QAt last year’s NASSTRAC spring conference, you said that just as shippers routinely check carriers’ financial
stability and safety record, carriers should do a similar
review of their customers. Why do you believe that, and has
your view changed now that the economy is improving?
A We continuously review the finances of our cus- tomers. Carriers don’t have a monopoly on bankrupt-cies; there are a lot of troubled companies out there and
there will be for years to come.
We’re seeing customers attempting to pay more slowly.
It’s a common problem that’s tied to a lot of factors. In the
best case, we won’t get reimbursed by the customer for 30
to 45 days. But we pay for our costs as they happen. So we
can’t afford to go any longer than that. One of the difficult
things is that it’s often the largest multinational companies
that push those payment terms to the limit.
I think carriers absolutely should [review their customers’ finances] regardless of economic circumstances.
The margins in this business are razor-thin. It might only
take one customer’s bankruptcy to wipe out a carrier’s profits for a quarter or even an entire year.
QYou’ve been a frequent speaker at industry confer- ences in the last couple of years. With such a high
level of visibility, do you see yourself as representing Werner
or the trucking industry as a whole? And what message are
you trying to bring to your audiences?
A First and foremost, I always represent Werner. But we take our position as industry spokespeople very seriously. As a large carrier with business across the entire supply chain portfolio, we are in a position to speak about
trends in all aspects of the industry.
The overriding message that we’re attempting to get
across is to persuade both shippers and carriers to avoid the
very volatile, cyclical approach to rates that has long
plagued this industry. I don’t know how successful we’ve
been; unfortunately, rates were driven to all-time historical
inflation-adjusted lows. Rates will have to bounce back
sharply to ensure provider viability in the near term.
Hopefully, when we’re back to sustainable levels for shippers and carriers, we can all collectively take a longer perspective. Until then I see continued reluctance for carriers
to add any capacity within the next two to three years.
Judy McReynolds
JUDY McREYNOLDS, WHO IN JANUARY
became the head of Arkansas Best Corp., the
parent of less-than-truckload (LTL) carrier
ABF Freight System, does not call attention
to the fact that she has gone where no one of
her gender has gone before. But the facts do
the talking: In the male-dominated world of
trucking, no other woman has attained such
a high-level position—president and CEO—
at a company of Arkansas Best’s size.
McReynolds’ ascent was not a sudden bow
to political correctness. It came after years of dues-paying,
working for and with Arkansas Best in various roles. From
1992 to 1997, she worked in the Little Rock office of
accounting giant Ernst & Young, where she served as senior
manager on the Arkansas Best account. McReynolds joined
Arkansas Best in 1997 as director of corporate accounting.
She rose through the ranks to become the company’s senior
vice president, CFO, and treasurer in 2006. She held that
post until her most recent promotion.
though, that I have never been overly focused
on my gender. The opportunities to progress in
our company that were provided to me by people such as Robert A. Young III [board chair-man], Bob Davidson [retired president and
CEO], and Dave Loeffler [retired CFO] were
numerous. I can only guess that other women
may not have been as fortunate as I have been
to work for individuals like those. I have always
enjoyed the LTL business. I often tell people
that there has never been a dull moment in our
company’s history and in the history of our industry. Our
industry is always changing, and I enjoy that challenge.
QIt is believed that you are the first woman to reach the top spot at a publicly traded transportation company
of this size. What have been the cultural challenges in
climbing the corporate ladder in a male-dominated business like trucking, and why do you think it has taken so long
for a woman to reach this level?
A I am honored to be the first woman in my position in a publicly traded trucking company. I have to admit,
QYou have taken the reins of Arkansas Best during a very challenging time for the economy, transportation, and the LTL segment in particular. LTL faces overcapacity, soft demand, and ongoing price wars. What is your
strategy for steering Arkansas Best and ABF through this?
A Both the industry and our company have been severely impacted by the length and depth of this recession. Our
most experienced officers will tell you they have never seen a
business climate as challenging as this one. Fortunately, we
have managed the company conservatively and that has provided us with flexibility. We have remained focused on understanding what is important to our customers and finding a
way to be an essential element of their distribution networks.
Those are the things that have sustained us during this challenging period and will allow us to be successful in the future.
