A few weeks ago, I hosted Jannine Miller, Director, Center of Innovation for Logistics at the Georgia Department of Economic Development. We talked about what the state of Georgia is doing to facilitate an effective, innovative infrastructure to support logistics needs for regional businesses.
On this week’s show I sat down with friend of the show, Bo Wilkins, of Sound River Advisors and three logistics experts who represent workforce management, third party logistics (3PL), and the legal needs for the vertical.
Page Siplon is the CEO of Team One Logistics. He was actually Jannine Miller’s predecessor at the Georgia Department of Economic Development. Team One Logistics is a workforce management company that supplies an outsourced option for logistics companies that want to achieve greater profitability and reduced risk. One of the largest (if not the largest) costs for a business comes from their SG&A which includes employee-related expense such as salaries, taxes, and worker’s comp.
Team One Logistics takes over (or provides) and manages the workforce for logistics companies and logistics divisions within enterprises. By allowing Team One to “own” and provide the employees such as truck drivers, forklift operators, etc., their clients give up the exposure to risk that comes with worker’s compensation, health benefits, and other employee-related costs. These expenses are often one of the largest if not the largest costs for a company.
Because their focus is exclusively on the human component necessary to make a logistics operation work, Team One is able to take advantage of their large workforce to get good benefits rates for their workers. They’re also able to manage worker’s comp risks effectively through focused education and policies for their workers that reduce risk for accidents.
Vector Global Logistics is an asset free, third party logistics company / NVOCC that provides exceptional sea freight, air freight, truck, rail, general logistic services and consulting for their clients. Their unique results-only culture brings a fresh and new approach to logistics.
Vector Global Logistics Managing Director, Enrique Alvarez, came on and talked about how they use a consultative approach with their customers to maximize efficiency and cost savings for their client companies. Rather than focusing on simply leasing out available cargo space, the company continually seeks to learn more about the businesses they serve in an effort to identify ways that transport routes and modes provide the fastest possible shipping for the lowest possible cost.
Enrique shared a story about a client for whom they were able to save $2 million annually by changing the primary route an international company was utilizing. They were able to save another major manufacturer millions by addressing the shipping option being used which meant inventory arrived as much as 2 weeks sooner than had been experienced previously.
Michael Golden is a partner with Arnall, Golden, & Gregory. They’re an Atlanta-based law firm that provides a variety of corporate legal expertise, one of which being logistics. Michael explained how important it is for the businesses operating within the logistics arena to have a relationship with a law firm with logistics experts on their team. He gave several examples of common missteps logistics companies make in their operations that can result in significant financial loss. One of those relates to companies listing what the law would consider “employees” as 1099 Independent Contractors.
We also talked about the impact that the Affordable Care Act will have on these companies as the employer mandate rolls into effect in the coming year. Without the right legal expert, these businesses can be exposed to major costs and penalties if they don’t handle their approach to employee benefits requirements correctly.
Bo Wilkins, Partner, SoundRiver Advisors
- Former Executive Managing Director, Wealth Management, Reliance Trust Company
- Former Partner, Nease, Lagana, Eden, & Culley
- BA, History & German, Hampden-Sydney College
- CLU – Chartered Life Underwriter; ChFC – Chartered Financial Consultant; CAP – Chartered Advisor in Philanthropy
Page Siplon, CEO of Team One Logistics
- MS, Computer & Electrical Engineering, Georgia Institute of Technology
- Previous Program Director, Center for Innovation in Logistics, Georgia Department of Economic Development
- 2015 Top-100 Most Influential Georgians, Georgia Trend Magazine
- 2014 Industry Pro-to-Know, Supply and Demand Chain Magazine
Enrique Alvarez, Managing Director of Vector Global Logistics. LLC
- MBA, Finance and Management, University of Pennsylvania, The Wharton School
- Managing Director, OA Ventures
- Former Consultant, Boston Consulting Group
- Fluent in Spanish and German
Michael Golden, Parter at Arnall, Golden, & Gregory
- Juris Doctor, Duke University School of Law
- Previous Law Clerk for Judge Ernest Tidwell, United States District Court for the Northern District of Georgia
- Georgia Super Lawyers, 2012-13
- Represented a global freight forwarder in its acquisitions
- Represented an interstate trucking company in acquisition of regional refrigerated trucking company