National Logistics Management Aims to Cut Carrier Costs with New Program

Partnership with DriverSource seeks to help mitigate increasing driver turnover rates

Partnership with DriverSource seeks to help mitigate increasing driver turnover rates

Detroit — May 5, 2006 — Logistics network National Logistics Management (NLM) is partnering with transportation staffing specialist DriverSource to offer carriers a 5 percent discount on long-term leasing of drivers and direct hire placement.

NLM, a non-asset based, third-party logistics provider, said that the partnership is aimed at helping mitigate the effects of rising driver turnover rates, providing NLM carriers with an "on-demand" source for driver fulfillment.

According to the American Trucking Association, last year marked the worst on record for driver turnover among large truckload carriers, at 130 percent. With expanding class 8 truck sales and a U.S. economy rising at a 4.8 percent clip, many industry observers believe that driver demand will only increase in the near term.

NLM and DriverSource said they would offer NLM preferred carriers industry-specific services around the clock, throughout the United States. In addition to its truck driver leasing program, DriverSource also offers SSP Placement Services, a logistics staffing service specializing in the recruitment and direct placement of critical employees, such as upper level management and executive level positions.

"As gas prices again climb significantly, and with the driver turnover rate increasing, the DriverSource agreement helps our carriers navigate the difficult industry landscape," said Scott Taylor, CEO and founder of NLM. "In the end, NLM customers also benefit, as any costs carriers save are transferred to the client."

"Our relationship with NLM allows us to further employ our expertise to a diverse range of clients," said Jinan Dalloo, CEO and co-founder of DriverSource.

NLM's affiliation with DriverSource is a part of its partnership program aimed at promoting collaboration among carriers and loyalty to customers by providing cost-saving incentives to approved carriers.

Other partnership programs offered through NLM include a fuel consumption reduction program called the EPA SmartWay Transport Partnership and SuperFleet, a fuel discount program. NLM also offers a number of discount programs on lodging and acquiring safety and compliance materials.


Additional Articles of Interest

— Businesses today continue to look for ways to reduce their logistics costs, but in order to identify further costs savings, companies need to tap into new information. The answer? Benchmarking. Read more in "Freight Cost Benchmarking: The Final Procurement Level," in the February/March 2006 issue of Supply & Demand Chain Executive.

— To build a competency in supply network design, this consumer products company first had to build confidence. Read more in "Designing the Best Supply Chain Gillette Can Get," in the February/March 2006 issue of Supply & Demand Chain Executive.
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