For a business to become great, it must run on an engine of continuous Improvement — it must get better each day while operating at top speed to stay ahead of the competition. For Loop Integrated Solutions, an asset-based logistics business located just 30-minutes from the famed Indianapolis 500 — the loop of continuous improvement is at the core of their early business success. It was Fortune 500 meets the Indianapolis 500, and Loop Integrated Solutions has stepped on the pedal without looking back. With over 50 years of combined experience in the Trucking industry, Loop’s five founders have developed a partnership that focuses on delivering excellent customer and carrier service. “The partnership between our trucking company, Renewable Transport Services (RTS) and Loop has been great. We have grown very quickly from a start-up brokerage to now doing about $10 million in annual sales, and doubling our fleet at RTS — going from 15 to 30 trucks since 2017,” shared Mundo Sanchez, CFO of Loop and RTS.
Giving customers and carriers access to data and information more quickly is a key part of Loop’s business strategy
“We are strong believers in running an information-based business — in using data to drive better decision making. Aside from cash, we feel that data is next in line to king, as it gives us strategic insight into our business and helps us identify areas we want to pursue, to continuously improve,” said Sanchez.
A laser focus on their relationships with customers and carriers is a key success factor
Loop knew they needed to gain insight from data, as well as share information externally with key stakeholders — so they looked for a TMS system that could marry the operations and administrative sides of their business; a TMS that was flexible enough to fit their model, so that they could run Renewable Transport Services while building out a brokerage. They wanted a TMS that would do all this, be accessible over the web, and not break the bank, as they were a new brokerage and needed to manage cash flow tightly.
Loop choses Tailwind’s SaaS-based transportation management software
“If you had asked me a year ago, I don’t know if I could have recommended Tailwind because we had such profound needs as to how we wanted to use information and operate our business. That said, I can’t emphasize just how responsive Tailwind and its customer service team has been to our needs — addressing both the depth and speed with which we moved — because remember, we were growing very, very fast. Now I can safely say, that we would recommend Tailwind to any small and emerging logistics company,” offered Sanchez.
“Tailwind centralizes all of our information. It has also delivered significant cost savings. We’ve reduced our cost of producing an invoice by over 75%, and feel that we can still reduce it further. We reduced the cost of making a payment by over 50%. The net result — we haven’t needed to add another AP clerk to the team — probably $30K in savings there as well,” added Sanchez.
Coming from a Fortune 500 company (Eli Lilly), Sanchez brought the insight of a major corporation to a small business, and has applied tracking and measurement to all facets of the operation. He’s applied metrics to the cost of producing invoices and payments, as well as to the number of inquiries made by carriers. He’s analyzed the opportunity cost of labor that could be applied to higher-return activities by automating internal processes.
“We had one person, where 80% of his time was spent responding to carriers and their questions around payments. We needed to do things differently.”
Loop utilized Tailwind’s Customer and Carrier portals and its open API (Application Programming Interface) architecture to customize the TMS’s capability with some of their own custom programming. They now compete with some of the biggest players in the industry.
“We have built out our offering using the Tailwind TMS platform to the point where carriers are telling us that we are doing things better than some of the biggest players in the industry!” Sanchez continued.
Loop built on the Tailwind API to extend its offering to customers
“We were delighted to hear that Loop extended their capability on our platform. Being a true web–based business we feel that our API is a key piece of the unique value we offer customers,” said Murray Pratt, President & CEO of Tailwind Transportation Software.
“I never want to be in a business where our ego says that we have to do it all,” he added. “I feel that our model is similar to Loop’s in that we strive to be open and transparent — wanting to do things WITH our clients, and not TO our clients,” said Pratt.
And for Loop Integrated Systems, this mutually reinforcing loop has driven much of its early success. The logo captures the essence of the Loop brand. From the loop of a truck on its route, to the information loop that keeps stakeholders in the know, to the loop of continuous improvement that is now a hallmark of Loop’s business success.
“We strive to get better each and every day,” said Fry