From the Driver's Seat: Opening More Opportunities

Welcome to From the Driver Seat, the Averitt podcast for all Averitt drivers to keep up with news and information across our network. Make sure to subscribe on your preferred podcasting app to make sure you're notified as soon as every episode drops. And now, hosting from the driver's seat, director of driver services, David Royals. Hey, everybody. It's Dave Royals. Welcome to the podcast. Got a great podcast today. Before we get started on that, I wanna make sure everybody's taking a look at twenty twenty six and getting your uniform orders in. You know, you just you've got your uniform allotment reset. Time to get them in. Get them in early. Make sure you're looking sharp and professional. We wanna make sure we look good in front of our customers. We wanna make a good impression as we can. And the drivers that you look at that are possible favorite drivers are gonna look at you and say, wow. Make sure you get your uniforms done. But, anyway, take take take time to do that. We're gonna have a great year. It's fifty five years anniversary for Averitt Express. You're going to hear a lot about that coming up in this year. We're excited about the fifty five years. Looking forward to it. Today, got Ed Smith. How are doing, Ed? I'm good, David. How are you? I'm good. And, you know, we're going to hear talk about ADF. And I know people have heard the term a little bit. Talk a little bit about ADF. Tell us what ADF is and what you do. Well, first of all, thanks for having me. I really appreciate the opportunity because like anyone else, I want to talk a lot about the vertical. So we might have to cut this short at some point. But Averitt distribution and fulfillment, really, is the newest vertical at Averitt. And I know I say that we're probably going on our sixth year of real distribution and fulfillment model. And and from a vertical standpoint, the key to this has always been and will always be how do we attract customers in our distribution and fulfillment warehouse space to to eventually ship with Averitt. We're just looking to create more shipments, which turns into more filling of capacity, future driver jobs, you name it. That's what distribution and fulfillment is for. It it's also to to supply, you know, a need to our customers. They they they called out to us for years saying, we need warehouse space. We need warehouse space. We need warehouse space. Well, then that just opens the door to all the other ancillary businesses we do in all five verticals. Yeah. So I can't I can't think of a better way for a new vertical to introduce itself than to be something we've never done before, but yet it's what we like to call the linchpin to all five verticals. It really is. Yeah, I think back to what you're talking about. You know, for years we've done we've leased a warehouse down in Jackson, Mississippi with a little plastic pellets. You know what I'm talking about? Yes, sir. And that's been a big thing for Jackson, Mississippi. For years and years we've done that, right? Yes, sir. Our friends at Westlake partners and begged for that for a very long time. It's probably going close to greater than fifteen years. We've been doing a relationship with them. We started our first hybrid facility, which is where at an LTL facility, we tie a warehouse to it. That started down in Charleston, South Carolina, that's a decade old now. So you you Is it really at all? Yes. Yes. You find yourself just doing things that customers need, and then it turns into something that from a company standpoint, we think to ourselves, wow. We probably should have been doing this earlier. And now that we're doing it, it's going to generate more and more opportunities for our associates. So the and the great thing that we love to do at distribution and fulfillment is bring someone into the to the fold. Hire them as a doc associate. They work in this beautiful warehouse controlled environment, they start to learn the ins and outs of what truly is distribution and fulfillment. And it could be a pallet in, out type of situation, could be a carton pick type situation, could even be an each pick that we turn into a full pallet. Right? So the great thing about that is they get that origin understanding where freight comes from. And that's that's key for someone. Well, next thing you know, a doctor driver position opens up at somewhere like Atlanta. So we talked to this person and go, hey, you've demonstrated a great level of work ethic. We think you'd be great as a doctor driver candidate. Next thing you know, they feed into that. We let them go out of the distribution and fulfillment model. They move into doctor driving, start driving, next thing you know five, ten years down the road they're talking to us going, hey, what a great decision. I've got a wonderful career here at Averitt, now I'm a driver. I couldn't be any happier. And that happens in each level of what we do, whether it's a operations person or it's a site leader or a frontline leader. Right. There's it's a way to get in, understand the business, then move within the Averitt family to to grow. Well, I've noticed here we've built a lot of facilities now recently with warehouses attached to the facility, I guess. That may be some model looking