Rapid growth for Chicago trucking company Multi Group Logistics was great, but it fueled new challenges: finding new trailers equipped with the right features during a down economy, keeping trailer maintenance costs low and ensuring remarkable on-time delivery service.
The answer? Leased trailers equipped with trailer tracking from XTRA Lease
Owner Vassil Bayraktarov says Multi Group Logistics’ lease of 150 new DuraPlate trailers from XTRA Lease gave him flexibility when he needed to make other capital expenditures, offered trailer specs that others couldn’t provide, lowered collision damage coverage and more. Ultimately, he’s able to satisfy customers with 99.8% on-time delivery, even with such rapid growth.
Established in 2004 with a fleet of about 30 tractors, Multi Group grew to 165 tractors and 190 trailers in just five short years. “Growth comes after you have structure, not just after adding a few customers. An organization cannot move forward without a plan,” said Bayraktarov. “Young companies must develop business rules, best practices and performance measurements. It is difficult, almost impossible, to manage, measure and grow without established processes and solid suppliers. As a developing company, we are always looking to improve.”
On Time, Every TimeA 99.8% on-time delivery rate is quite amazing. Multi Group Logistics is proud of this accomplishment but certainly doesn’t rest on its laurels. It’s not just about the goal. “I believe you must treat each individual shipment as a high-priority shipment. We do not consider any shipment to be a medium or low-priority load.”
In the past five years, Multi Group has shipped over 150,000 loads with 99.8% on-time delivery. “The 99.8% rating tells me that we are doing our job uniquely,” Bayraktarov said.
How Do They Do It?Bayraktarov feels strongly that leasing new trailers plays a large role in Multi Group Logistics’ on-time delivery rate. “No breakdowns and less maintenance mean higher customer satisfaction, and it allows my team to focus on our business.”
Finding new equipment for lease in this economy was a challenge. “XTRA Lease was the only leasing and rental company offering new equipment in 2009,” said Bayraktarov. He believes leasing the best, new equipment on the market, especially with the quality features that XTRA Lease offers, gives Multi Group Logistics more flexibility. “For example, XTRA Lease’s 2010 DuraPlate trailers with e-track give me flexibility in loads and allow us to satisfy certain customer requirements,” he said.
However, his strategy of leasing new equipment is really about maintenance. Multi Group’s lease of 150 new XTRA Lease trailers reduces the chances of service failures and expensive over-the-road repairs. “For small and medium transportation companies, it does not make sense to invest in owning trailers. For me, the equity does not offset the maintenance costs,” Bayraktarov said. “By leasing trailers instead of owning them, I also experience added flexibility when I need to make other capital expenditures.”
Less maintenance costs allow Multi Group to operate new equipment while maintaining competitive rates. “XTRA Lease is the only trailer leasing company currently offering new, quality spec’d equipment,” says Bayraktarov. “This shows me they are interested in helping me build my business.”
Trailer Tracking Aids in On-Time Delivery and Impressive Utilization
XTRA Lease’s trailer tracking capabilities help Multi Group Logistics maintain its outstanding delivery track record by knowing where its fleet is at all times. It also helps them save money by optimizing trailer utilization. “XTRA Lease’s trailer tracking product powered by Qualcomm works great,” said Bayraktarov. “XTRA Lease did not try to invent its own product, but instead utilized a well-known and tested product, Qualcomm. This allowed XTRA to continue to focus on its core business—leasing and renting quality trailers.” XTRA Lease even facilitated a meeting between Multi Group Logistics and Qualcomm to ensure proper integration with Multi Group’s in-house systems.
Another benefit to trailer tracking is the ability to optimize fleet utilization—an absolute necessity during economic challenges. However, Bayraktarov believes these negative factors allow companies to learn and may even help reap positive results. Multi Group has learned to better identify the actual cost of everything, and how to optimize all resources for better outcome. This includes trailers. Most companies maintain a tractor/trailer ratio of about 1:3; Multi Group’s ratio is 1:1.2.
XTRA Lease Services Lower Costs, Increase Efficiencies -Collision Damage Waiver
Bayraktarov is also a fan of XTRA Lease’s Collision Damage Waiver (CDW) program. An alternative to insurance, CDW covers rented and leased trailers that incur physical damage, fire or theft. “This is a great, cost-saving product and very simple. I would recommend it to anyone,” said Bayraktarov. “XTRA Lease’s trailer fleet size allows it to get better coverage pricing, which they pass along to me. Claims are handled by them, freeing my time to work on other things. In addition, it’s a great thing when the damages and losses don’t affect my company insurance rates.” Bayraktarov has taken physical damage insurance off Multi Group’s policy and now saves more than 60% on physical damage insurance per month/per trailer.
Here are the numbers:
*Information provided by Multi Group Logistics. For more information on how you can benefit from CDW, contact an XTRA Lease Sales Representative.
Website membership takes partnership to a new level
“As a secure account manager on xtralease.com, I am able to reduce paperwork and have immediate access to important information on my account,” Bayraktarov said. He found XTRA Lease’s on-line system easy to use and appreciates the immediate damage and rental notifications received via e-mail. “Five years ago, I had to keep all agreements and invoices in a physical file. Now, when our people need to access past invoices, rental agreements and reports, they go to xtralease.com.” In addition to Bayraktarov, Multi Group Logistics’ fleet manager, safety manager and dispatchers use this handy tool to reconcile equipment in the fleet.
The Right Fit
Bayraktarov has had experience with other trailer leasing companies, but feels that right now XTRA Lease provides the right fit for his business. “The overall service, special programs like CDW and the number of branch locations offer flexibility. And the pricing is fair.”
Want to know more about trailer rental, leasing or purchase options?
Contact us for rates, terms and availability at an XTRA Lease location near you!
