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815 South Main Street, Jacksonville, FL 32207<br />
+1 904 390 7100 • 800 395 7100 • suddath.com<br />
© 2015 Suddath Van Lines, Inc. U.S. DOT No. 29609 MC-029904 Centra Worldwide, Inc. WP94-01116 Sentry Household Shipping, Inc. FF 001124 7434N
YEAR IN REVIEW<br />
2014
TRUST INNOVATION COMMITMENT INTEGRITY TEAMWORK<br />
Suddath World Headquarters, Jacksonville, FL
As we reflect on another year, I am eager to share our areas of focus and significant<br />
developments with you. In recent years, we have experienced growth through global<br />
expansion, strategic acquisitions across the country as well as emphasis on leadership<br />
enhancement. This year, no less exceptional, has been one of looking inward and<br />
continually making improvements to our operating efficiencies across the board.<br />
First and foremost, one of our areas of attention has been on our greatest asset, our<br />
employees and the pride with which they carry out their duties to provide the highest<br />
quality services in the industry. Secondly, we believe in continual assessment to<br />
ensure top quality performance. To that end, we commissioned a third-party partner<br />
to conduct both qualitative and quantitative audits of the Suddath ® brand experience<br />
with many of our internal and external constituents. We are in the process of<br />
evaluating this feedback which will be used to elevate the customer experience<br />
each and every day.<br />
Staying true to one of our core values, we are investing heavily in technology innovation. In 2014, we responded<br />
to the challenges of growth by the refinement of our systems including implementing both a human capital and<br />
warehouse management system, as well as a global mobility technology platform now accessible on any device in<br />
any part of the world. These tools are necessary to ensure the longevity of our operational and administrative abilities<br />
to deliver the highest possible quality of service across all of our business lines. All of these and future technological<br />
advancements will be led by our first-ever executive leadership position of chief information officer.<br />
Much progress is evident on operational fronts with 2014 being a banner year for industry recognition including<br />
awards for safety, global relocation, thought leadership and our very own Customer Hero Award winner. Our service<br />
delivery continues to expand and grow as reflected in many exciting projects around the globe including the opening<br />
of a Global Center of Excellence in Shanghai for our global mobility constituents. We continue to use our resources<br />
and expertise prudently to meet the needs and challenges unique to our industry including launching a new service<br />
offering, remanufactured office furniture. This is not only an exciting new venture for Suddath, but one that is<br />
sustainable for the environment and a cost benefit to our customers.<br />
Looking forward, we remain dedicated to developing our people, strengthening our capabilities and building trusting<br />
relationships with our clients, customers and partners. You have my commitment and sincere appreciation for your<br />
continued confidence and support in Suddath as we continue ‘Setting the Standard for Moving the World. ® ’<br />
Barry S. Vaughn<br />
President & CEO<br />
The Suddath Companies
FEATURE PROJECT<br />
Suddath Global Logistics is the logistics partner for Baha Mar, the $3.5 billion<br />
luxury resort on the Bahamian island of New Providence near Nassau. Transporting<br />
and installing the furnishings and fixtures required a single-source solution to<br />
provide the high-end resort with a coordinated, efficient and cohesive effort to<br />
get the project done on time and within budget.<br />
Who: Suddath Global Logistics<br />
What: Baha Mar<br />
When: 6 months: November 2014 through March 2015<br />
Where: Nassau, Bahamas<br />
How: Furniture, fixtures and equipment (FF&E) to be installed in a luxury hotel<br />
- 800 inbound TEU’s; 1,200 outbound TEU’s<br />
- Creation of a new Foreign Trade Zone (FTZ) in Jacksonville, FL
ONE OF THE LARGEST<br />
HOSPITALITY CONSTRUCTION<br />
PROJECTS IN THE<br />
WESTERN HEMISPHERE<br />
After a rigorous vetting process, Suddath was chosen to direct and<br />
manage the supply chain and logistics for the furniture, fixtures and<br />
equipment to Baha Mar through the Port of Jacksonville. The shipments<br />
began in November of 2014 and will span six months. Cargoes include<br />
everything from furniture to artwork to gaming equipment. Suddath<br />
will move 800 inbound twenty-foot equivalent units (TE<strong>Us</strong>), primarily<br />
from Europe and China, and 1,200 outbound TE<strong>Us</strong>.<br />
One of the main reasons Baha Mar chose Suddath as their logistics<br />
partner was due to the fact that Suddath, with the assistance and<br />
guidance from JAXPORT, SM created a new Foreign Trade Zone (FTZ).<br />
By having a FTZ there is a significant reduction in supply chain costs<br />
and offers advantages, including eliminating the need for additional<br />
customs bond on admissions and eliminating duties on foreign<br />
goods re-exported to the Bahamas.<br />
When the resort opens in 2015, Baha Mar<br />
Resort will undoubtedly be one of the most<br />
sought after vacation destinations in the<br />
world with high-end hotels, casinos,<br />
residences, and other venues.
