CTSI Hot News

05/14/2009

CTSI - Continental Traffic Service Inc.: The building blocks to success

Supply Chain Digital

Written by Gabe Perna and Produced by Lorraine Heist

President Ken Hazen tells a tale of transformation and how this Tennessee firm has grown into a major global presence.

There's nothing complex about the formula to success at Continental Traffic Service Inc. (CTSI), a supply chain solutions firm based in Memphis, TN. In fact, four simple hallmarks, or cornerstones, helped the firm transform from a small, strictly local operation into a global industry leader, processing more than 250 million transactions and paying 7,000 carriers annually for their clients.

Those four building blocks, which include exceptional customer service, leading-edge technology, client-driven product development and experience, are the past, present and future of the company. Heading the charge for CTSI is J. Kenneth (Ken) Hazen, an industry veteran and graduate of the University of Memphis.

When Hazen bought CTSI in 1982, the company was flailing as it had meager revenue of US $30,000, was auditing only 45,000 freight bills per year, and had an accounts receivable department which was in "sorry shape," according to Hazen, who says it took some grunt work to get the company up on its feet.

"We would park our cars downtown and knock on doors, and go after the post audit business. We would actually load up freight bills, recover any money and split the findings with the company. We weren't even paying for bills back then," recalls Hazen.

Nowadays, CTSI offers a wide variety of services including freight audit and payment, transport management systems, information management and consulting. Furthermore, with offices in China, India and Europe to go along with its Memphis headquarters, the company has a global reach as well.

Customer Service

One of the building blocks that allowed CTSI to grow is the idea of exceptional customer service. The company prides itself on having constant and exclusive contact with its customers. For example, it was one of the first firms to allow complete access to freight bill information. This way carriers and clients can see a freight bill in the system and whether it's been paid or not.

Another example of the company's exceptional customer service is its webinar sessions.

"For any area of the company, we can send out invites to 2,000-3,000 people for a webinar on that subject. We might get 60 to accept. We do the seminar, have a Q&A after and then record it for them. It's more educational than selling, but hopefully we can increase our marketing share, too. Through this process we get 60 people to hear our message without making 60 plane trips," says Hazen, adding that CTSI uses WebEx and other tools to present the webinar.

Leading Technology

WebEx is an example of CTSI's dedication to leading technology. Hazen says the firm tells its partners it wants to be 18 months ahead of its competitors in terms of having the latest and greatest technology. One current example of the company investing into better technology is the ongoing upgrade of its I-Series, AS/400, which can keep 40-50 terabytes of data live at one time.

Another area where the company exemplifies its technological expertise is the fact it's a global operation. CTSI takes advantage of up-to-date scanning technology and the fact it has offices in four assorted time zones. Thus, the virtual doors to CTSI are never closed.

"We're a virtual 24/7 operation. People have been saying that for years, but we actually hit it," says Hazen. "I keep the location of the other offices with their hours on my phone so I know what time it is at all of our offices."

Client-Driven Development

Along with offering a truly global, technologically-enhanced enterprise, CTSI is ahead of the game with its innovative research and development strategies. Hazen says the company for the past 11 years has spent a considerable amount of capital on client focus groups which pose the question, "What types of new products would help serve your industry better?"

Hazen says after receiving the results of the focus groups, the firm goes into research and development mode in order to create the products the clients want. Instead of shoving products down clients' throats, CTSI only develops new products to adhere to client demands. He uses the company Technicolor as an example.

"Technicolor, which ships out DVDs for Disney and Paramount, needed real time info on all their shipments. So we developed technology that tracks the product as soon as it leaves the client's dock to when it's delivered at any given time no matter where the product is," says Hazen.

Wealth of Experience

The final building block for CTSI is possibly the most important: experience. Hazen says the company has always prided itself on knowing the transport industry inside and out along with how to save clients money. The company's expertise, which can provide cost- and time-saving services for companies in a tight economy, allows for an optimistic view of the future.

"We're poised to have a 15-18 percent gain with a 12-13 percent increase at the bottom line, which is good, solid growth - nothing crazy. That's just from watching our pennies, watching overhead and expanding and adding the clients," Hazen says.

"A recession has always been good for us. People are looking to cut staff. Once they do cut staff they're never able to bring back, they see the benefits of what we do. Then we start cross-selling and adding more services. In a down economy, people are like moths to the flame, looking for services to make them more efficient," concludes Hazen.