They have come into 2 of our customers, promising to "re-invent the wheel" and dramatically reduce the customer's freight costs. That on its own is enough to catch the interest of upper management, who at the best of times possess very limited knowledge about transportation. They have a multi pronged sales approach. Firstly, they can offer a simple freight audit and payment system where the carriers bills are sent to them and checked against the rates you have on file with your customer. They then cut the cheque to you. This works pretty good for all concerned and we do have a customer using that service with no ill effects. The more insidious approach involves them sending out RFQs to all of your customers freight suppliers. This will include all the lanes your customer has. Everyone now bids on the lanes they want. There will be a great deal of talk about service levels during this process, things like, loyalty, partnerships, co-efficiencies, synergies, all the other buzz words. In actual fact however, it is nothing more than a race to the bottom. The lowest bidder gets the business regardless of past performance or commitment to service. I have no idea of what Nulogx charges for this service that could just as easily be performed by one or two first year rate clerks. The lowest bid wins regardless. You might be able to detect my dislike of their business plan.
