6 Questions With … Mike Jarrett

Jarrett, a privately held and family owned logistics firm based in Orrville, Ohio, has built a strong reputation for delivering tech-enabled supply chain solutions. Founded in 1999, the company has focused on redefining logistics through a combination of cutting-edge technology, exceptional customer service, and a commitment to tailored client support. With a vision to become the industry’s top logistics provider, Jarrett has consistently prioritized innovation and a people-centric approach.

Founder Mike Jarrett brought over a decade of experience in logistics leadership to the company, having previously served as vice president of carrier operations at Caliber Logistics (now FedEx Supply Chain Services) and as a dock supervisor at Roadway Express. A graduate of the University of Mount Union with an MBA from The University of Akron, Mike plays an active role in his community, serving on several boards, including the Heartland Education Community, the Wayne County Community Foundation, and the University of Mount Union.

 

Below is this month’s 6 Questions With … feature, where Mike talks about the company’s history, the approach to technology, and what he sees for the future.

(Answers have been edited for length and clarity)

SCMR: What inspired you to start Jarrett and what challenges did you face in the early days of the company?

JARRETT: Back in the late ’80s and early ’90s, it was primarily the automotive sector that laid the framework for the growth of the 3PL industry. While working in the supply chain market, I saw a managed transportation solution with technology that would be more executable in both large and small companies, who were not served nearly as much back in the ’90s. The objective of Jarrett was to take a large 3PL solution-based approach and apply it to the midsized companies that were underserved by the main players in the 3PL industry at the time. I believed in the idea from the very beginning, but getting the company off the ground came with some significant challenges. We bootstrapped the business without any outside investments, and this made the early days very volatile. It took a few years to achieve our first major partnership but since then we’ve grown exponentially.

SCMR: As the company evolved and grew, was there a turning point that proved the difference in the path to profitability?

JARRETT: Definitely. The turning point was early on in our company’s history, in 2001, when the company was only two years old. Our largest customer started having financial trouble and stopped making their payments. They kept insisting that they would pay but after about 90 days, they filed for chapter 11 bankruptcy with an overdue amount of over $300,000. As a two-year-old company, we were obviously in a very fragile place at the time, and we came very close to going under. I immediately called our chief loan officer, with whom I had established a good relationship, and he signed a line of credit allowing us to stay afloat. Not only did this provide some temporary relief, but it also gave us the opportunity to refocus, dig in and come back better than ever by bringing on new business. That memory sticks with me to this day, even 24 years later. I always knew that it was important to have a strong balance sheet but after that ordeal, it became my priority to pay off our debt as soon as possible. You can’t predict the unexpected, but you can put yourself in a position to weather the storm. With this in mind, we have been able to remain debt free for the last 12-13 years.

SCMR: How do you differentiate yourself from other 3PLs in an increasingly competitive market?

JARRETT: At Jarrett, it’s our advanced technology combined with our people-centric culture that sets us apart. Our proprietary transportation management system (TMS) and our cloud-based warehouse management system (WMS) provide real-time visibility and analytics that allow our customers to make informed real-time decisions. Our company culture is second to none and it starts with our people. With dedicated people who are passionate about what they do and the company they represent, customers receive the best service from experts who are committed to learning and understanding their unique situations. As a large, family-owned company, we can remain flexible while providing a vast array of services and verticals that are typically only offered by the larger 3PL companies.

SCMR: Technology is transforming logistics. How are you leveraging technology to continue to innovate service options and improve customer service?

JARRETT: It really comes down to having the right integration and connectivity between systems to create the most efficient experience for our customers. We use application programming interface (API) connectivity to integrate with their enterprise resource planning (ERP) systems so their orders come directly into our TMS. From there, it allows our logistics coordinators working on each respective customer’s account team to assign the lowest cost, best service carrier, consolidate orders into truckload and book those shipments within our customer’s ERP system. Our vendor portal then collects this data into a centralized data hub to provide real-time status updates for improved client visibility.

Many consumer-packaged goods (CPG) and retail customers also use Jarrett for warehouse order fulfillment. This enables us to use our WMS platform, connected to our TMS, to combine orders and assign shipments in our own warehouse locations in Ohio, Pennsylvania and Utah. These integrations provide our partners with personalized transportation solutions so they can stay focused on what they do best.

SCMR: The 3PL market has seen tremendous change and growth in recent years. How do you assess the current market, and the biggest challenges it faces in the near future?

JARRETT: I think technology has become increasingly important in the execution of services in two vital areas. First off, integration is essential. We want to integrate with our customers’ ERP systems and load tendering with carrier partners so we can provide tracking for visibility, quoting, freight bill payment and invoicing. IT resources are scarce so integrating in a way that is easy, quick and takes fewer resources is crucial to remain a leader in the 3PL space. We partner with an integration technology, called 1LogTech, which is a low-code, middle-ware solution that reduces the time it takes to integrate with a partner from hundreds of hours to just 8-10. Not only that, but the low-code aspect means that it does not require a developer to keep up with ongoing maintenance which saves on resources.

The second technology driving growth in the 3PL market is the use of AI. This is where I think there is a fork in the road. The natural progression for some companies in our space is to use AI to interact with the customer using programs such as chatbots. We have chosen not to go down that path. We answer emails within 10 minutes and clients can call the Jarrett Routing Center to get a live person on the phone in three rings or less. That level of customer service is what makes us unique in the industry and we are not going to change that. We use AI extensively for repeatable back-office tasks that free our people up to build relationships and remain front-facing with customers. For example, we’ve created a code for AI to scrape shipping order emails, even ones with PDF attachments, and pull out all the data before automatically creating an order in our TMS.

Technology creates a lot of opportunities, but it can also introduce several challenges, and I think how a 3PL decides to utilize technology will make a huge impact on their ability to navigate the future market.

SCMR: Looking ahead, what’s next for Jarrett Logistics?

JARRETT: Last year was a record-setting year for us and we are on pace to have another record first quarter. As we continue to grow, we want to move forward as a one-stop shop with multiple vertical services. Many of our customers approach us about one of our verticals, for example, warehousing, but then they ask about managed transportation, then truckload brokerage and then they want us to take international too.

We want to continue providing multiple vertical solutions because we have the bandwidth to do that. I think what makes us different from our competition is we can provide scalable supply chain solutions to large market leaders with a family-owned focus. It is unique to be the sized company we are, but still design, implement and execute complex supply chain solutions for iconic brands. Our family-owned, core values are an advantage because it means our customers aren’t just treated like numbers.

SCMR: Thank you.

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