Conway Freight, now known as XPO logistics, is the second largest LTL carrier, a freight brokerage, and was started in 1983 by self-made millionaire, Josephine Conway in Eugene, OR.
Conway Freight? Who is that? Oh, you must mean XPO Logistics. (And by you I mean me.) Well hang on right there. XPO did not absorb Conway until 2015; so up until recently they were very much an independent company. They got tired and sold out; and as much as I want to stick to my punk-rock ideologies it was probably the best decision for them.
What in Foundation
Josephine Conway, resident of Eugene, Oregon founded Conway Freight in 1983. You go girl! Who said logistics was a man’s game? Originally, the company was titled Conway Western Express, with the small foundation of 11 locations on you guessed it, the West Coast.
As of 2011, Conway had reported a revenue of $5.8 billion, with 30,000 employees. The company migrated from its stomping grounds in Oregon, to setting up shop in Ann Arbor, Michigan as its new headquarter location.
Conway specialized in LTL (less than truckload) shipments servicing the greater parts of North America. With 582 operating locations, 16,000 docking ports and 32,750 trucks and trailers, they had a broad span of transportation, to orchestrate efficient “day definite” reliable shipping services.
What separates Conway from its competitors is the fact that they do not offer small shipment services. In retrospect, that may have hurt them. But their commitment to logistically moving large shipments was incredibly helpful for their main clientele. Companies that require large scale shipments such as manufacturing and distributing companies (great for those who are breaking into the “drop-shipping” entrepreneurship field), industrial companies, as well as retail customers. These types of shipments focus on the big picture.
The Movement
To be completely transparent, LTL carriers transport freight from various shippers, implementing a wide network of freight service center (582 centers to be exact). The LTL freight is combined with fleet line-haul, pick-up and delivery tractors & trailers. On average they transport shipments between 15-20,000 lbs. The average shipment is 1,190 lbs. Long story short, they ship big heavy things; and they’re good at doing it.
Services
Spoiler alert! We’re going to talk about the services that are (or once were) offered by Conway Freight Company. In terms of logistics, the services are relatively standard. But it’s the execution that separates this company from the wannabes.
- Intermodal- seamless door to door moving, using a variety of freight and railways to export goods.
- EDI Integration- Electronic Date Interchange to oversee shipments, customizable for the customer and/or recipient.
- Last Mile- DMS or Document Management Software where customers can create, manage, track orders, and can use the eTrack mobile app for convenient and efficient control of their shipments. Customers are prompted to keep score of their shipments, in order to keep a consistent rating of the company’s performance and customer satisfaction.
- Supply Chain- a network established by various companies for the production and shipment of goods. Basically, they ensure the efficiency and transportation from the moment an item has been manufactured, until it has reached its final destination.
- LTL- less than truckload shipments (c’mon we know this)
- Expedited- managed transportation, sometimes using air charter techniques to ensure quick and efficient shipments.
Awards
Now for the fun stuff! Freight companies can be fun too! I guess, if they try really hard. Work with me here. This is some exciting stuff. Conway was a frequent winner of the National Truck Driving Championship. The guidelines for the competition were pretty straight forward:
- Must maintain an accident-free driving record from the previous year.
- Complete and pass a timed written exam, pre-trip inspection test, as well as a driving skills test (if you thought you didn’t need smarts to be a truck driver, you would be incorrect).
- Compete in 1 of 9 equipment classes: 3 axle, 4 axle, 5 axle, 5 axle flatbed, 5 axle sleeper, Step Van, Straight Truck, Tankers and Twins.
The Overtaking
As a large, successful company you may find it odd that they decided to “sell out.” Well, would the mention of a $3 billion deal change your tune? I thought so. So how does this work? Did they buy the company outright? Well, not really. Instead they bought it piece by piece, or share by share rather. They set out to buy the company at $47. 60 per share, cash price. Conway and all of it’s subdivisions including: Conway Freight, Menlo Logistics, Conway Truckload and Conway Multimodal Logistics were all purchased and rebranded as LXO Logistics in the Fall of 2015.
At the beginning of 2015, The CCJ Top 2015 named Conway as the 6th top freight company in the country, while XPO came in 12th place. From a business perspective, this was a smart move for XPO to broaden their horizons and strengthen their prestige. Check and mate. The merge has made XPO the second largest logistics company in North America; which is a $35 billion market. “This landmark transaction provides immediate cash value for our shareholders and reflects the outstanding contributions of our employees over our 86-year history,” said Douglas Stotlar, CEO of the formerly known Conway. The merge has provided for more miles for their drivers, employment advancement opportunities for their employees, and a wider as well as convenient range of services for the consumer.
Conway seems pretty limited in the aspect that it only served North America (including Mexico and Canada). The world is going global, and the shipment of goods is no exception; if anything these are the types of companies that MUST get with the times and expand. Even if you appeal to the “everything must be made in America” ideology; surely you can agree that we need companies who ship to other companies. The larger our export horizons, theoretically, the more money we’ll be bringing in. Mo’ money, mo’ capital. XPO seemed to have been smelling what I was stepping in (clearly I was the brains) and used the resources already provided by Conway to further their agenda. Well done.