JBS 2016 Year in Review

So many accomplishments and changes highlight the year 2016 that will go down as one of the top 3 in JBS’ 30 year history (The other 2 are 1986 when Sam & I founded the company and 2012 when we moved into Naperville from Glendale Heights).

Celebrating our 30th year in business, our newly formed social committee (Elvia, Steve, Emilie, Kathy, Joe, Lucy and Penny) was responsible for organizing 2 main functions:  The first was to celebrate our actual anniversary date of June 1st with a company-wide luncheon and picture taking (Christmas card).  We actually closed down our operations for a couple hours that day (1st time ever) to make sure everyone was able to celebrate together.

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The second main function was our year end Christmas Dinner Party at Eaglebrook Resort.  A heavy snowstorm didn’t dampen our celebration as many of the party-goers took advantage of available hotel rooms and partied well into the night.

2016 was a challenging year for our business as well.  We needed to replace a couple good warehouse customers who had moved their operations out of the Chicago area. Combined with a sluggish economy, our usual annual growth was going to be difficult. We needed to refocus our business strategy and look for an alternative to expand.  That is when the opportunity of combining operations with Koch Logistics presented itself.  For the later part of the year, I was focused on due diligence merger planning while Sam recovered from his surgery. It was a bittersweet moment when we finalized the strategic partnership in November.

After 30 years JBS now has a new partner; Koch Logistics a division of Stan Koch Trucking of Minneapolis. The new JBS will allow both companies to share best practices and resources that enhance mutual success.

I anticipate an exciting transitional year in 2017. We have plans to:

  • Update our brokerage TMS program
  • Expand our local cartage operation
  • Acquire long term warehousing opportunities that would mean acquiring more space!

With our continued enthusiasm and teamwork, I look forward to the next 30 years!

To all of our employees, vendors, and customers, we say Thank You for your hard work, dedication, and loyalty and hope that the New Year brings you many blessings and good cheer!

Alec A Gizzi

JBS Logistics & Warehousing, Inc

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Press Release

Koch Logistics, an operating division of Stan Koch and Sons Trucking, Inc. is excited to announce that it has purchased JBS Logistics and its affiliated companies as of December 1, 2016.

Founded in 1978 and based in Minneapolis, Minnesota, Koch and its operating companies and divisions provide a variety of transportation services including over the road long-haul trucking, local cartage services, dedicated fleet services, tractor and trailer leasing services and warehousing. Koch Logistics provides full service third-party logistics services including truckload, partial truckload, LTL, expedited, small package and international NVO services.

JBS Logistics and its affiliated companies are based in Naperville, IL and have been in business for over 30 years. JBS is a full service logistics provider with services that include warehouse storage and fulfillment, local cartage, as well as nationwide truckload and partial truckload delivery.

The new entity “JBS Logistics and Warehousing, Inc.” will be managed by one of the previous owners and President of JBS, Alec Gizzi. Mr. Gizzi commented “Sam DiMaio, the other previous shareholder of JBS, and I determined that JBS had reached a point that necessitated partnering with a larger entity to ensure our growth for the next 30 years. Koch’s culture and core values are the same as ours and we felt they were an excellent choice to partner with. I am excited for the growth opportunities that exist for JBS Logistics and Warehousing, Inc. and our dedicated employees”

Jeff Faust of Koch Logistics commented “Alec and Sam have built a very successful operation that we believe is an excellent addition to the portfolio of companies which Koch operates. We are very excited to have them join us and look forward to the continued success and growth of the new JBS Logistics and Warehousing, Inc.”.

Any questions related to above should be directed to Alec Gizzi, Executive Vice President of JBS Logistics and Warehousing Inc. at 630-672-7540 or Jeff Faust, Vice President and General Manager of Koch Logistics at 651-999-8512.