PEOPLE<br />
BUSINESSES<br />
Responsible for moving over 8,500 military and government families<br />
between the U.S. and overseas while continuously maintaining a 99.5%<br />
customer satisfaction survey score.<br />
Suddath continues to gain market share by signing numerous new partners<br />
in 2014 — an accomplishment providing even greater agent and hauling<br />
capacity and allowing us to ensure the highest level of<br />
service to Department of Defense members and<br />
their families.<br />
Awarded a three-year,<br />
multi-million dollar national<br />
office moving and furniture<br />
management contract with<br />
one of America’s largest health<br />
care benefits companies. The<br />
program spans 35 states<br />
and over five million square<br />
feet of commercial real estate.<br />
Managed a 357-person group move from<br />
Portland, Oregon, to Dublin, Ireland, for one<br />
of the world’s largest and most innovative<br />
microprocessing companies.<br />
Awarded a three-year contract with one of the world’s<br />
largest beverage manufacturers to manage employee<br />
relocation at their worldwide headquarters. In the first<br />
year alone, 5,000 employees have<br />
been relocated.<br />
Office relocation project decommissions 850,000 square<br />
foot facility and moves 550 employees in three weeks<br />
for the world’s leading provider of satellite services.
INTEGRATED SOLUTIONS<br />
PRODUCTS<br />
Suddath was responsible for all of Harley-Davidson ® ’s<br />
consumer event transportation and annual worldwide<br />
dealer conference transportation. This included six<br />
dedicated trucks and eight drivers servicing 240<br />
events per year.<br />
®<br />
Responsible for the seasonal<br />
roll-out for an American<br />
specialty foods company for<br />
all their retail kiosks.<br />
Family Support Services of North Florida saved nearly<br />
$160,000 and reduced environmental impact by 93% by<br />
utilizing a remanufactured office furniture solution when<br />
Suddath relocated their headquarters in Jacksonville.
AWARDS AND RECOGNITION<br />
As an industry leader, Suddath received significant accolades in 2014. Our<br />
successes spanned all facets of our business and product lines. These<br />
successes are a result of a continued strategic effort to decrease our (and<br />
our clients’) environmental impact and increase efficiency, safety and quality<br />
across the board. We will continue to make great strides in these areas and<br />
demonstrate to our clients, partners and vendors how Suddath is Setting the<br />
Standard for Moving the World. ®<br />
Anthony “Tony” Meindel (Suddath Relocation Systems of Tampa/St. Petersburg)<br />
was honored with United Van Lines’ Customer Hero Award — this award honors<br />
front-line service providers for their commitment to quality customer service.
