ABF Freight, a leading provider of transportation and logistics solutions, is committed to delivering exceptional customer service. The company has recently implemented a new corporate structure to further enhance its customer care experience. By unifying sales, pricing, customer service, marketing, and capacity sourcing functions under the ArcBest brand, ABF Freight aims to provide customers with a more seamless and integrated view.
Under this new structure, ABF Freight will continue to offer a full array of less-than-truckload services, while Panther will represent best-in-class ground expedite services. This strategic realignment enables ABF Freight to deliver comprehensive logistics solutions tailored to meet the unique needs of its diverse customer base.
To ensure a smooth transition, ABF Freight has appointed talented leaders to oversee key areas of operation. Tim Thorne remains the President of ABF Freight, ensuring continuity and expertise in less-than-truckload services. Dave Darter has been appointed as the Chief Sales Officer, responsible for leading the unified ArcBest Sales team. Jim Ingram assumes the role of Chief Operating Officer, Asset-light Logistics, overseeing the consolidated asset-light operation. Ed Wadel will focus on ground expedite service and external capacity sourcing. Steven Leonard leads the customer service organization, while Dennis Anderson heads the Customer
Experience function and marketing efforts.
In addition to the organizational realignment, ABF Freight seeks to maximize financial efficiency. The implementation of the new structure is estimated to result in annual pre-tax operating expense savings of approximately $15 million. While this restructuring will lead to the elimination of approximately 130 positions, ABF Freight remains dedicated to delivering exceptional customer care and integrated logistics solutions.
Recognized for its commitment to employee training and development, ABF Freight has received accolades from Training magazine, placing 23rd on the Training Top 125 list for seven consecutive years. The company’s training program emphasizes continuous improvement and error-free service, ensuring a high standard of customer support.
Key Takeaways:
- ABF Freight has implemented a new corporate structure to enhance its customer service experience.
- The changes involve unifying sales, pricing, customer service, marketing, and capacity sourcing functions under the ArcBest brand.
- Talented leaders have been appointed to oversee key areas of operation under the new structure.
- The implementation of the new structure will result in annual pre-tax operating expense savings of approximately $15 million.
- ABF Freight’s training program has been recognized for its excellence in employee development and continuous improvement.
Key Changes in the Corporate Structure
As part of the new corporate structure, ABF Freight has made several key changes to enhance its customer service. These changes are designed to improve the overall customer experience, drive revenue growth, and eliminate duplicative costs and inefficiencies.
Unified Sales Structure
ABF Freight has formed a unified sales structure under the ArcBest brand. This integration allows for a more cohesive approach to sales, providing customers with a unified view of the company’s logistics solutions. By aligning sales efforts, ABF Freight aims to deliver a seamless experience and establish long-lasting customer relationships.
Consolidation of Operations
In a move towards an asset-light logistics operation, ABF Freight has consolidated ABF Logistics, ABF Moving, and Panther. This consolidation streamlines operations, allowing for greater efficiency and resource utilization. With a focus on delivering integrated solutions, ABF Freight aims to meet customer demands and exceed expectations.
Unified Approach
The new corporate structure also entails a unified approach to pricing, customer service, marketing, and capacity sourcing. This integration ensures consistency in the way ABF Freight interacts with customers, provides support, and promotes its services. By aligning these functions, ABF Freight aims to enhance customer satisfaction and foster long-term loyalty.
In summary, the key changes in the corporate structure of ABF Freight aim to provide a more unified and seamless experience for customers. Through a unified sales structure, the consolidation of operations, and a unified approach to various functions, ABF Freight aims to enhance its customer service, drive growth, and deliver exceptional logistics solutions.
Leadership Changes and Responsibilities
The new corporate structure implemented by ABF Freight includes leadership changes aimed at enhancing the customer experience. These changes bring about a realignment of roles and responsibilities within the organization.
Tim Thorne, the President of ABF Freight, will continue to oversee the less-than-truckload service, ensuring the highest quality and efficiency in operations. Dave Darter has been appointed as the Chief Sales Officer, leading the unified ArcBest Sales team. His expertise and strategic vision will drive sales growth and strengthen customer relationships.
