Purolator President Addresses Air Cargo Webinar

On Feb. 9, the ACI-NA Air Cargo Committee was fortunate enough to have John Costanzo, president of Purolator International, speak about the most recent supply chain and logistics trends. 

John Costanzo with over several decades of knowledge in the logistics industry detailed that while the U.S. economy appears to be recovering, a survey done by McKinsey, a consulting firm, showed that consumer optimism about their economic situation is at their lowest (Sept. 11, 2011) since the recession.  He then noted that granted Purolator is a Canadian-based company; it has not been as affected by the recession as the United States market due to a strong Canadian currency and minimal corporate taxes.

In regards to Purolator’s business strategy in accordance to supply chain trends, Purolator like many other companies has been adapting to the volatility of the industry.  A successful business at a time of fluctuations requires a business plan that is always willing to adjust and adapt. 

Technology remains an important factor in its core business model.  As cargo is time sensitive, being efficient is critical and requires a keen eye on what is available.  Noted by Costanzo, 92 percent of Transportation and Logistic providers plan to upgrade their supply chain technology and 67 percent of shippers use technology to reduce supply chain costs.  However, a company needs to maintain a discipline of always assessing its core business needs to what is available, Costanzo said.  A rash investment could lead to the loss of opportunities and resources to fix to other key company needs.

In maintaining a healthy and successful business, Purolator has focused on out-of-the box solutions.  One of the key focuses is on collaborative distributions where shipments are pooled together on similar routes in order to reduce cost and carbon emissions; larger and few shipments.

In its business growth strategy, Purolator has 18 branches in United States and with plans to expand an additional 10 branches by 2012. While not all branches will serve an airline haul route, it is an impressive to note of Purolator’s growth and success even during a turbulent period.

Contact ACI-NA’s Nelson Lam for more information.