Flynn, M. (2011, March 1). "Griffin Global Logistics: All Systems Go". American Executive Magazine, p. 117. Retrieved 1 March 2011: http://www.americanexecutive.com/current-issue/current-spotlights/7695-griffin-global-logistics-all-systems-go

For Griffin Global Logistics, timing is everything. Not only does its business depend on the exacting management of its clients’ cargo throughout the supply chain, but the business itself has benefited from a series of well-timed strategic decisions and inspired foresight.

Griffin is a third-party global supply chain company that offers a range of logistics services, including international and domestic transportation, supply chain management, warehouse and distribution, and customs brokerage. It is a West Coast regional provider for small and mid-tier clients in the consumer and high-tech electronic, aftermarket automotive, industrial supplier, sporting goods, and apparel industries, among others. With annual revenues of $25 million and 70 employees, Griffin is headquartered in Reno, Nev., with additional locations in San Francisco, Los Angeles, and Indianapolis.

Strengthen the base
President Russ Romine has an innate understanding of timing, from knowing when to take advantage of a good opportunity or make a strategic change in the company to presenting a pitch and closing a sale with a client.

For instance, Romine seized the opportunity to buy Griffin in 2001 while he was an employee because he saw the company had not only good bones but also untapped potential. With strong leadership, strategic diversification, expanded services, and, of course, good timing, Romine knew that Griffin could grow to the next level and offer something its competitors could not—the caliber of attention paid by a small company and the global relationships and services of a large company.

“We needed to develop stronger core operational capabilities so we could talk to clients at a higher level,” he explained. “From there, we needed to add and diversify services to serve a higher range of clients and essentially step on services. As that grew, we needed technology and sales to follow.”

In 2006, it was time to diversify Griffin’s services and offer a third-party international warehousing and distribution service. “By 2008, the operation was mature and running effectively. We had a strong client base, and it aligned well with the transportation side,” he said.

What Romine and his team had no way of anticipating, however, was the recession and its effects. Yet thanks to the newly launched warehousing and distribution service, Griffin was able to carry on in 2009 while its transportation service struggled. Consumers across the country were reluctant to buy, product wasn’t moving, and Griffin subsequently experienced a 20% loss of revenue. Its profits were hit even harder. “We saw a lot less inventory moving. It kept the warehouses full, but it depleted the transportation side,” Romine said. “There was a lot of capacity in the market, and everyone was vying for business.”

When inventory finally began to ramp up in 2010 and its expanded sales efforts started to pay off, Griffin was able to add new clients, increase business, and rebuild its flagging transportation service. “We were able to see growth on both the warehouse and distribution side that expanded our business over and above the 2008 levels. We took one step back and two steps forward,” he said.

Increased integration
Technology has been another major driver in Griffin’s continued growth. It has helped increase overall efficiency and improve communication with clients and international partners. In some cases, it has even made the difference when competing for clients with much larger providers.

Griffin is in the process of deploying E-Freight Solutions, a web-based transportation management system that allows clients to shop for transportation services, get pricing, and book shipments. “It takes some of the back-office responsibility off of our hands but still allows us to see the activity, manage the shipments, and provide the end-to-end service that the customer needs,” said Romine.

The company has also seen significant productivity gains in its business thanks to CargoWise international supply chain management software. According to Romine, the technology has integrated its messaging with carriers, partners, and clients into its operating systems so all information flows seamlessly to and from the web. It has allowed for much greater internal and external visibility. “We are able to set up workflows to effectively manage shipments through the system,” he said, something Griffin was previously unable to easily do.

Creating opportunity
For the past seven years, Griffin has enjoyed consistent growth, even despite the 2009 setback. In addition to diversification, Romine attributes much of this development to its amped-up sales force, aggressive IT commitment, and a culture of entrepreneurialism and creative solutions for clients.

“We try to think outside the box when customers come to us initially, to understand the business and create solutions that are not off the shelf,” said Romine. “We empower our people to make decisions on day-to-day problem solving such as how to approach a particular challenge with a client or close a piece of business.”

To further grow the business, Romine said it’s time to expand Griffin’s presence into the national market. “We’re currently a regional provider with strong brand recognition,” he said. “Our objective is to branch out to other parts of the country where we don’t have that inherent branding, build that recognition, and build new opportunities there.” In particular, Griffin plans to expand into the Southeastern, Northeastern, and Upper Midwestern US.

In addition, Griffin plans to take marketing to the next level. Mostly, its brand recognition is through word of mouth from satisfied clients. Over the past two years, however, the Griffin team has developed strong web-based marketing and analytical tools to measure website hits, learn who is visiting the website, and find out what competitors are up to.

For Romine, sensing the needs of the market and making strategic corporate moves at the right time is similar to sensing the needs of a client and making the right professional moves to come up with creative solutions that work, both of which are crucial to Griffin’s success. “It’s like winning the game. It’s a good feeling when you’ve met with the client and there’s an agreement that you can help them,” he said. “The whole process of finding an opportunity, creating a solution for a client, and then getting everybody on board is very motivating.”