TURNING THE PAGE

Exactly 30 1/2 years ago today on June 1, 1986, Sam & I first opened the doors of JBS (then called JBS Warehousing and Distribution).  We were excited but scared. We immediately found ourselves in debt (each of us with a $10,000 home equity loan) to fund the first few months.  Maybe we were too young (some would say stupid) to realize the path of hard work and sleepless nights we had in front of us, but for the next 366 months we made it work.  It included pouring profits back and increasing our debt so the company could hire great people, purchase new trucks/trailers, invest in IT systems, and buy warehouse equipment which were all required to ensure growth.  I can honestly say we made it work.  We have built successful relationships with great customers and good vendors based on a solid foundation of honesty, integrity, and good old-fashion hard work.

This morning we (JBS) turn the page onto a new chapter.  With it comes the same feelings of excitement I had back in June of ’86 when Sam & I started the new business, but this time I am not so scared.  It is because this time I have many people who will be helping from the beginning and we already have a solid foundation of customers and vendors. And although no one will ever replace Sam who is the best partner anyone could ever hope for, JBS will be able to combine our opportunities with the resources of our new partner Koch Logistics.  A Koch/JBS partnership will provide the solutions required to compete in today’s rapidly changing transportation industry.  Together we will be able to grow our warehouse operations as more and more companies look to outsource their supply-chain distribution.  Together we will continue to grow as a team.

December 1, 2016:  Excited – yes.  Scared – not so much this time.

Alec A. Gizzi, CTB

Chicago Italian American Charitable Organization (CIACO) “Baskets of Love”

Sunday, November 20th 2016

‘Twas the Sunday morning before Thanksgiving, when all through the ReNu facility, CIACO members and hundreds of volunteers – young and older – (consisting of family members and friends) gathered together for a single purpose.

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That purpose was to assemble and pack 600 food crates, 50lb each, with items to create a complete Thanksgiving meal for families in need. Items were donated by various companies in the area. Our JBS truck with custom refrigerated sleigh drove around Chicagoland collecting all the items for assembly.  All the fixings were set up assembly-line style on either side of the 100 ft of conveyor sections provided by JBS. As the completed crates came down the line, local churches, shelters and other charities were driving up and getting loaded for final delivery to families in need.

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Some of the great items included Pasta, Pasta Sauce, Stuffing, Canned Cranberries, Mac & Cheese, Scalloped Potatoes, Egg Noodles, Pudding Mix, Turkeys, Carrots, Oranges, Fruit Punch Drink Mix, Corn Bread Mix, Turkey Gravy Mix, Hot Chocolate, Ketchup, Bread Crumbs, Canned Corn, Canned Green Beans, Canned Fruit Cocktail, Saltines, Chicken Broth, Cookies, Grated Cheese, Pancake Mix, Pancake Syrup, Brownies, Bags of Flour, Onions, Potatoes, Bags of Sugar, Peanut Butter (Casey’s Foods / Imp. Services), Pretzels, Cookies, Soap, Coffee (Compact Industries / JBS), Jello / Rice Pudding Cups (Raymundo Foods / JBS ) .

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HAPPY THANKSGIVING!

 

Lobbying Congress

Last week I joined 65 other Logistics professionals in Washington DC to tell our stories to Congress. The group organized by TIA (Transportation Intermediaries Association) visited with over 150 Congressional offices to talk about how pending (or lack of) legislation will affect our industry and eventually our businesses. Third Party Logistic (3PL) providers employ 128,000 people in the US with a payroll of over $7 Billion. The $157 Billion Dollar industry has been growing at rate 2-3 x GNP.

The two-day event was well organized by TIA staff, giving us great guidance and information to make our visits productive. I was fortunate to meet with Congressman Peter Roscam (R-IL 6th District) who represents our District.

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However, with votes being cast throughout the 2 days, we did not always get to meet with the actual Senator or Congressman/-woman. For example, our group had 10 meetings scheduled but we only had the opportunity to meet 3 Members. This is my 5th time lobbying for TIA in DC and I have learned that sitting down with a member of Congressional staff is just as productive because their job is to inform (and sometimes influence) their boss about issues that are important to their constituents.