SAFETY IS, AND ALWAYS<br />
WILL BE, A TOP PRIORITY<br />
For the 10th year in a row, Suddath Government Services ® was<br />
awarded the “Booker of the Year” award from UniGroup.<br />
For the second time in three years, Suddath received FEM’s<br />
(Forum for Expatriate Management’s) prestigious EMMA<br />
(Expatriate Management & Mobility Award) for International<br />
Mover of the Year — showing continued excellence in the global<br />
arena of household goods relocation. We also received an EMMA<br />
in the global mobility space for Thought Leadership – Survey or<br />
Research Study of the Year.<br />
Suddath was named a Gold Winner of the First Coast Worksite<br />
Wellness Council’s Healthiest Places to Work.<br />
Suddath received recognition from the highly regarded industry<br />
publication, The Commercial Carrier Journal, as one of the top 250<br />
fleets in size in North America.<br />
5<br />
5<br />
14<br />
Among its peers of nearly 1,000 agents, Suddath accepted 34<br />
awards at UniGroup’s annual convention, inclusive of almost all<br />
categories — sales, safety, fleet, hauling and customer service.<br />
5<br />
Since safety is, and always will be, a top priority for Suddath, one<br />
of the most significant achievements was receiving the prestigious<br />
2,000,000 Plus Miles FLEETTop Performance SALESAward for PRESIDENT’S Fleet Safety.<br />
SAFETY<br />
5<br />
FLEET<br />
SAFETY<br />
ACHIEVEMENT<br />
14<br />
5<br />
SALES<br />
ACHIEVEMENT<br />
CLUB<br />
FLEET<br />
SAFETY<br />
14<br />
2<br />
PRESIDENT’S<br />
CLUB<br />
MILLION<br />
DOLLAR CLUB<br />
SALES<br />
ACHIEVEMENT<br />
5<br />
5<br />
FLEET<br />
SAFETY<br />
HAULING<br />
PRESIDENT’S<br />
CLUB<br />
5<br />
2<br />
SALES<br />
ACHIEVEMENT<br />
CUSTOMER<br />
CHOICE<br />
1<br />
PRES<br />
C<br />
5<br />
FLEET<br />
SAFETY<br />
SALES<br />
ACHIEVEMENT<br />
14<br />
5<br />
2<br />
SALES<br />
ACHIEVEMENT<br />
PRESIDENT’S<br />
MILLION<br />
DOLLAR CLUB CLUB<br />
14 2<br />
5<br />
PRESIDENT’S<br />
MILLION<br />
DOLLAR CLUB CLUB<br />
HAULING<br />
5<br />
2<br />
HAULING FLEET<br />
SAFETY<br />
CUSTOMER<br />
CHOICE<br />
52<br />
CUSTOMER<br />
SALES<br />
ACHIEVEMENT<br />
CHOICE<br />
14 2<br />
1<br />
PRESIDENT’S<br />
MILLION<br />
DOLLAR CLUB CLUB<br />
CUSTOMER<br />
HERO<br />
5<br />
HAULING<br />
CUS<br />
CH
READY, SET, GROW!<br />
In addition to a year full of industry recognition, Suddath sustained our organic<br />
and acquisitional growth. A renewed focus on safety, quality, service offerings<br />
and technology innovation continues to allow Suddath to meet the growing<br />
needs of our customers.<br />
Suddath Workplace Solutions launched a new office furniture remanufacturing<br />
operation in Jacksonville, Florida. Because fewer raw materials such as wood,<br />
aluminum, steel and plastics are being used, remanufacturing conserves energy<br />
and natural resources. The EPA estimates that approximately three million tons<br />
of office furniture is discarded each year in the United States and that for each<br />
pound of natural resources used in remanufacturing, five to nine pounds of<br />
original materials are conserved. By offering our clients a remanufactured option,<br />
they are able to keep office furniture in circulation and out of landfills. Conserving<br />
energy and reducing air pollution are also benefits of using remanufactured<br />
furniture; the amount of energy required to remanufacture an existing product<br />
is 85 to 95 percent less than that required to manufacture new.
