America’s third largest truckload carrier consists of nearly 9,000
self-employed entrepreneurs. These independent contractors, known to Landstar as
“business capacity owners,” lease equipment and services to one or more of
Landstar System, Inc.’s subsidiaries. By remaining independent, Landstar contractors
enjoy the freedom and flexibility that led many of them into trucking in the first place.
And yet, they don’t give up any of the benefits of being part
of a big company, because Landstar provides business advantages that, until now, were
available only to megafleets. In what follows, Jeff Crowe, Landstar Chairman, President
and Chief Executive Officer explains the bond between Landstar and thousands of fiercely
independent entrepreneurs.
Then, Brian Kinsey, Landstar Vice President, shows how the Landstar
Contractors’ Advantage Purchasing Program (LCAPP) strengthens that bond.
Their answers suggest you don’t have to take on big fleet
problems to enjoy big fleet advantages. We think you’ll agree. |
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Jeff, what
kind of fleet is Landstar? "Landstar is in the small
business business. Even though we’re a very big fleet, Landstar is composed of
thousands of independent business owners. Our ‘business capacity owners’ (Some
people say ‘owner-operators,’ but that term is certainly not accurate today) are
entrepreneurs. They decide what loads they will take, where they will go, how long they
will be on the road, when they will take vacations. They control their own destinies.
"But an organization like Landstar can do some things better for them than they
can do for themselves. Landstar understands them and Landstar supports them. |
| "And,
our contractors also want respect, and respectability. We provide that too, especially
through our commitment to safety." How does
safety affect the success of your contractors?
"To us, safety is good citizenship. But it’s also very
good business. Truckers run on very dangerous highways. Without a commitment to safety,
they’re headed for financial ruin.
"That’s why we always put safety first. We would rather lose
a customer than operate in an unsafe manner. Safety is the
smartest, most profitable choice for our independent contractors,
for our customers and for Landstar."
What kind of safety programs does Landstar have?
"Here are a few: Driver safety courses; system-wide safety meetings; a monthly,
nationwide safety teleconference and full-time safety departments in each operation.
"We honor safe drivers through our Million Mile Awards program.
We offer substance abuse prevention, extensive hazardous-material
training and weekly hazard-alert mailings. Our driver qualification
requirements exceed those of the USDOT. And we participate
in education programs for schools, civic groups and the
public."
What role do tires play in safety?
"Tires are critical. They’re the only equipment components
that touch the road. You need quality products under the
business office. I believe safety is as important a tire
design parameter as long wear."
Isn’t that expensive?
"Absolutely not. Remember, safety doesn’t cost. It pays.
And, Brian will tell you about our LCAPP program –
which allows our business capacity owners to purchase top
quality tires and equipment, at prices previously available
only to giant fleet buyers. So it pays even more."
Brian, Jeff mentioned "LCAPP." What exactly is that?
"Taken as a group, our 8,700 business capacity owners have tremendous purchasing
power. In 1992 we launched the Landstar Contractors’ Advantage Purchasing Program
(LCAPP).
"Through LCAPP, our independent contractors receive volume discounts on new and
used trucks, components, road gear and accessories, replacement parts and extended
warranty programs, fuel, long distance telephone calls, paging and satellite
communications, nationwide emergency roadside assistance, and most recently, on
Pennsylvania Turnpike tolls.
"Our contractors can also set aside funds in a retirement program
as well as receive comprehensive health coverage. Basically,
they can buy like a big fleet, but remain small, independent
businesses." |
| How
much can they save through LCAPP discounts
"On average, $6,000 to $7,000 a year."
And tires are part of the LCAPP program?
"Not just regular tire purchases, but even tires purchased in emergencies. With
LCAPP, our contractors are no longer at the mercy of others.
"The vast majority of the tires our contractors purchase each
year are Bridgestones. Bridgestone tires have a high perceived
value, and Landstar contractors trust Bridgestone tires.
Bridgestones give them a feeling of security. And they’re
widely available."
A feeling of security?
"Safety is our corporate culture. As Jeff said, safety is good
business. Landstar business capacity owners know that, understand
that, and live that. They want the best tires they can get,
and they keep their tires in the best condition they can.
Our job is to supply them at a price they can afford."
Jeff, Brian, thanks for sharing with us. It’s clear
that at Landstar, safety and success live in harmony. |
 Preparing for the truck beauty contest
during the annual Landstar "Ranger Days" celebration.
We interviewed Jeff and Brian at
Landstar Ranger headquarters in Jacksonville, Florida.
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