Most, if not all, of ArcBest Corp.’s almost 100 years have been good ones, the last few of them very, very good for the logistics provider based in Fort Smith.
Last May, ArcBest CEO Judy McReynolds was featured on the cover of AMP’s transportation issue on the heels of the company reaching the $4 billion benchmark.
The company’s ABF Freight subsidiary alone accounts for roughly two-thirds of company revenue and makes ArcBest one of the nation’s top 15 for-hire carriers, per industry journal Transport Tropics.
Last year, ArcBest generated fourth-quarter net income of $37.3 million with full-year net income of almost $300 million, a second consecutive year of record growth. Following its sale of subsidiary FleetNet, it returned $76 million to shareholders through its stock repurchase program.
Founded in 1966 as Arkansas Best and rebranded in 2014, ArcBest has grown into one of the nation’s top transportation companies, and it’s played a significant role in helping brand Arkansas as a hub of “logistics solutions.”
ArcBest has accounted for many of those solutions over the years. One of its latest is the Vaux freight movement technology. Using custom mechanical engineering and proprietary cloud software, Vaux transforms how freight is loaded, unloaded and transferred in warehouses, distribution centers and even over the road.
Michael Newcity
The man overseeing all this innovation is Michael Newcity, ArcBest’s award-winning chief innovation officer and president. Newcity, who’s been with ArcBest since 1993 and previously served as CFO and SVP/CIO, visited with AMP about its record growth and the drive for innovation necessary to keep pace in a fast-moving industry.
AMP: What’s the secret to the company’s success?
Newcity: We’ve experienced a lot in our 100-year history; what sets us apart is our ability to adapt. We listen to our customers, build trusted relationships and help them pivot quickly to respond to supply chain disruptions. We listen to our people, who are truly the heart of our success. And we listen to the environment, not only to what’s happening in our industry, but also to what’s happening with emerging technologies across many outlets – the new venture space, academia and innovators across the globe.
We are curious and capable, which has led to a long history of innovation — it’s ingrained in our culture — and we empower our employees to bring their ideas to the table. It’s that kind of transformative thinking that has enabled us to navigate uncertainty and continue to grow.
ArcBest says its new Vaux system, with its innovative platform, can drastically reduce the amount of time spent loading and unloading. (Photos provided)
AMP: Speaking of innovation, can the company’s new freight movement tech be a game-changer?
Newcity: Vaux is revolutionary in that it transforms how key supply chain issues are managed. It opens the door to significant efficiency gains by cutting traditional trailer load/unload times from hours to mere minutes, in turn creating a safer working environment, improving sustainability and requiring fewer freight touches (which means less damage). Solving those issues is definitely game-changing.
AMP: What are the most pressing issues facing logistics providers? What keeps supply chain managers up at night these days?
Newcity: Our customers rely on us to keep their supply chains moving, so that’s what we’re focused on. What’s keeping them up at night are challenges like cost control, dock congestion and changes in consumer demand. We leverage our full suite of logistics solutions and leading-edge technology to help them overcome supply chain disruptions and volatility, and we go to work every day finding ways to improve our operational efficiency so we can serve them better.
AMP: How do you manage a dynamic supply chain?
Newcity: The ability to adapt to an ever-changing economy is critical for our customers and for us. Our integrated logistics approach combined with 100 years of experience provides customers with the right solutions for their situation. Technology is the key enabler, allowing them to pivot quickly and use their supply chain as a competitive advantage, but it’s not just about new software.
Dynamic supply chains require new thinking on all fronts – material handling equipment, tech-infused partnerships, data science and more. Supply chains are complex. The successful enablers of dynamic supply chains must overcome that complexity.
AMP: Any forthcoming innovation from ArcBest that you can tease?
Newcity: Going back to our innovative mindset, we’re continuously looking for ways to think outside industry norms and make it easier for our customers to do business. We invest nearly $150 million each year in technology, with half of that investment prioritized on transformative initiatives.
Vaux is a great example, developed in our 235,000-square-foot warehouse, where we conduct R&D in a space that’s similar to our customers’ environment. Without going into detail, we have a clear vision for strategic innovation to continue driving our industry forward. And we remain focused on the complex supply chain issues our customers are facing.
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