 

Specifically we addressed 3 issues that are the most pressing:

  1. Compliance, Safety, Accountability (CSA) vs. Safety Fitness Determination (SFD)

The Transportation Intermediaries Association (TIA) fully supports the proposed Safety Fitness Determination (SFD). The SFD will clear up how safety ratings for motor carriers are presented to the public, and remove the confusion and liability traps that surround the four-tiered rating system. TIA supported the CSA Reform language included in the FAST Act, but the SFD is based on absolute measures and is not directly tied to CSA. Therefore, the SFD should not be delayed until the CSA study, certification, and corrective actions are taken. The entities that hire motor carriers, like 3PLs and shippers, cannot wait any longer for a clear-cut line to determine which carriers are safe to use and which carriers are not. The SFD provides us with that line. Additionally, the SFD would identify and remove the most egregious motor carriers from our nation’s highways, and drastically improve safety.

  1. Protecting Workplace Advancement and Opportunity (PWAO) Act

President Obama announced a final rule on federal standards for exempting workers from overtime pay. The new rule will increase the salary level under which workers are eligible for overtime pay, from $455 per week ($23,660 per year) to $913 per week ($47,476 per year), and allow for this threshold to be automatically adjusted every three years. Although we agree that an increase is justified, we believe that the over 100% increase is too much for small businesses to absorb.

This proposed legislation (PWAO Act) will nullify the final rule and require the Department of Labor to conduct an economic analysis on the impact that increasing the mandatory overtime salary threshold will have on small businesses, non-profit employers, and public entities. This Act will also statutorily prohibit the automatic increase of the salary threshold that is included in the final rule. The overtime pay threshold has never been subject to an automatic increase before, and it is important that Congress and the American public have an opportunity to carefully consider the impacts on the overall economy.

  1. The National Hiring Motor Carrier Standard (H.R. 1120)

The national hiring motor carrier standard would clarify and standardize industry best practices for hiring safe motor carriers. Currently, industry stakeholders are often asked to second-guess the FMCSA on determining which carriers are safe to operate and those that are not. Congress tasked the FMCSA with evaluating motor carrier safety and empowering them with the sole authority to revoke the interstate operating authority of unsafe motor carriers or otherwise place unsafe motor carriers out-of-service and off the road.

H.R. 1120 would require that before hiring a motor carrier, a shipper, broker, forwarder, and/or receiver ensure that the motor carrier is:

  •  properly registered with the Federal Motor Carrier Safety Administration (FMCSA);
  •  has obtained the minimum insurance; and
  •  has not been given an “unsatisfactory” safety rating.

H.R. 1120 plays an important role towards improving safety within the transportation industry specifically by establishing a National Standard for Hiring Motor Carriers. Under the Bill, an entity (broker, shipper, receiver, forwarder, etc.) would be required to ensure that a carrier is properly registered, has obtained the minimum required insurance, and is not rated unsatisfactory. Currently, there is no standard or duty of care an entity must take when hiring a carrier and this is a huge step towards removing unsafe carriers from the highways.
All 3 topics were presented and discussed to both Democratic and Republican Members with both sides having their typical partisan views on President Obama’s Overtime Rule. My optimistic view is that a compromise can still be reached before the elections, yet I am not so sure that will be the case. However if we choose to stay home and if we were to not present our side of the agreement, there would be no chance to persuade.

The old saying goes, “In Washington, you either have a seat at the table or on it”.

Alec A. Gizzi, President JBS Inc.

HAPPY ANNIVERSARY

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30 years ago JBS opened their doors in a small warehouse in Addison, IL.  (see also: https://jbslogistics.wordpress.com/2016/05/26/how-jbs-started-30-years-ago/)

Since then, JBS has matured into a full service warehouse and transportation company focusing on delivering excellent service at fair prices.  Those services include complete 3PL warehouse operations that allow commercial clients to focus attention on their companies’ core competencies while JBS takes care of their inventory.

On June 1st, the 30-year anniversary was celebrated with an employee appreciation luncheon which included an award ceremony for long time employees.

