Supply-chain professionals have debated the advantages of the non-asset-based model over the asset-based model of logistics suppliers for years.
Those that promote the fixed network claim better control and no limited capacity.
However, proponents of the asset-light approach would say that customization and flexibility are lost in a rigid network where trucks must be filled regardless of service requirements.
In today’s environment, we’re seeing the large asset-based providers pull back on capacity to stabilize service levels, while the small to mid-size companies are trying to keep up with the record inflation. Line items such as truck costs (from purchasing to maintenance), a rise in trucking insurance rates, and diesel fuel at a 13 year high all have contributed to the higher LTL and Truckload market rates. In the last two weeks, some major players in the market either exited wet-lease agreements or are reducing capacity. Under those difficult circumstances, it is evident that asset utilization becomes a priority to control costs which is not ideal for a service-driven model.
You know the world of chaos if you need a flexible logistics provider that can scale capacity and meet stringent service requirements – from two or three-man delivery to strict delivery windows – at a moment’s notice. To thrive in such an environment of chaos and constantly exceed expectations, Pegasus and our clients rely on a large, flexible, and trustworthy network of partners.
Selection & Accountability of the Pegasus Partner Network
We believe we are only as good as our network. Understanding this fundamental truth pushes us to treat our partners as an extension of Pegasus. Our Partner Engagement Team has the unique responsibility of aligning our company cultures, limiting service disruptions, controlling costs, driving service excellence, and increasing systemic efficiencies. By crafting valuable and sustainable partnerships that align with our core values, we are committed to creating a world-class partner network through five initiatives:
- 140-Step Questionnaire
- Monthly Performance Meetings
- Partner Scorecards
- Partner Rewards Program
- Annual Partner Appreciation Event
Accountability and exceptional performance within our partner network start with us. Through a 140-step questionnaire that includes facility security, security-process controls, business-process controls, in-transit security, and cultural alignment questions, our team verifies that each of our partners is aligned with our expectations and requirements.
Pegasus handles various high-value freight that requires a thorough chain of custody program to ensure their safety. These SLAs are reviewed monthly so that we continue to use only the best partners who regularly deliver superior service to Pegasus and you, our client.
Our Partner Scorecard is another tool to drive accountability and service excellence in each market. This program utilizes a performance points system to objectively assess all partners’ service quality. This program also uses a combination of services to identify those partners that bring value to our client’s transportation needs. Partners with the best overall score based on thoughtful KPIs will be awarded a higher percentage of our business. Partner ratings are fully integrated into our system so that we can choose the best carrier for each shipment, giving the client complete peace of mind. Scorecards are published monthly with corrective action for partners who underperform. Consequences for ongoing service or billing issues include a drop-in tier level, suspension, or possible removal from the core partner base. These scenarios are rare, as our Partner Engagement team does a great job of actively building trust with our partners through personal relationships, the Rewards Program, Appreciation Events, and High Fives.
It is important for Pegasus to differentiate ourselves in our partner’s eyes. Our Partner Rewards Program incentivizes our partners to go to war for Pegasus with awards like Rookie of the Year, Partner of the Month, Dispatcher of the Year, and Partner of the Year. These rewards include several types of prizes and most importantly, an increased workload in their respective markets. We have also extended our High Five program to our partner network, which is designed to reward Pegasus team members when they demonstrate one of our core values. This helps permeate the Pegasus culture through our network and has been received by our partners with astounding enthusiasm.
The capstone of our Rewards Program is the annual Partner Appreciation Event, which gives our partners the opportunity to have collaborative meetings, fun activities, and informative Q&As with their peers and Pegasus team members alike. The event is all about sharing best practices and cultivating those relationships.
For the past 25 years, client satisfaction has been the foundation of Pegasus. Our mission is a superior client experience provided by a passionate, committed group of people who choose to make a difference in the lives of others. The adage says, “take care of your people, who in turn will take care of your clients, who will reward you with more opportunities to grow.” We live by that motto and take it beyond the walls of Pegasus. Our network is committed to exceeding those expectations every day.