Jim Ingram assumes the crucial role of Chief Operating Officer, Asset-light Logistics, taking charge of the newly combined asset-light operation. With his extensive experience in the industry, Ingram will optimize and streamline logistics operations to provide seamless service to customers.
Ed Wadel will be responsible for managing the ground expedite service and all outside capacity sourcing, ensuring that ABF Freight continues to meet customer demands with the highest standards of efficiency and reliability.
Steven Leonard, as the leader of the customer service organization, will prioritize customer satisfaction and go the extra mile in providing exceptional ABF Freight customer support. His aim is to exceed customer expectations and address any concerns or inquiries promptly.
Dennis Anderson will head the Customer Experience function and marketing efforts. With his expertise in customer-centric strategies, Anderson will drive initiatives to enhance the overall customer journey and brand experience.
The New Leadership Structure at ABF Freight:
| Position | Name | Responsibilities |
|---|---|---|
| President of ABF Freight | Tim Thorne | Overseeing the less-than-truckload service |
| Chief Sales Officer | Dave Darter | Leading the unified ArcBest Sales team |
| Chief Operating Officer, Asset-light Logistics | Jim Ingram | Managing the newly combined asset-light operation |
| Ground Expedite Service & Capacity Sourcing | Ed Wadel | Overseeing ground expedite service and outside capacity sourcing |
| Customer Service Organization | Steven Leonard | Providing exceptional ABF Freight customer support |
| Customer Experience and Marketing | Dennis Anderson | Driving customer experience initiatives and marketing efforts |
Financial Implications and Expense Savings
Estimated Savings and Cost Reduction
The implementation of the new corporate structure is expected to deliver significant financial implications and expense savings for ABF Freight. Through the consolidation of systems and facilities and other cost-saving initiatives, the company anticipates pre-tax operating expense savings of approximately $15 million annually.
These expense savings will enable ABF Freight to optimize its operations and improve profitability. By streamlining processes and eliminating duplicative costs, the company can allocate resources more efficiently and invest in enhancing its services.
Workforce Restructuring
However, the restructuring will also involve some necessary workforce adjustments. To align with the new corporate structure, ABF Freight will eliminate approximately 130 positions. Although these workforce reductions are regrettable, they are crucial for the long-term sustainability and growth of the company.
The downsizing of the workforce will be handled with utmost care and respect for the affected employees. ABF Freight remains committed to supporting its employees throughout this transition, offering comprehensive assistance programs and resources to facilitate their career development.
Financial Charges and Timeline
In light of the restructuring, ABF Freight expects to recognize a charge of approximately $9 million in the fourth quarter of 2016 and an additional charge of $1 million in the first quarter of 2017 related to the restructuring expenses.
These charges reflect the costs associated with severance packages, outplacement services, and other restructuring-related expenses. The company remains focused on minimizing the financial impact and ensuring a smooth and efficient restructuring process.
Expense Savings Summary
| Financial Benefit | Estimate |
|---|---|
| Pre-tax operating expense savings | $15 million annually |
| Financial charges (Q4 2016) | $9 million |
| Financial charges (Q1 2017) | $1 million |
ABF Freight is confident that these expense savings and financial restructuring will enable the company to continue delivering exceptional services to its customers, while also positioning itself for sustainable growth in the highly competitive logistics industry.
Recognition for Training Program
ABF Freight’s commitment to excellence in training and development has earned them recognition from Training magazine. The company’s training program has consistently appeared on the Training Top 125 list, with a remarkable placement of 23rd. This acknowledgment speaks volumes about ABF Freight’s dedication to fostering a skilled workforce and providing exceptional customer support.
The ABF Freight training program is designed to integrate training into every aspect of the company’s operations. By emphasizing continuous improvement, the program aims to achieve error-free service and a high standard of customer support. This comprehensive approach ensures that ABF Freight employees are equipped with the knowledge and skills needed to deliver outstanding service and represent the company’s values.
Key Features of the ABF Freight Training Program:
- Focus on continuous improvement and error-free service
- Integration of training into every aspect of the company
- Comprehensive approach to workforce development
- Dedication to delivering exceptional customer support
ABF Freight’s training program stands out for its ability to cultivate a knowledgeable and customer-oriented workforce. Through ongoing training and development initiatives, employees are equipped with the skills necessary to provide the highest standard of service and support to customers.
| Training Program Ranking | Awarding Body |
|---|---|
| 23rd | Training magazine |
Organizational Realignment and Structural Refinement
The new corporate structure at ABF Freight involves various organizational realignments and structural refinements to enhance the customer experience and improve the overall view of the customer.
