Corporate Management Group is celebrating 36 years in existence. Here’s the story…
A Garage-Sale Computer in a Basement Office
CMG was born in 1987, in a basement-closet-turned-office in Valley Center, Kansas. I had just stepped out of corporate America to begin a new venture as Mr. Mom to my four young children (the youngest being just two years old). I needed flexibility that my position as Corporate Transportation Manager (Traffic Manager) didn’t provide.
CMG started with two clients for the first eight years, one being the company I had just left. The idea was to earn enough to raise my family, and I had no intention of growing the nascent company much more than that. After 8 years one of those clients parted ways with us and the journey began.
CMG had no formal sales or marketing initiative for the first 25 years. I certainly wasn’t a sales person nor did I have marketing skills, but the company grew, adding about one new client each year–solely by word of mouth. (I think one year we added two…big numbers, eh?)
I started CMG with a garage sale computer that was used for games and required two disks to operate. Little did I know that would be the beginning of where we are today in terms of technology. In fact, we called our first venture into technology as “iTMS” (long before software called TMS or other tech that starts with an “i” existed), which it still is today.
A Unique Model
Our model has never been that of a 3PL, Broker, Carrier, or even a consultant, but rather we’re viewed as an operational freight management group. As such our clients see us as inhouse transportation managers, an extension of their staff. We partner with them on a month-to-month basis for as long as they need us. We currently have clients today who have been with us over 23 years.
When the concept of 3PLs and logistics companies came onto the market, we briefly entertained the idea of heading that direction. We didn’t, and to our credit, we have succeeded much more so.
Which leads us to today, 36 years later, and what we have learned and the changes we’ve seen.
Who can spell “Freight”?
While the basics (moving goods between two points using the best method with the best costs associated) have not really changed, the intricacies have. While there are more options in today’s market, it still boils down to which carrier should you use. Since freight is typically the last step in the process, it sometimes gets the last thought or the last 15 minutes.
The intricacies are immense, however. We now have a plethora of accessorial costs, which are super creative. (One of my favorite accessorial costs is in the parcel world: the “Dead flowers return” accessorial. Who returns dead flowers?) We’ve gone through surcharge cycles in insurance, fuel, and capacity.
One other troubling facet of the freight industry, as I see it, is a real lack of knowledge of the nuts and bolts of managing freight spend. Everyone wants to focus on rates, but there is so much more to understanding the freight spend of our clients other than the discount. There’s so much more to learn from what we call “process improvements.” We take a deep dive below the surface of a company’s freight spend to identify more benefits that are often more than rates.
As I’ve spoken throughout the U.S., the feedback and questions I receive indicate that the level of knowledge from those who have to utilize freight services is below where it should be. I’ve said, too often, we just have to help people spell ‘freight’.
Still in business for you
We’d love to put our 36 years of experience to work to help you navigate the often confusing world of freight. While we’re no longer holed up in a basement office and our technology is far more sophisticated than that bargain computer, my desire to offer a helpful service with integrity for the benefit of others and my family is still the driving force behind CMG.
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