Recon Logistics Saves Businesses Over 17 Million in Freight Spend

Feb. 17, 2011 - PRLog -- Ask any owner of a manufacturing concern or company transportation manager and they will tell you they don’t want to spend a penny more than necessary to get their freight safely from point A to point B.  They will tell you it’s a never ending battle to save a dime here and a dime there. And with economic conditions the way they are coupled with ever increasing fuel costs, every cent counts in order to survive.
Cleveland, Ohio based company, Recon Logistics (www.reconlogistics.com)  which brought its very first client on board in March of 2006, is reinventing the way companies manage their transportation and freight. As a result, Recon is saving their clients millions of dollars per year in annual freight expenses. As of December 2010, they have saved their clients over $17,000,000 in logistics and transportations expenses alone. In 2010, they saved their clients over $6,000,000 in freight spend.
You might not be all that impressed with those numbers until you realize that Recon works with less than 35 clients that typically spend less than $2,000,000 per year in freight. Their average client spends much less than that. The median is closer to $260,000 per year. Further, when you consider that Recon’s rise hasn’t been meteoric, they have added only a few clients per year since inception, their results are even more spectacular.
Interestingly, despite the fact that Recon’s growth hasn’t skyrocketed, at least by their standards, according to statistics, they are the fastest growing logistics company in Ohio and one of the top 5 in North America.
They are also proud of the fact that they have never lost a client in their short five years of business.
What most people don’t understand is that Recon has been able to produce these massive savings because the average percentage savings is so high. Where typical 3PL and logistics brokers are eking out a percent or two for their clients, Recon is saving clients on average 30% on their annual freight spend.
It’s a model for doing business in the industry that very few people have seen.
“We have had some clients save as much as 55% on their annual freight expense,” says Hank Newman, Founder and President of Recon. “Although we never would turn business away from a company that wants to work with us, typically we tell people that if we can’t save them 20% or more, it probably doesn’t make sense to use us. Despite that, we don’t turn many businesses away.” Newman proudly reports. “Our model and manner of doing business simply enables us to help most companies that are shipping and receiving freight save a lot of money. Whether it’s a big player in the industry, a medium-sized business or even a mom and pop, we have found ways to save them significant money and time.”
Newman’s biggest problem, he asserts, is that Recon has a difficult time convincing prospective companies that these are real numbers and not just hype. “Most companies in our industry promise to help people save money; and in some cases they do. But the fact is they are fighting to beat a competitor by a percent or two. I just got a flyer the other day from another company in our industry.” Newman shares, “The Company suggested they could help a business save hundreds or thousands on freight per year. That all sounds good I suppose, but when we save companies tens or hundreds of thousands per year, it seems trivial to hear promises of marginal results.”
Last year, Recon saved a client over $400,000 in their annual transportation costs. In some cases, these numbers could be the difference between a company making a profit or dying under tough economic times.
Another Ohio based company and client of Recon, HAR Adhesive Technologies, owner Joe Cerino said, “I have to admit, I had a hard time believing Recon could do what they were suggesting. I mean 30% is a lot of money that goes right to our bottom line. Once I saw how Recon does it, I became a believer. Our company has been saving over 30% per year in transportation expenses since we engaged them. In addition, we are getting better service and results than ever before. They have saved us a tremendous amount of time and energy too.”

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Recon Logistics helps businesses save 20-50% on the transportation management costs. Their average customer saves 30% on their annual freight and shipping expenses.