One major change is the realignment of the customer service personnel into a single organization under the leadership of Steven Leonard. This consolidation will ensure a more cohesive and streamlined approach to customer support, resulting in improved response times and customer satisfaction.
Furthermore, the formation of a unified yield management function, led by Danny Loe, will enable ABF Freight to provide better solutions for customers. This function will optimize pricing and capacity utilization, ultimately benefiting customers through more efficient and cost-effective logistics services.
In addition to these key realignments, various other departments and functions within ABF Freight will be restructured to support the comprehensive operating model refinement. These changes aim to eliminate inefficiencies, enhance operational effectiveness, and further align the organization with customer needs.
| Benefits of Organizational Realignment | Objectives |
|---|---|
| Improved customer experience | Enhance overall customer satisfaction |
| Streamlined customer support | Reduce response times and improve issue resolution |
| Optimized pricing and capacity utilization | Provide better solutions for customers |
| Elimination of inefficiencies | Enhance operational effectiveness |
| Alignment with customer needs | Ensure the organization is responsive to customer requirements |
By implementing these organizational realignments and structural refinements, ABF Freight aims to elevate customer satisfaction and become a leader in providing exceptional logistics solutions.
Aligning Financial Reporting with the New Structure
With the implementation of the new corporate structure, ABF Freight is ensuring that its financial reporting aligns accordingly. The company will report under three distinct categories, each representing different aspects of its operations:
- Asset-Based Operations: This category encompasses ABF Freight, the company’s flagship less-than-truckload service. ABF Freight will continue to provide a full array of reliable and efficient shipping solutions.
- Asset-Light Operations: This category includes ArcBest, ABF Freight’s parent company, and FleetNet America. ArcBest specializes in integrated logistics solutions, while FleetNet America offers comprehensive vehicle maintenance and repair services.
- Other and Eliminations: This category comprises other business segments and any inter-company eliminations necessary for accurate financial reporting.
By aligning its financial reporting with the new corporate structure, ABF Freight aims to provide transparent insights into its operations and performance across all segments.
| Categories | Description |
|---|---|
| Asset-Based Operations | ABF Freight |
| Asset-Light Operations | ArcBest and FleetNet America |
| Other and Eliminations | Additional business segments and inter-company eliminations |
Impact on FleetNet America
FleetNet America, ArcBest’s vehicle maintenance and repair company, continues to provide exceptional support to its commercial carrier and private fleet customers. Despite the recent realignment within the company, FleetNet America remains unaffected and dedicated to delivering reliable maintenance and repair services.
While the focus of the restructuring primarily revolves around ABF Freight and the consolidation of logistics services under the ArcBest brand, FleetNet America remains committed to its existing customer base. The company understands the importance of maintaining uninterrupted operations and ensuring the smooth functioning of its clients’ fleets.
With its vast experience and expertise in vehicle maintenance and repair, FleetNet America continues to offer reliable solutions and exceptional customer support to meet the needs of commercial carriers and private fleet owners. Its team of highly trained technicians and extensive network of service providers ensures prompt assistance and efficient repair services.
Customers can count on FleetNet America’s help desk for any queries or assistance related to vehicle maintenance and repair. The company’s customer support team is equipped with the necessary knowledge and resources to provide timely and effective solutions, ensuring minimal downtime and maximizing fleet performance.
FleetNet America Service Offerings
| Service | Description |
|---|---|
| Preventive Maintenance | Schedule and perform routine maintenance to prevent breakdowns and ensure optimal vehicle performance. |
| Emergency Breakdown Assistance | Provide 24/7 support and rapid-response assistance for unexpected breakdowns to minimize downtime. |
| Repair Services | Efficiently diagnose and repair mechanical, electrical, and technical issues to get vehicles back on the road quickly. |
| Vehicle Inspections | Conduct thorough inspections to identify potential problems and ensure compliance with safety standards. |
| Warranty Management | Handle warranty claims and ensure proper documentation and reimbursement for eligible repairs. |
With its comprehensive range of services, FleetNet America continues to be a reliable partner for commercial carriers and private fleet owners, providing them with the support and expertise they need to keep their vehicles running smoothly and efficiently.