Pictured below are 6 employees who have been with JBS for 20+ years: From left to right:  Rich Plotke, Nancy DiMaio, Steve Krisch, Barb Grandis, Dan Nitti, and Bill Fiorito

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How JBS started 30 years ago

I was a salesman working for a trucking company back in 1986 when a customer of mine was telling me how their merchandise was “walking out the back door” at a warehouse in Chicago. He was looking to replace them with a more secure warehouse operation. Being the opportunist that I was, I told them I would find a warehouse for them in a new industrial locality that was in a low crime area.  Searching for a couple of weeks I soon realized there was a shortage of 3rd party warehouses that could fit their needs.

Talking it over with my boss (and soon to be partner) Sam DiMaio, he assured me that we could do it ourselves and the only thing I needed to do was convince my customer to give us a chance. Within a few weeks, Sam & I found a 5,000 square foot space in a warehouse/office complex that would serve as our first warehouse. After the customer approved the space we were ready to sign a 1 year lease. We soon learned that was not going to be easy without any credit history (or money).

At the same time I had a small business on the side called Jiggers Bar Service that supplied bartenders and liquor for private parties. Although it was just a small company, it was in business for about 4 years. We took the initials of the company (JBS) and used its credit history to sign the lease, open a phone line, and order some supplies. We borrowed some money from a couple of good friends while the bank was approving a $10,000 equity on our homes to get us through the first few months. With the support of our family, friends, and of course that first customer we were able to pull it off. Within a year we expanded to 20,000 square feet and had 5 employees and over the last 30 years have grown to over 500,000 square feet and 55 employees.

A big THANK YOU to everyone that has been part of our 30-year history.

Alec A. Gizzi, President JBS Inc.

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MIT report on the value of On-Time-Deliveries (OTD) in relation to payment for transportation

The study showed that although there is no correlation for better OTD when a shipper pays a higher rate, there was a distinct correlation for poor OTD when a shipper pays a lower than average cost.  The study found that shippers that paid less than $50 average per shipment had a significant reduction in service (40%-70% OTD) vs shippers that paid market rates. 

This aligns with JBS’ pricing tariffs which are generally within 5% of the average market rate.  Last year JBS’ OTD matrix for TL business was at 97.5%.

Click below to see the full report:

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JBS kicks off 30-year anniversary celebration season

The traditional ‘Cinco de Mayo’ cookout on May 5th was the first event of the year, put together by the JBS social committee to celebrate the 30th anniversary of the company.

The rich buffet featured traditional Mexican dishes and freshly barbecued meat for tacos for all employees to enjoy.

Cinco de Mayo is observed as a holiday in Mexico to commemorate the Mexican Army’s unlikely defeat over French forces at the Battle of Puebla on May 5, 1862, under the leadership of General Ignacio Zaragoza.

The JBS social committee consists of 6 employees as depicted in the image below. From left to right: Steve Krisch, Elvia Arceo, Emilie Sudar, Kathy Jakubowski, Lucy Martinez, Joe Gizzi.

The next planned event is the actual anniversary on June 1st, the date JBS was founded in 1986.

TCA – What took you so long?

I applaud TCA for their reversal on the controversial truck/weight legislative issue.  ATA has been the “big brother” in the trucking industry for many smaller associations including TCA.  ATA’s voice and resources in Washington certainly help when the issue is mutual for all e.g. safety and infrastructure.  However in this case, expanding the length of LTL Pup trailers from 28′ – 33′ would encroach too close to the TL market and TCA members. By no longer supporting this legislation, TCA’s new President John Lyboldt is standing up to ATA and supporting his members.  Let’s face it, this part of the legislation really serves no purpose other than helping ATA’s large LTL carriers like UPS and Fed Ex AND is counter to the overall safety on American highways.  ATA and TCA should work together when the benefits are mutual but in this case, not so much.

Alec A. Gizzi, President JBS Inc.

For more information:  http://www.logisticsmgmt.com/article/truckload_group_splits_with_ata_policy_on_truck_size_and_weight_issue/news