What is a Partnership Program and how can it benefit a trucking company that is experiencing challenges?
This program was specifically designed for carriers that are experiencing insurance, cash flow, capital, back haul, equipment, personal, or operational problems. These carriers and are also looking to build their company while improving their cash flow, reducing their operating expenses, and in many instances building up their brokerage divisions and/or creating a new one.
Our clients have spent the last several years developing this product in conjunction with Ahern and Associates. Our Partnership Programs allow a trucking company to:
- "Stream line" it's operation.
- Increase cash flow.
- Decrease operating cost.
As you know, cash flow is "King". Since the trucking industry has been plagued with challenges like rising fuel costs, many trucking companies are suffering severe cash flow problems, and they're looking for ways to reduce their operating cost. These particular programs will provide the following;
- Automobile Liability Insurance.
- Cargo Liability Insurance.
- Workers Compensation Insurance. (Optional)
- Fuel cards.
- Receivable financing - including customer credit checks.
- Trailer pools.
- DOT log audits.
- Additional truck capacity to service your clients.
- Access to better freight & back hauls.
For example, on insurance, a carrier is normally required to place a 25%-30% insurance deposit for workers compensation, automobile liability and cargo legal liability. In some instances, a carrier may have a "rolling deposit", but then you're paying 125% of the insurance premium. Additionally, because fuel is so expensive, many fuel vendors are requiring payment immediately upon demand or within several days.
The Partnership Program will allow you to:
- Utilize a fuel card
- Costs will be taken out of your settlement at the end of the week; a great cash flow advantage.
In reference to insurance, it will automatically be cash flowed into your settlements on a weekly basis, at substantially less than market rates and will provide up to $17MM of automobile liability coverage.
In conjunction with the above, our clients have a special program if you are an asset based carrier;
- They may buy your trailers and lease them back to you at a moderate cost.
- They will provide trailer pools for seasonal business adjustments.
- This will allow you to either:
- Inject additional working capital into your company, and/or;
- Put some of the money away towards your retirement.
Also, if you're interested in starting a brokerage division or building your brokerage division:
- They have 31 agents/sales representatives located across the US that can be used as sales representatives to load your trucks.
- They have 12,000 approved truck carriers in their system.
- They have an extensive network of customers on a national basis, as well as a staff of professionals that can assist you in cross selling your business;
- They'll actually visit your company and set up the brokerage operation and monitor it in conjunction with you and help you grow that revenue.
- They also broker Van, Flatbed, Reefer, Inter-modal and have contacts with all the major railroads.
- They'll provide the direction of DOT.
- They'll do all logs and the audits, and;
- All of that is included in their services.
Obviously, there's a charge for these services, but when you add all the business expertise and the cash flow advantages, it allows you to;
- Focus on your business.
- Reduce your operating expenses, and;
- Increase your cash flow.
As part of the program, our client acts as your receivable lender:
- They'll do the credit checks, and provide a line of credit:
- If they do the credit checks and your customer does not pay you, they will quota share the loss of revenue. In other words, it's not charged back to you in its entirety.
Whether you're factoring receivables or have a line of credit, this program will assist you in increasing your cash flow.
In closing, this program will provide:
- Better cash flow!
- The ability to cross-sell your services to your customers.
- Access to better paying freight.
- Access to more trucks - 12,000.
- The ability to utilize trailer pools where necessary.
- A sales force of 32 agents nationally.
Arkansas Transit Home, Inc. (ATH) was founded in 1958 by my late father, Wendell Chandler. In fact, to Illustrate how long that is got most trucking companies, our DOT number only has five numbers.
I would like to thank you Andy for making this very important and life changing event possible. It was a great experience.
Arkansas Transit Homes, Inc.
We have worked with you and your colleagues at Ahern Associates for some time now. We find your expertise in the area of logistics (be it in consulting or based on being hired for acquisition analysis) to be out standing. We value the relationship and are very happy to give you this letter of reference..
You should feel free to have any party call us to discuss our experience.
Benesch Attorneys at Law
England has been formally associated with Andy Ahern and his colleagues for approximately the past three years primarily in the area of acquisitions. During that period, we have experienced a professionalism that is refreshing. Andy offers in-depth expertise as well as industry knowledge born from extensive experience, a combination which adds material value well beyond a normal business relationship.
We anticipate a long Ė term, mutually beneficial association. It was a great experience.
Very truly yours,
Keith c. Wallace,Jr.
Senior Vice President / Chief Financial Officer
C.R. England, Ind
Century Carriers, Inc. and its subsidiaries are family owned businesses that was started 1998. When the Transportation business was booming, times were great but, like other family owned businesses we didnít prepare for the economy the past year. My wife and I lost many hours sleep and made many calls to attorneys, banks, and whom ever would listen to our story trying to figure out how we were going to save our business for our future and our children.
Andy and his team has given us hope that there is light at the end of the tunnel and we are making progress, thanks again.
Kevin Henderson, President/CEO
Century Carriers Inc. / Century Expedited Inc.
Originally, I met Andy at a Truckload Carrier`s Conference during a round table discussion on the transition of family business. Andy was very knowledgeable about the topic and expressed many ideas that we hadn`t thought of. During the down turn of our industry in 2001, We called upon Andy, as a consultant, to help us understand how to turn our business around. We hired Ahern and Associates to come in and do businesses review. By giving us a road map to success with their intial audit, they helped turn our business around within thirty days.
Andy Ahern and Ahern & Associates have always delivered exactly what they have promised.
Don Christenson, President
Christenson Transportation, Inc.
We have thought about selling our business one day, but we really didnít know much about how to go about it. Your company contacted us a few months ago about a client of yours that was looking to buy businesses like ours. Now just a few months later, the sale is complete. Everything went very smoothly, Ahern was there to guide us through the beginning of the process. We are very happy with our whole experience with Ahern, especially Andy and Brian. They gave us personal attention any time we had questions or concerns.
John & Jennifer Rainney
I wanted to thank you for your guidance, leadership and support. The professionalism and dedication of you and your staff is outstanding. The knowledge you posses of the transportation industry and its inner workings was been a huge asset to us in our time of transition. With your assistance we have been able to make significant changes within our company to improve structure and productivity. Aherns onsite visit and detailed evaluation of our company has been a very valuable tool. The outside look at how we do business and the suggestions you've made to improve our overall performance have been very valuable. All of your advice and direction has been thoughtful and caring, I feel that you truly care about our business and success. You've done everything you said you would do and then some, working with you and your dedicated staff has been a pleasure and will improve the productivity of our company. I look forward to a long relationship with Ahern and Associates.
Specialized Business Solutions. INC