Looking Ahead and Continued Commitment
The implementation of ABF Freight’s new corporate structure showcases the company’s unwavering commitment to providing exceptional customer care and integrated logistics solutions. With a focus on delivering a unified customer experience, ABF Freight aims to promote revenue growth and improve overall profitability. The realignment and refined operating model will enable the company to better serve customers, eliminate inefficiencies, and continue its mission of being the best logistics enterprise.
ABF Freight recognizes the importance of customer care in the success of its business. As part of its commitment, the company has established a dedicated customer service team that is ready to assist customers with any inquiries or concerns they may have. Customers can reach out to the ABF Freight customer service phone number for prompt assistance and personalized support.
ABF Freight’s customer care extends beyond just resolving issues. The company is deeply invested in building long-lasting relationships with its customers. By understanding their unique needs and providing tailored solutions, ABF Freight strives to go above and beyond to exceed customer expectations. With a customer-centric approach, the company is determined to create seamless logistics experiences and drive customer satisfaction.
As ABF Freight looks to the future, it remains resolute in its commitment to delivering outstanding customer care. By combining its industry expertise, streamlined operations, and dedication to innovation, ABF Freight is well-positioned to continue providing reliable and efficient logistics solutions for its valued customers. Whether it’s for freight transportation, logistics management, or supply chain optimization, ABF Freight is the trusted partner that customers can rely on for all their logistics needs.
FAQ
What changes have been made to ABF Freight’s corporate structure?
ABF Freight has implemented a new corporate structure that involves unifying sales, pricing, customer service, marketing, and capacity sourcing functions under the ArcBest brand.
How will the changes enhance the customer service experience?
The changes aim to provide customers with a more unified view and deliver integrated logistics solutions, improving the overall customer experience and eliminating duplicative costs and inefficiencies.
What are the key leadership changes in ABF Freight?
Tim Thorne remains the President of ABF Freight, while Dave Darter is appointed as the Chief Sales Officer. Jim Ingram assumes the role of Chief Operating Officer, Asset-light Logistics, and Ed Wadel will oversee the ground expedite service. Steven Leonard leads the customer service organization, while Dennis Anderson heads the Customer Experience function and marketing efforts.
What is the estimated pre-tax operating expense savings from the restructuring?
The new corporate structure is expected to result in approximately million in pre-tax operating expense savings annually, achieved through consolidation and cost-saving actions. However, approximately 130 employees will be affected.
Has ABF Freight’s training program been recognized?
Yes, ABF Freight’s training program has been recognized by Training magazine, placing 23rd on the Training Top 125 list. The program focuses on continuous improvement to provide error-free service and high-quality customer support.
What organizational changes have been made to enhance the customer experience?
The customer service personnel have been realigned into a single organization under the leadership of Steven Leonard. A unified yield management function, led by Danny Loe, has also been formed to provide better solutions for customers.
How will the financial reporting segments be aligned?
The company will report under three categories: Asset-Based Operations, consisting of ABF Freight; Asset-Light Operations, consisting of ArcBest and FleetNet America; and Other and eliminations.
How will the restructuring impact FleetNet America?
FleetNet America, ArcBest’s vehicle maintenance and repair company, will continue to serve its customers unaffected by the realignment, as the focus is primarily on ABF Freight and the consolidation of logistics services under the ArcBest brand.
What is ABF Freight’s commitment to customer care?
ABF Freight is committed to providing exceptional customer care and integrated logistics solutions, aiming to deliver a unified customer experience, promote revenue growth, and improve overall profitability through its refined operating model.
Source Links
- https://arcb.com/about/news-events/press-releases/arcbest-to-implement-new-corporate-structure-to-be
- https://arcb.com/sites/default/files/pressrelease/2016/Training-2016-FINAL.pdf
- https://www.prnewswire.com/news-releases/arcbest-corporation-to-implement-new-corporate-structure-to-better-serve-customers-300356540.html
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