IMPROVING AND ENHANCING<br />
OUR OPERATING EFFICIENCIES<br />
ACROSS THE BOARD<br />
Addition of more than 120,000 square feet of dedicated warehouse<br />
space to support our logistics customers in Los Angeles and Dallas.<br />
New domestic location in Portland, Oregon, increasing our market<br />
share in the Pacific Northwest.<br />
In line with recent expansion into Hong Kong and London and in<br />
support of our overall global mobility strategy, we have opened a<br />
Global Center of Excellence in Shanghai.<br />
Began the implementation of a new and extremely robust Tier 1<br />
Warehouse Management System to provide our customers<br />
across all product lines a new level of functionality and visibility.<br />
Portland, OR<br />
Continual focus on employee development and education<br />
allowed us to begin the implementation of our new Human<br />
Capital Management System and Learning Management System.<br />
Ongoing investment in the containerization program to<br />
combat capacity issues continues to grow and is producing<br />
tremendous capacity benefits for our clients.<br />
As a result of our focus on safety, Suddath achieved a 4-Star<br />
safety status with UniGroup, established a new Agency Safety<br />
Representative role and is currently piloting the new UniGroup<br />
telematics device for our assets.<br />
Shanghai
IN PURSUIT OF BIG DREAMS...<br />
Every year, two Suddath scholarships are awarded to children of employees,<br />
which provides tuition and books for four years at a state university or college.<br />
The recipients are chosen based on a combination of grade point average,<br />
community involvement, personal achievements and an essay submitted to<br />
the selection committee.<br />
Suddath is pleased to announce the 2014 award recipients:<br />
Zachary Guerriero, Richard H. Suddath Scholarship<br />
Zachary Guerriero graduated from Kings High School, in Kings Mills, Ohio,<br />
with a weighted GPA of 4.18. Zach will attend the University of<br />
Cincinnati and plans on majoring in Engineering.<br />
EST. 1990<br />
Andrew Smith, A. Quinn Bell Scholarship<br />
Andrew Smith graduated from Suncoast Community High<br />
School in Riviera Beach, Florida, with a weighted GPA of<br />
4.08. He will pursue a double major in computer science/<br />
engineering and theatrical design at the University of<br />
Central Florida in Orlando.<br />
SCHOLARSHIPS<br />
AND COUNTING
HELPING HANDS<br />
Each year, Suddath locations across the nation volunteer time and<br />
donate monies and resources in support of their communities. The<br />
list is long but we wanted to share a few of these organizations we<br />
partnered with in 2014.<br />
®<br />
Raised and<br />
donated<br />
15k<br />
to the<br />
ACS<br />
ENVIRONMENTAL STEWARDSHIP<br />
In 2014, there were four major areas where The Suddath Companies continued to not only reduce our own<br />
environmental footprint but also help our customers fulfill their sustainability goals.<br />
CARB<br />
Natural Resources<br />
Energy Efficiency<br />
Waste Management<br />
Entire fleet will meet all<br />
CARB requirements by<br />
the end of 2016.<br />
Our new remanufactured<br />
furniture reduces the use<br />
of natural resources and<br />
consumption of energy.<br />
Suddath is a SmartWay<br />
partner — responsible<br />
in the area of fuel<br />
consumption.<br />
Waste removal from<br />
island at Baha Mar<br />
project site.<br />
100%<br />
REMOVAL
HONOR, HELP, HEAL<br />
In the fall of 2014, Suddath was honored to announce our newly<br />
formed partnership with K9s For Warriors as the Official Transportation<br />
Provider. Suddath donated two new vehicles so K9s For Warriors<br />
can safely transport their warriors and rescue dogs to and from<br />
their new facility in Ponte Vedra, Florida. We are so proud to unveil<br />
the first van of their fleet and are honored to be a small part of<br />
making quality of life possible for the most deserving of Americans<br />
(and dogs) among us! For more information on this amazing<br />
organization, visit k9sforwarriors.org.