In 10 years, Total Quality Logistics (TQL) has grown from its two founders in a 400-square-foot office to more than 580 employees poised to move into a new 100,000-square-foot building. And with an anticipated 82% jump in revenues from $192 million in 2005 to $350 million in 2006, it doesn’t look like this growing third-party logistics company will be slowing down anytime soon.

In fact, this Ohio-based freight mover plans to hit the $1 billion mark within the next five years. The numbers are staggering, but it’s tough to bet against an organization that has averaged 50% growth in sales every year since its inception.

The key will be for TQL to continue going the extra mile for its customers. “We seek to achieve not only what is asked, but to also use creativity to provide solutions above and beyond what is expected,” TQL materials state. “There is little traffic on the extra mile.”

Growth spurt
In 1996, Kenneth Oaks, president, was a produce salesman for the Castellini Company. Ryan Legg, CEO, worked for a trucking company owned by the Castellini family, Riley-Whittle, Inc. The two often discussed the issues they faced—moving perishable produce, missing shipment deadlines, and a lack of communication after hours or on weekends—and came up with the idea to form a 3PL brokerage.

Together, Oaks and Legg formed TQL in 1997. Their mission was to provide the best, most reliable truckload transportation service in the industry through proactive communication, accessibility, and reliability. In just five years, the company’s formula proved a success, with TQL reaching 27 employees and $22 million in revenue by 2001. And that was the beginning of the company’s growth spurt.

In 2002, TQL climbed to $32 million in revenue and 53 employees, $101 million with 170 employees by 2004, and a projected $350 million with 700 employees by the end of 2006. TQL’s growth has been driven by dedicated employees who deliver a level of service that trumps the competition.

The company’s services include around the clock availability, 24 hours a day, seven days a week, 365 days a year; value added services such as electronic data interchange, Web-based shipping and tracking systems, e-mail status notification, and customized reporting; and access to more than 1,200 freight companies nationwide.

“TQL serves customers that range from small companies to Fortune 500 organizations,” company materials state. “Our mission to exceed customer expectations and provide the best, most reliable service in the industry has resulted in a customer base of 2,419 companies. Our standards of proactive communication, accessibility, and reliability have enabled us to add new clients on a daily basis.”

And the rapid growth hasn’t gone unnoticed. In 2006, TQL made the Inc. 500 List as one of the nation’s fastest growing private companies. TQL was ranked number 268 for having a three-year sales growth rate of 495%.

Fair play
TQL’s service capabilities are accompanied by a commitment to the highest ethical standards in all of the company’s business transactions. Through five winning principles, the company strives to become a true partner to anyone that moves freight:

Pledge integrity. Commit to the highest ethical standards, and don’t compromise them, state company materials. “Ethical and professional behavior is the bedrock of our company.”

Exceed expectations. “Seek to achieve not only what is asked, but also use creativity to provide solutions above and beyond what is expected.”

Recognize the value of teamwork. “Fidelity to a team ethic results in personal achievements beyond one’s individual capabilities and respects differences among individuals. The only way we can be the one-stop source providing the best overall service for our clients is to pool the talents of our people.”

Be forthright about conflict. “Inform clients of real or perceived conflicts. Always choose the harder right over the easier wrong.”

Maintain balance in life and business. “To be our most productive, we must maintain a healthy balance among our priorities for clients, family, faith, community, and self.”

TQL’s dedication to its five winning principles has resulted in awards from the Better Business Bureau in 2004 and 2005. The BBB’s Torch Award is presented annually to businesses and nonprofit organizations that are committed to integrity, trust, fair play, honest competition, and truth in advertising.

Supporting growth
With a rock-solid foundation in place, TQL’s potential for growth appears to be nearly unlimited. According to the Transportation Intermediaries Association, 3PL companies control 20%, or $60 billion, of the $300 billion industry. And the US Department of Transportation estimates that the amount of freight moved by trucks in the US will double by 2020.

To support ongoing growth, TQL has formulated a strategy of:

• Growing at a minimum rate of 30% per year
• Increasing market share in the truckload sector
• Hiring only the best and brightest applicants by continually improving the interview process
• Furthering technological innovation
• Exploring opportunities in other modes of freight transportation
• Increasing community involvement through more corporate contributions and company-sponsored volunteer programs