Management Professionals), the Minnesota Department of Transportation Freight Advisory Council, and various other industry groups,” he says.

Smith has a wealth of industry knowledge and experience that he readily applies to operations at Twin Modal.

“Twin Modal was founded in 1977 as an intermodal marketing company,” says Smith. “After the deregulation of trucking in 1980, we added our truckload brokerage services and later, regular route LTL service. Today, we offer customers volume pricing and service with the best available carriers in each mode.

“From 1990 to 2005 we were an employee-owned company,” he says. “In 2005, we were acquired by Freightquote.com, the largest online brokerage company in the US. We currently operate as a separate brand from Freightquote.com, as does our sister subsidiary, Rockwell Transportation.”

BUILDING ITS REPUTATION

Twin Modal is well thought of throughout an industry that encompasses approximately 16,000 licensed brokers in the United States. Feightquote.com and its subsidiaries were recently ranked in the top 10 by Armstrong and Associates.

Twin Modal is a charter member of the P3 Best Broker Practices Program Smith helped develop. The company’s website explains further what the program is and Twin Modal’s role in it. The company is also a member of TIA’s Guaranteed Payment Program, which Smith explains “offers shippers and carriers the protection of a US$100,000 surety bond, versus the US$10,000 bond required by law.”

MARKET FOCUS

Twin Modal provides transportation and logistics solutions through options, focusing on mid-market shippers in North America, particularly in the United States and Canada.

“Our clients include manufacturers, distributors, retailers and third parties in a wide variety of industries,” says Smith. “Shippers tend to use our company primarily to solve and manage complex logistics challenges, or for high quality capacity. We handle a wide variety of commodities and industries.”

Smith adds, “We’ve seen shippers tackle the same challenges over and over and seen what works and what doesn’t. With our enormous resources and industry expertise, many shippers consider us the most valuable transportation resource they have.”

UPGRADES AND PERSONNEL

“Over the past few years, our company has invested heavily in online tools for shippers and carriers and technology for internal process improvement,” says Smith.

“In today’s market, speed and access to information is critical. This has allowed us to maintain consistent, high quality service and responsiveness across our network and it gives us a significant competitive advantage over all our competitors.”

Twin Modal is based in Roseville, Minnesota, and has six other offices across the US. The company’s 90 employees maintain singular focus. New employees receive significant training about the industry, Twin Modal’s history and its position in the market. Employees also receive topical training, as needed. “Unlike many of our competitors with multiple offices,” says Smith, “Twin Modal operates as one team to serve the shipper and carrier. We often utilize multiple offices and modes to serve a customer and we take a neutral approach in developing our solutions. We do what’s best for the customer, without bias.”

For 2008, Smith expects Twin Modal revenues to hit US$85 million. He says Twin Modal has actually grown despite the country’s economic downturn. “Year to date we are up nine percent over last year, in spite of a slowed economy. “A few customer groups, such as building products, have been particularly slow this year but we have been able to backfill and grow regardless. Our diversified customer base is a major asset for us.”

Click here to view Twin Modal Brochure