at going forward. A lot of it is going to be that way, think, right? Yes, absolutely. Because our customers have kind of pushed us in that direction. And you never know when you're going to need that space for someone. Years back, we built Austin. And in all of our heads, Austin's in the middle of Texas and you're going, what are we gonna do with the warehouse in Austin? Yeah. Filled it within three months. Customer's been there ever since. And it creates nothing but LTL shipments all day, every day. And think about the pickup cost quote unquote for a shipment you just go drive next door to your warehouse and bring it over and put it on your LTL trailer. Yeah. Pretty pretty ingenious. Well, plus it provides another avenue to get more freight. Right? Yes, And it's not just LTL. Some cases it might be truckload. Right? Absolutely. It it might even be we've got we've got warehouses that feed dedicated all day. Oh, really? Yes, sir. I mean, like I said, when it's a linchpin, it could be North American Truckload, could be Averitt Truckload, could be LTL, could be port side. There's tons of drayage, both import and export. You name it. We do anything and everything we can in an ADF facility to grow Averitt as a company. That that's the key. And that's I I think that is the key to it. Anything we can do to add revenue, be profitable, and provide more avenues for folks to go to get into the business. Right? I mean, that's really what it is too. It provides more avenues for other people that are interested in, hey, maybe I want to try this, something new. And it may be something that really a good fit for them. Right? Yes, sir. And I can't express enough what we try to do. When you look at the facilities that we have and where we've strategically placed them throughout our footprint, it just speaks volumes to our associates that they look at that and say, Mary, you're really filling up space in in in a Dallas or in a Houston or a Nashville or an Atlanta or you start creating capacity in locations that really have freight. And before you know it, you're building truckload volume. You just do all the ancillary things that make being a part of Averitt what we are. That's a great that's one great thing about Averitt. We're able to move fast. We're able to change with whatever the environment is, and we're able to add things like this, which helps all of Averitt, Helps all the verticals at Averitt, helps all it helps drivers, helps dock workers, it helps everybody to have this opportunity we never really got into until what you really you said five or six years ago before we really got started, right? Yes, sir. And it strengthens our company, period. You talk about just being an asset based company. Real estate's an asset. Yeah. It makes us stronger as a company. It builds our future. It helps our our people understand we're not going anywhere. We're just gonna get bigger and better. And then for me, it it's it's a legacy. Right? How do you create something at a company, drive strive to make it the best it can possibly be, and then leave it for everyone else to do what they're gonna do with it? I can't wait to see how this turns out. I'm so excited about it. And and it's a new year. Right? Right. I still feel so energized right now and we just did our innovation updates and we really talked about what the new year's going to bring. And regardless of whatever happens outside of our control, Averitt's poised and ready to handle anything. Think we're probably in the best position we've ever been in as a whole company, all the verticals and everything and your vertical as well. But I think it all ties together. It all goes back to the Power of One, right? It's not just one vertical, it's everybody working together and surely is a Power of One is what ADF is all about. It's feeding everybody and making everybody better, right? Yes, sir. And the power of one, what's crazy about that is that what our associates truly need to understand is that when you lock a customer into a warehouse and you start doing a hundred thousand square feet of their product that they entrust you with, that's super sticky. Yeah. They're not going anywhere anytime soon. That's not a rash decision where they go, we're gonna you know, sometimes a customer could say, I'm just gonna not ship with Averitt today on LTL. Yeah. They could do that if they really really wanted to. But if I've got a hundred thousand square feet and generating pick and orders all day every day, they don't just say I'm gonna stop shipping on Averitt. That's not how that works. Yeah. That that gets expensive when they gotta take everything out. Right? Yes, sir. Moving a warehouse is no fun and and it's super expensive. So I that's what our associates need to know that. When I say it makes us stronger, gives us an advantage in the marketplace that no other competitors have. Right. And it's so impressive. You know, was in Dallas the last year. I guess it was in March last year I went to Dallas and I went over to the warehouse. When you walk in, you look at Dallas, it's like, wow, it's just huge and it's full. Yes. And I asked the frontline leader there, so how are you doing as far as how much freight you got? He said, well, we're at one hundred and ten percent. I said, Really? Where'd you put the ten percent? Put it on top. It was. It was a full building. It's a huge building. Right? It's four hundred thousand square feet. And when we're one hundred and ten percent, sometimes it goes outside. I mean, that's great when you think about that. That's generating revenue, it's generating opportunity, it's wonderful I think is to have the new vertical in and doing what it's doing for Averitt Express. It's amazing at what Averitt does, I think, and what they allow us to do and allows us to succeed. Agreed. And and, you know, to have an owner like we have that has the ability to to to see what's happening in the future, to grasp it, to understand it, and then let teams like ours just run with it. You can't ask for more, you really cannot. I'm grateful every day that we work and live in this environment, no doubt. Well, really appreciate you coming in and talking a little bit about ADF. I think a lot of people are, you know, think, oh, that's just warehousing. Know, they don't didn't really understand. I don't think they understood what you're talking about where you pick the freight and you're generating revenue and you're generating freight for drivers to haul, right? It's not just a warehouse. That's not that's not what it's all about. It's not just store and freight and you put something in there and don't look back for two years. That's not what it's about. Correct. And I hope after this podcast that just a small percentage of our drivers and associates understand that this is all designed to grow asset based movement for our customers and that turns into jobs for our associates. Period. It's all about having job security and creating new ones. And it's not just if you're involved in ADF, it helps Averitt because it's a profitable business, we're generating revenue, that helps Averitt as a whole. So it's really part of the whole family, right? Yes, sir. And like I said earlier, we've got to watch that thing grow and then just continue to cultivate it. That's all I can tell you. Well, I'm really excited about it. Like I said, I was really amazed in March last year when I walked in and looked at the Dallas facility, it was really something to see. So hopefully if people get an opportunity, they can kind of stick their head in sometimes they get a chance and say, hey, I want to see what it looks like and maybe they'll get excited about it too. You never know. I think people look and need to understand, hey, you need to watch for opportunities. You might know people that may have stuff that can use it. Right? Yes. Any customer is a potential customer, that's for sure. And then coming in and seeing the place, come on by, Stick your head in. We'll give you a tour. Heck, I'll make you pick an order. There you go. Start training on the road. Yes, sir. Well, hey. We appreciate you coming in, Ed. Thank you so much. I appreciate everything. Any last words for everybody out there? You know, the last word I can say is just know it's a new year. Reset your goals. Be ready to go. Averitt's definitely ready to go. Distribution and fulfillment's ready to go. And let's have a great twenty twenty six. I can't be more excited, and I look forward to what it brings. I agree with you. Let's have a great twenty twenty six. Let's have a great fifty five year anniversary for Averitt. Right? Yes. Hard to believe it's been it's been fifty five years. Right? Yeah. You know, I've only been here twenty one going on twenty two years. And in fifty five years, I can't imagine all the things that everyone's seen and done and and every vertical that's been added. Right? I mean Right. We're the fifth vertical. What does the sixth vertical look like? What does the seventh vertical look like? We have no idea. But the one thing I do know is Averitt won't be scared to go that direction if it makes sense and it strengthens our company. That's correct. In fifty five years, what that really does for someone like me and distribution and fulfillment in our team, it gave us the ability to do this. That's right. Period. Without fifty five years of purebred success in in LTL and Truckload and Dedicated and all the other all the other verticals, we wouldn't be sitting here. I'm very appreciative of what what the past did for the future. For the future. Yeah. And you know Gary's always been like that. Hey, we're always proud of the past, but we're always looking forward. Right? Yes, sir. Well, we have hopefully, we'll have a great year in twenty twenty six. Have a great time fifty five Anniversary. Appreciate you coming in, Ed. Thank you so much. Thanks, Dave. And you know, if you're out there, you're talking to folks again, this is another opportunity. You can use this opportunity to talk about the verticals that Averitt Express when you talk to possible drivers, people you're thinking, hey, this guy may make a great driver guy or gal. Make a great driver for Averitt Express. Use everything that Averitt has. Talk about the verticals. Talk about all the things that we do as a company because most companies don't have what we have. I don't know of any company that has everything that we have have to offer. So there's something special out there. Take advantage of that. Prefer the right folks. Looking forward to seeing you all on the road. Y'all have a great day.